Armada Hoffler to purchase Class A + mixed-use Exelon building in Baltimore for $ 246 million
(RTTNews) – Armada Hoffler Properties, Inc. (AHH) announced on Tuesday that it has reached an agreement to acquire the Class A + mixed-use Exelon building at Harbor Point in Baltimore. The total value of the acquisition is $ 246 million.
The purchase includes a 79% interest and an additional 11% economic interest in the 23-story Exelon mixed-use building in downtown Baltimore’s first waterfront neighborhood, Harbor Point. The estimated return on investment for year 1 is 7.4%.
The Exelon Building consists of a 23-story, 444,000 square foot Class A office building that serves as the regional headquarters of Exelon Corp. It also includes a multi-family component consisting of 103 units, 38,500 square feet of retail space anchored by West Elm, and 750 parking spaces of which 500 are leased by Exelon.
The office component of the Exelon building is 100% leased by Exelon, a premium clean energy supplier, under a lease with a residual term of 15 years, with an annual mark-up of 3%.
The company said the acquisition is subject to customary closing conditions, including satisfactory due diligence. The finalization of the agreement is expected by the end of the first quarter of 2022.
Beatty Development Group will retain a 10% stake in the asset.
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