Real Estate Weekly: 7/6/12
Posted: 1:00 pm Fri, July 6, 2012
Rock Hall Harbor dredging completed
Rock Hall Harbor’s entrance is now straighter and deeper following removal of underwater silt and clay that made it difficult for boaters to navigate, the Maryland Department of Natural Resources said. Approximately 6,400 cubic yards of material was dredged from the harbor entrance and transported in watertight trucks to a disposal site seven miles away. The entrance at low tide is now a minimum of seven feet deep, and has been realigned to follow a straight, Coast Guard-marked channel. The Kent County Department of Public Works contracted with Dissen & Juhn Corp., of Stevensville, to do the work at a cost of $230,663, paid for by a state Waterway Improvement Fund grant.
Chesapeake Lodging loan backed by hotels
Chesapeake Lodging Trust, of Annapolis, a hotel real estate investment trust, announced that it has closed on a $60 million, two-year term loan from Wells Fargo Bank. There are three one-year extensions attached to the loan. CLT received $25 million from Wells Fargo at the initial closing, secured by the 122-room Holiday Inn New York City Midtown – 31st Street, and expects to receive the remaining $35 million when it closes on the acquisition of another New York hotel, the Hyatt Place Midtown South. CLT said it will use proceeds from the loan to repay outstanding borrowings under its revolving credit facility.
COPT sells Silver Spring building
Corporate Office Properties Trust, of Columbia, an office real estate investment trust primarily focused on U.S. government and defense information technology tenants, announced it sold 11800 Tech Road in Silver Spring for $21.3 million. Net proceeds after closing costs and the repayment of debt were $5.3 million. The 228,200-square-foot property was 82.5 percent leased to six tenants at the time of sale. The building was redeveloped in the late 1980s. For the first half of 2012, COPT sold a total of $138.2 million in properties and adjacent land, containing approximately 776,500 operational square feet, and realizing net proceeds of $115.1 million.
REIT buys Ellicott City apartment project
Home Properties Inc., a Rochester, N.Y.-based real estate investment trust focused on apartment communities in the Northeast and mid-Atlantic markets, announced it has purchased Howard Crossing, a 1,350-unit apartment development in Ellicott City. Home Properties paid $186 million in cash, or approximately $138,000 per unit. Located off U.S. 40, the development is less than one mile from Charleston Manor, an 858-unit property that Home Properties acquired in September 2010. At closing, Howard Crossing was 92.6 percent occupied at monthly rents averaging $1,111. Home Properties said it expects to spend approximately $12 million over the next three years, in addition to normal capital expenditures, to upgrade individual units and exteriors.
Bid opening set for Del. River dredging
(AP) The Army Corps of Engineers plans to open bids early next month for a project to deepen a 9.5-mile stretch of the Delaware River main channel. Corps managers are scheduled to open bids July 10 for a roughly $20 million section between the Walt Whitman Bridge and the southwestern end of Philadelphia International Airport, according to a report in the News Journal of Wilmington, Del. The contract could be awarded in August. Another contract for a 14-mile segment between Port Penn and the Woodland Beach area east of Smyrna, Del., could be awarded in September.
Caroline schools to get solar power
(AP) Three solar power systems will help provide electricity for schools on Maryland’s Eastern Shore. The solar power arrays are expected to be completed by September. They will cover eight acres surrounding North Caroline High School, Colonel Richardson Middle and High Schools, Greensboro Elementary School and the Career and Technology Center. Washington Gas and Energy Systems announced that it has signed a contract with the Caroline County Public Schools and Kenyon Energy for the project. Washington Gas will own and operate the systems, and Kenyon will install the 8,200 panels.