Real Estate Weekly – 2/15/13

Dave Kuhn//February 15, 2013

Real Estate Weekly – 2/15/13

By Dave Kuhn

//February 15, 2013

Cassidy Turley sells Elkridge industrial building

Cassidy Turley, a commercial real estate services provider, announced the sale of 6625 Selnick Drive in Elkridge. The 30,000-square-foot industrial building was purchased by 6625 Selnick Drive LLC, d/b/a Tidewater Inc., a geotechnical/environmental engineering/consulting firm, which will occupy a majority of the building while leasing out the remainder. The property was sold by Bernstein Management Corp. for $2,317,840. Alan Orman of Cassidy Turley represented the buyer and Hayes Merkert of Cushman & Wakefield represented the seller in the transaction.

C&W picked to manage 120 East Baltimore St.

Cushman & Wakefield’s Baltimore office has been selected to oversee property management and project management at 120 East Baltimore St., a landmark, 25-story Class A office building in downtown Baltimore. As part of the assignment, nine building employees will join Cushman & Wakefield’s Corporate Occupier & Investor Services (CIS) group, including Kim Hogan, the property manager who has overseen the building’s operations for nearly six years. 120 East Baltimore St. is Cushman & Wakefield’s largest managed asset in downtown Baltimore. The on-site team is overseen by Clifton Bond, senior portfolio manager with Cushman & Wakefield. The building’s owner and landlord is Franklin Street Properties Corp. C&W leasing agents T. Courtenay Jenkins, Tim Jackson and Whitney Nye lease the property on behalf of the landlord. Approximately 74,881 square feet is currently available for lease.

Equipment manufacturer leases build-to-suit building, doubling space

MacKenzie Commercial Real Estate Services announced that Atlantic Design Inc., an equipment designer and manufacturer, has leased a 42,275-square-foot, build-to-suit manufacturing facility at the recently completed 11505 Pocomoke Court in Baltimore. The 16-year-old company, which manufactures highly specialized air and particle remover equipment, is relocating from smaller quarters at 2200 Van Deman St. in East Baltimore to accommodate its growing business line. The firm has scheduled a ribbon cutting and grand opening of its new facility on March 1. Chesapeake Real Estate Group is the developer of the build-to-suit facility. MacKenzie senior vice president and principal Mark M. Deering and senior vice president and principal Daniel A. Hudak represented ADI in the transaction. Chesapeake Real Estate Group partners Jim Lighthizer and Ned Brady, together with Associate Ed Brady, represented the owner.

Construction completed at new Howard fire station

Mullan Contracting Co. completed construction of the new, 10,000-square-foot Glenwood Fire Station. Located at 14620 Carrs Mill Road in the Woodbine section of Howard County, the project represents the first new fire station constructed in the county since 1994. Staffed by 21 emergency responders, all employed by the county, the station features three drive-through bays housing of fire and emergency response equipment, a bunkhouse and administrative offices, kitchen facilities, meeting space, a small social gathering hall for community use and a fitness center. It is the first such facility in the county to be fully integrated with a digital emergency response system that automatically dispatches calls from the emergency response center to the closest fire station.

Greysteel picked to market West Friendship Shopping Center

The Greysteel Co., a Bethesda-based real estate brokerage, has been named exclusive broker for the sale of West Friendship Shopping Center at 12780-12800 Frederick Road in Howard County. The center’s long-term tenants include High’s Dairy, the U.S. Postal Service and Columbia Bank, all of which have recently renewed their leases. Greysteel’s transaction team is led by Managing Director Gil Neuman, who oversees the firm’s mid-Atlantic retail investment sales division.

COPT reports turnaround in earnings

Corporate Office Properties Trust, of Columbia, reported fourth-quarter net income attributable to common shareholders of $12.4 million, or 16 cents per diluted share, versus a net loss of $89.5 million, or $1.26 per diluted share, for the year-ago period. Fourth-quarter funds from operations totaled $47.8 million, versus a loss of $21.8 million in the 2011 period. Revenue was $137.5 million compared to $128 million for the year-ago period. The real estate investment trust, which focuses on office properties and data centers located in business parks near government and defense facilities, said it set a company record for lease transactions, completing 1.4 million square feet of leases during the quarter and 3.3 million square feet for the year.

Pa. company acquires Belcamp laundry

Crothall Laundry Services, an operating division of Wayne, Pa.-based Crothall Healthcare, announced its acquisition of the Belcamp plant of Mayflower Textile Services, a Baltimore-based provider of health care and hospitality linen services in the mid-Atlantic region. The transaction was finalized on Dec. 28, 2012. Terms were not disclosed. The 120 employees at the Belcamp plant provide textile services for hotel and hospitality clients through Maryland, Pennsylvania and New Jersey. Crothall Healthcare is a national provider of specialized, high-quality support services exclusively to health care clients. Crothall serves over 1,200 health care clients across 38 states.

Large industrial building leased

Kenco Logistics Services LLC, a Chattanooga, Tenn.-based integrated logistic services firm, signed a lease for a 692,000-square-foot industrial building in Perryman. Jones Lang LaSalle, a real estate and investment management firm that handled the deal for Kenco, said the Harford County facility, the largest block of Class A distribution space remaining in the Baltimore market, will become a regional distribution center for consumer products. Built by Towson-based Ryan Commercial on a speculative basis and completed in December 2012, it was leased by Kenco within a month of its completion. Jones Lang LaSalle Vice Presidents Dan Wendorf and Todd Hughes represented Kenco. Matt Ryan represented Ryan Commercial.

Walker & Dunlop tops Fannie Mae’s DUS list

Walker & Dunlop Inc., of Bethesda, a source of multifamily loans, said its volume of more than $4 billion in multifamily loan originations for Fannie Mae in 2012 made it the top DUS lender in the country. The DUS program, which stands for Delegated Underwriting and Servicing, is unique in that private lenders that originate multifamily loans for Fannie Mae retain the first loss position in those loans. The DUS program had low default rates throughout the financial crisis, and when there were losses, private capital, not Fannie Mae, paid first. Walker & Dunlop has been a DUS lender since the program’s inception in 1988.

Choice Hotels reports good year

Silver Spring-based Choice Hotels International reported increased annual earnings and a record number of franchise contracts Monday as it released its fourth-quarter and full-year results for the year ended Dec. 31. Diluted earnings per share for the year were $2.11, compared with $1.92 for the previous year; for the quarter, there was a slight dip to 45 cents from 46 cents in the corresponding period of 2011. The company said it executed 473 new domestic hotel franchise contracts for the year, up from 332 the prior year.

Apartment building underway in Columbia

The Howard Hughes Corp., of Dallas, Texas, together with McLean, Va.-based multifamily developer Kettler and local residential developer Orchard Development Co., of Ellicott City, have broken ground for The Metropolitan Downtown Columbia, a 380-unit luxury apartment development being built next to the Mall in Columbia. The building, costing an estimated $100 million, is the first project to proceed under the 2010 Downtown Columbia Plan. In addition to apartments, The Metropolitan will contain access-controlled garage parking and nearly 14,000 square feet of ground-floor retail. The Howard Hughes Corp., a major landowner in Columbia, was spun off from General Growth Properties Inc. when that company emerged from bankruptcy.

Marriott plans new hotel in Lima, Peru

Marriott International Inc., of Bethesda, the largest publicly traded hotel chain in the United States, announced it plans to open a new 150-room Courtyard by Marriott hotel in Lima, Peru, South America’s third largest city. The new hotel “strengthens our footprint in Lima, a key strategic market for Marriott International in Latin America,” said Laurent de Kousemaeker, chief development officer for the Caribbean & Latin America at Marriott International. The hotel will be owned by Inversiones La Rioja, S.A., which also owns the two other Marriott hotels in Peru, the 300-room JW Marriott Lima and 153-room JW Marriott Cuzco.

FRIT achieves record quarterly results

Federal Realty Investment Trust, of Rockville, a retail-focused real estate investment trust, said it achieved record funds from operations during 2012. For the fourth quarter, FRIT recorded FFO available for common shareholders of $71.7 million, or $1.11 per diluted share share, versus FFO of $62.1 million, or 97 cents per diluted share, for the prior-year period. Revenue was $156.4 million for the 2012 quarter versus $141.5 million for the same period in 2011. Analysts surveyed by Thomson Reuters, on average, predicted fourth-quarter earnings of $1.10 per share on revenue of $154 million. FRIT’s same-center portfolio was 95 percent leased on Dec. 31, 2012, compared to 94.2 percent a year earlier.

Metro proposes P.G. site for FBI headquarters

Officials who run Washington’s train and bus system are proposing to use 78 acres that the transit agency owns in Greenbelt to bolster efforts to have a new FBI headquarters built in Prince George’s County. Making the land available to the FBI could give the county an edge in the regional competition to attract the federal law enforcement agency. Metro currently has more than 3,700 parking spaces and 17 bus bays on the land.

Economic impact of apartments studied

A new report by an economist at George Mason University has found that apartment construction and operations and residents contributed more than $29 billion to Maryland’s economy in 2011. The report by Stephen S. Fuller of George Mason University’s Center for Regional Analysis also found the apartment industry and related business sectors supported nearly 700,000 jobs in Maryland during 2011. The report, released by the National Multi Housijng Council and the National Apartment Association, is available on It covers the economic contribution of apartment construction, operations and resident spending on a national level plus all 50 states.

Student housing financing takes off

Walker & Dunlop Inc., of Bethesda, a source of multi-family real estate loans, said it provided $157.1 million in financing for off-campus student housing properties nationwide in 2012. Among projects for which the company secured financing were two apartment developments in College Station, Texas, near the campus of Texas A&M, $22.85 million; a property in Auburn, Ala., close to Auburn University, $11.63 million; and two student housing complexes adjacent to Mississippi State University in Starkville, Miss, $23.76 million (in addition to a $21 million loan provided earlier). Walker & Dunlop has specialized in providing financing for student housing properties since 1988.

APG recognized for environmental work

The Environmental Restoration Program at Aberdeen Proving Ground’s Directorate of Public Works’ Environmental Division has won an award from the Secretary of the Army’s office for its environmental restoration work. The 2012 Secretary of the Army Environmental Award for Environmental Restoration evaluates environmental programs on Army installations across the United States and recognizes programs that go above and beyond to improve the quality of the environment. The Aberdeen program deals with contamination caused by decades of production, testing, storage and disposal of munitions and chemical agents at the Harford County military base.


Tom Syvertsen, a mechanical engineer and project manager with the Baltimore-based engineering firm Mueller Associates, has been named a stockholder and associate. Employed by the firm since 2002, Syvertsen has managed many important projects, including the Graves School of Business and Management at Morgan State University; the Performing Arts & Humanities Building at the University of Maryland, Baltimore County; the Cordish Lacrosse Center at Johns Hopkins University; and the Integrated Science & Engineering Building at the University of Delaware. He also provided mechanical engineering services for the new Monticello Visitor & History Center in Charlottesville, Va. A registered professional engineer in Maryland, Syvertsen holds a Bachelor of Engineering degree from Messiah College and is a LEED Accredited Professional.

NAIOP Maryland receives award

NAIOP Maryland captured the 2012 “Chapter of the Year” award Wednesday evening at the National NAIOP Chapter Leadership and Legislative Retreat in Washington, D.C. The award was based on overall excellence in education, corporate involvement, government affairs involvement, member recruitment, communications, student activities, community involvement and civic activities. Pictured left to right are: Cole Schnorf, Manekin; Tim O’Ferrall and Kate Sanft of The O’Ferrall Group; Connie Rhodes, Rhodes Development LLC; Eugene Riley, Chairman of NAIOP and CEO of Prologis; Taylor Fields, Knott Realty Group; Nichole Wilhelm, Heath Design Group; Morgan Gilligan, Stewart Title; and James Knott, Knott Realty Group.


Merritt Properties LLC reported the following recently signed lease transactions:

* Generators Inc.- Mid Atlantic, an electrical contractor, leased 4,000 square feet of office and warehouse space at the Curtis Business Center, 717 E. Ordnance Road, Curtis Bay. Merritt’s in-house leasing team of Jamie Campbell, Liz Tarran-Jones, Vince Bagli and Steve Shaw handled the transaction for both tenant and landlord.

* Dunbar Armored Inc., an armored car company, leased 7,464 square feet of office space at Schilling Green, 230 Schilling Circle, in Hunt Valley. Dunbar was represented by CBRE’s Justin Mohler. Merritt’s in-house leasing team of Pat Franklin, Whit Levering, Lou Boeri and Ashley Combs represented the landlord in the lease negotiations.

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