28 Walker Development Lands $28M for First Timber Building in Baltimore
The Maryland-based developer also secured a $2.5 million CPACE loan
By Keith Loria March 3, 2022 4:29 pm
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28 Walker Development Group has received a $28 million construction loan for 40TEN, the first commercial office building in downtown Baltimore to be constructed entirely using heavy wood timber materials.
Columbia National Real Estate Finance confirmed it provided the loan, but declined to provide the terms.
Located at 4010 Boston Street, the five-story, 125,000-square-foot building, slated to open by the end of the year, is part of The Collective at Canton, a master-planned, mixed-use development in the Canton neighborhood of Baltimore.
Walker Development also financed the property with a $2.5 million commercial property assessed clean energy (CPACE) loan MD Energy Advisors.
“CPACE can fund up to 20 percent of the capital stack and we can finance items in the budget like HVAC, plumbing, roof and windows,” Jason Schwartzberg, president of MD Energy Advisors, told Commercial Observer. “We typically hit our 20 percent threshold before we run out of energy and water-related items to finance. In the 40Ten transaction we financed a good portion of the building envelope.”
This is Walker Development Group’s first time obtaining a CPACE loan. The firm’s CEO, Scott Slosson, noted that the funds will be applied to sections of the building envelope that contribute to its energy efficiency, including the windows, façade assembly and exterior skin.
“A portion will also be used for the specialty HVAC systems engineered to improve air quality and stimulate outdoor air flow,” Slosson said. “MD Energy Advisors explained how CPACE financing can substantially reduce the amount of equity needed for a construction project and, because they are local, it was extremely easy to navigate through the process.”
The unique building will include interior design with flooring, columns and exposed ceilings comprised entirely of wood. 40TEN will also feature a communal rooftop amenity deck accessible for free to all tenants. Half of the deck will be covered to include conference facilities and kitchen space, while the other half will offer space for employees to eat and relax.
Keith Loria can be reached at Kloria@commercialobserver.com.
