Real Estate Weekly – 2/1/13

D.C. area partnership purchases Capitol Heights shopping center

BSV Coral Hills LLC, an investment partnership controlled by the principals of Bethesda-based Broad Street Realty, has acquired the 90,000-square-foot Coral Hills Shopping Center at 4801 Marlboro Pike in Capitol Heights. The property is 100 percent leased to 17 tenants, anchored by Shoppers Food and Pharmacy, AutoZone, Family Dollar, McDonald’s and DaVita Dialysis. Financial details of the transaction were not disclosed. Broad Street Realty, a commercial real estate services firm with clients throughout the Baltimore-Washington area, will provide management services for the shopping center.

Riderwood sees more settlements in 2012

Riderwood, a continuing care retirement community in Silver Spring, marked a 3.5 percent increase in settlements of apartment homes at the end of 2012. There were 176 settlements in 2012, compared with 170 in the prior year. The occupancy rate at year’s end stood at 92.8 percent. Incoming residents represented nearly all areas of Montgomery and Prince George’s counties. Some new residents moved from as far away as California and Washington state. Riderwood, which is managed by Catonsville-based Erickson Living, has nearly 3,000 residents and is located on 120 acres that span Montgomery and Prince George’s counties.

Maryland saw rise in foreclosures in 2012, state agency reports

Maryland foreclosures rose nearly 20 percent in 2012, the Maryland Department of Housing and Community Development said. DHCD attributed the rise to the state’s improving housing market that has encouraged lenders to begin addressing their backlog of seriously delinquent loans. RealtyTrac, the California-based monitoring firm, reported 17,126 foreclosure events in Maryland last year, compared to 14,421 events in 2011. “Events” include notices of default, foreclosure sales and lender purchases. The department said the increase was expected after a settlement between state attorneys general and the nation’s five largest lenders brought an end to the so-called “robo-signing” scandal. Despite the rise in foreclosure events in 2012, the total was dwarfed by the numbers of foreclosures during the height of the housing crisis: 42,446 events in 2010; 43,248 in 2009; 32,338 in 2008.

CBRE arranges loans for two downtown projects

CBRE Capital Markets arranged $77.9 million in permanent financing for Spinnaker Bay Apartments and The Promenade at Harbor East. Working exclusively on behalf of H&S Properties Development Corp., CBRE arranged two permanent loans through its Fannie Mae Delegated Underwriting and Servicing (DUS) program. The fixed-rate loans of $63.3 million and $14.6 million were structured with 15-year, fully amortizing terms at rates of approximately 3.25 percent. Joe Donato led CBRE’s Washington, D.C. team in arranging the permanent financing. Spinnaker Bay, a 315-unit, multifamily high-rise at 707 S. President St. in Baltimore, consists of three towers with 11, 14 and 18 floors of apartments and 41,000 square feet of ground-floor retail. The Promenade at Harbor East, a Class A multifamily community at 1001 Aliceanna St. in Baltimore, contains 113 multifamily units in a 13-story high-rise.

Burg joins D.C.’s Greysteel Co. to head investment planning unit

The Greysteel Co., a Washington, D.C.-based commercial real estate company, unveiled a new Exchange Services Division to work with clients and transaction teams on real estate investment planning and wealth preservation, focusing on development and implementation of tax-deferred strategies. The unit is headed by Gerald “Jerry” Burg, a real estate veteran who joined Greysteel after holding high-level executive positions at some of the industry’s most prominent companies. Burg was managing director and senior vice president at Northmarq Investment Services and Calkain Cos., and a founding member of the medical office building sales group of a national real estate investment services firm. His experience also includes positions as chief financial officer of Charles E. Smith Management, chief operating officer of CRI Inc., and executive vice president of Carey Winston Co.’s Management Accounting Department. Burg earned a B.A. from Cornell University and an MBA from Columbia University Business School.

Cassidy Turley handed leasing task for Hanover’s Candlewood

Cassidy Turley’s Baltimore office has been selected by TIAA-CREF, a national financial services organization based in Charlotte, N.C., as exclusive leasing agent and property manager for the Candlewood Commerce Center in Hanover. Candlewood, located at 7462-7468 Candlewood Road, is comprised of three Class A industrial buildings totaling 357,706 square feet. Jarred Testa and Tilghman Herring, of Cassidy Turley’s Baltimore Core Industrial Leasing Team, will act as leasing agents. Testa, a senior vice president and principal at Cassidy Turley, said the center’s location in the heart of the Baltimore-Washington corridor, together with its functionality and curb appeal, will be major drivers in leasing the currently 89 percent vacant project. Tenants are expected to range from distribution warehouse to flex users.


Corporate Office Properties Trust, of Columbia, leased 58,000 square feet of office space to an unnamed tenant at the National Business Park, a 485-acre business park located at the intersection of Md. Route 32 and the Baltimore-Washington Parkway in Anne Arundel County. The tenant leased the final two floors at 410 NBP and plans to occupy the property in the third quarter of 2013. Due to its location in close proximity to Fort George G. Meade and the National Security Agency, the business park attracts many defense- and intelligence-related companies. The new lease brought the building, which had been less than 50 percent leased, up to 100 percent leased at year-end. The business park itself is now 99.4 percent leased, according to Roger A. Waesche Jr., COPT’s president and CEO.

Manekin LLC, of Columbia, has been selected to handle leasing and property management of Tred Avon Square, a 145,000-square-foot retail center in Easton. The property, owned by Tred Avon LLC, is located at the intersection of Marlboro Road and the Easton Bypass (Route 322). The center is anchored by Acme Supermarket, Peebles department store, and Easton Premiere Cinemas, Eston’s only movie theater, and has 16 smaller tenants. The occupancy rate is 99 percent, with only 1,600 square feet remaining to be leased.

St. John Properties Inc., a Woodlawn-based commercial/industrial development company, leased 4,500 square feet of space to RackTop Systems at 11840 West Market Place in the Maple Lawn Corporate Center. The single-story building to which RackTop relocated its corporate headquarters in Columbia contains a total of 42,620 square feet of space. RackTop Systems develops foundational information technology appliances, with a focus on designing easy-to-use and economical computing solutions for businesses and organizations. The company manufactures enterprise storage and virtualization solutions that power private and public clouds around the world. RackTop Systems expects to increase its production by more than eight-fold in the new location. The 600-acre Maple Lawn Corporate Center is being co-developed by St. John Properties and Pikesville-based Greenebaum Enterprises Inc.

Lancaster Bible College, of Lancaster, Pa., leased 18,575 square feet of space at Patriot Business Park East in Greenbelt, according to an announcement from Cushman & Wakefield. The deal is part of the acquisition by the Pennsylvania school of the academic programs of Washington Bible College and Capital Bible Seminary. In addition to the ground-floor space at 7852 Walker Drive in Greenbelt, Lancaster Bible College, which focuses on delivering premier biblical higher education to ministry leaders, has two satellite locations in Philadelphia and Washington, D.C., as well as a 100-acre main campus in Lancaster. Its student body consists of 1,175 undergraduate students and 417 graduate students. Cushman & Wakefield leasing agents Chris Wright and Peter Rosan represented LBC. Washington Property Co., the landlord, was self-represented.

Adams Communication & Engineering Technology has signed a lease with Woodlawn-based St. John Properties Inc. for 26,500 square feet of space at 6190 Guardian Gateway, a new three-story, 75,000-square-foot, Class A office building under construction within The Government and Technology Enterprise project at Aberdeen Proving Ground. The GATE, as the 416-acre business community is known, is located inside the gates of the Army military base in Harford County. ACET intends to occupy the space upon the building’s completion, scheduled for February 2013. ACET provides innovative systems, products and services in information systems, health care systems, aerospace, electronics and technical services to government and commercial customers worldwide.

In one of two recent lease deals announced by Merritt Properties LLC, a Woodlawn-based commercial real estate development company, the D.C.-based John F. Kennedy Center for the Performing Arts leased 57.070 square feet of space at 2601-2603 Merchant Drive in Baltimore. The performing arts center intends to use the space for storage, according to Merritt representatives. Tina Weaver of CBRE represented the tenant. Merritt was represented by its in-house leasing team of Jamie Campbell, Liz Tarran-Jones, Vince Bagli and Steve Shaw. In the other transaction, Ghanem Forwarding LLC, a freight forwarder, leased 7,200 square feet of warehouse space at the Lansdowne Industrial Park, 68-70 Alco Place, in Baltimore County. The Campbell-Tarran-Jones-Bagli-Shaw team handled the deal for both tenant and landlord.