Commercial Property News: Bozzuto Finds $75M for Baltimore Mixed-Use Project
October 02, 2008
The Bozzuto Group has secured a $75 million construction-financing package and begun work on The Fitzgerald at UB Midtown, a mixed-use community going up on 4.6 acres owned by the University of Baltimore in the heart of Baltimore’s cultural district.
The financing consists of a $52 million construction loan provided by Bank of America and RBS Citizens and $23 million equity investment funded primarily by the New York State Teachers’ Retirement System (NYSTRS). The loan covers about 70 percent of the project’s cost, a ratio that is higher than usual.
“We would previously have expected a 75 percent loan,” Toby Bozzuto, a partner with the Bozzuto Group told CPN. “We had been negotiating the construction loan for about six months. As it turned out, the market fell apart the week we closed. That no one blinked speaks to the integrity of Bank of America, RBS Citizens and the Teacher’s Retirement System.”
A joint venture between The Bozzuto Group, Gould Property Co., NYSTRS and former Baltimore Ravens football player Michael McCrary, the Fitzgerald is part of a massive redevelopment effort by the University and the surrounding community.
Plans call for 280 luxury apartments, 14,000 square feet of retail and a parking structure with 1,250 spaces. The site is next to the Lyric Opera House and the Mount Royal Light Rail Transit Station. Penn Station is only a few blocks away.