This Week's Baltimore Deal Sheet
Baltimore-based Klein Enterprises sold the 170K SF Deer Park office/flex center in Randallstown to Bethesda-based Fernau LeBlanc Investment Partners for an undisclosed amount, The Daily Record reports. According to online property records, Klein Enterprises, operating as Deer Park MZL LLC, purchased the roughly 30-year-old property for $8.2M in 2010.
LEASES
Baltimore's spending board voted Wednesday to nix charging MCB Real Estate ground rent for three years as it works to redevelop the faltering Harborplace pavilion at the Inner Harbor, the Baltimore Sun reported. The property had languished in receivership for years following the checkered ownership of Ashkenazy Acquisition Corp. A Baltimore Circuit Court judge approved the sale of the property to MCB Real Estate in late 2022.
FINANCING
A $29M loan issued two years ago to finance the purchase of Tower Point at the Highlands office complex in Sparks is now 60 days delinquent, according to Morningstar.
Last month, Morningstar raised concerns about the property, then 30 days behind on its loan payment, because its occupancy rate dropped from 90% when purchased in 2021 to 77% today.
"The tenant that downsized accounted for about 20% of the underwritten rent, so back of the envelope estimate is that it’s about a $325K hit to revenue, so the property would still produce enough income to cover the debt service," Morningstar Head of Commercial Real Estate Analytics David Putro said in an email. "The current status is a bit puzzling."
***
Members of Maryland's congressional delegation celebrated an award of $16.7M in federal funding for projects in Anne Arundel County. Those funds include $4M for a mixed-use, transit-oriented development at the Odenton MARC Station. Additionally, the federal government awarded the county $3M to turn a county-owned building in Crownsville into a nonprofit incubator and community space.
PERSONNEL
Baltimore-based real estate investment and management firm Continental Realty Corp. hired Stephanie Shack as the firm's senior vice president and general counsel. Shack worked in the industry for 28 years before joining Continental. Most recently, she was senior vice president and general counsel for Enterprise Community Investment Inc.
