Opportunity Zone-Based Funding Secured for Baltimore Penn Station
Penn Station Partners has secured equity funding from Blueprint Local to proceed with the redevelopment plan of Baltimore Penn Station, an iconic central landmark for the city. This is Blueprint Local’s first investment in Baltimore under its Opportunity Zone Fund platform.
Blueprint Local, a joint venture between Brown Advisory and a group of national investors committed to strengthening underserved parts of the country, and led by Ross Baird, invests in entrepreneurs and real estate opportunities in economically distressed areas across the country. Blueprint Local aims to change the way communities connect with capital – bringing together investors, landowners, developers, and community members to collaborate in revitalizing their neighborhoods.
“Penn Station Partners is a unique collaboration of many of Baltimore’s most experienced developers and community development experts, and this project has the potential to anchor a transformation in a historic neighborhood of a great city,” said Ross Baird. “We believe that through the strength of new partnerships – where we bring together public sector partners, private capital through the Opportunity Zone program, and community leaders – we can create positive change in Baltimore and communities across the country.”
“Blueprint Local's investment in this transformative project demonstrates that Baltimore has many great assets and shovel-ready projects primed for Opportunity Zone funding,” said Mayor Bernard C. "Jack" Young. “Having an Opportunity Zone Coordinator at the Baltimore Development Corporation, who works closely with potential investors to connect them to projects that are a priority for the city, is helping to ensure that Baltimore maximizes this tax incentive to attract even more investment in our neighborhoods.”
In April 2019, Amtrak announced plans to invest $50 million in improvements to the historic station, as part of a $90 million investment, including expansion and modernization to accommodate passenger growth and significantly improve the customer experience. In December 2019, Baltimore Penn Station was awarded a $3 million Maryland Historic Revitalization Tax Credit from the Maryland Historical Trust.
“We are thrilled with Blueprint Local’s strong commitment to leveraging Amtrak’s game-changing investment to maximize its economic and community development impact for Baltimore,” said Bill Struever, Principle, Managing Partner, and CEO of Cross Street Partners. “By building on Amtrak’s investment in Penn Station improvements, coupled with their $2.5 billion investment in a new fleet of Acela trains, Penn Station will be a key transit hub on the Northeast Corridor and a gateway to our region.”
Through adaptive reuse, the historic station will be reimagined as a mixed-use development, programmed with new retail and restaurants on the concourse level, as well as office space on the three upper levels, which are currently vacant. CBRE is handling the office leasing for Penn Station and Segall Group is handling the retail.
“This exciting partnership with Blueprint Local provides a crucial piece of funding that brings us closer to realizing our vision of a vibrant, revitalized Penn Station,” said Michael Beatty, President of Beatty Development Group. “Penn Station benefits from an incredible location in the middle of Baltimore’s creative core. We envision a repositioned Penn Station as an important connector – a unique historic destination that seamlessly blends in and celebrates the established neighborhoods that surround it.”
