This Week's Baltimore Deal Sheet
French firm KIMPE SAS purchased a 40K SF industrial building in the Halethorpe area, a type of property the deal's broker said is rarely available in today's tight industrial market.
The single-story industrial building is located at 3801 Southwestern Blvd., and the deal includes a separate 3-acre property at 3901 Southwestern Blvd. The parties didn't disclose the sale price.
State property tax records list the seller's address as 309 North Calvert St., the former American Office headquarters. That company, according to the Baltimore Business Journal, put the warehouse and its downtown headquarters building on the market last summer following a sale to rival MOI.
State records don't include previous sales of the 75-year-old building at 3801 Southwestern Blvd., but the most recent tax assessment valued it at over $805K. The land at 3901 Southwestern Blvd. last sold in 1998 for nearly $157K. The property's latest tax assessment estimated its value at almost $198K.
“Market occupancy in this section of Baltimore City and Baltimore County is 96 percent so space is extremely limited, and buildings of this size [are] rarely becoming available,” MacKenzie Commercial Real Estate Services' Andrew Meeder, who brokered the deal on behalf of the buyer, said in a statement.
New development in the area has been limited to 100K SF over the past 15 years, and there is no property available for future development, Meeder said. Additionally, the submarket has experienced seven consecutive quarters of positive net absorption.
According to MacKenzie Commercial Real Estate Services, the submarket southwest of Baltimore consists of approximately 3.2M SF that's posted an average occupancy topping 93% during the past decade. The broker placed the cost of developing a comparable product in the submarket at more than $250 per SF.
SALES
Industrial developer Trammell Crow Co. purchased 20 acres to expand its Elkton Commerce Center, according to the Baltimore Business Journal. The site now covers 319 acres following the expansion. The developer has delivered a 766K SF warehouse on the site, and another 330K SF facility is under construction, Trammell Crow told the BBJ.
FINANCING
Baltimore-based Capital Funding Group said it approved more than $1B in multifamily financing through 39 bridge-to-HUD deals in 2022.
“This year’s success is a true testament to our expertise and entrepreneurial approach to lending," CFG Managing Director Elizabeth Buckalew said in a statement. "In a time of volatility and economic uncertainty in the credit markets, we stayed strong and worked creatively alongside our clients to get deals across the finish line."
LEASES
Wednesday marked the deadline for the Baltimore Orioles to execute a one-time lease extension for Oriole Park at Camden Yards, according to the Baltimore Sun. The extension, if approved, would keep the team tied to the stadium for an additional five years. If the team fails to extend its lease at the stadium, the deal would expire on Dec. 31.
DEVELOPMENT
The 10-unit Hamlet Lofts building opened in a former church at 3127 Baltimore St., according to the Baltimore Business Journal. The renovated building near the city's Patterson Park includes a commercial space in the former choir loft. The developers, Michael Burton and Mark Shapiro, acquired the property for $500K in December 2019, according to the BBJ.
PERSONNEL
Joel L. Perrell Jr. has joined Womble Bond Dickinson's Baltimore office as a partner in the Capital Markets group. Perrell previously worked at Miles & Stockbridge, as co-leader of its Real Estate & Transactional Finance practice group.
THIS AND THAT
A Maryland court allowed Baltimore-area tenants of a management company owned by Jared Kushner — the son-in-law of former President Donald Trump — a second chance to pursue a class-action lawsuit against the company, according to The Daily Record. The plaintiffs are seeking damages against Westminster Management LLC for allegedly violating state law by charging tenants late fees exceeding 5% for delinquent rent.
