Mount Clare Junction in Pigtown Changes Hands, Could Get Redeveloped in the Future
Mount Clare Junction has been sold to Carlyle Development Group, a private real estate equity firm based in Purchase, NY. The 15.71-acre, 234,036 sq. ft. retail and office complex in Pigtown sits within a block of Hollins Market, Mount Clare, and Union Square.
Director Christopher Burnham, Senior Managing Director Dean Zang, and Director David Crotts of Institutional Property Advisors (IPA), a division of Marcus & Millichap, represented the seller in the deal. The seller was an unidentified global investment management firm based in New York City that purchased the complex in 2017 for $8.2 million. The sale price to Carlyle Development Group has not been disclosed at this time.
The property was offered to the market in early November 2019. The sale was executed after 77 days after this marketing commencement.
“Mount Clare Junction was a unique and challenging sale due to various moving pieces, overall location within the City and the significant office component,” said Burnham in a press release. “Despite this, the offering generated local, regional and national interest and further proves that Baltimore is on investors radar.”
“We are grateful for teamwork in closing this sale so quickly. Our client, the Buyer and DLC Management Corporation, the management company, worked diligently to close the sale only 8 days after execution of the purchase agreement,” said Zang in a press release.
Mount Clare Junction is 82% occupied and anchored by retail tenants Price Rite, Family Dollar, and Capital One. Office tenants include the Housing Authority of Baltimore City, University of Maryland, and Maryland Department of Social Services.
The complex has multiple buildings with the shopping center fronting S. Carey St. and the offices fronting W. Pratt St. The complex is also bordered by the B&O Railroad Museum to the east and the museum’s train tracks to the south.
“Mount Clare Junction is a challenging asset but located in a fast gentrifying neighborhood of Baltimore City. We look forward to working with all community leaders and stakeholders to participate in, and expedite, the redevelopment of this great neighborhood. We believe Mount Clare Junction could play a major pivotal role,” said Abdi Mahamedi, president of Carlyle Development Group, in a press release.
Abdi told SouthBMore.com his team was attracted to the site because of the growing University of Maryland BioPark, which is increasing its footprint in the adjacent Hollins Market neighborhood, and additional investments in the surrounding neighborhoods. He said they hope to provide better retail to serve this “growing neighborhood.”
Abdi mentioned interest in adding a hardware store, more prepared food businesses, a gym, and potentially a larger pharmacy. He said they will make improvements to the shopping center and add better signage.
Carlyle Development Group will be meeting with community stakeholders, developers, and building owners in the area to see what the needs of the community are and to see how it can contribute. Abdi said they are open to additional investment opportunities that could help improve the area.
Abdi said they are currently doing their due diligence on zoning and talking to architects about a future development of the property that could add residential to the mix of uses. He said this is a long-term plan that could be four to seven years down the line.
Carlyle Development Group also owns two Downtown Baltimore towers: a 230,000 sq. ft. office tower at 217 E. Redwood St. which was renovated and is now fully-leased, and a 520,000 sq. ft. office and retail tower at 100 S. Charles St. Carlyle Development Group has renovated the latter building to increase occupancy and is planning on adding 20,000 sq. ft. of additional retail on an adjacent lot fronting Pratt St.
“We believe Baltimore is a unique city with amazing educational institutions, culture, and major sports teams – it has everything,” said Abdi. “Baltimore is way above many other cities in the U.S. with its assets, but languishing because of issues with crime and poverty. Hopefully leaders and politicians will address this in years to come.”
This was first reported by Baltimore Business Journal
Google Maps screenshot showing the approximate footprint of Mount Clare Junction (marked in black)
About the Author: Kevin Lynch
Founder and Publisher of SouthBmore.com, longtime resident of South Baltimore, and a graduate of Towson University. Diehard Ravens and O's fan, father of three, amateur pizza chef, skateboarder, and "bar food" foodie. Email me at Kevin@InceptMM.com and follow me on Twitter at @SoBoKevin.
