Armada Hoffler Properties, a vertically integrated REIT, has agreed to purchase the class A Thames Street Wharf office building in Baltimore from KBS Cos. for $101 million.
In 2010, the asset was built by Armada Hoffler Construction. Thames Street Wharf is an eight-story multitenant office building certified LEED Gold for Core & Shell located in the Harbor Point development, Baltimore’s largest downtown waterfront development site.
The building neighbors 1405 Point, a 17-story luxury apartment high-rise building, and Wills Wharf, a 325,000-square-foot, mixed-use building currently under development by Armada.
The property is anchored by Morgan Stanley and Johns Hopkins Medicine, which together lease 92 percent of the property’s 263,426 rentable square feet.
The building is 100 percent occupied with an average remaining lease term of 7.4 years and in-place triple-net rent levels among the highest in the Baltimore market, according to Armada.
The company expects the property to generate a cash net operating income of $7.1 million within the first year of ownership.
The transaction is slated for completion in the second quarter.