Baltimore-Area Class A Office Portfolio for Sale

Tuesday, May 23, 2017

Holliday Fenoglio Fowler, L.P. (HFF) is marketing for sale Dulaney Center, a portfolio of two Class A office buildings totaling 315,872 square feet and a seven-story parking garage in the heart of Towson, Maryland. The buildings are located immediately adjacent to a 248-room Sheraton Hotel and benefit from a pedestrian walking bridge that provides a direct connection to Towson Town Center, which is the premier shopping and dining destination in the Baltimore metropolitan region.

Dulaney Center is 88 percent leased to a diverse roster of 29 tenants, 45 percent of which have occupied the buildings for more than 10 years. The portfolio’s entrenched tenancy, consisting of businesses that are representative of the wealthy local Towson economy, provides excellent in-place cash flow and is complemented by an ideal rollover profile, with an average of just seven percent of leased space expiring annually through 2028. In addition, investors have the ability to generate outsized revenue growth from the 1,542-space parking garage, which serves Dulaney Center as well as the adjacent Sheraton Hotel.

This core-plus investment offering represents a coveted opportunity to acquire an institutional quality office portfolio and perfectly positions investors long-term to benefit from the leasing activity, rental rate growth and parking upside that will accompany Towson’s continued revitalization as the premier live-work-play environment in the Baltimore metropolitan region.

Office Property for Sale Investment Benefits

  • Stable Tenancy:  The 88-percent-leased quality office portfolio has excellent in-place cash flow. With a 10-year average occupancy of 90 percent, 45 percent of the tenants have occupied Dulaney Center for more than 10 years and 22 percent of tenants have been at the property for more than 20 years.
  •   The office portfolio for sale includes a seven-story, 1,542-space structured parking garage, which offers a tremendous upside in its potential to generate outsized monthly parking income growth.
  • Highly Accessible Location:  The 133,009-square-foot Dulaney Center I is located at 849 Fairmount Avenue; the 182,863-square-foot Dulaney Center II is situated at 901 Dulaney Valley Road; and the parking garage positioned at 855 Southerly Road. The portfolio’s location is highly accessible from the affluent surrounding suburbs and less than half a mile from the Baltimore Beltway (Interstate 695)
  • Nearby Amenities and Proximity to Regional Demand Drivers:  Dulaney Center is located in a 24/7, amenity-rich location across the street from Towson Town Center, one of the largest indoor shopping malls in the country and accessible from the property via a pedestrian walking bridge. Additionally, the property is proximate to a plethora of hospitals and educational institutions, including Johns Hopkins, Towson University, Loyola University Maryland and Goucher College.

For more information on the Dulaney Center or other office properties for sale in the Baltimore area, please contact Bruce Strasburg, Jim Meisel, Matt Nicholson or Stephen Conley in HFF’s Washington, D.C. office. For information on financing the purchase of this property, please contact Cary Abod. To view HFF’s current real estate investment listings, please click here to be directed to HFF’s property search page.

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