Large new Baltimore City apartment projects are making the news.Projects like Locust Point and Harbor East are much-needed in the Baltimore market and drum up all kinds of buzz. For the average developer seeking executable projects, the real thing to understand is the ease of doing small infill apartment projects in the City.
Successful local developers are focusing in on converting former office or industrial buildings both near hot zones like the Inner Harbor and scattered around various urban neighborhoods. “If you’ve been doing projects in DC going back 15 – 20 years, you’ve seen this before,” said Gerard DiRuggiero, Principal Broker of UrbanLand Company. “Emerging neighborhoods are the name of the game. Small apartment conversions lead the charge as pioneers, followed by higher housing prices & for-sale product popping up.”
Local developers are embracing the millennial demographic, which in Baltimore makes an average of $50,000 and under with stable employment. The city has been getting regular recent recognition for the strength of its professional job market and similarities to DC. Two thirds of the apartment-seeking population are young singles and young couples, and half of the group is relocating in from outside the city limits. They’re choosing Baltimore City due to affordability relative to cities like Philadelphia and nearby Washington, D.C.
“The low costs of entry for developers into small infill apartments transfers down to millennials; they can afford the built-in value that comes with emerging neighborhoods,” commented Gerard. “These are loyal tenants that seek out older urban architecture and keep your investment producing cash until you convert & sell the units once prices rise.”
Local Baltimore developer Zahlco has multiple boutique projects talked about in various parts of the city. The advertised market rents vary per location.
For more information on Baltimore infill projects and what to expect, call 202.335.2201.