Baltimore Business Journal: Bozzuto Group to Build $57M Apartment Complex at Waugh Chapel
November 11, 2011
Bozzuto Group is building a 298-unit apartment complex at the new phase of the Waugh Chapel retail project in Gambrills.
The Greenbelt developer broke ground Nov. 7 on The Arcadian at Waugh Chapel, a $57 million, four-story building at Greenberg Gibbons Commercial Corp.’s Waugh Chapel Towne Centre.
The 1.2-million-square-foot mixed use complex rising off Crain Highway in Anne Arundel County will be anchored by Target, Wegmans and a 12-screen Regal Cinemas movie theater. Having a residential component contributes an important element to the project, said Brian Gibbons, Greenberg Gibbon’s CEO.
“It adds to the ambiance,” Gibbons said. “It adds to the vibrancy to have different uses in day and night and makes it a 24-hour project.”
The apartment building will take about two years to complete and is slated to open in 2013. Apartment rents for the project have not yet been set, said Lauren McDonald, a Bozzuto spokeswoman.
Bozzuto is moving ahead with its project at a time when the apartment market is hot, said David Altfeld, co-owner of Southern Land, a Baltimore developer. Tougher lending standards are forcing would-be home buyers into the rental market because they can’t get a mortgage, Altfeld said. At the same time, a wave of young workers graduating college is looking for apartments.
Many tenants also like the idea of living in a mixed-use development, where they park their car when they get home and walk to shopping and restaurants, Altfeld said.
“It turns a suburban location urban,” said Altfeld, who isn’t involved in the project.
Bozzuto itself has about 3,500 rental units in the Baltimore and Washington, D.C., areas either under construction or on the drawing board, said Toby S. Bozzuto, president of Bozzuto Development Co. The company started construction earlier this month on Union Wharf, a 281-unit apartment building in Fells Point.
Bozzuto also plans to break ground in spring or summer 2012 on a second apartment building at Annapolis Towne Centre at Parole. The $55 million, four-story building will have between 220 and 230 units. It is scheduled to open in 2014.
“We have a tremendous amount of activity in the region,” Bozzuto said.
Waugh Chapel is not the first time Bozzuto and Greenberg Gibbons have paired up on a project. Bozzuto built the 215-unit Mariner Bay apartment building as part of Greenberg Gibbon’s Annapolis Towne Centre.
As for Waugh Chapel, Bozzuto Development is handling the construction. Bozzuto and Chicago’s Pritzker Realty Group and M&T Bank are teaming up to finance the project. Bozzuto declined to say how much each is contributing to the project, which is the first one funded by a $75 million joint venture between Pritzker and Bozzuto.
The Village at Waugh Chapel sold last month for $98.9 million to Principal Real Estate Investors.