BLUESTONE REAL ESTATE CAPITAL SECURES $48M ACQUISITION AND CONSTRUCTION LOAN FOR ICONIC B&O BUILDING IN BALTIMORE, MARYLAND
Philadelphia, PA – August 27, 2007 —
BlueStone Real Estate Capital, a real estate investment bank, has secured a $48M acquisition and construction loan to acquire the B&O Building on North Charles Street in Baltimore and convert the property, which already includes office space, to also include a boutique hotel and signature restaurant. ARCWheeler Development & Hospicomm are the buyer and developer in this transaction and will perform extensive renovations.
The 220,500 square feet, 13-story building was once one of the premier office buildings of Baltimore and the historic former headquarters of the B&O Railroad. The impressive building includes granite from New Hampshire, bedford stone from Indiana, terra cotta tile trim, and seven different kinds of marble imported from six countries representing four continents. In 2001, the City of Baltimore's Commission for Historical and Architectural Preservation and the Maryland Historical Trust designated the B&O Building one the city's ten most historically consequential buildings.
Once completed, the building will be comprised of 1/3 office space and 2/3 hotel and restaurant. The historic beauty of the exterior, first floor and central core will be refurbished but unaltered.
"The B&O acquisition was interesting and challenging in that there were tax credits to consider in addition to the conversion into a hotel," said Andrew Benioff, managing partner at BlueStone Real Estate Capital. "However, we knew we were up to the challenge because of the deep development and renovation experience of the team of ARCWheeler Development."
"We are very excited about the future of this historic property and look forward to bringing a new, high-quality boutique hotel and gourmet restaurants into the city of Baltimore," said Hal Wheeler, Principal of ARCWheeler Development. "This was the first acquisition we secured with BlueStone and we look forward to working together again in the future."
"This acquisition is a perfect example of BlueStone's ability to secure financing for complex, sophisticated deals," said Matthew McManus, Chairman of BlueStone Real Estate Capital. The loan to cost ratio for the four-year loan is 80 percent, and can be extended at the option of the borrower with two 12-month extensions.
The 220,500 square feet, 13-story building was once one of the premier office buildings of Baltimore and the historic former headquarters of the B&O Railroad. The impressive building includes granite from New Hampshire, bedford stone from Indiana, terra cotta tile trim, and seven different kinds of marble imported from six countries representing four continents. In 2001, the City of Baltimore's Commission for Historical and Architectural Preservation and the Maryland Historical Trust designated the B&O Building one the city's ten most historically consequential buildings.
Once completed, the building will be comprised of 1/3 office space and 2/3 hotel and restaurant. The historic beauty of the exterior, first floor and central core will be refurbished but unaltered.
"The B&O acquisition was interesting and challenging in that there were tax credits to consider in addition to the conversion into a hotel," said Andrew Benioff, managing partner at BlueStone Real Estate Capital. "However, we knew we were up to the challenge because of the deep development and renovation experience of the team of ARCWheeler Development."
"We are very excited about the future of this historic property and look forward to bringing a new, high-quality boutique hotel and gourmet restaurants into the city of Baltimore," said Hal Wheeler, Principal of ARCWheeler Development. "This was the first acquisition we secured with BlueStone and we look forward to working together again in the future."
"This acquisition is a perfect example of BlueStone's ability to secure financing for complex, sophisticated deals," said Matthew McManus, Chairman of BlueStone Real Estate Capital. The loan to cost ratio for the four-year loan is 80 percent, and can be extended at the option of the borrower with two 12-month extensions.
