Commercial Real Estate: Silver Spring Hilton Garden Inn sells for $17.4M
Richmond, Va., company adds to hotel buying spree
Apple REIT Nine has acquired the Hilton Garden Inn in Silver Spring for $17.4 million, the Richmond, Va., company disclosed in a Securities and Exchange Commission filing.
The 107-room garden-style property, at 2200 Broadbirch Drive, just east of Route 29, opened last month right after the deal closed, according to Hotel Assets Group, a unit of Cassidy Turley, which brokered the sale on behalf of Baywood Hotels.
"This transaction was made possible due to the quality of the developer, Baywood hotels, and the strength of the buyer, Apple REIT," Brad Sinclair, vice president of Hotel AG, said in a statement. "This transaction closed 60 days from start to finish and was very smooth for both parties involved."
Apple REIT Nine which launched in 2008 has been on a buying spree this year. It bought 11 hotels around the nation for $226.8 million during the first two quarters. That was followed by the Silver Spring deal and two more acquisitions in Louisiana on July 30.
As of June 30, the trust owned 44 hotels, with plans to buy even more.
It is selling more shares and said it had sold 134.9 million units for proceeds, net of offering costs, of $1.3 billion.
Plan to relocate housing HQ gets 16 developer responses
The state of Maryland will seek bids next month to build a new housing agency headquarters in Prince George's County, after 16 developers responded to its request for information.
The active interest in the project is spurred by the chance to build a mixed-use project for 330 employees now working for the Department of Housing and Community Development in Crownsville. The state issued the request for information for the transit-oriented project July 16. Gov. Martin O'Malley (D) touts it as a jobs-creation move for Prince George's.
The plan, first considered by then-Gov. Robert L. Ehrlich Jr. (R), has spurred controversy over its cost while the recession has exacerbated state budget woes. But O'Malley issued a press release this week citing developer interest as a sign of the project's economic viability.
"The high level of interest reaffirms our belief that relocating [the agency] to a transit-oriented location in Prince George's County is a viable approach to economic development and an indication that we are on the right track," he said. "The competitive process underway provides an opportunity not only to foster smart growth and bring the Department of Housing and Community Development closer to the people it serves, but to get the best deal for the taxpayer as well."
Although most of the agency's employees live in Anne Arundel County near their Crownsville workplace, Lt. Gov. Anthony G. Brown (R) added that "Prince George's County is an ideal home for [the agency]. ... As a resident of Prince George's County, I am proud of our efforts to bring the department to the region a move that will spark economic development, create jobs and allow our families and businesses to continue to thrive for years to come."
The Department of General Services is to issue the request for proposals on Sept. 15. The process will include a pre-proposal meeting and will invite comments and suggestions. Final responses will be due Nov. 15.
O'Malley announced plans for the project in June, noting that Prince George's County has never been home to a state agency.
Ground broken for new law school
O'Malley presided over the groundbreaking Thursday for the University of Baltimore's new law school, which will add a 190,000-square-foot building to the city's Mount Royal neighborhood.
The $107 million building at North Charles Street and Mount Royal Avenue will be called the John and Frances Angelos Law Center, named for the parents of Baltimore Orioles owner and former City Councilman Peter Angelos. Angelos, a 1961 graduate of the school whose wealth was founded on class-action asbestos lawsuits filed by Baltimore industrial workers, has pledged $10 million to help build the center.
The building was designed by Behnisch Architekten of Stuttgart, Germany, in partnership with Baltimore's Ayers/Saint/Gross, following an international competition. The 12-story building is scheduled to open in 2012 with a 32,000-square-foot library and is expected to generate 1,231 temporary and permanent jobs.
Heathrow Business Center in Columbia listed for sale
NAI KLNB has listed the 81,000-square-foot Heathrow Business Center in Columbia for sale.
The flex office and warehouse building at 9176 Red Branch Road has an asking price of $7.2 million, according to marketing materials issued by NAI KLNB, which is $2 million less than it was offered for in 2007.
"This motivated Seller's explicit goal is a settlement by year end," according to the sales brochure. The building is 83 percent leased.
The property is in the Oakland Ridge Business Center, a 245-acre planned business park developed by Rouse Co. near the intersection of routes 29 and 108, and Route 100, near I-95.
JBG adds details to big White Flint makeover plans
The JBG Cos. added detail to its plans for North Bethesda Market II, a 745,000-square-foot mixed-use complex that would rise as part of the urban makeover surrounding the White Flint Metro station.
During an Aug. 18 meeting with the public, the Chevy Chase real estate company said it plans to develop a complex of retail, residential and office space near the southwest corner of Rockville Pike and Nicholson Lane. Sitting directly north of the company's North Bethesda Market, now under construction, the project would not likely open until 2013.
The plans call for replacing a Chili's restaurant and several low-rise buildings with a high-density complex similar to what might be found in downtown Bethesda or Silver Spring. JBG, like other property owners in the newly approved White Flint transit-oriented development zone, is seeking public input in advance of filing a formal sketch plan.
The White Flint Sector Plan still requires a financing plan an outline for infrastructure improvements, such as road upgrades, designed by the county executive and approved by the Montgomery County Council before any projects can move forward.
"It's been really a unique experience because the people of White Flint know so much about the process they ask some very great questions," said Gregg Trimmer, a JBG senior vice president. "You have to be ready."
Federal Realty Investment Trust of Rockville, the group that built Bethesda Row, is proposing a redevelopment of Mid-Pike Plaza a 3.4 million-square-foot project set for a block between Rockville Pike and Hoya Road, said Evan Goldman, director of development for the group.
Federal Realty is eager to get started, but also is aware that financial questions still linger on paying for infrastructure in White Flint, Goldman said.
"Ideally, we'll be able to move forward quickly," he said. "Everyone here knows what to expect and we have a cushion of time to wait."
If an infrastructure plan is not approved by the January deadline set by the council, a construction moratorium will be instituted in White Flint, said Jacob Sesker, a planner coordinator with the Montgomery County Planning Department.
The third major project proposed recently in White Flint is set to be on Nicholson Lane and consists of a "corporate gateway" that includes a combination of low-rise apartments and nearby office area. Developer B.F. Saul Co. of Bethesda is associated with this project.
Staff Writer Alex Ruoff contributed to this report.
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