The property, 500 E. Pratt St., is a 280,000-sf, 12-story building that delivered in 2004. Since then it has performed very well attracting a number of investment grade tenants, according to T. Courtenay Jenkins III, senior director at Cushman & Wakefield's Baltimore office.
According to IPC, the building is currently 91% leased to such firms as Reznick Group, Aon Corp. and Saul Ewing LLP. The next lease set to expire in the building will be for 27,000 sf in 2012.
IPC reports that it has arranged a 10-year mortgage for $58.8 million at a fixed-rate of 5.6%, which is interest only for the entire term. The deal, once completed, will mark the REIT's entry into a new East Coast market, strengthening its presence in the strategic Boston-Washington corridor, says Gary Goodman, the REIT's President and CEO, in a statement.
"With this acquisition, IPC will own a premier property in the Greater Washington market. This acquisition provides our unitholders with strong, stable cash flows, with the potential to create additional value by leasing the vacant space," he says.
The timing is right to leverage a new leasing strategy. Supply of class A space in Baltimore is tightening. In the CBS vacancies have dropped to 11%, Jenkins tells GlobeSt.com. At the same time there is an upward movement on rents. "Average rents for class A space are in the $24.50 to $25 per sf range." IPC did not return calls in time for publication.
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