Maryland’s Tallest Apartment Building Opens to Warm Reception

For over two years multifamily players in Baltimore have been debating 414 Light Street. How fast would developer Questar Properties fill the 44-story tower, and how much would Baltimoreans pay for the literal height of rental luxury?

Early results are promising for Questar but, as expected, they need more than 40,000 square feet of indoor and outdoor amenity space and grandiose views to seal most deals.

One month after opening its doors to the first residents, the 394-unit, 5-Star community is just over 6 percent occupied. Should the building stay on that pace, it would be full in less than 18 months. While Questar is offering a mix of specials, including one month free rent and six months of free parking for those moved into floors 2 through 14 by October 15, that leasing velocity and concession package would be a win.

As a point of comparison, Bozzuto Group’s signature community, the 292-unit, 5-Star Anthem House, eclipsed 20 leases per month five times over a 16-month lease up. Management ended up giving away roughly 1.5 months’ worth of free rent in its last month before stabilizing, but didn’t average more than one month free until almost a year after it opened.

The tallest residential building in Maryland has seen hype grow as each floor was added, and for good reason. There is nothing of its kind in the Charm City, and Questar is banking heavily that affluent, renters-by-choice will flock to the glass and steel building fronting the Inner Harbor. The spice-named units, a nod to the site that once housed McCormick & Company’s headquarters and factory, are by far and away the most expensive in the Baltimore metropolitan area.

At an average of $3.20 per square foot, 414 Light was the only community in Baltimore over $3 at the time it delivered and the gap is wide. The next closest is the Porter Street Apartments, but even the units there -- which average $2.99 per square foot -- aren’t an apples-to-apples comparison. Developer Mark Sapperstein’s amenity-rich apartments at McHenry Row are billed as all-inclusive, where a single rent check takes care of your utilities, parking and pet fees and pool membership.

The next set of latest-and-greatest rental communities, including Anthem House and Beatty Development Group’s 1405 Point and 1305 Dock Street, respectively, hover between $2.75 and $2.85 per square foot.

While CoStar data shows that the average Baltimore rental runs about $1,250, the majority of units at 414 Light double that cost or more. The most common apartment, a one-bedroom floor plan, has an average starting rent of more than $2,500 per month (although the smallest model, Poppy, starts at just over $1,800 for the 506-square-foot space). Studios have the most expensive price tag on a per square foot basis -- eclipsing $3.50 -- while the gaudy penthouses take the nominal crown with some approaching $8,000 per month.

There had been debate amongst market players as to what concessions would be needed to induce those wooed by maid and dry cleaning services, pet wash and car charging stations and a Zen garden to sign on the dotted line. Other 4- and 5-Star properties that have come on line in the last year have been offering between 2 to 3 months of free rent out of the gate, as well as some other sweeteners like reduced amenity fees or free parking.

Whether Questar needs to up its current ante remains to be seen, but it wouldn’t be surprising. Downtown Baltimore is flooded with new high-end units, over 2,000 more are coming in the next 12 to 24 months, and the slowest part of the leasing season is right around the corner.