Property ID : Eutaw1214
Sale Pending $1,000,000.00 - Apartment Building, Townhouse
Originally two-separate houses, now combined into one 23,000 sq.ft. building ready to for historic rehabilitation into 20 apartments. Built in 1880 as two private mansion homes, the buildings were converted into the Baltimore Ear, Nose and Throat Hospital many years ago, and most recently used as a long-term nursing care facility. The property has been vacant for more than 10 years.
The interior is largely gutted. Most plaster walls have been removed, exposing raw brick. Many floors boards have been removed, leaving the joists exposed. This offers an attractive pallet on which to design and build apartments that combine modern amenities with grand ceiling heights, large windows, and the grand staircases of older historic properties.
Given that the structure contributes to the history of the neighborhood and that the property is located within an historic district, the renovation is subject to CHAP approval and potentially qualifies for (a) federal historic rehabilitation tax credits that return 20% of every dollar spent on construction costs, and (b) a freeze for 10 years on the Baltimore City Property Taxes. The current property tax assessment is for $428,500 resulting in an annual property tax bill of just over $10,000.
The floor plans (see below under “Property Attachments”) were drawn in 2009. These plans need to be updated to comply with current building codes. Baltimore’s new zoning code, which takes effect June 5, 2017, has more relaxed parking requirements for historic rehab properties than the old zoning code. The new zoning code requires parking only to the extent that it is feasible and does not disrupt the historic character of the Property.
State Center Development (one block to the south of this property) is changing because the previous iteration was not financially sustainable (https://www.statecenter.org/). Given the massive (28 acre) and strategically desirable site (at the junction of the subway, the light rail, and easy connection to I-95 and I-83), the next iteration is sure to be in the near future. The Bolton Hill Community is one of the strongest neighborhoods in Baltimore City (http://boltonhill.org/) and MICA (The Maryland Institute College of Art https://www.mica.edu/ ) is among the top-5 art institutions in the United States, adding institutional strength and stability to this desirable location.
Many properties needing complete rehab in the mid-section of Baltimore City sell for $50+ per square foot. Developers can see value in this offering at only $43 per square foot of building area. The terrace level, with 9-foot ceiling heights and at grade rear entrances, offers usable and rentable area to this project.
$1,000,000 Offering Price
$33 per sq.ft. Gross Building Area
$44 per sq.ft. apartment area (excluding common areas)
$50,000 per unit
$540,000 potential federal historic rehab tax credit
9.3 finished product Cap Rate
16% Return on Investment Stabilized Positive Cash Flow