Multi-Housing News: Bozzuto Kicks Off 121-Unit Suburban Baltimore Townhome Project
February 17, 2011
Bozzuto Homes prepares to bring 121 new for-sale townhomes to Towson, Md. with the commencement of construction of Towson Green, a $40 million residential development less than 10 miles outside of Baltimore.
With an address of 32 E. Burke Ave., Towson Green will sit within walking distance of Towson Town Center and within close proximity of downtown Baltimore and the Inner Harbor. Also nearby are Towson University, Goucher College, Greater Baltimore Medical Center and St. Joseph Medical Center.
Addressing its focus on sustainable development and the growing demand for environmentally friendly accommodations, Bozzuto has designed Towson Green to meet the requirements for the National Association of Home Builders’ National Green Building Standard Silver Level certification. The property will feature a sustainable design, construction and finishes, and contain Energy Star appliances. One of the most prominent green amenities will be the rain garden, a bio-retention area encompassing aquatic plantings that will treat storm-water runoff. Bozzuto has also brought in the Chesapeake Fund, an organization that advocates the reduction of nitrogen and phosphorous in the Chesapeake Bay, to provide eco-friendly guidance.
In the current lending climate, obtaining financing for apartment projects is hard, and obtaining financing for condominiums is even harder. “Many of the construction lenders aren’t active in the for-sale multifamily property acquisition and construction loan market, and haven’t been for a couple of years,” Clark Wagner, vice president and director of development for Bozzuto, tells MHN. “We almost always have an equity partner and then get a traditional construction loan.” Securing the financing was no simple feat, but ultimately, the company got its hands on a $5.3 million ADC loan and a $5 million construction loan through M&T Bank.
Nationally, the apartment market is on the road to a full rebound, but such is not the case with for-sale housing, be it single-family or townhomes. However, Bozzuto is undeterred by current market conditions. “Towson Green is in an A-plus location,” Wagner says. “It’s in the middle of Towson, which is one of the more sought-after locations in Baltimore County. Also, the prices we’re offering what buyers are looking for, and there’s the fact that we have a 10-year tax abatement from the county. The combination will make the townhomes sell.”