JV Plans $325M Office Project With 2M SF

The project, which will encompass 13 structures, will be part of a 300-acre planned mixed-use community to be called Arundel Preserve. Arundel Preserve will feature 1,175 residences, 430,000 sf of retail space and an additional 650,000 sf of office space not affiliated with the COPT/Somerset endeavor. But Somerset has its hand in other aspects of Arundel Preserve; the company is partnering with Toll Brothers Inc. to build the single-family homes and with Bozzuto Development Co. on the planned community's multifamily segment.

Additionally, Somerset is overseeing development of the retail portion and is still the owner of the 300-acre parcel on which Arundel Preserve will be built. As for COPT's extended involvement, the REIT will also take on the leasing and management responsibilities for the office segment, which will serve as the gateway to Arundel Preserve.

According to COPT, the demand for office space in the Baltimore Washington Corridor is substantial, as is evidenced by the occupancy status at two of its neighboring developments, the 100% leased 2.3-million-sf Airport Square and the fully occupied 1.5-million-sf COPT stable of buildings at the National Business Park. "The new Arundel Preserve office project is the logical next step for this corridor," Griffin tells GlobeSt.com. "It is in a beautiful setting and it's adjacent to lots of amenities like the 1.2-million-sf Arundel Mills Mall."

While the demand in the Baltimore Washington Corridor is not as high as that in Washington, DC, it is on the rise. According to Trammell Crow Co.'s MarketScope quarterly review of the Baltimore office market, because of increased job growth, "the Baltimore Washington Corridor has seen the majority of activity with defense contractors continuing to seek office space in proximity to Fort Meade and the NSA."