Bozzuto breaks ground on Union Wharf apartments
Union Wharf rendering courtesy of the Bozzuto Group
The Bozzuto Group, long interested in building apartments on a parcel alongside the Fells Point waterfront, is officially breaking ground there today for a 281-unit upscale complex.
The project, part of the Union Wharf mixed-use development, will include nearly 5,000 square feet of commercial space that Bozzuto expects will be used by a restaurant.
The apartment market is yin to the housing-market yang, with rents rising and vacancies improving over the last few years while sale prices have fallen. Bozzuto builds for both markets, and CEO Tom Bozzuto explained in today's housing-market story why he thinks residents in their 20s will be heavily in the renter demographic.
More on Union Wharf:
The company expects construction will finish in November 2013, with some units ready for renting the previous summer. The complex will be one long, five-story building wrapped around a 500-unit parking garage, with several courtyards built along the promenade.
Bozzuto expects average rents will be comparable to its nearby Spinnaker Bay complex, somewhere in the neighborhood of $2,250 to $2,300 a month.
Not surprisingly at those prices, the company's executives believe their target audience won't be people who can't afford to buy a home.
"We're really catering to ... renters by choice," said Jeff Kayce, vice president of the company's Bozzuto Development arm.
The site, most recently used as a parking lot, was once industrial. Kayce said Bozzuto is working with the state to clean the site, mainly getting old concrete and rebar out of the ground and capping it.
The project, a joint venture with Cigna and the Pritzker Realty Group, has been a long while in coming. Tom Bozzuto says the company has been in discussions to build there for about a decade and got the land under contract two years ago.
"We have had great success with our properties in Baltimore to date, and we're very excited to be part of what we see as a rejuvenation of Baltimore," he said.
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Comments
Jamie -- do you know if the project is being subsidized by TIF or PILOTs? I remember BDC proposing taxpayer subsidies for a plan to build a high rise with million dollar condos in Harbor East during the height of the housing bubble (after an outcry, I don't believe it ever got built, though.).
Posted by: Jason | December 13, 2011 8:03 AM
I don't know -- good question, Jason. I just emailed Bozzuto to ask.
Posted by: Jamie Smith Hopkins | December 13, 2011 8:14 AM
Jamie, where is this site, exactly?
Posted by: Frank | December 13, 2011 9:10 AM
Hi, Frank! It's at 915 S. Wolfe St., where Wolfe intersects with Thames St.
Posted by: Jamie Smith Hopkins | December 13, 2011 9:28 AM
Jason, here is Bozzuto's answer to your question: "The State of Maryland Enterprise zone and Brownfield redevelopment incentive program accounts for the only assistance received."
Posted by: Jamie Smith Hopkins | December 13, 2011 9:36 AM
More regressive, pre-Revolutionary France economic policy. In other words, more high end, waterfront real estate that will be paying substantially reduced taxes, while everyone else picks up the slack. This is bottom-up income redistribution by force of government.
From http://www.choosemaryland.org/businessresources/pages/enterprisezones.aspx
Businesses locating in a Maryland Enterprise Zone may be eligible for income tax and real property tax credits in return for job creation and investments. Businesses located in one of two focus areas are also be eligible for personal property tax credits.
Enterprise Zone Tax Credits
Real property tax credits – Ten-year credit against local real property taxes on a portion of real property improvements. Credit is 80% the first five years, and decreases 10% annually to 30 percent in the tenth and final year.
Income tax credits – the one-time $1,000 credit per new worker. For economically disadvantaged employees, the credit is $6,000 per employee over three years.
Focus Area Tax Credits
Businesses in Baltimore City or Prince George’s County enterprise zones may be eligible for the following tax credits:
Real property tax credits – Ten-year, 80% credit against local real property taxes on a portion of real property improvements. (does not decline as it does with the standard benefit).
Personal property tax credits – Ten-year, 80% credit against local personal property taxes on new investment in personal property within a focus area.
Income tax credits – a one-time $1,500 credit per new employee. For economically disadvantaged employees, the credit is $9,000 per employee over three years.
And the Brownfield program even gets them federal money. http://www.mde.state.md.us/programs/Land/MarylandBrownfieldVCP/Pages/programs/landprograms/errp_brownfields/bf_info/index.aspx
Posted by: Josh Dowlut | December 13, 2011 1:50 PM
Ahhhh -- corporate welfare and crony capitalism are alive and well in Baltimore City & the State of Maryland for favored developers.
It's curious as to why Fells Point would be considered a disadvantaged area (ditto Harbor East). I guess it must have something to do with rewarding political contributors.
Posted by: Jason | December 13, 2011 3:11 PM
Another sweetheart deal i like the part about job creation ten janitors and maybe a hispanic receptionist sounds like the direction the city is going in Tif and Pilot programs for developers the rest of city looks like Berlin post ww2. Great job Blake and Fiddler Young
Posted by: keith white | December 13, 2011 8:04 PM
Any more info on Broadway Pier? Another sweetheart deal, the city basically gave it away and if my history is right, part of that building should be saved for area residents recreation hence RECREATIONAL PIER!
Posted by: Frank | December 15, 2011 7:43 AM
While it is technically true that those were the only direct subsidies, the project obviously benefits greatly from the recently built promenade and bulkhead work which was paid for through public subsidies...
Posted by: Ryan | December 16, 2011 12:35 PM