Opportunity: In Spring 2004 Leo McDermott approached Boxer Property to list their office portfolio of 8 properties totaling 530,300 square feet in downtown Baltimore. Boxer had acquired the properties in 1998 and 2000 for approximately $25.00/sf, and had substantially improved the occupancy of each building. Boxer refused to exclusively list the portfolio and would only sell the buildings as a portfolio on an open listing basis.
Challenge: Market a large office portfolio located within a second tier and formerly depressed market to regional and national developers with little control of the Seller and no guarantee of success.
Solution: Realizing that Baltimore’s revitalization was gaining ground and presented a “value-added” opportunity relative to properties within Washington, D.C., Leo agreed to tackle the assignment and proceeded to solicit investors and developers from throughout the Washington, D.C. and Baltimore metro areas. RWN Development Group and Bresler & Reiner agreed to purchase the portfolio for a premium price of $29.5 Million ($55.00/sf). Upon settlement in November 2004, the buyer hired Leo to resell the buildings individually, closing on 6 of the 8 buildings within 12 to 14 months later at prices ranging from $75.00 to $90.00 per square foot.
