COPT Buys Baltimore Office Building for $64M

Corporate Office Properties Trust (COPT), an office REIT that focuses primarily on serving the specialized requirements of U.S. Government agencies and defense contractors, announced this week that it had purchased 250 West Pratt Street in Baltimore for $63.5 million, or $172 per square foot. The building's seller, Dallas-based Tier REIT Inc., was represented by Cushman & Wakefield of Maryland Inc. in the transaction; Tier acquired the 24-story tower for $51.8 million in 2004.

"This acquisition enhances the quality of our regional office portfolio by increasing our ownership of urban, in-fill buildings in amenity- and transportation-rich submarkets," Roger Waesche, Jr., COPT's President and Chief Executive Officer, said in a press release.

Located in Maryland's Pratt Street Corridor near the Inner Harbor, the 368,200 square foot building has quick access to light rail, I-395, the MARC Train's Camden Yards station and is walking distance from the subway. The property was 95% leased at the time of sale and will soon become home to Pandora Jewelry LLC, which is moving its Americas headquarters and hundreds of workers to the property from Columbia in the next several weeks.

For more news and information visit Blumberg Capital Partners.

Baltimore's Transamerica Tower for Sale

The tallest building in Baltimore came to market this month as the 35-story Transamerica Tower at 100 Light St. was put up for sale, according to commercial real estate services firm DTZ. Lexington Realty Trust, a NYC-based REIT, acquired the property on 12/31/2006, and later enhanced the Transamerica Tower with a $44 million renovation by adding a new parking garage across the street, conference center, cafeteria and fitness center and redesigning the plaza and lobby.

"It's currently 94% leased, and over the years the full renovations have been completed by the ownership, and the market makes it a good time for it to be placed out there. … It's a very competitive market in the gateway cities, so we have more of those capital sources looking at secondary markets to purchase office and industrial product," said Nicole Keelty, a senior vice president at DTZ in Baltimore, which is marketing the property. "It's a good time to be placing it on the market." There is no set asking price for the building, but Keelty said it has already received interest from possible investors.

Transamerica Tower is located in the center of the Central Business District of downtown Baltimore, MD. Major tenants in the facility include Transamerica Life Insurance Company, Ober, Kaler, Grimes & Shriver, and Miles & Stockbridge P.C. The property serves as a general office building.

For more news and information visit Blumberg Capital Partners.

Cordish's $450M Baltimore Arena Proposal

The Cordish Companies, a Baltimore-based global conglomerate of businesses with real estate management and development expertise, has unveiled its plans to build a new $450 million waterfront arena and outdoor performance venue along the Inner Harbor. The proposed 15,000-seat arena would replace the Royal Farms Arena, located about 1 ½ miles away. The proposed location, according to a Baltimore Business Journal article, is tucked between Power Plant and Harbor East, and is currently home to the Pier Six concert pavilion, Pier 5 Hotel, a surface parking lot, McCormick & Schmick's and a Ruth's Chris Steak House. Cordish made a presentation about the plan to the Greater Baltimore Committee recently, which revived perennial debate about how to replace the aging arena on the city's west side.

City Councilman James Kraft, who represents Southeast Baltimore, said his "gut reaction" is to oppose the plan, comparing it to the Hilton hotel, a project he also opposed. That subsidized hotel near the Baltimore Convention Center has struggled financially. "I'd love us to have a new arena, but I'd like to see somebody build it themselves," said Kraft, also citing concerns about traffic and parking. "If they're going to operate it and make a profit, they can pay for it. I don't want the city to put any money into it. We can't meet the needs we have right now."

"We love our hometown and see a once-in-a-generation opportunity to create an iconic waterfront arena that would be a game changing project for the city," Cordish said in a statement. "Obviously, the building of a bridge or arena would require a public/private partnership, but we are optimistic that the public subsidy for this particular location can be limited to incremental revenue that is created by the project. As to subsidy, this particular site is so prominent that the naming rights opportunity will be maximized."

For more news and information visit Blumberg Capital Partners.

Exelon Building Will Add 500,000SF to Baltimore Skyline

Exelon Corporation announced this week that it had selected the developer, site and design for its new headquarters in Baltimore, expected to deliver by 2014 according to a Baltimore Business Journal article. Exelon chose Harbor East Development Group, LLC, as the developer for the proposed headquarters to be located at Harbor Point between Fells Point and Harbor East in Baltimore.

"We are excited to move forward with our plans to build a new Baltimore headquarters facility, bringing significant benefits to the City of Baltimore, including additional jobs and tax revenue," said Exelon President and COO Christopher M. Crane. "We are committed to Baltimore's downtown and its business district, and we look forward to being a growing part of the Baltimore community as the overall vitality of the city's downtown continues to flourish."

"It was clear from our first discussion with Exelon that they wanted a unique headquarters facility that would create a dynamic home for their growing Baltimore workforce," said Michael S. Beatty, President of Harbor East Development Group, LLC. "When people visit this site in three years they will realize just how committed Exelon and Constellation are to not only their employees but to the greater community and the environment. This project will be a model catalyst for the development of a truly sustainable and vibrant neighborhood."

Michael Beatty, president of Harbor East Development Group LLC, estimated that the Exelon building will be 500,000 square feet, 400,000 of which the company will use for its headquarters, and create 1,000 construction and other jobs and provide new tax revenue for the city.

For more news and information visit Blumberg Capital Partners.