Lexington Realty Makes History in Baltimore
- Aug 11, 2015
The Baltimore office market is about to close on the largest sale in a decade.
Corporate Office Properties Trust announced on Tuesday, July 28, that it has agreed to buy Maryland’s tallest structure, the 37-story Transamerica Building. The high $121 million price tag matches the skyscraper’s height of 528 feet. This is the largest price paid for a Baltimore office building in the last ten years. In April 2005, Georgia-based Wells Real Estate Investment Trust II Inc. paid a staggering $207.5 million to buy the 28-story office tower at E. Pratt St.
The deal calls for COPT to buy both 100 Light St. and its 560-space structured parking garage, 30 Light St. Located on the corner of Light and Pratt Streets in downtown Baltimore, the Transamerica Building offers 549,300 square feet of space. According to COPT, the property was 94 percent leased to credit-worthy tenants as at June 30. Transamerica Life Insurance Company is the largest tenant, occupying 28 percent of the building. Other notable tenants include Miles & Stockbridge, which occupies 21 percent of the space, and Ober | Kaler, with 17 percent.
COPT is under contract to buy the massive property from Lexington Realty Trust, with the deal expected to close in August. The $121 million purchase price includes COPT assuming the property’s $55.0 million mortgage loan, which bears interest at a fixed rate of 4.32 percent and matures in June 2023.
Roger A. Waesche, Jr., president & CEO of COPT, said in a prepared statement that the acquisition is part of the company’s strategy to increase the amount of urban, amenity-rich and mass-transit served buildings in its regional office portfolio. “We are in the process of recycling proceeds from the sale of suburban properties to fund our investment in higher growth opportunities, such as 100 Light and, of course, new development projects for our Strategic Tenant Niche,” he added.
Photo via Lexington Realty Trust