News Release
AMSTAR GROUP COMPLETES $20.7-MILLION INVESTMENT ACQUISITION OF OFFICE BUILDING ON PRIME SITE IN BALTIMORE'S INNER HARBOR
Denver-Based Real Estate Private Equity Firm Prepares to Initiate Plaza Repositioning Program at 1 East Pratt, a 10-Story, 320,000-Square-Foot Property
BALTIMORE (Aug. 4, 2005) – Amstar/Pratt Street, a subsidiary of Amstar Group, completed a $20.7-million investment transaction for the acquisition of an office building located within Baltimore’s Inner Harbor. The Denver-based real estate private equity firm acquired 1 East Pratt, a 10-story, 320,000-square-foot office property, primarily occupied by Verizon, from Constellation Place Associates. This prime Pratt Street location is directly connected to the convention center, Financial District, and a host of waterfront amenities.
“1 East Pratt is an ideal acquisition for Amstar Group because we see a terrific opportunity to contribute significantly to the urban renewal efforts underway in the Inner Harbor by applying an aggressive retail repositioning effort to the plaza level of the property,” said Gabe L. Finke, CEO of Amstar Group. “With direct access via two sky bridges to both the Baltimore convention center and Inner Harbor retail pavilions, the plaza level is primed for redevelopment.”
On top of its initial $20.7-million purchase price, Amstar Group expects to invest additional capital in order to market and redevelop the plaza. The company expects to announce improvement plans for the plaza by the fourth quarter of 2005, which will be designed to revitalize the space that has been under utilized and under occupied for so long.
“Given the transformation Baltimore’s Inner Harbor is currently experiencing, we are extremely excited to get started on this project,” said Robert A. Toomey, Jr., vice president of Amstar Group. “Colliers Pinkard was an invaluable resource during our study period and really got us comfortable with what the future holds for Baltimore.” Toomey added, “Colliers Pinkard are our local partners in the venture and will not only provide leasing and management expertise for the building, but will also continue to be a tremendous resource in determining the best and highest uses for the plaza space. Once this analysis is complete our marketing efforts will commence immediately.”
Sonnenblick-Goldman Company represented the seller in the transaction. Amstar Group represented itself in the acquisition.
"This transaction adds to Sonnenblick-Goldman’s list of completed net leased property sales, which includes properties leased to New York Life, Mellon Bank, Prudential Insurance, Cendant, Bank America, Kohls, JP Morgan and Steelcase," said Steven A. Kohn, president of Sonnenblick-Goldman Company.
The 1 East Pratt St. building and retail plaza area occupies an entire block, encompassing more than 1.7-acres. The site is bounded by East Pratt, Charles, Light, and Camden streets. The building was completed in 1977 and includes 265,000 square feet of office space and 52,000 square feet of retail space, and an above ground 187-space parking structure. Constructed of concrete and steel with precast and glass exterior walls, the building is L-shaped with a center core.
Amstar Group continues to be an active private equity investor in key domestic real estate markets. Over the next few years, Amstar plans to place approximately $1.5 billion in leveraged equity investments. Currently, the company has more than $300 million of its own discretionary equity available for investment.
In 2004, Amstar completed or placed under contract more than $1 billion in transaction activity, including acquisitions, dispositions, and developments. This involved more than 2.8 million square feet of office space, 696 multi-family units and 791 hotel rooms.
About Amstar Group
Established in 1987, Amstar Group is one of the leading real estate private equity firms in the United States. Headquartered in Denver, Colorado, the company has acquired and developed more than 75 properties valued at $2 billion. Its current portfolio includes a diversified mix of office, multifamily and hospitality holdings. The company currently has holdings in California, Florida, Texas, Philadelphia, Chicago, Denver, Phoenix, and Washington, D.C. For more information about Amstar Group visit the company’s website at www.amstargroup.com.
About Sonnenblick-Goldman
Sonnenblick-Goldman Company is a leading independent real estate investment banking firm. Founded in 1893 to serve the financing needs of the real estate industry, Sonnenblick-Goldman Company provides a full range of financial services including debt and equity placements, joint ventures, investment sales and advisory services. Headquartered in New York, Sonnenblick-Goldman Company maintains offices in San Francisco, Tokyo, Sydney, Shanghai and Hong Kong. Further information can be found at Sonnenblick-Goldman Company’s website at www.sonngold.com.