How New York Developer MaryAnne Gilmartin Built a Career on Embracing the Complicated

Her MAG Partners Begins Leasing Ruby Residential Tower in Manhattan’s Garment District

MaryAnne Gilmartin, who founded MAG Partners in 2020, is known for projects including Brooklyn’s Barclays Center and the New York Times Building in Manhattan. (MAG Partners)

The older man on the other side of the chain link fence had a shotgun and two pitbulls. MaryAnne Gilmartin, then just 22, was armed with little more than a receptive attitude.

When the dust eventually settled after that on-site meeting, she had successfully dealt with his refusal to leave the land he occupied, helping to clear the way for a project New York City sought to build. Three decades later Gilmartin, now founder and chief executive of New York real estate developer MAG Partners, would be the first to tell you her embrace of projects with complicated issues has ended up serving her well.

Gilmartin’s career has gone from that first assignment involving a vehicle towing yard to include work on buildings such as Barclays Center in Brooklyn, reflecting what she called in an interview a “tendency to lean into projects that have hair on it [and] may require a little more heavy lifting.” She’s expanded her philosophy to include “pursuing opportunities that others may not want.”

The recent kickoff of leasing at Ruby, a two-tower, 480-unit luxury residential rental development that’s 30% affordable, is the latest example of chasing projects that others might turn down. It’s MAG’s first New York development to debut since Gilmartin founded the firm during the pandemic in 2020 after buying out her partners.

The midblock property, located at 243 W. 28th St. between Seventh and Eighth avenues across from the Fashion Institute of Technology in the Garment District, is housed on a former parking lot owned by Edison Properties. Ruby is the fruit of what Gilmartin described as “far from a typical real estate transaction.”

After developers failed to buy the land from Edison, Gilmartin eventually was able to structure a 99-year ground-lease deal that led to the project named after Ruby Bailey, 20th-century fashion pioneer who lived in New York’s Harlem neighborhood.

There was “a lot of handholding,” she told CoStar News. The deal had “a lot of hair and complicated issues.”

Some of the complications involved convincing MAG’s capital partners to proceed with funding construction during the pandemic when lenders didn’t want to back projects in New York, she said.

“The building became a referendum of sorts,” she said at a real estate event this month hosted by Fordham University, her alma mater. “It’s a bet on New York City.”

‘Accidental Developer’

Gilmartin is no stranger to tackling projects that may have deterred others. She became what she described as an “accidental developer” in the ’80s after graduating from Fordham, and that led to her involvement with a lot of different projects across the city through the Urban Fellows Program.

“It was there that I realized I had real estate in my veins,” she said at the Fordham talk. “It was fortuitous. It wasn’t at all part of my plan.”

When her first Urban Fellows assignment involved the towing site at an industrial park in Queens, she said a stumbling block emerged over the 82-year-old squatter. Gilmartin decided to hop on the train to go visit him, against the advice of others.

“I know nothing about the business,” she said. “All I know is this is a person who has a set of facts and beliefs and preferences and desires. I need to understand what they are. … I literally stood on the other side of the chain link fence and talked to this very disturbed older man. … Real estate is a collection of stories about the human condition.”

Her visit paid off and paved the way for the man transitioning to special housing, clearing the site for the towing facility.

After about seven years working in public service and a two-year stint as a broker, which made her realize “being a middleman is just not in my makeup,” she went to Forest City Ratner and ended up spending 23 years there, including as president and chief executive before the firm was sold to Brookfield Asset Management in 2018.

Making Her Way

Gilmartin, a New York native, grew up in both Rockaway Beach in Queens and in Woodstock, New York, a two-hour drive north of the city. She credits her can-do attitude in part to something her mom said despite growing up in what she described as a “dysfunctional childhood.”

“My mom said, ‘You make your own way. You make your own happiness,’” Gilmartin said.

On the career front, Bruce Ratner, who co-founded Forest City Ratner in 1985 and was its CEO before eventually passing his baton to Gilmartin in 2013, was a big influence.

“I was part of the meritocracy,” Gilmartin said. “Bruce Ratner had my back. We had the confidence we belonged at the table. He said, ‘If you can dream it and can defend it,’ we usually got approval to do it. … Know your wheelhouse. You can’t fake it. If you are substantive in this business, amazing business can happen.”

One of those pieces of businesses involved MAG’s first foray outside New York, partnering with Under Armour founder Kevin Plank as well as Goldman Sachs to oversee Baltimore Peninsula, a 235-acre mixed-use development in Baltimore. Some 1.1 million square feet of office, retail and residential is opening this year on a prime waterfront location as part of the project with 13 million more square feet left to be developed.

Loves New York

“My first love is New York City,” Gilmartin told CoStar News. But within a day’s commute, “between Boston and D.C., we see opportunities. … Land demand and ground-up opportunities are much more amenable” than in New York.

A case in point of how it’s “tough” getting things done in New York, she said, involves the June 2022 expiration of the 421-a tax exemption program that gave developers tax breaks on multifamily developments in exchange for a portion of units being set aside for affordable housing. Without the support of New York state legislators, the program, which Gilmartin calls essential for business, remains dead despite backing from New York Gov. Kathy Hochul, she said.

“I’m a little jaded because of that,” she said at the Fordham event. “It’s nice to go to Baltimore. The answer in Baltimore isn’t ‘no.’ The answer is ‘yes.’ In New York, the answer is ‘no’ first. The city has to grow. … If there’s no tax-exemption program, we will have a homogeneous collection of condos that are highly unaffordable for people in the city. There’s a chilling effect” on multifamily development.

Ruby and two other Manhattan residential projects MAG has underway — 335 Eighth Ave., a 190-unit mixed-income apartment building, and 300 E. 50th Street, a 194-unit property on the east side — all qualify under the expired 421-a program, Gilmartin told CoStar.

“This isn’t a windfall for developers,” she told CoStar. “I would like to build more. Multifamily is still the darling asset class in New York. It’s difficult to imagine more projects” without the tax-exemption program.

As New York’s office vacancy rate has surged to new record highs, Gilmartin isn’t calling it quits on the sector. MAG is developing a 175,000-square-foot boutique office at 122 Varick St. in the Hudson Square neighborhood, where both Google and Disney are building major campuses.

“This is a bespoke offering. There’ll continue to be a flight to quality,” she said, adding that it will reflect “the post-pandemic world of how we want to work.”

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NYC Developer Opens Chelsea Rentals as Pipeline Gets Tougher

MaryAnne Gilmartin’s first project in the city since striking out on her own will start leasing. Future efforts might become more challenging.

New York veteran developer MaryAnne Gilmartin, who’s worked on the Barclays Center and New York Times Building, will start signing up renters for her new firm’s first completed project. 

Her firm, MAG Partners, begins leasing Monday at the Chelsea development called Ruby — named for the late Harlem-based fashion designer and dressmaker Ruby Bailey — that has 480 apartments spread across two towers. She also has two other Manhattan multifamily projects underway at 335 Eighth Ave. and 300 E. 50th St., but after the deadline to qualify for a key tax incentive expired last year, her outlook for more rental projects across the city is starting to dim.

Gilmartin is among developers warning that the New York rental market — already tough with rents hovering near record highs — could come under pressure as she expects it could take state officials at least a year or two to get serious about replacing the 421-a tax break, an incentive that encouraged building more affordable rentals. In the meantime, she expects the pipeline for rental construction to slow and some developers to turn to more lucrative condominium projects with fewer units and higher prices. 

“We’re going to have homogenized product — too much of it — brought online as a result of not having alternatives,” Gilmartin said. “That does not serve the people in New York City.”

For now, Gilmartin is focused on showing what MAG Partners can build. Ruby, the Chelsea building, plays up its proximity to the Garment District with a brick facade, herringbone flooring and generous closet space. Rents without concessions for Ruby’s market-rate apartments start at $4,330 for studios, $5,955 for one-bedrooms and $9,000 for two-bedrooms. Three-bedrooms will be priced once they’re ready to hit the market. The developer has also designated 30% of its units as affordable housing. 

Gilmartin previously led Forest City Ratner as chief executive officer before stepping down in 2018. At that firm, she worked on the Pacific Park project that includes the Barclays Center and Renzo Piano’s New York Times Building. Her new firm is one of the few New York real estate developers that’s owned and run by women.

“There’s something about our firm that’s not ordinary, which others tell us and sometimes we forget, which is that we don’t look like a typical New York City development firm,” Gilmartin said. 

The two towers are separated by a 70-foot (21-meter) courtyard that’s full of greenery and recreation areas for residents. There’s also a roof deck and swimming pool, as well as a 5,000-square-foot (465-square-meter) fitness center. About 10% of the units have private outdoor space. 

Gilmartin hopes the project will show that New York rentals don’t have to be penny-pinching commodities to be profitable. 

“There are plenty of really forgettable buildings that don’t actually stand up nicely over time and that don’t represent the best you could have done, but those buildings will still make money,” she said. “The value that we have is that principles of beauty, diversity and sustainability create long-lasting value — that you can actually build beauty and deliver returns.” 

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MAG Partners Launches Leasing at its First New York City Building, Ruby

Designed by renowned global architecture firm COOKFOX Architects, luxury rental project Ruby embraces the history and influences of the Garment District while offering a modernized luxury living experience in one of Manhattan’s most desirable neighborhoods

Link to renderings here

NEW YORK (February 27, 2023) – Woman-owned leading real estate company MAG Partners today announced the launch of leasing at Ruby, a residential development located at 243 West 28th Street in Chelsea. Located across the street from the Fashion Institute of Technology (FIT) between Seventh and Eighth Avenues, within New York City’s Garment District, Ruby offers 480 studio to three-bedroom residences amongst two towers – 30 percent of which are reserved for affordable housing – in addition to 8,500 square feet of ground-floor retail space.

Named after fashion designer Ruby Bailey, an expressive visual and performance artist and master beader, Ruby is MAG Partners’ first New York City project and the first in a portfolio of residential buildings to be named after historical and influential women.

“MAG Partners is built upon the principles of beauty, diversity, inclusion and sustainability, all of which are reflected within the living experience at Ruby,” said MaryAnne Gilmartin, Founder and CEO of MAG Partners. “As a firm founded in New York, we couldn’t be more excited to open this passion project in our own backyard. We are proud that our first building is providing much-needed housing in our city and offers thoughtfully designed residences focused on health and wellness.”

Designed by globally renowned architecture firm COOKFOX Architects, the 22-story and 23-story towers’ architectural expression is inspired by the historic fabric of the turn-of-the-century Garment District neighboring buildings, incorporating biophilic elements throughout its amenities. The thoughtful design pays tribute to creatives in the garment industry like Bailey, a Bermudian immigrant who led an artistic life in NYC. In addition to her eclectic fashion and clothing designs, she also created a series of doll-sized “mannequins” which today are part of the permanent costume collection in the Museum of the City of New York. She lived in Harlem until her death in 2003 at the age of 97.

“Our design for Ruby was inspired by the forms and patterns of Garment District masonry structures and the warp and weft of woven textiles. These historical elements lend a sense of authenticity to the new residences and elevate residential design in the neighborhood,” said Rick Cook, Founding Partner of COOKFOX Architects. “The attention to craft and amenities at Ruby that connect residents to outdoor space and gardens brings nature-connected living into one of the busiest areas of Manhattan.”

Each of the residences within Ruby are thoughtfully appointed with sophisticated details. Kitchens are designed with integrated Bosch appliances with herringbone backsplash, harkening back to the textile context. The bathrooms also feature porcelain herringbone tiles, with ceramic subway tile walls and extra-wide built-in medicine cabinets. All units include a Bosch stacked washer and dryer, three-layer, 5-inch-wide engineered oak wood flooring, keyless unit entry door hardware, Nest thermometers, solar shades throughout (including blackout shades in the bedrooms) and generous closet space. Approximately 10 percent of units have private outdoor space. 

The approximately 19,000-square-foot robust amenity package includes an array of indoor/outdoor offerings. In addition to a rooftop pool, roof lounge and grilling terrace, there is a club lounge with dining and entertainment areas, a library lounge with coworking and meeting spaces, a landscaped courtyard and lobby garden, a 5,000-square-foot, two-floor fitness center with cardio and weight training facilities, and more.

The Ruby facade is contextual masonry inspired by the rich historic architectural fabric of the neighborhood featuring hand-laid brick, richly patterned surfaces and narrow setbacks. While the exterior evokes the neighborhood’s industrial past, the interior lobby and amenity spaces provide tranquil moments promoting wellbeing including warmly-lit wood panels, angled millwork, custom panels and diffused interior lighting. The two towers are anchored by a courtyard – a private sanctuary overlooking a landscaped lobby garden, connecting the residents to nature. 

Ruby incorporates high-performance building systems that optimize energy performance, enhance indoor air quality, and improve acoustic performance to provide residents with the ultimate luxury – an urban sanctuary. Along with all of the outdoor spaces, daylighting of corridors, and the use of natural materials and patterns in design, the sustainability strategies will contribute to the building’s LEED Silver certification.

“We are thrilled to be a part of MAG Partner’s inaugural project. The thoughtfully designed and constructed development brings much-needed affordable and market-rate housing to Chelsea,” said Andy D’Amico, president and CEO of Urban Atelier Group, which is leading the construction management of the project. “Ruby is the perfect model for housing in the 21st century with a design rooted in the neighborhood’s architectural fabric and sustainable strategies that connect residents to nature. The project’s success would not have been possible without the trust and transparency between our partners to help bring the vision to life.”

To further honor Bailey, MAG Partners has partnered with The Social Justice Center at FIT – a first-of-its-kind initiative in higher education seeking to address the systemic problems faced by BIPOC youth, college students, and working professionals in the fields that drive the creative economy – to offer a scholarship for BIPOC FIT students.

“We are proud to honor the life of Ruby Bailey and the contributions she made as a Black female artist who built a lifelong career in New York City,” Gilmartin added. “The partnership with FIT will allow her legacy to live on through the lives of the next generation of BIPOC creatives looking to make their mark in the city.”

Founded by seasoned real estate professional Gilmartin, MAG Partners was formed in 2020 as a 21^st century national urban development company dedicated to diversity and inclusivity in the real estate industry. The Ruby announcement comes on the heels of MAG Partners’ 2022 successful launch of its Baltimore Peninsula project in Baltimore, Maryland, a 235-acre master plan designed for impact on a post-industrial waterfront peninsula in central South Baltimore. The project is being developed in partnership with Sagamore Ventures, Urban Investment Group within Goldman Sachs Asset Management and MacFarlane Partners.

Other NYC projects in the works for MAG Partners include nearby 335 Eighth Avenue, a mixed income, 190-unit apartment building with ground floor commercial space; 300 East 50th Street, a 194-unit multifamily building with ground floor retail at the corner of Second Avenue; and 122 Varick Street, a 175,000-square-foot boutique office development. The female names of the future residential buildings will be unveiled closer to their launches.

Ruby is conveniently located within walking distance to Penn Station which includes access to nearly every NYC subway line in addition to the Long Island Railroad, New Jersey Transit, PATH and Amtrak. Residents will enjoy easy access to the city’s leading restaurants, entertainment venues, shopping and more.

“Having worked with MAG Partners and the entire design team from inception, Douglas Elliman Development Marketing is proud to represent Ruby and bring to market this best-in-class rental development,” said Matthew Villetto, Executive Vice President, Douglas Elliman Development Marketing. “The integration of wellness, biophilic aspects, high design and finishes, unparalleled amenities and services, contextual architecture, stunning views and more have resulted in an end-product and experience that will undoubtedly stand out in the marketplace and exceed renter expectations.”  

The project is a joint venture between MAG Partners, Safanad, Atalaya Capital Management and Qualitas. MAG Partners previously announced that it has secured a $173 million construction loan from Madison Realty Capital for the project.

Market-rate studios at Ruby begin at $4,500 per month. Douglas Elliman Development Marketing is the exclusive marketing and leasing agent for Ruby. For more information, please visit rubychelsea.com or (212) 551-RUBY.

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About MAG Partners

MAG Partners is a woman-owned, urban real estate company with decades of experience developing impactful, iconic, large-scale projects throughout New York City. Led by MaryAnne Gilmartin, together the MAG Partners team has successfully designed, built and operated over 7 million square feet of office, residential and mixed-use projects, including over 2,000 units of housing, with a total value of over $4.5 billion. The firm believes and has proven that principles of beauty, diversity and sustainability create lasting value.

About COOKFOX Architects

COOKFOX Architects is a New York based architectural and interior design studio. COOKFOX has built a studio focused on high-performance, environmentally responsive, socially engaged design. The studio is well-known for innovative design that supports physical health and mental wellness at the highest standards of environmental performance. With a portfolio of diverse residential, workplace, and education projects, COOKFOX seeks to pursue architecture that restores, regenerates, and elevates our collective experience of the urban environment. www.cookfox.com

About Douglas Elliman Development Marketing (DEDM)

Douglas Elliman Development Marketing, a division of Douglas Elliman Real Estate, offers unmatched expertise in sales, leasing, and marketing for new developments throughout New York City,  Long Island, Westchester, New Jersey, Florida, California, Massachusetts, and Texas. The company’s new development hybrid platform matches highly experienced new development experts with skilled brokerage professionals who provide unparalleled expertise and real time market intelligence to its clients. The firm is heralded for its achievements in record breaking sales throughout each of its regions. Drawing upon decades of experience and market-specific knowledge, Douglas Elliman Development Marketing offers a multidisciplinary approach that includes comprehensive in-house research, planning and design, marketing, and sales. Through a strategic global alliance with Knight Frank Residential, the world’s largest privately-owned property consultancy, the company markets properties to audiences in 61 countries, representing an over $87 billion global new development portfolio. https://www.elliman.com/marketing

About Urban Atelier Group

Urban Atelier Group (UAG) is a boutique construction management firm based in New York City. UAG’s culture is rooted in the ethos of an atelier – the team views itself as a creative workshop where each member has a voice and the ability to elicit change.Founded by President and CEO Andy D’Amico and Executive Vice President and Operations Manager, James Palace, the firm emphasizes a collaborative process, working with key stakeholders to build beyond construction drawings. The firm’s portfolio of distinguished work is defined by analytic problem-solving and transparency, constructing innovative designs with unparalleled service. https://www.uag.nyc/

Roost extended-stay hotel to open this summer at Baltimore Peninsula

A Roost Apartment Hotel will open this summer at Baltimore Peninsula, billing itself as an extended-stay property that blends the attributes of a boutique hotel and upscale apartments.

The hotel with 81 extended-stay units and 40 apartments will be the latest addition to the 235-acre mixed-use waterfront neighborhood under development in South Baltimore. Leasing started earlier this month for two separate apartment buildings with 416 units.

On Wednesday, developers unveiled the brand, design and management of a hotel they’ve long planned for Baltimore Peninsula, under development by MAG Partners and MacFarlane Partners with joint venture partners Sagamore Ventures and Goldman Sachs.

The Roost brand “not only brings a high-quality, high-design hotel operation to the neighborhood, it bolsters our credentials as a destination to visit and enjoy,” said Kevin Plank, Sagamore’s principal and CEO, in an announcement.

Plank is also founder of Under Armour, which is building a new global headquarters nearby on waterfront land owned by the sports apparel brand.

The waterfront community, formerly called Port Covington, was rebranded as Baltimore Peninsula in November. The hotel and apartments are among the first five buildings, which also include two office buildings with tenants that include CFG Bank and H. Chambers Co.

Roost, at 2400 Terrapin Way, is a hotel concept of Philadelphia-based Method Co., a real estate and management company that specializes in hospitality and restaurants. Method has opened Roost hotels in Philadelphia, Cleveland and Tampa, Florida, and plans locations in Detroit and Charleston, South Carolina. The hotels offer stays as short as a few nights to as long as nine months.

Before becoming familiar with Method’s offerings, MaryAnne Gilmartin, founder and CEO of MAG Partners, said in an interview that her “sense of extended stay was really an idea that was really stuck in the past. I did not understand how evolved and bespoke the offering is at Method. … They’re really focused on a very particular piece of the market.”

Gilmartin said she expects businesses at Baltimore Peninsula to rely on ROOST as a place for their guests and visitors to stay.

The hotel, which Method will manage, will offer a mix of furnished studio, one-, two- and three-bedroom apartment hotel units with full-size kitchens and balconies, a concierge, fitness center, open-air pool, and outdoor bar and lounge.

“It’s a great location for our first Roost here in Baltimore,” said Randy Cook, Method’s co-founder and CEO, in an interview.

Method started the brand about a decade ago to fill a void in the extended-stay space, which Cook said lacked “product that focused on high-touch service and design in an apartment setting.”

“AirBNB has done a lot for this segment in terms of letting people experience what it’s like to stay in an apartment for a shorter term, but there’s a lot of inconsistencies in that experience,” Cook said. “One of the things we deliver with Roost is a branded experience in an apartment-style accommodation.”

Rates typically depend upon length of stay, starting at $269 a night. Cook said he expects about half the business to come from guests who stay a month or more, while about half will likely stay from about a week to a month. He said he has seen strong demand among employees who relocate or travel to work on long-term projects and in areas with medical facilities or film production hubs.

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Development Team Announces New ROOST Hotel in Baltimore Peninsula

The high-design, extended-stay hotel brand will introduce an 81-room apartment hotel to the waterfront neighborhood

Today, the Baltimore Peninsula development team, led by MAG Partners and MacFarlane Partners, and Method Co., the nationally-acclaimed development and design company rooted in hospitality, announced plans for a new design-centric, 81-room ROOST Apartment Hotel, the concept known for bridging the boutique hotel experience with apartment-style living. The new ROOST Apartment Hotel in Baltimore will be located within Baltimore Peninsula at 2400 Terrapin Way, a 235-acre mixed-use waterfront neighborhood. The team, together with its joint venture partners Sagamore Ventures and the Urban Investment Group within Goldman Sachs Asset Management (Goldman Sachs), is scheduled to open ROOST Baltimore Peninsula in Summer 2023.

The multi-million-dollar project, designed by architecture firm Hord Coplan Macht, will feature a mix of furnished studio, one-, two- and three-bedroom apartment hotel units with interiors designed in collaboration between interior design firm Aumen Asner Inc. and Method Studios, Method Co.’s in-house design firm.

Each apartment hotel unit will feature full-size kitchens with modern-day appliances and full-wall windows and balconies to take advantage of the stunning waterfront views. The apartment hotel units, amenity space and lobby feature custom and curated furnishings from designers such as Lawson-Fenning, Gubi, TON, Pedrali, &Tradition, Interior Define, Noguchi, Santa and Cole, Dumais Made, O & G, and Lumas. The furniture curation throughout the space, also designed by Method Studios, draws inspiration from the industrial and maritime heritage of Baltimore as a premier port city. The space is populated with vintage designer pieces, with a color palette of blues and greens accented by blackened steel and rich walnut wood. The property includes a 24-7 concierge, an on-site fitness center with Peloton bikes, and 20,000 square feet of indoor and outdoor resort-like amenity space including an open-air pool lined with cabanas and an outdoor fireplace centered around a full-service hybrid bar and lounge. Additionally, Method Co. will be leasing out 40 apartment units for long-term residents who will also have access to all of the building’s amenities. 

“With the addition of ROOST, Baltimore Peninsula is poised to become a vibrant destination for visitors and workforce talent that wouldn’t otherwise have an opportunity to experience the Baltimore Peninsula lifestyle,” said MaryAnne Gilmartin, Founder and CEO of MAG Partners. “ROOST’s high-design and commitment to quality compliments our broader approach as we create a new 24/7 neighborhood.”

“When we brought ROOST to the table a few years ago, we were confident this would all happen in due time,” said Marc Weller, Founding Partner and President of Weller Development Partners. “There is real momentum around this new neighborhood – you are seeing office leases getting signed and now an apartment hotel with ROOST that offers unique flexibility for Baltimore’s dynamic residents and visitors alike.”

“We are thrilled to have the opportunity to open our sixth ROOST location within the incredible city of Baltimore. MAG Partners and MacFarlane Partners are completely transforming the city’s waterfront experience with Baltimore Peninsula, making it an incredibly desirable destination for locals and visitors alike,” said Randall Cook, Co-Founder and CEO of Method Co. “We were drawn to this project by Kevin Plank and his partner’s positive energy, vision and commitment for the area and we look forward to playing a role in bringing that vision to life. At Method Co., it is an exciting moment for us as we explore new dimensions within our ROOST brand. The property’s design is thoughtfully layered with luxury details to create an elevated home-like experience. We’ve also worked to enhance our full-service amenity space. With a relatively low number of units versus the size of our team, we’ll be focused on delivering a high service and personalized experience to our hotel guests and residents alike.”

“We’re excited by the continued momentum and the addition of ROOST further establishes Baltimore Peninsula as the destination for travelers to experience Baltimore’s vibrant, waterfront community,” said Michael Lohr, Managing Director, Goldman Sachs Asset Management. “The development furthers our collective goal of increasing opportunities for residents of the local community by creating new jobs and bringing new economic activity to the area.”

“The momentum of activity at Baltimore Peninsula is a testament to the overall vision that we set out to create from the start,” said Kevin Plank, Principal and CEO of Sagamore Ventures. “ROOST’s unique brand not only brings a high-quality, high design hotel operation to the neighborhood, it bolsters our credentials as a destination to visit and enjoy. It’s a great addition alongside our growing list of office tenants and new residents.”

The ROOST Apartment Hotel will be Baltimore’s first high-design, extended-stay hotel concept, blending the comfort and space of an apartment with the amenities and design of a boutique hotel, creating a temporary living environment ideally suited for today’s travelers away for a few days and long-term guests alike. Considered a pioneer in the high-design apartment hotel movement, Method Co.’s ROOST Apartment Hotel brand is significantly expanding its portfolio with recent openings outside of its home base of Philadelphia, including Cleveland and Tampa with plans to open additional locations in Detroit this Spring and Charleston in 2024.

Method Co. has combined its expertise in design, placemaking and operations to lead the development of the new property, building upon its robust portfolio of successful brands and hotel property launches, including five open locations of the ROOST Apartment Hotel brand, Whyle, Wm. Mulherin’s Sons Restaurant & Hotel, HIROKI, Charleston’s newest luxury boutique hotel, The Pinch, along with its adjacent oyster bar and cocktail lounge, The Quinte, and the recent opening of Wilmington, Delaware’s first, luxury boutique hotel, The Quoin along with its craft cocktail lounge, Simmer Down.

The Baltimore Region is the 20th largest metropolitan population in the United States with more than 2.8 million residents and encompasses more than 2,500 square miles of diverse land. With its premier geographic location, the region provides overnight access to one-third of the U.S. consumer market. For residents, business, or leisure travelers, it’s a short trip from Washington DC, Philadelphia, New York, and Boston. The new ROOST Apartment Hotel will further support Baltimore Peninsula’s ability to accommodate the high volume of travelers, as well as residents moving to the area.

This addition of the ROOST Apartment Hotel follows a string of announcements the development team has recently made, including the start of residential leasing; welcoming CFG Bank as the area’s largest office tenant; renaming of the neighborhood to Baltimore Peninsula; and the launch of a new strategic partnership with Sweeten to bring transparent, data-driven decision making to the construction industry, resulting in increased participation by local minority and women-owned businesses. To date, Baltimore Peninsula has committed more than $132 million in contracts to Baltimore City-certified MBE/WBE firms, exceeding its initial goals with 35 percent participation for MBEs and 13 percent for WBEs.

Property renderings and imagery can be found here. Visit the property’s website here and follow ROOST Apartment Hotel on Instagram here.

For more information on Baltimore Peninsula, visit baltimorepeninsula.com or visit on Instagram, Facebook and Twitter.

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About ROOST Apartment Hotel

ROOST Apartment Hotel is a high-design, boutique extended-stay hotel concept, conceptualized by Philadelphia-based hospitality company Method Co. A first of its kind, ROOST introduces a fresh approach to hospitality by blending the comfort and practicality of an apartment with the amenities and design of a boutique hotel, creating a temporary living environment ideally suited for a long-term stay. ROOST offers studio, one and two-bedroom and penthouse apartments with full-sized kitchens and modern appliances in a beautifully appointed space, which features contemporary furnishings, antique elements, custom lighting, and unique artwork. Featured amenities include an artisanal coffee program curated by La Colombe, bike share program, and recurring resident receptions that partner with local vendors, while a dedicated 24-hour concierge desk and on-site services team further enhance and ensure a memorable guest experience. The first location, ROOST Midtown, opened in 2015 and features 28 fully furnished apartments; their second outpost, ROOST Rittenhouse, followed in 2016 featuring 27 apartments and a communal lobby; their third location, ROOST East Market opened in January 2019 with 60 apartments, an outdoor pool, and communal in Philadelphia’s Midtown Village neighborhood. The fourth location is the first outside of Philadelphia – ROOST Cleveland, which opened in March 2022 and features 62 apartments located downtown within the historic May building, a restoration of the city’s original 1915 department store, while their fifth location, ROOST Tampa, opened in July 2022 and includes 97 apartments within Asher, a residential building within the new Water Street Tampa development. ROOST has plans to open locations in other markets, including Detroit in the spring 2023, Baltimore in summer 2023 and Charleston in early 2024. www.myroost.com

About Baltimore Peninsula

Baltimore Peninsula is a 235-acre redevelopment project located on Baltimore City’s prime waterfront, featuring investments from Sagamore Ventures and the Urban Investment Group within Goldman Sachs Asset Management. As one of the largest urban revitalization efforts in the United States, Baltimore Peninsula will have a fundamental and far-reaching impact on Baltimore’s future. At completion, this transformative project will include: up to 14 million square feet of new, mixed-use development; 2.5 miles of restored waterfront; and 40 acres of parks and green space. The Baltimore Peninsula redevelopment is expected to generate fresh opportunities for innovation and entrepreneurship for Baltimore City residents and its local workforce.

About the Goldman Sachs Asset Management Urban Investment Group (UIG)

Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of December 31, 2022. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure.  Established in 2001, the Urban Investment Group within Goldman Sachs Asset Management has committed over $14 billion through real estate projects, social enterprises and lending facilities for small businesses and students, creating economic value and opportunities for underserved communities and families. Follow us on LinkedIn.

About MAG Partners

MAG Partners is a woman-owned, urban real estate company with decades of experience developing impactful, iconic, large-scale projects throughout New York City. Led by MaryAnne Gilmartin, together the MAG Partners team has successfully designed, built and operated over 7 million square feet of office, residential and mixed-use projects, including over 2,000 units of housing, with a total value of over $4.5 billion. The firm believes and has proven that principles of beauty, diversity and sustainability create lasting value.

About MacFarlane Partners

MacFarlane Partners is a real estate investment and development firm that acquires, develops and manages properties on behalf of some of the world’s largest pension plans and institutions as well as for its own account. Founded in 1987, the firm pioneered the urban investment concept among institutional real estate investment managers in the 1990s and today is a leading investor in and developer of properties that promote smart growth, urban revitalization, sustainability and equitable development in urban and high-density suburban areas nationwide. It is headquartered in San Francisco and operates a regional office in Los Angeles.

About Method Co.

Method Co. is a Philadelphia-based hospitality, development, design and branding firm founded on the joining of historically compatible disciplines under one roof; the firm bridges the worlds of interior design and real estate development, while embracing the custom design of products, furniture, identities and experiences. Built from a team of individuals with extensive experience in the fields of finance, interior design, branding, architecture, urban planning and fine arts, Method company’s diverse skill set forms the foundation of the firm’s interdisciplinary practice. The team has been responsible for the design, staging and development of hotel, restaurant, and real estate projects, such as the ROOST Apartment Hotel brand, Whyle, Wm. Mulherin’s Sons Restaurant & Hotel and HIROKI restaurant, along with the newly opened boutique property in Charleston, The Pinch, and the recently opened boutique hotel, The Quoin, in Wilmington, DE. www.methodco.com

Media Contacts:      

Baltimore Peninsula/BerlinRosen

[email protected]

Method Co./M18

[email protected]

Faces to Watch 2023: MaryAnne Gilmartin, CEO of MAG Partners

The coming year at the Baltimore Peninsula will bring more feet on the street, a likely demolition of The Sun’s former headquarters and a new wave of hope at the large project for MaryAnne Gilmartin.

The first residents will move into luxury apartments in two towers at the emerging community off of Hanover Street by March. Razing Sun Park may occur to clear the way for a new public green space off Interstate 95. Nearby, design firm Chambers Co. will unpack in its new office space at Rye Street Market and serve as the pioneer tenant for the project there.

And if Gilmartin has her way, her pen will sign a bevy of other lease deals.

All told, she predicted 2023 is go time for the $5.5 billion project envisioned by Under Armour (NYSE: UA) founder Kevin Plank. A deal for CFG Bank to move its headquarters into 97,000 square feet was finalized Wednesday after months of talks, a move that will add a second tenant with local gravitas.

“We are hoping that by the end of this year there will be one or two commercial leases signed,” she said in early December. “This is a pretty big moment for the project.”

The 58-year-old founder of MAG Partners came to Baltimore last spring after she was tapped by Plank to take over as master developer from Weller Development. She and partner, San Francisco-based McFarlane Partners, invested an undisclosed amount in Port Covington, and in November, Gilmartin led a rebranding push and renamed the area “Baltimore Peninsula.” It was a change complete with red and white swag bags and a catered party.

The coming 12 months will bring her hometown New York-style of can-do energy to the 235 acres adjacent to the Hanover Street Bridge, south of Federal Hill. With five buildings built by Weller opening this year, she admitted that MAG and its brokers must remain nimble to fill the commercial and retail space because of headwinds from an economic downturn and still-morphing corporate workplace needs.

Nevertheless, she remains positive enough to forge ahead with plans to break ground on another one or two commercial buildings with a vision to begin design phases in 2023.

“It’s a challenge. But if we have proof of concept and show that people came to Baltimore Peninsula to live and work and we sign leases with rents that justify putting another building together, it allows us to put it together,” she said. “I think it’s doable.”

Gilmartin splits her time between MAG Partners’ New York office and Baltimore and is planning to move into residential digs in one of several short-term stay apartments designated in Baltimore Peninsula’s multifamily towers. Her plans also include moving MAG’s offices from City Garage to Port Covington by the third quarter of the year and she is aggressively seeking to land a large corporate anchor tenant with a national search now underway.

What about the rest of the city? Gilmartin says MAG’s portfolio could expand off the peninsula.

“I would like to do more business in Baltimore,” Gilmartin said. “I want to contribute to the city. While Baltimore Peninsula is massive, I think there are opportunities outside the Peninsula that we can look at. Rising tides lift all boats.”

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MAG Partners Buys Ground Lease for Residential Co-Op Redevelopment

MaryAnne Gilmartin’s MAG Partners has purchased the $63.8 million leasehold for 335 Eighth Avenue from Penn South and plans to turn the site into a mixed-income apartment building.

MAG Partners signed a 99-year ground lease for the property — currently a retail building that formerly housed a Gristedes supermarket — in a joint venture with real estate equity firm Safanad. The JV plans to redevelop the building into 188 units of affordable housing with ground-floor commercial space, The Real Deal first reported.

The commercial building in Penn South, a 10-building mixed-income complex between West 23rd and West 29th streets that has faced financial woes, will be demolished while a new rental development will bring a grocery store to the area in the planned retail space, according to MAG Partners. Penn South tapped MAG Partners to lead the development last year.

“The co-op was faced with a decision to make, after a thorough assessment from our professional engineers and real estate consultants,” Ryan Dziedziech, general manager of Penn South, said in a statement. “Either we seek additional very costly loans in order to address major capital repairs to this two-story aging commercial building or enter into a long-term ground lease with a responsible developer who will demolish the existing building and build an affordable, quality housing building that will blend into the fabric of the community and guarantee our limited equity co-op cash flow for many years to come.”

Gristedes, Midtown Tennis Club, Asylum Comedy Club and McDonald’s were previous tenants whose leases expired in the commercial building at the end of 2022, according to TRD.

Demolition of the existing structure will begin in the first quarter of this year followed by construction of a 200,000-square-foot, seven-story building designed by architectural firm Cookfox. Construction will start in the third quarter of 2023, according to MAG Partners.\

The sale of the leasehold will allow the co-op, officially known as Mutual Redevelopment Houses, to make capital improvements to remaining sections of the campus while keeping monthly maintenance fees low for shareholders and providing additional services to its estimated 5,000 residents. The deal could contribute as much as $750 million to the co-op over the length of the 99-year term, TRD reported.

“[We] look forward to starting a new mixed-income residential building that will contribute to the co-op’s beautiful campus and provide critical income to its mission,” Gilmartin said in a statement.

Mark Hallum can be reached at [email protected].

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CFG Bank Signs Lease at Baltimore Peninsula Becoming Newest Commercial Tenant Holding Largest Lease to Date

CFG Bank to Move to the South Baltimore Development in Q4 2023, Leasing 97,000 Square Feet of Office Space

Today, the Baltimore Peninsula development team, led by MAG Partners and MacFarlane Partners, and CFG Bank, announced that CFG Bank has signed a long-term lease for three floors, totaling 97,000 square feet of office space in 2455 House Street in Baltimore Peninsula. CFG Bank is the development’s latest confirmed commercial tenant, signing a 15-year lease at the 235-acre mixed-use development. 2455 House Street will serve as the headquarters for CFG Bank, as well as Capital Funding Group and the Jack and Nancy Dwyer Workforce Development Center, Inc.

The lease signing comes as the development’s first phase of vertical construction nears completion, with over 1.1 million square feet of new office, retail, and mixed-income residential opening in 2023. It is also the first commercial lease signing since the project rebranded in November 2022 to Baltimore Peninsula and is part of the larger effort to realize the development as a vibrant mixed-income residential neighborhood and thriving business district, supported by waterfront events and activities, new restaurants and social destinations that bring opportunity and strengthen the spirit of Baltimore. 

Along with MAG Partners, CFG Bank is working with NewGround to create its one-of-a-kind headquarters. The office spaces will feature various indoor and outdoor collaboration areas with an employee lounge totaling 5,000 square feet, a rooftop community space, a library area, robust kitchens, an indoor sports simulator, and more. 

“The partnership with CFG Bank represents our shared values and commitment to fostering a strong, inclusive community. It speaks volumes that a company like CFG Bank, a pillar of the Baltimore business community, has selected Baltimore Peninsula for its future home,” said Kevin Plank, Principal and CEO of Sagamore Ventures. “I am incredibly proud to welcome CFG Bank and look forward to working together to build on our vision of impact at Baltimore Peninsula.”

“We are excited to continue to welcome new tenants to Baltimore Peninsula, especially those like CFG Bank who have strong, established roots within the broader Baltimore community,” said Michael Lohr, Managing Director, Goldman Sachs Asset Management. “This lease represents another key milestone toward our broader revitalization efforts in South Baltimore, which seeks to engage the community through job creation and workforce development, in addition to providing access to new attractions and events.”

“Our lease with CFG Bank marks the beginning of an exciting partnership for Baltimore Peninsula, as the Baltimore-based institution grows its workforce in and for the city. With buy-in from partners such as CFG, we are building a place where people want to live and work,” said MaryAnne Gilmartin, Founder and CEO of MAG Partners. “We have incredible momentum and interest from potential tenants in Baltimore and around the country and expect to have a number of leases to announce in the coming months as we move closer to construction completion for the first phase of the project.”

“We’re thrilled to be moving our headquarters to Baltimore Peninsula. As our businesses continued to grow, we were in search of a new location that could accommodate our current and future expansion, provide an environment to foster our team’s entrepreneurial spirit, and support the reinvigoration of Baltimore,” said CFG Bank CEO & President Bill Wiedel. “As we design and build our new headquarters, we are creating a truly unique space where all our employees will thrive and work together, grow, and achieve our own goals and those of our clients. Our plan is to design a special workspace where our employees want to come into the office. Moving to Baltimore Peninsula reinforces our commitment to Baltimore and our leadership position in the banking industry, as the largest bank headquartered in Baltimore.”

“We always knew that Baltimore would be a ‘build it and they will come’ office market, and now that the buildings are delivering you are seeing that dynamic play out,” said Marc Weller, Founding Partner and President at Weller Development Partners. “Since first introducing CFG Bank to the project, we always thought they would be a great fit given their aligned entrepreneurial philosophy and their focus not only on transforming the banking experience but also their commitment to the community. We are so excited to see CFG Bank moving to this new burgeoning neighborhood.”

Scooter Monroe, Vice President of Office Leasing at MAG Partners, and real estate advisor Ed Guiltinan worked closely with the teams at JLL and Weller Development Partners to secure the lease. Antony Gross and Anne Marie Paintsil with JLL represented Baltimore Peninsula. Kevin Haus and Matt Haas, also with JLL, represented CFG Bank in the transaction. 

CFG Bank’s lease follows the September 2022 announcement that H. Chambers Company, an architecture and interior design firm, was the development’s first commercial tenant, having signed a long-term lease for 9,000 square feet of office space at Rye Street Market. Chambers will relocate to Baltimore Peninsula in March of 2023. Also in November 2022, the development team revealed Rye House and 250 Mission, comprising 416 brand-new affordable and market rate residences. Leasing will begin in the first quarter 2023 and the first residents of Baltimore Peninsula are expected to move in March. The project has 20% affordable housing on site, with 35 affordable units at 250 Mission for households earning 80% AMI and 54 affordable units at Rye House for households earning 50% of AMI. Additional information about Rye House and 250 Mission can be found at liveryehouse.com and live250mission.com, respectively. In January the team will launch the final building, 2400 Terrapin Way, which includes 121 residential units, of which 81 are extended stay.

Baltimore Peninsula development is expected to deliver robust community benefits to support Baltimore City and South Baltimore communities. To date, Baltimore Peninsula has committed more than $132 million in contracts to Baltimore City-certified Minority and Women Business Enterprise firms, exceeding its initial goals with 35 percent participation for MBEs and 13 percent for WBEs. In line with the project’s MWBE goals, the Baltimore Peninsula development team supported Baltimore-based MBE Conscious Venture Lab in raising $50 million for investment in local companies using innovation to create a more equitable society, specifically targeting MWBEs. 

In November 2022, Baltimore Peninsula launched a new partnership with Project JumpStart – a workforce development and job placement program – to implement its 15-week construction training program that will ultimately support the continued construction of Baltimore Peninsula. The partnership, which will support the education of up to 22 students, includes financial support by Sagamore Ventures. In addition, Baltimore Peninsula announced a new partnership with Sweeten – a software company known for bringing trust, transparency, and data-driven decision making to the construction industry. Together, the parties built a tool that expands Baltimore Peninsula’s MWBE contracting goals and achievements, creates greater transparency in the procurement process of MWBEs and helps development teams communicate the status of their projects with the community. 

For more information on Baltimore Peninsula, visit baltimorepeninsula.com or visit on Instagram, Facebook and Twitter.

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About Baltimore Peninsula

Baltimore Peninsula is a 235-acre redevelopment project located on Baltimore City’s prime waterfront, featuring investments from Sagamore Ventures and the Urban Investment Group within Goldman Sachs Asset Management. As one of the largest urban revitalization efforts in the United States, Baltimore Peninsula will have a fundamental and far-reaching impact on Baltimore’s future. At completion, this transformative project will include: up to 14 million square feet of new, mixed-use development; 2.5 miles of restored waterfront; and 40 acres of parks and green space. The Baltimore Peninsula redevelopment is expected to generate fresh opportunities for innovation and entrepreneurship for Baltimore City residents and its local workforce.

About the Goldman Sachs Asset Management Urban Investment Group (UIG)

Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of September 30, 2022. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure.  Established in 2001, the Urban Investment Group within Goldman Sachs Asset Management has committed over $14 billion through real estate projects, social enterprises and lending facilities for small businesses.

About MAG Partners

MAG Partners is a woman-owned, urban real estate company with decades of experience developing impactful, iconic, large-scale projects throughout New York City. Led by MaryAnne Gilmartin, together the MAG Partners team has successfully designed, built and operated over 7 million square feet of office, residential and mixed-use projects, including over 2,000 units of housing, with a total value of over $4.5 billion. The firm believes and has proven that principles of beauty, diversity and sustainability create lasting value.

About MacFarlane Partners

MacFarlane Partners is a real estate investment and development firm that acquires, develops and manages properties on behalf of some of the world’s largest pension plans and institutions as well as for its own account. Founded in 1987, the firm pioneered the urban investment concept among institutional real estate investment managers in the 1990s and today is a leading investor in and developer of properties that promote smart growth, urban revitalization, sustainability and equitable development in urban and high-density suburban areas nationwide. It is headquartered in San Francisco and operates a regional office in Los Angeles.

About Sagamore Ventures

Sagamore Ventures is a privately-held investment company with diversified holdings that include commercial real estate, hospitality, food and beverage, and venture capital. The company is based in Baltimore, MD, and serves as the family office of Kevin A. Plank, the founder, Executive Chairman, and Brand Chief of Under Armour, Inc. Key investment holdings include Sagamore Spirit and a major equity stake in the Baltimore Peninsula redevelopment in South Baltimore.  The mission of Sagamore Ventures is to execute the initiatives of the Plank Family, support the growth of our investments, and contribute to economic development and opportunity in Baltimore City.

About CFG Bank (http://www.CFG.bank)

CFG Bank, headquartered in Baltimore, Maryland, is a full-service bank that provides premier commercial, personal, and online banking solutions to the Mid-Atlantic business community, national cannabis industry and national healthcare market. Locally owned and operated, CFG Bank transforms the banking experience by delivering big bank capabilities and expertise, coupled with relationship-driven boutique bank service. CFG Bank has branches in Lutherville and Baltimore City, and a commercial office in Annapolis. For more information, visit www.CFG.bank, and follow CFG Bank on LinkedIn, Facebook and Twitter. 

About JLL 

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of September 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com. 

About Weller Development Partners

Weller Development Partners is a dynamic and innovative mixed-use development firm that builds world-class communities. Led by Founding Partner and President Marc Weller and Partner Steve Siegel, our leadership team offers a wide range of expertise and experience to tackle the most complex real estate developments. At the heart of the company ethos is a triple-bottom-line approach to development, designing strategies that are financially viable, while also providing benefits to surrounding communities, the environment, and investors.

CFG Bank finalizes deal to move headquarters to Baltimore Peninsula

The long-anticipated deal to move CFG Bank’s headquarters to Baltimore Peninsula has been finalized.

The bank will move into 97,000 square feet of space at 2455 House St. by the end of the year, officials said Wednesday morning. Details of the CFG lease deal first surfaced in mid-September, even as negotiations remained ongoing for the anchor tenant of the seven-story, red-brick tower. House Street will be the new name for the street formerly known as Banner Street, a spokesperson for the development said.

The 15-year lease is the largest to be signed to date at the 235-acre project formerly known as Port Covington. The redevelopment of the former industrial peninsula off Hanover Street was envisioned nearly a decade ago by Under Armour founder Kevin Plank whose Sagamore Ventures is a major investor along with master developers MAG Partners and MacFarlane Partners.

“It speaks volumes that a company like CFG Bank, a pillar of the Baltimore business community, has selected Baltimore Peninsula for its future home,” Plank said, in a statement.

Bill Wiedel, CEO of CFG Bank, said the move to South Baltimore from the current HQ near Mt. Washington and the city-Baltimore County line would allow the bank to expand in the coming years including a foray into consumer lending. The bank has only two branches, in Fells Point and Timonium, and is currently headquartered in a large building just over the line in Baltimore County near Lake Roland.

CFG’s move to Baltimore Peninsula comes as the bank is also raising its local profile with the sponsorship of Baltimore Arena downtown. The arena is expected to reopen in February after a $200 million overhaul by Oak View Group.

“As our businesses continued to grow, we were in search of a new location that could accommodate our current and future expansion, provide an environment to foster our team’s entrepreneurial spirit, and support the reinvigoration of Baltimore,” Wiedel said. “As we design and build our new headquarters, we are creating a truly unique space where all our employees will thrive and work together, grow, and achieve our own goals and those of our clients.”

Wiedel said in an interview with the Baltimore Business Journal last month the space at Baltimore Peninsula is being designed to entice most of its 240 employees to come into the office at least three days a week. Amenities and incentives will include a large kitchen space, rooftop deck access, 5,000-square-foot employee lounge and golf, soccer and baseball simulators as well as collaborative work stations.

“We are thinking of every detail down to the colors, fragrance and acoustics,” Wiedel said.

In addition to CFG Bank’s new headquarters, the new office space will also hold the headquarters for the Capital Funding Group and the Jack and Nancy Dwyer Workforce Development Center, Inc.

CFG Bank is among the largest commercial lenders and private companies in Greater Baltimore with $2 billion in real estate loans and $2.5 billion in commercial and industrial loans as of June 30, 2022, according to Baltimore Business Journal research. CFG is part of Capital Funding Group, an umbrella corporation owned by local businessman Jack Dwyer.

Scooter Monroe, vice president of office leasing at MAG Partners, and real estate advisor Ed Guiltinan helped to close the CFG lease with brokers Antony Gross and Anne Marie Paintsil of JLL. Kevin Haus and Matt Haas, also with JLL, represented CFG Bank. Design firm NewGround is working with CFG to create its new space.

Another office tenant, Chambers Co., signed a lease at the Baltimore Peninsula last year for 9,000 square feet of space at Rye Street Market.

BBJ reporter Garrett Dvorkin contributed reporting to this article.

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MAG Partners clinches 99-year Chelsea ground lease; MaryAnne Gilmartin’s firm to deliver 188 units with Penn South co-op

MAG Partners has closed on a 99-year ground lease for a Chelsea development site.

MaryAnne Gilmartin’s three-year-old firm inked a deal on the northwest corner of Eighth Avenue and West 26th Street with Mutual Redevelopment Houses.

The parties declined to discuss the financial terms for the deal. Sources told The Real Deal the lease starts with an annual rent of around $2 million and has yearly rent increases that are expected to bring in over $750 million during the life of the deal.

The Memorandum of Lease reviewed by TRD shows a consideration of just under $64 million. For transfer tax purposes, this number represents the estimated fair market value of the site if it were sold but does not reflect the expected rent over its term. The city received just under $415,000 in taxes.

Mutual, also known as Penn South, is a 10-building Mitchell-Lama housing cooperative in Chelsea that sprawls from West 23rd to West 29th streets, between Eighth and Ninth avenues.

MAG Partner’s new project at 335 Eighth Avenue will rise seven stories and host 188 units in the mixed-income apartment building, along with ground-floor commercial space.

The 200,000 square-foot building was designed by COOKFOX Architects.

To qualify for the previous Affordable NY Program and assure 30 percent of the units would be affordable to low-and-middle class households, the necessary footing was installed in early 2022 with the blessing of the co-op and prior to the expiration of the program.

The retail building previously included a Gristedes, the Midtown Tennis Club, the Asylum Comedy Club and McDonald’s, all of which had leases timed to expire at the end of 2022.

Demolition will begin in the first quarter of 2023 with construction during the third quarter.

This is the second deal for MAG Partners and its real estate private equity venture partner, Safanad, after developing almost 700 housing units in Manhattan, including the nearby 241 West 28th Street.

Penn South’s retail building had brought in nearly $2 million in lease revenue before taxes and repairs, enabling a reduction in maintenance fees for its resident shareholders. But when engineers said the structure needed almost $50 million in repairs to become marketable to modern tenants, it would have caused each of the 2,820 units to pay additional assessments averaging $500 per month for three years.

Penn South hired Paul Travis of Washington Square Partners to solicit proposals for the site. After culling the responses, cooperators voted in 2021 among three choices that included redeveloping the site; a taller, all-commercial project by another developer; and Mag Partners’ proposal, which offered nearly twice as much over the lease term including yearly bumps in rent.

Susi Yu and Jeff Rosen led the deal for the MAG Partners team while Joshua Stein of Joshua Stein PLLC represented Mag Partners in the legal work for the transaction.

Dena Cohen, a partner with Herrick Feinstein, represented Penn South in the lease negotiations.

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