Chasen Companies has acquired 600 South Caroline Street, a 50,000-square-foot warehouse in Baltimore, Md., for $10 million, and plans to turn the building into apartments.
The Meyer Seed Company, a three-generation, family-run seed and garden supply operation, was the seller, having owned the property since 1969.
MacKenzie Commercial Real Estate Services represented the seller and procured the buyer in the deal.
“There was wide interest from local and existing regional multifamily developers,” Owen Rouse, MacKenzie’s vice president of investment sales, told Commercial Observer. “Our well-scripted plan showcased the outstanding in-place demographics and long-term value of this asset and, by widely broadcasting the opportunity, we were able to generate significant interest from many high-profile investor and development groups.”
Chasen Companies will combine the site with an adjoining parcel at 1400 Aliceanna Street and redevelop the combined site into The Whitney, a 272-unit luxury apartment project with more than 70,000 square feet of retail amenity space, according to the company. The property will consist of 100 one-bedroom and 72 two-bedroom units.
“Successfully navigating through Baltimore City’s Historical and Architectural Preservation process and receiving timely entitlements for the new development plan was also a significant factor in achieving the market value for this property,” Rouse said.
Situated between the Harbor East and Fells Point sections of Baltimore, the site is bounded by Fleet Street, Aliceanna Street and South Spring Street.
Over the past 25 years, this area has seen more than 6 million square feet of commercial office, retail and restaurant development, as well as the addition of 2,500 upscale housing units, nine hotels with a combined 3,000 rooms, a marina and 9,000 new parking spaces, according to MacKenzie data.
The average rental rate for Class A apartments in the city ranged from $1,571 to $3,546 per month, according to a recent report by the Downtown Partnership of Baltimore.
Joining Rouse on the deal was the firm’s partner, Mark Deering.
Construction on The Whitney is expected to begin later this year.
Keith Loria can be reached at Kloria@commercialobserver.com.