BALTIMORE–Grander Capital Partners, a Boston-based commercial real estate investment management services company, and its equity partner, Boston Andes Capital, acquired 120 E. Baltimore St., a 25-story office tower in Downtown Baltimore. The property, which has a 75% occupancy rate, traded for $32.8 million.
It is telling that one of the players in the deal was a foreign investor (Boston Andes has offices in Boston, Bogotá, and Buenos Aires) Jonathan Carpenter, executive director at Cushman & Wakefield, which brokered the sale, tells GlobeSt.com.
“For a lot of deals we have sold in the Baltimore Washington Corridor and Downtown Baltimore this year the equity has been international,” he says.
These investors are focused on higher yield — compared with Washington DC — that the Baltimore market can deliver and they like the mitigated risk associated with the area, he says.
Carpenter estimates that office investments in the Baltimore area deliver between 100 to 200 basis points higher return on cash flow deals versus other markets.
The 120 E. Baltimore St. sale was value add transaction but it also had a solid base of tenants, including SunTrust Bank, State of Maryland Pension System and Baltimore City State Attorney's Office, Carpenter also says.
“It is a nice combination where you can rely on a stable existing tenant base and still have the ability to grow NOI considerably at the same time.”
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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.
