BALTIMORE–An affiliate of ValStone Partners has acquired, Clipper Mill, an urban mixed-use development in the Hampden-Woodberry submarket for $18.75 million — a price that was carefully arrived at because of the nature of the project. Clipper Mill, you see, is a historic adaptive re-use with a number of unique uses including creative office and artisan space as well as being home to Woodberry Kitchen, one of Baltimore's best restaurants.
Newmark Knight Frank's Cris Abramson, Brian Kruger, Nicholas Signor and Ben McCarty of the Baltimore Capital Markets team facilitated the sale.
The 15 or so interested buyers put a lot of effort into valuing the property correctly as some felt it had been misvalued, Abramson tells GlobeSt.com.
There is a development component to the project along with the more creative uses. The process was part art form, part a calculation of current income for each of the uses, he says. “The project is still early in its development and in how [all of the components] relate to each other,” Abramson said. “The future income is expected to be higher.” During the sale the book had $1.2 million in net operating income, he said.
Perhaps the most telling marker for the valuation: “the replacement cost would be triple the purchase price,” Abramson said.
“The sale also shows that Baltimore continues to attract institutional interest and urban mixed-use has become the most attractive food group,” he added.
Clipper Mill was originally built in the 19th century as a manufacturing complex along the banks of the Jones Falls. It was renovated to include multifamily, office, retail, and unique artisan space in the early-to- mid 2000s.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
