Miami-Based Private Equity Group Galium Capital Continues Rapid Expansion With Acquisition of Hanover Cross Street In Baltimore, MD

Galium Capital, LLC, a Miami-based private equity group, has announced the acquisition of Hanover Cross Street in Baltimore, MD. Hanover Cross Street is a 299-unit institutional-grade multifamily apartment building with an additional 12,000 square feet of retail located in Baltimore, MD. The transaction closed on November 17, 2021. Bill Roohan & Brian Margerum from CBRE brokered the transaction. Stephen West & Matthew Wallach from Walker Dunlop secured debt from Freddie Mac.

“The DC-Baltimore corridor is one the strongest markets for multifamily in the US. Its resilient industry mix and high job growth will directly benefit performance of the rental market over time. We are excited to be acquiring such a premier asset in the heart of Federal Hill – which is among the most attractive neighborhoods of the submarket. The acquisition of Hanover Cross Street allows us to continue our strategy of acquiring irreplaceable assets for value creation and wealth preservation,” said Jacques Bessoudo, Managing Partner of Galium Capital.

Hanover Cross Street is a luxury apartment community in Baltimore, MD which was developed in 2018 and is located at 101 W Cross St, Baltimore MD, 21320. The property features 299 units, world-class amenities and 12,000 square feet of retail.

Units at Hanover Cross Street range from studio to two bedroom floor plans and 557 to 1,312 square feet. Residences feature large bedrooms; custom space-saving double-hung walk-in closets; spacious kitchens with stainless steel appliances and designer custom cabinetry; spa-inspired bathrooms with large soaking tubs, dual-vanity countertops and walk-in showers; wood-style flooring and full-size high-efficiency washer and dryers. Select residences feature private terraces and built-in computer desks.

Residents will have access to world class amenities such as a controlled-access parking garage with dedicated car charging stations, a cyber lounge with high-speed WiFi and iMac computers, conference areas with SMART TV's, a fully-equipped residents' clubhouse, media rooms with large screen TV's and surround-sound, and a 24-hour fitness center with tablet-integrated cardio machines.

Outdoor amenities include a resort-like grand courtyard with outdoor pool, in-pool chaise lounges and areas for sunning; lush landscaping, grilling and dining areas with social spaces for gathering; and an open-air loggia with large screen TV's and cozy seating areas.

“Given the strong market dynamics in the DC-Baltimore region, the Mid-Atlantic region has been a major area of focus for us. We are thrilled to be entering the Federal Hill submarket with this acquisition, which has proved to me one of the most sought-after neighborhoods in the metro,” said Jonathan Slomianski, Director of Acquisitions at Galium Capital.

Hanover Cross Street is located a short distance to Marc Train Camden Station, Cross Street Market, Baltimore's Inner Harbor, and M&T.

Galium Capital, LLC, is a Miami-based private equity group led by Jacques Bessoudo and Iser Rabinovitz. The company owns and manages a portfolio in excess of $600 million of commercial real estate assets across the multifamily, office, and retail sectors in major markets across the United States.

Recently, Galium Capital had been one of the most active buyers in the Houston, TX market. In the past 12 months Galium Capital has acquired over 1,100 residential units and 65K of retail square footage in prime locations throughout Houston’s Galleria submarket. In August Galium Capital closed on the 340-unit, LEED Gold-certified Millennium High Street for the group’s third acquisition in the Galleria-district after closing on on the 431-unit Tate Tanglewood in May 2021 and 361-unit, Fairmont on San Felipe in September 2020.

Magic City Tech Boom? Microsoft In Negotiations At 830 Brickell And Elon Musk Wants To Build Tunnels Under Miami

Miami, the magic city, is on track to become the next Silicon Valley as the fallout from the COVID-19 pandemic has brought people flocking to South Florida. Florida saw the second highest population growth over any other state in 2020, following Texas, adding over 240,000 new residents in a single year. The influx of new residents is being driven by those looking to take advantage of remote-working opportunities or seek a state that has let business remain open and has pro-business tax structure. This has led to Miami and Palm Beach real estate pricing and absorption reaching near record highs.

Not only are the new residents flocking from the high-tax New York, at the same time as South Florida’s population boom, the San Francisco Bay Area has seen an exodus of venture capitalists and tech entrepreneurs. Mayor Francis Suarez has opened up the city to tech entrepreneurs and has expressed interest in bringing innovative companies to the magic city and making Miami a global tech hub. Mayor Suarez recently announced he will be appointing a Chief Technology Officer for the city.

Miami’s office market is being a surge in demand and setting record high pricing. Microsoft (NASDAQ: MSFT) is one of the major tech firms looking to move to Miami, the multinational software provider is actively in negotiations to lease 30,000 square feet of space at OKO Group’s 830 Brickell, a 56-story office tower adjacent to Brickell City Centre which is currently under construction. Pricing is still relatively cheap compared to other major markets, asking rates at 830 Brickell are reportedly in the $70’s PSF range. Ken Griffin’s Citadel Securities hedge fund is also reportedly looking at office space in 830 Brickell as is the Chicago-based law firm Baker McKenzie.

The biggest news came when Tesla and SpaceX founder Elon Musk tweeted that he had talked with Florida Governor Ron DeSantis about building a tunnel system underneath Miami to eliminate traffic and pollution. Mayor Suarez tweed that “we will do it,” and invited Musk to visit him at City Hall. In the past Miami has had success building tunnels at a comparatively low cost. The initiative would be led by Elon Musk’s Boring Company, who is getting ready to reveal the Vegas Loop to the public, a 4,475’ tunnel loop under the Las Vegas Convention Center. In the Las Vegas Loop passengers will reach speeds up to 155 mph and will ride in Tesla Model X’s, Model 3’s, and a 16-passenger modified Model 3. Las Vegas in now working with the Boring Company to build a citywide network of tunnels.

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