This Week's Baltimore Deal Sheet
St. John Properties purchased a 17-acre parcel fronting York Road in Hunt Valley. The company plans to speculatively develop flex/research and development space and retail space.
The Baltimore County-based developer intends to build a 110K SF project, dubbed Hunt Valley Exchange, at the corner of York Road and Wight Avenue adjacent to the Coty manufacturing facility.
"The flex/R&D asset class continues to perform extremely well in this region, and this site adds to our critical mass of properties positioned in the York Road corridor,” St. John Properties Executive Vice President Sean Doordan said in a statement. “We believe this site is among the last remaining pieces of raw land suitable for commercial development within the submarket and will feature the only new flex/R&D buildings constructed in the area over the last 10 years.”
Hunt Valley Exchange's program consists of two roughly 46K SF, single-story flex/R&D buildings with two retail pad sites between 3K SF and 6K SF. SJP intends to start the development of three buildings once site plans are approved.
Doordan and acquisitions representative Alex Lyons represented SJP in the deal. Jay Wellschlager, managing director of JLL, represented the seller, Noxema.
FINANCING
A loan granted roughly two years ago financing the $29M purchase of a building in the Highlands office complex in the Sparks section of Baltimore County has moved to special servicing, according to Morningstar.
The primary concern about the delinquency at Tower Point, which Morningstar previously reported at 30 days and 60 days delinquent, centered on the property's occupancy rate. Occupancy at the property declined from 90% when Argentic Real Estate Finance approved the loan in June 2021 to 77% by March.
Securities and Exchange Commission filings show the owner, New Jersey-based Point Lots BDEF Property Owner LLC, combined roughly $12.4M in equity with $20M in debt to purchase the 163K SF office complex.
LEASES
Federal Realty Investment Trust announced Monday that Giant Food would replace Shoppers Food & Pharmacy at its Perring Plaza in Parkville. Additional tenants at the recently renovated 396K SF shopping center include Mama Lucia’s, Crazy Crab Shack and Home Depot.
Earlier this month, a spokesman for Shoppers' parent company, United Natural Foods, said the grocer would close the Perring Plaza store in July. According to the spokesman, the closure stemmed from the plaza owner offering the 58K SF location to another tenant.
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Maryland's recently reconfigured Alcohol, Tobacco and Cannabis Commission will sublease office space from the Maryland Auto Insurance Fund at 1215 East Fort St., the Baltimore Business Journal reports. The Board of Public Works approved a 24,292 SF lease in Baltimore's Locust Point neighborhood.
MILESTONES
TPC Racing started construction on an $8M, 40K SF headquarters building at 7869 Dorsey Run Road in the Howard County portion of Jessup.
The single-story project is expected to deliver in the fourth quarter. TPC Racing, involved in international racing and selling and repairing high-end performance vehicles, purchased the property more than three years ago after a nearly 10-year search for a suitable space.
Lee & Associates | Maryland principal Kate Jordan and Vice President Marley Welsh brokered the purchase of the 4-acre site where the single-story building is under construction. TPC Racing also retained Jordan and Welsh to secure a lease for 16K SF of industrial/warehouse space it won't occupy.
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Harbor East Management Group announced Monday that the International WELL Building Institute designated the firm’s eight properties in Baltimore's Harbor East neighborhood as WELL Health-Safety Rated.
The buildings at 650 South Exeter St., 1000 Lancaster St., 1001 Fleet St., Bond Street Wharf and 100 International Drive achieved the designation. The company's three multifamily buildings, Liberty Harbor East, Spinnaker Bay and The Promenade, also earned the title.
According to Harbor East Management Group, the designation serves as a benchmark for firms prioritizing the health and safety of staff, visitors and stakeholders.
