Three major storylines are playing out in Baltimore, the northern part of the one-two city punch that combines for more than 9 million people and forms the fourth-largest metropolitan region of the country. These three sub-plots each contribute to the larger vernacular of the Charm City story. The activity in the office sector is occurring against the backdrop of a robust warehouse/industrial market, as national companies are recognizing the attractiveness of the Port of Baltimore and access to the Eastern Seaboard. Baltimore is also enjoying the healthiest retail environments seen in years, highlighted by the construction of new large-scale shopping centers to service Millennials and empty-nesters moving downtown. 1. Shifting Blocks of Space Two separate 200,000-square-foot blocks of prime office space are moving to the now-under-construction Harbor Point overlooking Baltimore’s Inner Harbor, the development centerpiece of the Constellation Energy Group merger with Exelon Corp. Upon completion, the former industrial brownfield site will feature more than 1.6 million square feet of commercial office space. Add in a separate 200,000-square-foot move by the Baltimore headquarters of M&T Bank from 25 S. Charles St. (with sources indicating the company may back-fill the space themselves) and you have pretty large shoes to fill in …
MCKINNEY, TEXAS — Baylor Scott & White Health, a not-for profit healthcare system, along with Duke Realty, an Indianapolis-based commercial real estate developer, have begun developing the 75,000-square-foot, three-story Baylor McKinney II medical office building (MOB) at 5252 W. University Drive in McKinney. The MOB will be located on the Baylor Medical Center at McKinney campus adjacent to Baylor McKinney I, a 114,924-square-foot MOB which opened in 2012. Baylor McKinney MOB II is expected to be complete in September 2016. The Dallas office of Medco Construction is the general contractor for the project, and the Dallas office of HDR is the architect.
HOUSTON — Transwestern has arranged construction financing for the Arabella, a condominium tower being developed on the southeast corner of San Felipe Road and Westcreek Lane in Houston. The 33-story property, which will have a total of 99 residences, is scheduled for completion in fall 2017. Jan Sparks and Michael Snodgrass of Transwestern arranged the financing on behalf of developer Randall Davis of D.C. Partners. The EB-5 Immigrant Investor Program, which was part of the equity, allows foreign nationals to obtain an expedited green card in exchange for stimulating the U.S. economy through job creation. Located next to the River Oaks District, Arabella is expected to break ground this month. The high-rise will have penthouses with private swimming pools on the upper floors and a variety of floorplans, most with private elevator entries. Powers Brown Architecture is the project’s architect, and GT Leach Construction is the general contractor.
IRVING, TEXAS — RealtyMogul.com has helped finance the acquisition of the Villa France Apartments, a 134-unit apartment property in Irving. RealtyMogul.com raised $1.5 million of the $3.4 million financing in equity. A joint venture between Paladin Preferred Capital and Steve Bram served as the sponsors of the transaction. Villa France, which is located between Dallas and Fort Worth, features amenities including a playground area, swimming pool and community barbecues. While 35 percent of the units at the property have been upgraded, the sponsor plans to complete renovations on the additional 87 units to optimize rental rates.
PILOT POINT, TEXAS — Alex Payne of Denton, Texas-based Axis Realty Group has arranged the sale of Northstar Center, a 42,040-square-foot, grocery-anchored retail center in Pilot Point. Payne represented the unnamed seller in the transaction. PD Capital, a Dallas-based retail investment group, was the buyer. Tenants at the property include Brookshire Brothers, Anytime Fitness, Pizza Hut and Golden Chick. Located at 750 US-377, Northstar Center was built in 2006 and the Brookshire Brothers space was completely renovated earlier this year.
AUSTIN, TEXAS — The U.S. Green Building Council (USGBC) has awarded LEED Gold certification to East Austin’s Corazon apartment and retail development. Developed by Austin-based Argyle Residential, the project utilizes high-efficiency heating and cooling systems, and each unit features energy-efficient lighting, appliances and hot water heaters. The project also used recycled materials during the construction process, and took steps to minimize construction waste. The LEED scoring system also recognized the walkability and public transit access provided by Corazon’s central location, the project’s drought-tolerant landscaping and its use of materials and finishes that promote a healthy indoor environment.
MIAMI — Federal Realty Investment Trust, alongside partners Grass River Property and The Comras Co., has acquired an 85 percent interest in The Shops at Sunset Place, a 515,000-square-foot mixed-use center located in Miami. The $110 million transaction includes the assumption of an existing $70.8 million mortgage with an interest rate of 5.6 percent and maturity date of September 2020. The center comprises 408,000 square feet of retail and 107,000 square feet of office space with a 1,700-square-foot parking garage. Tenants at the center include AMC Theatres, LA Fitness, Barnes & Noble, Forever 21, Splitsville and Z-Gallerie.
BENTON, ARK. — GBT Realty Corp. has signed a contract to acquire a 28.8-acre parcel along I-30 West in Benton for the development of The Shoppes of Benton. The 170,000-square-foot regional shopping center will be GBT Realty’s first development in Arkansas. The Brentwood, Tenn.-based developer plans to close on the land purchase by the end of the year and break ground in the first quarter of 2016. The city of Benton passed a resolution in September that established a partnership with Benton Public Utilities Commission for $1.4 million in infrastructure improvements at the site, including water, sewer and electrical services. Valued at $36 million upon completion, The Shoppes of Benton will feature two anchor tenants, space for three junior anchors, 32,000 square feet of small shop space and four outparcels. GBT is currently finalizing negotiations with several national retailers, some first-to-market. The company expects to announce the initial tenant line-up early next year and complete construction by spring 2017.
ORLANDO, FLA. — Institutional Property Advisors Capital Markets (IPA Capital Markets) has arranged $35.2 million in acquisition financing for Victoria Place, a 364-unit apartment community located at 12612 Victoria Place Circle in Orlando. Jake Roberts and Anita Paryani of IPA Capital Markets arranged the 15-year loan with a fixed 4.78 percent interest rate and a 30-year amortization schedule. The loan features 10 years of interest-only payments.
DAVENPORT, FLA. — Phillips Edison Grocery Center REIT II Inc. has acquired Berry Town Center, a 99,441-square-foot, Publix-anchored shopping center located 15 miles southwest of Orlando in Davenport. The REIT purchased the shopping center from Sabal Financial Group for $13.1 million. Berry Town Center’s tenant roster includes Leslie’s Pool Supplies, Regis and Linksters Tap Room. CBRE represented the seller in the transaction.