"Condo boom drawing new residents"
Kelly Carson, The Examiner
Sep 11, 2006 5:00 AM (11 hrs ago)
Current rank: # 22 of 6,643 articles
BALTIMORE - The condominium market in Baltimore’s central business district is exploding, with hundreds of units either on the market, under construction or in the planning stage.
It’s a double-edged sword, however, bringing in more affluent residents while pushing middle and lower income residents out to the fringes.
John Hopkins, associate director of applied economics at RESI, the economic consulting organization at Towson University, said high-end condos are in demand by “empty-nesters and professional couples who want the urban atmosphere without the hassles of a yard and daily upkeep.”
The trend is driving redevelopment efforts throughout the area,
as evidenced by an announcement last week that the last undeveloped parcel along the Inner Harbor, 300 E. Pratt St., will be transformed into a 52-story mixed-use development, featuring 300 condos, a five-star hotel, restaurant and shopping complex by Baltimore-based Doracon LLC and New York-based UrbanAmerica LP, a private equity firm.
According to multiple-listing-services resale data compiled by Metropolitan Regional Information Systems Inc., 244 condos were offered for sale in January 2006 in Baltimore’s downtown district. Prices ranged from less than $100,000 to $5 million, with the largest offering — 29 — in the $250,000-$299,000 price range. Twenty-eight condos were sold during that period.
In June 2006, the latest month for which data is available, the total number of condos offered for sale in the less than $100,000 to $5 million range stood at 348, with 41 units available in the $250,000-$299,999 range, according to the data. Seventy-eight condos sold in June.
“The impact on existing housing is positive because it’s bringing prices up,” Hopkins said. “As the condos attract a vibrant population back into downtown, it acts as an attractor for like people.”
But there is a downside.
“What at one time was affordable is rehabbed into high-end housing or is being demolished and redeveloped into high-end property. There needs to be an incentive to develop affordable and work-force housing,” Hopkins said.
Middle-income people are beginning to look in neighborhoods just outside the city, or straddling the city-county border, said Realtor Bernadette May of EXIT Spivey Professional Realty.
“A lot of first-time buyers who are not able to buy a $200,000 or $300,000 home are going into areas where the development is going to occur,” May said. “Redevelopment may even be in the process now, but my clients are still able to find decent housing.”
Hopkins said that neighborhoods outside of the central business district are ripe for middle-income development.
“It’s a risk for people because housing is often their primary investment,” he said. “They can buy at a lower price, but they are betting the neighborhood will slowly improve around them. It’s an encroachment on a way of life — forcing out the negative factors — that leads to an area slowly redeveloping. Pending a good economy, everybody benefits.”
kcarson@baltimoreexaminer.com
and...
http://www.doracon.com/site/contact.htm
http://www.urbanamerica.com/pdf/300pratt.pdf
FOR IMMEDIATE RELEASE
UrbanAmerica and Doracon Acquire Prestigious Site on Baltimore’s Coveted Waterfront!
NEW YORK, NY Aug. 8, 2006 – UrbanAmerica, a national real estate private equity firm, and Doracon, a Baltimore-based developer, are pleased to announce the acquisition of what many consider the most coveted undeveloped property remaining on Baltimore’s expanding waterfront. The acquisition marks the first step toward completion of a $250 million dollar mixed-use project anticipated to become the city’s signature landmark property.
Richmond McCoy, President and CEO of UrbanAmerica expressed, “I am very pleased to announce this joint venture acquisition and to work with Ron Lipscomb, Owner & President of Doracon. We are excited to participate in Baltimore’s renaissance. Our partnership is committed to bringing the highest quality of mixed-use development to Baltimore.”
The property is located at 300 East Pratt Street. And as planned, it will change the skyline in the Inner Harbor Community. The mixed-use project’s many offerings will include retail, hi-rise residential market-rate condominiums, a luxury hotel and structured parking. It consists of over 1 million sq. ft. of prime inner harbor direct water views, and is situated on the last downtown core premier parcel of land in the City of Baltimore. A high-end full service hotel is likely to boost appeal of the residential condominiums by offering shared amenities, including a concierge, room service, swimming pools and spa services. The partnership is in discussion with several hotel investors that can meet the needs of this proposed plan of the pedestrian-friendly Inner Harbor Community.
Baltimore Mayor Martin O’Malley and co-developer Ronald Lipscomb are both pleased with the promise the project holds and what it means for Baltimore.
“This is an extremely important development for Baltimore on many levels,” said Mayor O’Malley. “Beyond the scale of this landmark project and what it says about the steady progression of our economic expansion, it is a powerful statement about the growth and potential for minority business here in our city. It also says a great deal about Ronald Lipscomb in particular. He is a man of vision, talent and commitment to the greater good. The citizens of Baltimore are very proud and appreciative of what he is accomplishing through this exciting project with our new friends at UrbanAmerica.”
Ronald Lipscomb went on to say, “We are confident that the Pratt Street project will be a major addition to the growing inventory of special projects here in Baltimore. We recognize that we are
very fortunate to have acquired this site and intend to erect a structure that becomes synonymous with the very best Baltimore has to offer. I look forward to doing more development with UrbanAmerica. They appreciate the value of revitalization of our urban centers and have the courage, experience and insight to make their investments successful.”
UrbanAmerica is a national real estate private equity firm with $500 million under management and a $5 billion pipeline of for-sale residential, retail and office opportunities. A minority-controlled registered investment advisor founded in 1998, the Company established an urban investment niche targeting properties in healthcare, government and academic spheres, along with mixed use residential condominiums and retail markets. Currently, it owns and operates a portfolio of properties representing 3.6 million sq. ft. including a large portfolio in the DC Metro area.
Doracon, LLC is a Maryland-based development company with a growing portfolio of residential, commercial and mixed use projects. With over 20 years in the construction business, Doracon is currently involved in a number of waterfront and other high profile projects in Baltimore and other cities throughout the United States.
This press release may contain certain forward-looking information with respect to the results of operations and business of the UrbanAmerica, LP. The words “estimate,” “believe,” “project,” “forecast,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. For a discussion of some of these risks and uncertainties, see the factors identified under the heading "INVESTMENT CONSIDERATIONS AND RISK FACTORS" in UrbanAmerica's Private Placement.
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Oct. 25th date sounds good to me. 
I'm not sure. It working now though.
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