Real Estate Weekly ? 4/6/12: Marriott outlines development plans

Posted: 12:57 pm Fri, April 6, 2012
By Daily Record Staff

BMA to open renovated?contemporary wing Nov. 17

The Baltimore Museum of Art said it will open its newly renovated and reinstalled contemporary wing on Nov. 17, completing the first phase of a major renovation that will improve visitors? experience and enhance the museum?s presentation of three major collections in anticipation of its 100th anniversary in 2014. In addition to collection galleries, the renovated wing will encompass three dedicated spaces for changing exhibitions, including a black box gallery for film, video, and digital presentations; and two spaces for interactive learning. In addition to the reinstallation of the contemporary wing, the BMA?s $24.5 million renovation includes the reinstallation of its American and African collections, the construction of new educational spaces, and renovations to the lobby.

Hyattsville mixed-use complex obtains $20M first mortgage from ING Real Estate Finance

ING Real Estate Finance (USA) announced that it closed on a $20 million first mortgage secured by The Metropolitan Shops at Prince George?s Street Station, a 160,623-square-foot retail and office property in Hyattsville. The complex, built in 2009, is anchored by L.A. Fitness, Bob?s Furniture, Staples and Citibank. The property is 100 percent owned by Westbrook Real Estate Fund VIII, which is owned and managed by Westbrook Partners. The loan has a four-year term, with a one-year extension option. The borrower also purchased an interest rate cap for three years from ING Capital Markets. ING Real Estate Finance is part of ING Group, a Netherlands-based, global financial institution.

Jewish Community Services to open?office at Owings Mills JCC

The Baltimore County office of Jewish Community Services will move into a newly constructed wing of the Jewish Community Center in Owings Mills on April 30. Construction began last summer on a two-story addition to the JCC. The new JCS offices will occupy one floor, accessible from the JCC?s main level. Among services provided by Jewish Community Services at the Owings Mills location will be counseling for adults, children and families; career services; and assistance to seniors and caregivers. JCS will also continue to provide services at its existing Park Heights and Howard County offices.

Ohio-based REIT plans to build?apartments, retail in Bethesda

Associated Estates Realty Corp., a real estate investment trust headquartered in Richmond Heights, Ohio, said it plans to construct 140 rental apartments and 7,000 square feet of first-floor retail on a 2.5 acre parcel it has acquired in the 7000 block of Arlington Road in Bethesda. The project is expected to start in June, after the U.S. Postal Service vacates the site. Merit Enterprise Inc., a wholly owned subsidiary of Associated Estates, will act as construction manager. The property, to be known as Dwell Bethesda, is adjacent to the Capital Crescent Trail, an off-road walking/biking path that runs from Silver Spring to historic Georgetown. Associated Estates? portfolio consists of 53 properties containing 13,908 units in eight states.

NAIOP Maryland to hold?Awards of Excellence Gala

NAIOP Maryland will hold its ?2012 Awards of Excellence Gala? on April 19 from 5:30 p.m. to 9:30 p.m. at the Hyatt Regency Baltimore hotel. More than 30 different company, project and individual award winners will be recognized for excellence in the design, development, marketing and leasing of commercial office buildings and retail centers in the Greater Baltimore region. Randall M. Griffin, who retires Friday as chief executive officer of Corporate Office Properties Trust, will receive the ?Lifetime Achievement Award,? honoring his more than 20-year career in commercial real estate in the Maryland area. A number of other professionals will be recognized in categories that include: Brokerage Award, Legislative Award, Rising Star Award, Service Provider Award and Volunteer Award. For ticket and event sponsorship information, visit www.naiopmd.org or contact NAIOP Maryland at 443-986-9429.

Hogan Cos. sells subdivision?in Severn to Koch Homes

The Hogan Cos., an Annapolis-based land brokerage company, has completed the sale of the Turnbury Run residential subdivision, a 15-acre property in Severn, to an affiliate of Koch Homes, a custom home builder in Anne Arundel County. The property, which was sold for $3.4 million, will be developed with 37 single-family homes. ?We anticipated the residential housing demand created in this area by the Defense Base Closure and Realignment [BRAC] and the growth of Fort Meade as well as the proximity to mass transit and shopping,? said Larry Hogan, Hogan Cos.? president and CEO, in a statement. ?Our long-time client, Koch Homes, recognized this opportunity and at great expense and effort over a six-year period, they now finally have approvals to build what will be a wonderful new community,? he added. Timothy Hogan, executive vice president of The Hogan Cos., handled all aspects of the transaction.

Marriott outlines development plans

Marriott International Inc., of Bethesda, a worldwide operator and franchisor of hotels and lodging facilities, outlined some of its development plans at a conference it hosted in Los Angeles for more than 1,300 hotel owners and managers. Arne Sorenson, president and CEO of Marriott International, said the company expects to open roughly 30,000 rooms in 2012 among its various brands. There are about 110,000 rooms in the development pipeline. ?We are bullish about ? long-term growth prospects ?,? Sorenson said. The company?s brands include Ritz-Carlton, JW Marriott Hotels, Bulgari Hotels & Resorts, Edition, Marriott Hotels & Resorts, Renaissance and Autograph Collection.

NewPage plans improvements at paper mill

(AP) NewPage Corp. says it?s planning $15.8 million worth of improvements to its paper mill in Luke despite the company?s financial problems. Plant Manager Rick Watro announced the capital improvements during a meeting Thursday with the Allegany County Commissioners, according to the Cumberland Times-News. Watro said the mill has added 25 workers since NewPage filed for bankruptcy protection in September, bringing total employment to 870. NewPage is headquartered at Miamisburg, Ohio.

Baltimore?s floating wetlands to expand

(AP) With support from the Maryland Department of the Environment and the Abell Foundation, volunteers plan to add another 2,000 square feet of the manmade marshes in front of the World Trade Center in the Inner Harbor this month. Two years ago, students from Baltimore?s Living Classrooms Foundation made 200 square feet of floating wetlands with empty plastic bottles recovered from the harbor. The National Aquarium also made its own and both were studied by scientists from the aquarium and the University of Maryland. Organizers say the plants improve water quality and provide habitat for birds, fish and other creatures that live in the Inner Harbor.

New development eyed for Cambridge port

(AP) Cambridge officials say a mixed-used redevelopment is planned for the city?s waterfront. A mixture of commercial, public and possibly some residential properties is being considered for the port property at Sailwinds Park along Franklin Street. The property is owned by the state and leased by the city. The city and state have agreed to develop the property, according to the Star Democrat of Easton. Groundbreaking is planned for next year with a 2015 completion expected. Cambridge Economic Development Director Natalie Chabot said the redevelopment goal for the waterfront is to connect the Hyatt hotel, a visitors center at Sailwinds Park and downtown Cambridge.

New stores to open at Harbor East

Harbor East announced that four new retailers will open stores by late summer in the trendy downtown Baltimore neighborhood. Totaling more than 21,000 square feet, they are: Anthropologie, a women?s clothing, accessories and home decor store, occupying 9,581 square feet in the Four Seasons Hotel; J. Crew, a men?s and women?s clothing store, taking 7,188 square feet at the Legg Mason Tower; MAC Cosmetics, leasing 1,347 square feet in a former shoe store at 618 S. Exeter St.; and Lululemon Athletica, which is bringing yoga-inspired athletic apparel to 2,775 square feet of space at 820 Aliceanna Street. The sites are the merchants? first in Baltimore City.

COPT sheds real estate assets

Corporate Office Properties Trust, of Columbia, said it sold nine buildings and a land parcel for $61 million, plus its $14 million stake in a Maryland-based cybersecurity company, for a total of $75 million in the first quarter of 2012. Seven of the buildings were 80 percent occupied at the time of sale and contained a total of 219,000 square feet. Two others were vacant and contained 451,000 square feet. Five of the buildings are located in White Marsh, two in Hunt Valley, one in Hanover and one in San Antonio, Texas. COPT is a real estate investment trust primarily focused on federal government and defense information technology tenants.

Pa. REIT sells properties in Columbia

Liberty Property Trust, of Malvern, Pa., a real estate investment trust focused on industrial and office properties, said it sold 49 properties containing 2.5 million square feet of space in Wisconsin, Maryland, Virginia, North Carolina and New Jersey, for a combined total of $195 million. In Maryland, Liberty sold seven flex-space properties in the Rivers Technology Park in Columbia totaling 138,270 square feet, and six office properties totaling 190,491 square feet in the Rivers Business Commons and Fox Run Business Center, also in Columbia. In its announcement of the sales, the company did not break down the price of individual buildings.

Cordish partnering with S.F. Giants

The San Francisco Giants and the Baltimore-based Cordish Cos. are partnering to develop a planned $1.6 billion project to transform the parking lot next to the team?s stadium into offices, housing and retail, according to Bloomberg News. The Mission Rock development would have as many as 1.7 million square feet of offices, 1,000 residences and shops and restaurants interspersed throughout the 27-acre site south of AT&T Park, Giants Chief Executive Officer Larry Baer said. The Giants and Cordish will be ?50/50 players,? bringing in other investors and builders for pieces of the development, according to Baer and a statement from the Giants.

Deep Creek Lake sediment study advances

(AP) The Maryland Department of Natural Resources says it?s poised to begin the second phase of a Deep Creek Lake sedimentation study. Work will begin next week to evaluate the entire lake, the Cumberland Times-News reported. DNR launched the study in 2010 amid complaints from some lakeside homeowners about increasingly shallow water and excessive weed growth. The agency said a final report next year will include strategies for dealing with the sediment, including the possibility of dredging some areas. The $180,000 study is funded with $95,000 from Garrett County, $65,000 from the state and $20,000 from the Deep Creek Lake Property Owners Association.

PERSONNEL

First Washington Realty Inc., of Bethesda, announced that Joshua M. Brown has joined the company as an Executive Vice President and a partner in its investment partnership. Brown?s focus will be on expanding First Washington?s national retail portfolio. Until recently, Brown was a senior managing director and a member of the management committee of Eastdil Secured. During his nine years with Eastdil, he was involved in more than $20 billion of sales, recapitalizations and discretionary equity raises for various public and private real estate companies. Earlier, Brown held a senior management position with Security Capital Group, where he was instrumental in the formation of Pacific Retail Trust, a private REIT containing a portfolio of 69 shopping centers across the western United States. First Washington Realty is a privately owned real estate investment, advisory and management company specializing in neighborhood and community shopping centers located in densely populated areas throughout the United States. The company operates a portfolio of approximately 92 shopping centers with a market value in excess of $2.7 billion.

LEASES

RKS Realty Inc. reported the following recently signed leases:

Capallo Tax Service LLC leased 1,500 square feet of office space at 1131 Belair Road in Bel Air; Fred Kern and Davis Linton of RKS Realty represented both the landlord and the tenant. Systek Technologies Inc. leased 3,937 square feet of office space at 4694 Millennium Drive in Belcamp, with Beetle Smith of RKS Realty representing both parties in the lease negotiations. Also, Seasons Hospice & Palliative Care leased 4,200 square feet of office space at 253 Lewis Lane in Havre de Grace; Tom Mottley of RKS Realty was the representative for both the landlord and the tenant.

Merritt Properties LLC reported the following lease was signed recently:

4 Wall Entertainment, an event lighting company, leased 26,000 square feet of warehouse space and 4,000 square feet of office space ? a total of 30,000 square feet ? at 9525 Berger Road, Suite G-K, in the Guilford Industrial Park in Columbia. Mike Roden of CBRE represented the tenant, while Merritt?s in-house team of Jamie Campbell, Liz Tarran-Jones, Vince Bagli and Steve Shaw represented the landlord.

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