Because of incomplete information supplied by the Baltimore Development Corp., Canfield Property Management, a joint venture partner with CB Commercial Real Estate Group Inc. in an effort to secure a property management contract from the city, was omitted from an article in The Sun's Business section on Dec. 19.
The Sun regrets the error.
The city's economic development agency said yesterday that it received eight proposals in response to its search for a real estate firm to manage a diverse portfolio of properties, ranging from the Fishmarket to an eight-story industrial building on Wicomico Street.
The move by the Baltimore Development Corp. to hire a day-to-day management firm for its 65 properties is part of its continuing effort to streamline the once-troubled agency. BDC, which currently manages the properties, also expects to save time and money by outsourcing the management functions.
The eight candidates for the job are Colliers Pinkard; CB Commercial Real Estate Group Inc.; Warren/Svatos Real Estate Resources, a joint venture between Otis Warren and Svatos Co.; Trout, Segall & Doyle LLC; Carey Winston Co.; Charles E. Smith Cos.; Casey & Associates Inc./Oncor International; and the city's real estate department.
Of the eight applicants, Pinkard and Casey already manage BDC properties.
"We feel the properties are of the right mix that we could add value to them," said Jerome B. Trout III, director of leasing for Trout, Segall & Doyle, which manages more than one million square feet of primarily retail projects. "And it's an opportunity to market the properties, because many of them are currently underutilized."
Typically, management contracts are structured so that managers receive roughly 3 percent of a property's gross rental income. In the case of BDC, however, many of the properties -- such as the Power Plant, Fishmarket and the former Waverly Inc. buildings on East Preston Street -- are vacant, and the winner will be charged with leasing as well as managing them.
"Because the portfolio has a significant amount of vacancy, the city is losing potential income," said Joseph G. Svatos, president of Svatos Co., a Hanover real estate company. "And because the property types cover the spectrum, the city is smart to outsource."
Other notable BDC-controlled properties include a 20-story office building at 7 E. Redwood St., which it bought as part of a deal to keep Legg Mason Inc.'s headquarters downtown, and the former Greyhound Bus Terminal at 601 N. Howard St.
BDC officials said they hope to make a selection by the end of January.
Pub Date: 12/19/96