Armada Hoffler To Buy Class A+ Mixed-Use Exelon Building In Baltimore For $246 Mln

(RTTNews) - Armada Hoffler Properties, Inc. (AHH) Tuesday said it has entered into an agreement to acquire Class A+ mixed-use Exelon building in Baltimore's Harbor Point. The aggregate value of the acquisition is $246 million.

The purchase include a 79 percent interest and an additional 11 percent economic interest in the 23-story mixed-use Exelon building in Baltimore's premiere downtown waterfront neighborhood, Harbor Point. The estimated year 1 return on investment is 7.4 percent.

The Exelon building is comprised of a 23-story, 444,000 square foot Class A office building that serves as the regional headquarters for Exelon Corp. It also has a multifamily component comprised of 103 units, 38,500 square feet of retail space anchored by West Elm, and 750 parking spaces, 500 of which are leased by Exelon.

The office component of the Exelon building is 100 percent leased by Exelon, an investment grade clean energy provider, pursuant to a lease with a remaining term of 15 years, with 3 percent annual escalation.

The company said the acquisition is subject to customary closing conditions, including satisfactory due diligence. The closing of the deal is expected by the end of the first quarter of 2022.

Beatty Development Group will retain a 10 percent ownership position in the asset.