PURNELL ARTS
BUILDING
407 N Charles St.
Baltimore, MD 21201
Opportunity to Acquire a Fully Occupied Asset with Light Value-Add Potential in Downtown Baltimore
407 N. Charles St. | Baltimore, MD 21201
Harbor Stone Advisors is pleased to present The Purnell Arts Building, a stabilized asset with light value-add potential in Downtown Baltimore. The property was fully gut-renovated in 2014 and is just steps away from the historic Mt Vernon neighborhood and in close proximity to Mercy Medical Center, one of Baltimore's top employers.
The Purnell Arts Building features (3) 2 Br-1 Ba, (1) 2 Br-2.5 Ba, (1) 2 Br-2 Ba, (1) 4Br-3 Ba, and (1) commercial space. The commercial space is leased to Sweet Kam, a popular local cafe and eatery. There are two garage parking spaces located at the rear of the building as well as a rooftop walkout for Unit 6.
The opportunity exists for a new owner to complete light refreshments to the apartment units, with a suggested scope of updated cabinetry, granite countertops, new appliances, and updated bathrooms. Typical unit features consist of stainless steel appliances, engineered stone countertops, laminate cabinets, carpet/hardwood flooring, and in-unit washers/dryers. In addition to unit upgrades, current ownership completed numerous capital improvements including updating plumbing, electric and mechanical systems, installation of new windows, and replacement of the roof in 2014.
New ownership can implement a water reimbursement program for all tenants. The owner has also been paying for internet access for all tenants which incurs a yearly cost of over $3,500 and should be discontinued by year 2 of new ownership.
Properties that have undergone similar upgrades are achieving rents at least $382 higher on average compared to the subject property, and with minimal deferred maintenance, a new owner will not be investing an excess of capital into upgrades.
PRICE: Subject to Offer
# OF RESIDENTIAL UNITS: 6
# OF COMMERCIAL UNITS: 1
AVG. RENT: $1,850
YEAR RENOVATED: 2014
OCCUPANCY: 100%
NEIGHBORHOOD SPOTLIGHT:
MOUNT VERNON + DOWNTOWN
The Purnell Arts Building is located on the edge of the Mount Vernon and Downtown neighborhoods in Baltimore City. Mount Vernon is one of the city’s oldest neighborhoods littered with museums, theaters, and libraries, as well as boutique shops and cafes.
Walkability is the name of the game. Many cultural landmarks are within a short distance, including Johns Hopkins University’s prestigious Peabody Institute, the Washington Monument, Walters Art Museum, Baltimore Symphony Orchestra, the Baltimore Basilica. There are multiple hotels nearby, including Hotel Revival, The Ivy, Hotel Indigo, and the Belvedere and top eateries like Restaurante Tio Pepe and Sotto Sopra.
The subject property is nearby top colleges and universities and is directly across the street from Mercy Hospital. Others include UMMC Midtown Campus, the University of Baltimore, Maryland Institute College of Art (MICA), and Johns Hopkins University. Ample public transportation is nearby, including the free Charm City Circulator, a light rail stop, a metro stop, and many bus stops.
The property is less than a mile from the former Royal Farms Arena, which underwent a significant $200 million redevelopment of the arena’s interior with new seating, concession areas, a performance stage, and an outdoor deck. The rebranded CFG Bank Arena holds just over 13,000 seats and opened in early 2023.
More than 3,300 state employees will move offices to the central business district later this year, the largest single influx of jobs in downtowns history. The state agencies will occupy nearly 1 million additional space, increasing the state’s occupied footprint to roughly 2.5 million. Former Governor Hogan announced this plan nearly two years ago, and the final lease was approved late last year.
The property is also a 5-minute drive from Baltimore’s historic Penn Station, which is set to receive $150 million in renovations in the coming years. Penn Station offers convenient access to public transportation, with access to Amtrak trains and the MARC commuter train to Washington, D.C.
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