ProMed Pays $22 Million for Part of Baltimore Building
By Adrian Maties, Associate Editor
ProMed Properties LLC, a wholly owned subsidiary of Gazit-Globe, recently purchased four floors of the Johnston Professional Building in North Baltimore. The New York-based company paid $21.75 million to buy a leasehold interest for the third, fourth, fifth and sixth floors of the eight-story building.
Located at 3333 N. Calvert Street, the four floors sit atop MedStar Health’s Union Memorial Hospital, which occupies the lower levels of the building. MedStar Union Memorial is also the largest tenant, occupying almost 51 percent of the total square footage. ProMed, a leading owner and asset manager of medical office and research buildings, purchased 79,360 square feet of medical office space in the Johnston Professional Building. With this acquisition, the building will now be 100 percent occupied. The rest of the space is occupied by a diverse mix of medical practices.
The building is located just one block east of the Homewood campus of the Johns Hopkins University, in an area where the university is investing continuously in development projects for the use of the university as well as retail and multifamily housing. Within a five mile radius of the property, there is a population of almost 610,000, with an average household income of $63,500. It exceeds the national average.
”This acquisition offers ProMed the opportunity to partner with MedStar Health, one of the strongest healthcare systems in the Mid-Atlantic Region. Furthermore, it aligns with ProMed’s investment strategy of selectively acquiring properties, near and integral to top-related medical universities and hospitals, in markets with high barriers to entry. This new acquisition is a great addition to our Northeastern portfolio, which includes properties in major MSAs such as New York, Washington DC, Boston and Philadelphia.”
ProMed financed the acquisition with a new, 10-year, $14.0 million loan at a fixed 3.95 percent interest rate as well as cash on hand.
Photo credits: Google Maps