This Week's Baltimore Deal Sheet
The redevelopment of Baltimore's Penn Station enticed a local boutique apartment developer to purchase a building in the Station North neighborhood with plans for substantial renovations.
The Chasen Cos., which has overhauled notable properties like The Brixton, The Caroline and 300 Cathedral, purchased the 18-unit Chatham Apartments at 1720 St. Paul St. for an undisclosed price. That property last sold in 2002 for $675K, and its latest tax assessment valued it at $931K, according to property records.
"We are excited to close on The Chatham in Station North, just steps from Penn Station,” Chasen Cos. Chief Operating Officer Drew Peace said in a statement. "The redevelopment and modernization of the train station will undoubtedly raise Baltimore’s profile as a destination for not only residents but visitors and businesses as well.”
Chasen Cos. plans "significant improvements and modernization" of The Chatham's residences and common areas. The property includes five studio units, 11 one-bedroom units and a pair of two-bedroom units, according to broker Harbor Stone Advisors. Amenities include 10 parking spaces behind the building and coin-operated laundry in the basement.
Efforts to revitalize the Station North area have enticed investment, especially for nonprofit office space and cultural centers, such as Jubilee Baltimore's $19M transformation of abandoned theatre The Centre into a 67K SF arts and innovation center.
Yet Station North has attracted relatively little multifamily investment beyond SAA|EVI Development's $25M Nelson Kohl apartments, which delivered in early 2018.
But with $90M in upgrades at Penn Station underway — along with a massive redevelopment of surrounding properties by Penn Station Partners, a partnership including Beatty Development and Cross Street Partners — Chasen Cos. expects an increase in demand for flats in the neighborhood.
"A new platform will accommodate Acela high-speed rail trains moving passengers throughout the busy corridor from Washington to New York," Peace said. "Station renovations will welcome travelers and the surrounding transit-oriented community to utilize a modern train hub with new retail, offices, residences, and hotels."
SALES
A deal for two industrial outdoor storage properties marks Houston-based Triten Real Estate Partners' second deal in the Baltimore market and the first under new principal Danny Coffman.
The two properties, at 1205 68th St. and 11235-11239 Philadelphia Road, were sourced off-market through a standing relationship with previous owner Greenspring Realty Partners, according to Triten.
Both properties are zoned for heavy industrial uses. The 68th Street property is used as a truck terminal and freight facility. The Philadelphia Road property, which has 7 acres available for lease, is permitted for dismantling and storing vehicles.
DEVELOPMENT
Chesapeake Conservancy dropped plans to build an office building at Quiet Waters Park amid growing opposition to the project from neighbors, according to the Baltimore Sun.
Residents vigorously opposed the proposal despite the fact the 19-acre property was added to the park two years ago after the conservancy donated $2M to help fund the purchase. The property was slated for residential development before the county bought the land.
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Baltimore-based developer ARLS Properties has started construction on the 35-acre mixed-use Bel Air Village, according to Commercial Observer. Plans for the project call for 115K SF of office space, 252 multifamily units and 24 townhomes. The developer also expects to build up to 11K SF of retail.
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Workshop Development presented plans for a 165-unit apartment building to the city's design panel, according to the Baltimore Business Journal. The developer intends to raze a warehouse at 810 Leadenhall St., a former Shofer’s Furniture warehouse, to make way for the project.
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Baltimore's design panel praised a proposal for a new glass-encased expansion of historic Penn Station, according to the Baltimore Business Journal. The planned annex is part of Amtrak's ongoing $90M overhaul of the train station.
PERSONNEL
Cushman & Wakefield has hired Charles McGrath as managing director. He will focus on growing the firm’s capital markets platform in the Maryland, Pennsylvania, New Jersey and Delaware markets.
Most recently, McGrath worked at MRP Realty, managing 9M SF of development and investments representing $2.2B of assets. Before that, McGrath worked in New York, Chicago and San Francisco, developing and leasing commercial buildings.
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Gov. Wes Moore appointed Salisbury Mayor Jake Day to serve as the secretary of the Maryland Department of Housing and Community Development. During Day's tenure as mayor, his administration championed plans to revitalize the city's traditional downtown with pedestrian-friendly mixed-use development.
