DTZ, an international brokerage with offices in Baltimore among other places has just listed 100 Light Street for sale on January 28, 2015. That building is commonly known now as the Transamerica building. For a long time,it was known as the Legg Mason building. How low will the cap rate go?
The building is 549,000 square feet and 35 stories. Having signed up Transamerica, Ober Kaler and Miles and Stockbridge to backfill the departure of Legg Mason, it is expected that significant international interest that will drive the price up and the cap rates lower.
The teaser from DTZ states the following about the property:
|Offering Materials are now available for the Transamerica Tower, a 35-story, 549,273-square-foot, 92% leased, Class-A trophy office tower in Baltimore’s central business district (CBD). The building is themost preeminent and recognizable building in the Baltimore City skyline; it boasts a premier “Main & Main” location at Pratt and Light Streets; it is just steps from the gateway to the Inner Harbor, the number one tourist attraction in the state of Maryland and the most amenity-rich area in the city; and the property is the tallest building in the state of Maryland at 35 stories. Originally constructed in 1973, current ownership has invested more than $46 million in capital improvements over the last five years, yielding a property with its own separate 550-space parking garage as well as ground level retail, a pre-eminent location and tremendous on-site amenities that include a new plaza with water views, a two-story glass lobby, a private restaurant, meeting space, an employee dining room, and fitness center.
The Transamerica Tower boasts a rent roll of tremendous credit and term that includes Transamerica Life Insurance Company (a subsidiary of Aegon (NYSE: AEG) – public market value of $18 billion), as well as national law firms Miles & Stockbridge and Ober | Kaler. The property serves as the headquarters for each of these three tenants, with the three combining to represent nearly 70% of the rentable square feet in the building. The Tower has the best vehicular access of any building in the city to points north, south, east and west, and allows for parking both under the building as well as across Lombard Street in the 30 Light Street parking garage that will convey with the building.
This offering represents a once-in-a-lifetime opportunity to acquire the most recognized, trophy office building in Baltimore, with durable credit and lease term at a price per square foot basis below replacement cost on the coveted Pratt Street corridor.
Rare Opportunity to Acquire Dominant Regional Property
Strong In-Place Tenancy with Tremendous Term & Credit
Prime Location within Steps of Baltimore Inner Harbor
Tremendous Capital Investment Has Created Dominant, Amenity-Rich Property
Prominent Space on Baltimore Skyline Provides 360-Degree Views of the City
Convenient Access to Major Commuter Arteries
Explosive Growth in Downtown Residential Investment
Parking Garage in Adjacent 30 Light Street Provides Diversity of Income
To keep up on details please visit www.crewbaltimore.org and follow @crewbaltimore on twitter. Watch for more details as articles are bound to appear in the coming months on what may be one of the top local deals in the Baltimore Commercial Real Estate investment world and see how low cap rates will go.