Medical office building is sold for $4.8 millionA...

COMMERCIAL REALTY

June 02, 1993|By Timothy J. Mullaney | Timothy J. Mullaney,Staff Writer

Medical office building is sold for $4.8 million

A partnership led by real estate developer Clark MacKenzie has sold a 57,000-square-foot medical office building at 21 Crossroads Drive in Owings Mills for $4.8 million, according to the brokerage firm handling the sale.

The four-story building was completed in 1989 and is 83 percent leased, says Robert Aumiller, executive vice president of MacKenzie/O'Conor, Piper & Flynn Commercial Real Estate Services, which brokered the deal. The brokerage company was created last year by the merger of one of Mr. MacKenzie's companies with the commercial division of O'Conor, Piper, the area's biggest broker of residential real estate.

The buyer was a group doing business as Crossroads Medical L.P., says Mr. Aumiller, adding that the principals in Crossroads asked that their identities not be disclosed.

The biggest tenant in the building is Schultz, Snider & Associates, P.A., Mr. Aumiller says. That firm leases about 10,000 square feet and runs a diagnostic imaging center on the building's first floor.

The building is one of a group that MacKenzie-affiliated partnerships built at the site in the late 1980s.

Twenty-five Crossroads Drive, which Mr. MacKenzie still controls, was the headquarters of the Jos. A. Bank Clothiers chain until the company moved to less expensive space in Carroll County. It is also the home of Linwood's Cafe & Grille.

Waverly Inc.to look for new digs

Waverly Inc. will be the next big Baltimore company to look for a new headquarters, in a relocation that could be one of the biggest office deals of 1993.

The Mount Vernon-based publisher of scientific and medical books wants to move out of its buildings at Mount Royal and Guilford avenues and on East Preston Street, said Barry M. Barovick, director of corporate real estate consulting services for Ernst & Young, the firm leading Waverly's search.

Waverly wants to divide its tomes between two new sites, he says. One 70,000-square-foot space would be for professional employees, while the other 40,000 square feet will be used mostly by back-office personnel. By comparison, the biggest private-sector office deal in Baltimore last year was a lease of about 83,000 square feet.

"We're looking for Class A space," Mr. Barovick said, despite Waverly's past history of being located in older buildings outside major office districts.

He says the search will include Baltimore and surrounding counties. Waverly's Easton operation won't be affected.

Mr. Barovick says Waverly will work with city and suburban economic development officials to see what incentives they can offer.

"That's something we'll be looking at very closely."

Luxury O.C. homes to be auctioned

BTR Realty Inc. will auction seven luxury town houses at the Harbour Island development in Ocean City so it can clean up its real estate portfolio before converting to a real estate investment trust, the Linthicum developer said yesterday.

"These kinds of properties don't fit into an REIT," BTR president F. Patrick Hughes said. "They're not income properties; they're held for sale."

Real estate investment trusts, which must pay out virtually all of their profits as shareholder dividends in exchange for tax-free status, usually focus on stable, income-oriented rental projects.

Atlantic Auctions Inc. of Baltimore will handle the June 26 sale, scheduled in cooperation with O'Conor, Piper & Flynn.

The units are in a 182-unit community near the bay. They sell new for $250,000 and up, Mr. Hughes says. Six of the remaining seven will be offered with a boat slip. Three will be sold with no minimum bid.

Firm reports business park glut

It's common wisdom that Baltimore won't be able to support any major office development until the late 1990s. Now, a report from a Lutherville consulting firm suggests that the southern suburbs should prepare for a development drought, too.

Lipman, Frizzell & Mitchell reports that business parks in the Baltimore-Washington corridor have such a glut of available space and finished land that no "raw land" -- tracts without roads and sewers -- is likely to be developed into business parks between I-695 and Laurel for as long as five years.

"There won't be any reason for site development of new business parks," said partner M. Ronald Lipman.

The slowdown is reflected in a near-collapse of raw industrial land sales between the Baltimore Beltway and Laurel, Mr. Lipman says. As late as 1989, there were 17 land sales involving more than 300 acres, counting both finished business park lots and raw land.

By 1991, there were only four deals, and last year five. Aside

from two sales in Dorsey, where Coca-Cola Enterprises and Coca-Cola USA plan a state-of-the-art syrup manufacturing and distribution plant, only 75 acres of raw land have been sold in the last two full years. Only 50 acres of finished lots have been sold.

"You have to [lease existing buildings] until occupancy stabilizes," Mr. Lipman said.

"The next step would be using the finished sites in the existing parks. And all of this is with a backdrop of relatively weak %J demand."

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