A 380,000 sq. ft. office building in downtown Baltimore has sold for $50 million. Norfolk-Va. Based Harbor Group(HGI) and a corporate investor bought the property, known as the First Union Tower, as part of a tax-deferred exchange.
"The First Union Tower is a Class-A trophy anchored by a prominent bank in a great downtown market. Such buildings are a key component of Harbor Group International’s acquisition strategy," says Jordan Slone, chairman and CEO of HGI.
Last year, HGI bought almost $200 million worth of real estate divided among more than 2,000 multifamily units and nearly 1 million sq. ft. of office property. The firm also sold 10 properties last year for a total of $60 million.
The First Union Tower is now 92% leased, with anchor tenant First Unionhalf of the space on a long-term lease. The building’s tenant roster also includes several law firms.
The building’s occupancy rate is stronger than the broader market rate in Baltimore. With roughly 60 million sq. ft. of Class-A office space, the Baltimore market is now almost 14% vacant. The CBD area, however, boasts lower vacancy at 10.4 % overall.