BALTIMORE, MD - Armada Hoffler Properties announced an initial investment in the $93 million Point Street Apartments development project in Baltimore’s Harbor Point, including an option to purchase a majority stake in the asset once completed.
Scheduled to open in 2017, Point Street Apartments is expected to be a 17-story building containing 289 residential units and 18,000 square feet of street-level retail and amenity space. Located within Harbor Point on Baltimore’s waterfront, the building will offer some of the highest quality residential rental space in the entire region. Along with spectacular views of the harbor, residents will enjoy pedestrian access to a broad array of shopping and dining options.
Harbor Point is a 27-acre mixed-use, multi-asset development located between the historic Fell’s Point neighborhood and the dynamic Inner Harbor East area. This prime parcel is anchored by the 900,000 square foot mixed-use Exelon tower that is currently being developed by Beatty Development Group and built by Armada Hoffler Construction Company, a subsidiary of Armada Hoffler Properties.
For over two decades, Armada Hoffler has worked on Baltimore’s waterfront in association with the principals of Beatty Development Group, the developer on the Point Street Apartments project.
“Point Street is yet another signature development project that we are thrilled to add to our pipeline,” said Louis Haddad, Chief Executive Officer. “We believe that Harbor Point is the premier development tract in the city and one of the best sites in the Mid-Atlantic. The opportunity to invest in this top-tier institutional grade asset without unduly stressing our balance sheet while maintaining our traditional wholesale to retail spread is a direct result of our track record, strong relationships and broad-based capabilities.”
In connection with the Harbor Point development project, Armada Hoffler has entered the following agreements with the developer:
Mezzanine financing of up to $23 million provided by Armada Hoffler Properties, which, when combined with proceeds from a construction loan and the developer’s equity, will complete the developer’s capital stack and
A purchase option to acquire an 88% interest in the project at the developer’s cost, upon completion of construction.
Armada Hoffler Construction Company will also enter into a guaranteed maximum price construction contract with the developer to build Point Street Apartments.