In the News: 100 S. Charles St. owner plans retail build-out, refreshed lobby, new co-working space
By: Holden Wilen, Baltimore Business Journal
Fresh off signing Morgan Stanley as an anchor tenant, the owners of the 100 S. Charles St. office tower are planning a $20 million overhaul of the building, including redoing the first floor retail space and creating a 30,000-square-foot co-working space on the second floor.
Plans for a retail build-out include all-glass facades along Pratt and Charles streets and outdoor seating areas. The area also has a new suggested name — One Pratt Plaza.
Abdi Mahemdi, president of the upstate New York Carlyle Development Group, said he thinks the 500,000-square-foot Bank of America building can be Pratt Street’s next trophy. Carlyle purchased the 17-story tower last year for $45 million.
The 36-year-old tower has been an underperforming piece of real estate and has not been renovated, Mahemdi said. He wants to bring the building to Class A style and get a Pratt Street address in an effort to draw in lucrative tenants. Pratt Street has been a hot market for office space, with a 91 percent occupancy rate, according to commercial real estate firm JLL.
“We think when the renovation is complete this building can compete with any of the others in the area,” Mahemdi said.
New York investment giant Morgan Stanley recently announced it will take up 57,000 square feet in the building, a big win for Carlyle. Upgrading that space will cost about $10 million and the lease will bring the building to about 80 percent occupancy.
The renovation is focused on modernizing the first and second floor retail areas. On the first floor, Mahemdi said about $5.2 million in upgrades will be made to the lobby including new lighting, doors, floors and more. The existing restaurant spaces and food court dining area will also be renovated. New elevators will also be installed.
“We are looking to create a retail environment that serves the businesses and new residents moving to the area,” Mahemdi said.
Carlyle plans to construct a 25,000-square-foot build-out that will face Pratt Street. Earlier this year the Baltimore Development Corp. issued a request for proposals for the city-owned land. The agency is reviewing the responses, a spokeswoman said.
Mahemdi said the proposed buildout could cost $4 million to $6 million depending on the type of tenant it attracts. Taking up the space, he envisions a restaurant similar to Capital Grille or a brasserie where people can eat breakfast, lunch and dinner.
Yard House has expressed interest in the project, Mahemdi said. The restaurant chain filed for a liquor license transfer last year to open in the Light Street Pavilion at 301 Light St. Yard House declined to comment about specific locations, saying it only discusses projects when they have received necessary approvals.
On the second floor, Carlyle wants to make about 30,000 square feet available as co-working space. Plans include a cafe, meeting rooms and lounges so people can exchange ideas. Mahemdi said he thinks the space will be particularly attractive to millennials.
The parking garage under the building will also be renovated. Mahemdi said it has underperformed compared to other garages, so it needs to be cleaned up and upgraded to make things more automated for customers.
The Bank of America Tower is one of two buildings at 100 S. Charles St. Dallas private equity firm Lone Star Funds bought the 160,000-square-foot Tower II, located to the north, last year for $12 million.