Gallagher is pleased to have represented long-time client The Bozzuto Group in Bolton Yards, phase one of a massive redevelopment effort by the University of Baltimore and the surrounding midtown cultural district.

Sitting on 4.6 acres of land owned by the University of Baltimore, the development's flagship project is The Fitzgerald, a $75 million mixed-use development consisting of 280 residential apartments, 14,000 square feet of first floor retail space, and a 1,240-space parking garage. Amenities will include a swimming pool, fitness center, and lounge.

Gallagher's role began in 2007 when real estate and transactions partner Mark Keener assisted in successfully negotiating a 65-year ground lease between the Bozzuto Development Company and the University of Baltimore. Approval from the Maryland Board of Public Works, comprised of Treasurer Nancy Kopp, Governor Martin O'Malley, and Comptroller Peter Franchot, was essential to moving the project forward. As landlord, the university will reap substantial benefits from the unusual lease structure which creates an important new income stream for the school.

With the ground lease secured, Gallagher negotiated a PILOT (payment in lieu of taxes) agreement between Bozzuto and the City of Baltimore. Through this public-private development partnership, the former parking lot that paid no tax will generate substantial revenue over the course of developer's 20 year lease.

Complicating the development of The Fitzgerald is its historical use as an industrial site as both a rail yard and Goodyear tire retail facility. Now a brownfields site, Gallagher assisted Bozzuto in its participation in Maryland's Voluntary Cleanup Program that allows the developer to remediate the site in exchange for certification against liabilities. Gallagher also successfully resolved a variety of access and easement issues for this heavily traveled parcel.

Most recently, Gallagher real estate lawyers Mark Keener and Kirsten Woelper assisted in securing the financing for the project—a $52 million construction loan provided by Bank of America and RBS Citizens, and $23 million in equity funded primarily by New York State Teachers’ Retirement System.

"To secure this level of financing during the current economic environment is a momentous accomplishment for all involved," said Thomas Bozzuto, CEO of The Bozzuto Group.

The Fitzgerald will be a significant addition to the University of Baltimore and the surrounding community. We are proud of the role we played in helping The Bozzuto Group to realize its vision. The Fitzgerald will complete work in 2010.

The Fitzgerald in the news:

Bozzuto Finds $75M for Baltimore Mixed-Use Project
Commercial Property News
The Bozzuto Group has secured a $75 million construction-financing package and begun work on The Fitzgerald at UB Midtown, a mixed-use community going up on...

$75M mixed-use Fitzgerald development moves forward
Daily Record
The Greenbelt-based Bozzuto Group announced Tuesday that it has begun construction on the Fitzgerald, a 280-unit apartment complex that will be built on...

Loan OK'd for Midtown apartments
Baltimore Sun
The Bozzuto Group, which will develop and manage the Fitzgerald at UB Midtown in a venture with the university and other partners, said yesterday that it...

With PILOT approved, $75M Fitzgerald project can begin at UB
Daily Record
A local developer has received $12 million in city property tax breaks to build the Fitzgerald, a $75 million apartment complex and parking garage in midtown Baltimore...