Alta 47 a bet on Baltimore homebuyers

Alta 47 townhouses in Locust Point represents a bet by War Horse Cities and The Bozzuto Group that more people want to live in Baltimore long term.

The companies celebrated the groundbreaking on the $23 million project on Tuesday, and officials touted the project as one that features modern homes in an in-demand urban community. The companies worked with each other previously on such projects as Anthem House and Anthem House II in Locust Point.

“I grew up in Baltimore, and I’m raising my family in Baltimore … there’s a particular resonance for me and my father when we’re able to build something in the city. Genuinely … it’s like an emotional connection for me,” said Toby Bozzuto, president and CEO of The Bozzuto Group.

The groundbreaking for the new development comes roughly two years after riots tore through the city following the death of 25-year-old Freddie Gray from injuries suffered while in police custody. Since then, Baltimore has been beset by a surge in homicides passing the 300 mark in each of the past two years.

The groundbreaking also follows the release of population numbers by the U.S. Census Bureau in March showing the city lost 6,738 residents between July 1, 2015, and July 1, 2016. Some experts have questioned the accuracy of those findings and point to a burgeoning downtown that recently reported strong population growth.

The project’s backers said they believe people want to live in the city and that residents are willing to invest in owning new homes despite concerns with crime and the state’s highest property taxes. In the case of Alta 47 an investment in a new home will start in the $400,000 range for properties that include fourth-floor terraces with views of the water and the cityscape.

Tom Baum, president of Bozzuto Homes, said the company never balked at pursuing projects in Baltimore and that the company never felt more strongly “about the opportunities that are presented for life in the city of Baltimore.”

“We want to be part of the positive image, not part of a national image that comes true because everybody thinks it’s that,” Baum said.

Scott Plank, War Horse’s founder, said his firm assembled and purchased the plots of land several years ago. The idea was always to convert an empty gravel parking lot, a building minimally used for perishable food delivery and a lot used as a dump into town homes.

“It gives us an opportunity to do different types of housing, different types of offerings for all sorts of different people, folks who are just coming to town, folks who have been here a while — people are moving back to the city,” Plank said.

The start of the project, after the companies previously partnered exclusively on mixed-use multifamily ventures, comes at a time when some developers openly worry about the supply of apartments in Baltimore. Alta 47 is the first investment from BHI Investors I, a new fund launched by Bozzuto to provide capital for homebuilding ventures.

“I think there is interest in appropriately priced townhomes, where people who are first time, or second time homebuyers, or move-down buyers, whatever the case may be, they want to place roots in the city. We believe very strongly that there’s the demand for that,” Bozuto said.