Maryland

Developers Turn to CPACE Financing to Achieve Better Returns Amid Rising Costs Environment

by John Nelson June 10, 2022

By Jason Schwartzberg, President of MD Energy Advisors The real estate development industry has been negatively impacted by a continued series of hardships over the past 24 months, including rapidly escalating construction costs, breakdowns in the supply chain, inflation, labor shortages, rent freezes and, most recently, rising interest rates. Many projects are still managing to receive financing and get underway, but the current environment presents significant challenges for owners and investors to place a project under contract, achieve entitlement, obtain construction financing and then build, deliver and stabilize the development. For a project to move from concept to completion, it must first meet the internal rate of return (IRR) or hurdle rate, also known as the “minimum acceptable rate of return” (MARR). Developers and investors maintain various thresholds for the definition of an acceptable IRR, but the return of the project must ultimately be commensurate with the risk undertaken to complete it. Variables associated with construction and market risks also factor into the equation. There are several methods to increase a project’s return in order to reach a desired hurdle rate, some of which are outside of the developer’s direct control. Major inputs that significantly impact returns include the cost …

June 10, 2022

Acquisitions Industrial Maryland Southeast

Link Logistics Sells Six-Property Industrial Portfolio in Mid-Atlantic for $67.5M

by Amy Works June 6, 2022

BALTIMORE — New York-based Link Logistics has completed the disposition of Beltway+ Industrial Portfolio, a six-property, 430,118-square-foot industrial portfolio located in the Mid-Atlantic region. Massachusetts-based High Street Logistics Properties acquired the portfolio for $67.5 million. Situated in the Baltimore-Washington Corridor, Beltway+ Industrial Portfolio was 92 percent leased at the time of sale to 26 tenants. The largest asset in the portfolio is a 114,980-square-foot, Class A property located at 6695 Business Parkway within Meadowridge Business Park in Elkridge, Md. The remaining properties are small-bay industrial assets with direct access to Interstate 695. Christopher Abramson, Ben McCarty and Nicholas Signor of Newmark represented the seller in the deal. Brian Kruger, Thomas Hinder and Erik Evans of Newmark will handle leasing of the property on behalf the new ownership.

June 6, 2022

Acquisitions Maryland Multifamily North Carolina Seniors Housing Southeast Virginia

Foundry Commercial Buys 24-Property Spring Arbor Senior Living Portfolio in Mid-Atlantic

by Amy Works June 1, 2022

ORLANDO — Foundry Commercial, in partnership with an investment fund managed by Morgan Stanley Real Estate Investing, has purchased the Spring Arbor Senior Living collection of 24 assisted living and memory care communities across the Mid-Atlantic. As part of the transaction, Foundry Commercial acquired the current operator, which will continue to manage the properties post-closing. The portfolio contains 1,424 units throughout Maryland, North Carolina and Virginia, with capacity for more than 1,800 residents. The Spring Arbor platform will continue operations under the Spring Arbor Senior Living brand. Capital Funding arranged financing for the transaction. Terms of the acquisition were not released.

June 1, 2022

Development Loans Maryland Mixed-Use Multifamily Retail Southeast

UIP Plans $112M Canvas Mixed-Use Project in Hyattsville, Maryland

by John Nelson May 31, 2022

HYATTSVILLE, MD. — Urban Investment Partners Inc. (UIP) has secured debt and equity financing for Canvas, a $112 million mixed-use development in downtown Hyattsville. The six-story project will be located at 5300 Baltimore Ave. and feature 285 one- and two-bedroom apartments, 31,660 square feet of ground-floor retail space and 681 parking spaces. Washington, D.C.-based UIP is financing the project using $27.1 million in equity, including $19.1 million from crowd-sourced capital raised on CrowdStreet from 422 individual investors. Other financing sources included a $42.3 million loan from Parkview Financial and $42.8 million in proceeds from a land sale-leaseback agreement with Safehold. Torti Gallas + Partners designed Canvas, which is expected to begin initial occupancy in the fourth quarter of 2023.

May 31, 2022

Acquisitions Industrial Maryland Southeast

MacKenzie Brokers $10.3M Sale of Warehouse, Land in Baltimore County

by John Nelson May 25, 2022

HALETHORPE, MD. — MacKenzie Commercial Real Estate Services has brokered the $10.3 million sale of a 103,640-square-foot warehouse in Baltimore County. The transaction includes a vacant, single-story property located at 1407 Parker Road in Halethorpe and an adjacent development site located at 1441 Knecht Ave. Built in 1960, the property features office space, 16- to 21-foot clear heights, five loading bays, interior dock positions and surface parking spaces. Ohio-based Pioneer Cladding & Glazing Systems Inc. purchased the property and land from Pitts Realty LP, which formerly operated David Edwards Furniture from the site. Daniel Hudak and Andrew Meeder of MacKenzie represented the seller in the transaction.

May 25, 2022

Civic Development Healthcare Maryland Southeast

University of Maryland Medical Center Breaks Ground on $219M Healthcare Tower in Baltimore

by John Nelson May 18, 2022

BALTIMORE — The University of Maryland Medical Center (UMMC) has broken ground on the Roslyn and Leonard Stoler Center for Advanced Medicine, a nine-story patient care tower located on the UMMC campus at 22 S. Greene St. in downtown Baltimore. The facility will serve as the new entrance to the UMMC and house the University of Maryland Marlene and Stewart Greenebaum Comprehensive Cancer Center (UMGCCC). The $219 million development is expected to be completed in mid-2025. The project, which will more than double the cancer center’s footprint, will feature 198,000 square feet of new space and 42,000 square feet of renovated space. UMMC is funding the tower with $100 million from the state of Maryland, along with private donations and UMMC capital funds. UMMC has raised more than $51 million from 130 donors as part of UMMC’s Building for Life Campaign to fund the project. Clark Construction will serve as general contractor for the project, which is estimated to be wrap up in 32 months.

May 18, 2022

Acquisitions Affordable Housing Loans Maryland Multifamily Southeast

JLL Arranges $19.5M Acquisition Financing for Metro D.C. Affordable Housing Community

by John Nelson May 12, 2022

LEXINGTON PARK, MD. — JLL Capital Markets has arranged a $19.5 million acquisition loan for River Bay Townhomes, a 173-unit affordable housing community in Lexington Park. JLL arranged the floating-rate loan through Sound Point Capital Management on behalf of the borrower, Linden Property Group. Developed using Low-Income Housing Tax Credits (LIHTC) in 2004 and 2005, River Bay Townhomes consists of three-bedroom, two-bath units an average square footage of 1,291, making them some of the largest units available in metropolitan Washington, D.C., according to JLL. Of the 173 units, 155 units are set aside for tenants who make no more than 60 percent of the area median income (AMI). Situated at 48100 Baywoods Drive, the property is located within St. Mary’s County in southern Maryland at the confluence of the Chesapeake Bay, the Potomac River and the Patuxent River. The area includes multiple military bases and defense contractors, St. Mary’s College of Maryland and the University of Southern Maryland.

May 12, 2022

Development Life Sciences Maryland Southeast

Trammell Crow to Develop 757,000 SF Life Sciences Campus at Johns Hopkins Satellite Campus in Maryland

by John Nelson May 11, 2022

ROCKVILLE, MD. — Trammell Crow Co. has plans to develop The Lab at Belward, a life sciences project situated on the Belward Campus of Johns Hopkins University in Rockville. The property will initially span 757,000 square feet of laboratory and research and development space across three buildings. Trammell Crow entered into a 99-year ground lease with Johns Hopkins University for the 21-acre project. Designed by Gensler to achieve LEED Gold standards, The Lab at Belward will include 18-foot ceiling heights on both the basement and ground floors, with 16-foot heights on all other floors. The property will include amenities, terraces, balconies and a parking garage, as well as a six-acre public park with two retail pavilions. At full buildout the project could span up to 1.6 million square feet across seven buildings, according to Trammell Crow. The Dallas-based developer plans to break ground on the initial phase in June 2023 and deliver the project in early 2025. The project team includes general contractor Clark Construction Group; civil engineer Soltesz Inc.; land use engineer Lerch Early Brewer; mechanical, electrical and plumbing (MEP) engineer James Posey Associates Inc.; structural engineer Thornton Tomasetti; and landscape architect OJB. CBRE is managing the marketing and …

May 11, 2022

Development Industrial Maryland Southeast Top Stories

MRP Industrial, Hillwood Development Plan 3.7 MSF Bainbridge Logistics Center in Port Deposit, Maryland

by Katie Sloan May 2, 2022

PORT DEPOSIT, MD. — A joint venture between MRP Industrial and Hillwood Development Co. has announced plans for Bainbridge Logistics Center, a 3.7 million-square-foot industrial development in the town of Port Deposit, located in Maryland’s Eastern Shore region. Bainbridge Naval Training Center formerly occupied the 440-acre site, which is located three miles from Interstate 95, approximately 42 miles from Baltimore and 40 miles from Wilmington, Delaware. The project’s first phase of development will include two single-story, speculative, Class A warehouse and logistics buildings totaling 1 million square feet and 605,280 square feet, respectively. The developers are seeking LEED certification for both buildings, which will include LED lighting and white reflective roofs, among other energy-saving design features. Both assets will offer deep truck courts to support the movement of large tractor trailers; parking fields for both employees and visitors; and large floor plates to accommodate a range of uses, including light manufacturing, warehouse, logistics and last-mile operations. The development will also feature $30 million worth of infrastructure improvements, including expansion of both water and sanitary services to support the logistics center and the surrounding community; the construction of three miles of public roads to connect the park to three highways; and …

May 2, 2022

Acquisitions Maryland Retail Southeast

Continental Realty Corp. Sells Shopping Center in Metro Baltimore for $11.9M

by Julia Sanders April 26, 2022

DUNDALK, MD. — Baltimore-based Continental Realty Corp. (CRC) has sold Merritt Manor Shopping Center, an 88,332-square-foot, fitness-anchored retail center in Dundalk. Columbia, Md.-based Abrams Development Group purchased the property for $11.9 million. Dean Zang and David Crotts of Marcus & Millichap represented CRC in the transaction. Merritt Manor was 96 percent leased at the time of sale to tenants including Gold’s Gym, Sherwin-Williams, Dollar General, Hair Cuttery, GNC, Chicken Rico and Leslie’s Swimming Pool Supplies. CRC completed renovations on the property, including upgrading the center’s exterior facade, enhancing all landscaping elements and upgrading the center’s signage. Located at 1119-1211 Merritt Blvd., the property is 9.9 miles from Baltimore and 18.7 miles from Baltimore/Washington International Thurgood Marshall Airport.

April 26, 2022

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