Ovation Development

Ovation Development


M E M O R A N D U M

December 28, 2005


To: Friends of the Brexton Hotel

From: Lou Steadwell

Subject: Brexton Project At Last!

At long last, the updated plan for the Brexton has been approved by the Commission for Historical and Architectural Preservation  of the Planning Department for the City of Baltimore. (See link to 12/26 Baltimore Sun article: http://www.baltimoresun.com/business/realestate/bal-to.archcol26dec26,0,2292949.column?coll=bal-search-headlines&track=mostemailedlink

I met with the owner, Steve Mowbray, who has restated his intention to sell the building. This time, the price is $1.6 million with the updated historic preservation tax deferral and tax credit (estimated to be at least $400,000) intact. At this point Steve has one other offer, which he says is too low.

Things have changed some since we first looked at this project. Mortgage interest rates, though still historically low, have increased and prices have begun to level off. The condo market in the District is loaded with inventory and so sales have slowed dramatically. The market in Baltimore is still pretty strong (prices keep rising and the inventory is much lower than DC). I think this project can still be done and am still interested.

I have also obtained the updated plans for the proposed renovation, including the redesigned stair tower. The changes by the Preservation Commission require that the stair tower be brick and reiterate the exterior design of the building with the large round windows facing the back street. I have my own copy of the key and plan to visit the building later next week with the contractor. If you are interested in walking the building with us call or drop me an email and I’ll let you know the time.

At this moment, we are in a good position as one of two interested parties. I am working toward gathering the information I need to submit an offer on the building sometime early in January.