Local developer to buy remaining undeveloped land at Baltimore Peninsula

Mark Sapperstein of Baltimore-based 28 Walker Development said Wednesday that he has an agreement to buy the remaining undeveloped land at Baltimore Peninsula.

At about 90 acres spread across multiple parcels, Sapperstein said it’s the biggest stretch of undeveloped land in Baltimore that he’s aware of.

The land has been under the control of Arkansas-based Bank OZK since Under Armour founder and CEO Kevin Plank walked away from future development at the neighborhood formerly known as Port Covington.

Last week, the bank disclosed that the land at Baltimore Peninsula was under contract to be sold, with closing expected to take place late this year or early next year.

The bank said the sale “should result in net proceeds substantially equal to our current outstanding balance,” which is $40 million.

Sapperstein declined to say what his plans are for the site, but said it will have a residential component, including townhomes. He has played a role in several projects across South Baltimore and developed McHenry Row in Locust Point. That former industrial site is a now mixed-used community with a Harris Teeter grocery store.

The Baltimore developer also spearheaded Locke Landing, a waterfront residential community of townhomes and an apartment building that is adjacent to the Baltimore Peninsula site.

A decade ago, Plank envisioned a glittering mini-city anchored by a massive Under Armour campus in the neighborhood. But as Under Armour struggled, plans for its new headquarters were scaled back.

Still, Plank’s firm, Sagamore Ventures, went ahead with the project. It formed a joint venture with the investment bank Goldman Sachs to develop phase one, a mix of residential, office and commercial buildings.

Those buildings took longer than expected to attract tenants, and parts of the commercial and office space remain unoccupied, according to financial disclosures.

Plank’s development firm and Goldman Sachs still own phase one of Baltimore Peninsula, but with a construction loan coming due late last year, the joint venture effectively handed control of the land set aside for future phases to its lender, Bank OZK.

Ever since, Bank OZK has been trying to find a buyer.

As part of Plank’s original vision for the neighborhood, the City Council passed legislation in 2016 that authorized up to $660 million in tax-increment financing bonds.

It was one of the most generous tax incentive packages ever approved by the city. Because Baltimore Peninsula never progressed beyond phase one, most of the bonds were never issued. Any further bond issuances would require approval from the City Council.