Laurus Buys Baltimore Office for $26M

BALTIMORE, MD-Los Angeles-based Laurus Corp. has acquired the Charles Center South here, a 25-story class A office building in the city's CBD. The property traded for $26.1 million, or $89 per square foot, according to a source--and at a 7.1% in-place cap rate. Clark Enterprises is the seller and the deal was brokered by Cassidy Turley.

Laurus CIO Austin Khan, who declined to discuss pricing, tells GlobeSt.com that the plan is to reposition the property and turn it into a "very strong" class A office building. In general, he adds, Baltimore is an attractive market for companies like Laurus.

"What we are seeing in the cycle is that demand for office is starting to pick up slowly but steadily in secondary markets and Baltimore sits in our investment criteria, which is to invest in top 30 markets."

The city is turning into a true work-live-play metro with more residents moving into the Downtown area, he also notes. Unemployment has been trending down and, finally, the renewal of T. Rowe Price has added a significant measure of stability. Best of all, pricing has remained attractive relative to peak values, he says.

This is the company's second investment in the region, Khan adds, the first being a hotel in the Hunt Valley submarket.

There is nothing further in its local pipeline, he says, "but we are always looking for the right opportunity. We are a big believer that there is significant upside here."

The 294,274-square foot Charles Center South is located the corner of Lombard Street and Charles Street. Built in 1975, it has undergone multiple renovations over the past decade.