BALTIMORE, MD—GlobeSt.com has learned that KBS Realty Advisors, a Newport, CA-based REIT, is buying Thames Street Wharf here for between $88 million and $90 million. The seller is Beatty Development Group.
Part of the Harbor Point mixed-use development project, Thames Street Wharf is a 270,000-square foot LEED Gold Core & Shell certified office-one of seven in the Baltimore area-that counts Morgan Stanley and Johns Hopkins Medicine as its major tenants. It also has 1,400-square feet of retail.
This is KBS' first major transaction in the region following its announcement that Stephen Close has been promoted to senior VP/market leader for the Mid-Atlantic region. He was tasked, among other duties, to identify new acquisition opportunities in the Mid-Atlantic.
GlobeSt.com spoke with KBS Capital Advisors Regional President Marc DeLuca when Close's appointment was announced at the start of the month. DeLuca told us KBS has an informal goal of acquiring at least $1 billion in assets this year, including new product in the Mid-Atlantic.
Calls to Deluca regarding the report that it is buying Thames Street Wharf were not returned.
The acquisition comes at a timely point for the complex. Thames Street, which delivered in 2010, was the first building at the 26.7-acre mixed-use project underway in Baltimore's Inner Harbor.
Beatty just tapped Virginia Beach-based Armada Hoffler Properties to build the complex's second building, which will be the headquarters for Exelon. Development costs for the 20-story 900,000-square-foot building are expected to come in around $165 million, and the building is expected to deliver in 2016.
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