90 acres: Sapperstein agrees to buy Baltimore Peninsula land

Mark Sapperstein has agreed to purchase roughly 90 acres of undeveloped land at Baltimore Peninsula. The Baltimore-based developer stated Wednesday that he signed a contract to acquire the remaining parcels, which he described as the largest stretch of open land in the city he is aware of.

The property has been under the control of Bank OZK, an Arkansas-based lender, since Kevin Plank, the founder and CEO of Under Armour, stepped back from future development efforts at the site. The area was formerly known as Port Covington. Bank OZK disclosed last week that the land was under contract to be sold, with closing expected between late this year and early next year.

The bank indicated that the sale should generate net proceeds equal to its current outstanding balance of $40 million. Plank’s firm, Sagamore Ventures, partnered with Goldman Sachs to develop the first phase of the neighborhood. That phase includes residential, office, and commercial buildings. Financial disclosures show that parts of the commercial and office space remain unoccupied because tenants took longer than expected to move in.

Sagaware Ventures and Goldman Sachs still own the completed first phase. However, the joint venture handed control of the land reserved for future phases to Bank OZK after a construction loan came due late last year. The bank has been seeking a buyer for the remaining property since then.

Sapperstein declined to detail specific plans for the site but confirmed it will include a residential component with townhomes. He has previously developed projects in South Baltimore, including McHenry Row in Locust Point. That former industrial site now houses a Harris Teeter grocery store and other mixed-use amenities. He also spearheaded Locke Landing, a waterfront community of townhomes and an apartment building located adjacent to the Baltimore Peninsula site.

A decade ago, Plank envisioned a large neighborhood anchored by an Under Armour headquarters. As the company struggled, plans for the new campus were scaled back. The City Council passed legislation in 2016 authorizing up to $660 million in tax-increment financing bonds for the project. Most of those bonds were never issued because development stalled after the first phase. Any new bond issuances would require approval from the City Council.