Harbor East developer lists Legg Mason tower for sale
The Baltimore Sun|
Sep 25, 2015 at 6:59 PM
The developer of Harbor East has listed the Legg Mason tower for sale but said it wants to retain a stake in the building.
"Although offers will be considered for the sale of the Legg Mason Tower, it is our preference to retain an active and significant ownership and management interest in this trophy asset," H&S Properties Development Corp. said in a statement Friday.
The developer, controlled by the Paterakis family, aims to use the proceeds from any sale to continue investing in the improvement and expansion of Harbor East, according to the firm's statement.
The listing price was not disclosed, but the listing brochure says a buyer can assume the $174 million loan on the building.
CBRE is handling the marketing of the 24-story, blue glass tower. The building is 97 percent leased with such tenants as Legg Mason, Oppenheimer Funds, OneMain Financial and the Johns Hopkins Carey School. Ground floor retail tenants include Under Armour and J. Crew.
Legg Mason, the Baltimore-based money management firm, occupies more than 60 percent of the building's 612,613 leasable square feet.
H&S Properties was the force behind the development of Harbor East, a mixed-use project that extended downtown Baltimore east along the Inner Harbor toward Fells Point with office, hotel and residential buildings above street-level retail.
Resuming a project that stalled amid the recession, H&S Properties is adding six floors to the 21-story Four Seasons Hotel to add 63 condos above the hotel. It's also working with the Bozzuto Group on a new residential building on Central Avenue with 290 apartments, 50 condos and a new, larger Whole Foods store to replace the existing one nearby.
With the waterfront is largely built out, H&S Properties is looking to build in the blocks between Harbor East and Fells Point where the Paterakis family's H&S Bakery has long been located.
"H&S Properties Development Corp. and their partners are, and will continue to be, long-term holders of real estate who will continue to invest in Baltimore City," the developer said in its statement. "We are committed to ensuring the long-term success of our properties, with a focused vision of advancing Baltimore City as a whole."