Baltimore Inner Harbor
VIRGINIA BEACH, VA—Armada Hoffler Properties has entered into an agreement to acquire the Thames Street Wharf office building, located in the Harbor Point development for $101 million.
The property's anchor tenants are Morgan Stanley and Johns Hopkins Medicine, which together lease 92% of the property's 263,426 rentable square feet. The building is currently 100% occupied with an average remaining lease term of 7.4 years and in-place triple net rent levels amongst the highest in the Baltimore market, according to the REIT.
Armada Hoffler expects the property to generate an expected cash net operating income of approximately $7.1 million in the first full year of ownership, which would mean a cap rate of 7.1%.
The deal is expected to close in the second quarter of 2019.
Thames Street Wharf is one of the highest-quality office properties in the Mid-Atlantic,” says CEO Louis Haddad in prepared remarks. The REIT also has investments in the adjacent Wills Wharf and 1405 Point Apartments, he goes on to note, which means “Thames Street Wharf is a natural strategic acquisition and allows us to capitalize on the opportunity that comes with operating multiple asset classes in a synergistic environment.”
Completed by Armada Hoffler Construction in 2010, Thames Street Wharf was the first building in Baltimore's Harbor Point neighborhood. Situated between Harbor East and Fell's Point, Harbor Point is the city's largest downtown waterfront development site with a capacity for up to three million square feet of mixed-use space on 27 acres. Thames Street Wharf is located next to 1405 Point, the 17-story apartment high-rise building, and Wills Wharf, the 325,000 square foot, mixed-use building currently being developed by the Armada Hoffler.
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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.
