Deal nears for Legg Ma­son tower in Har­bor East

Baltimore Sun - - TRUMP TRANSITION - —Natalie Sher­man —As­so­ci­ated Press —As­so­ci­ated Press

H&S Prop­er­ties De­vel­op­ment Corp. is close to sell­ing a stake in the Legg Ma­son build­ing in Har­bor East. The firm, which put the 24-story blue-glass tower on the market last year, say­ing it was look­ing for a joint ven­ture part­ner, con­firmed Thurs­day that it is draw­ing closer to a deal.

CBRE, the bro­ker­age that was mar­ket­ing the prop­erty, lists it as “un­der con­tract” on its web­site. A spokes­woman for H&S de­clined to name the part­ner and deal terms and said a clos­ing date has not been es­tab­lished. She said the firm will re­tain “an ac­tive and sig­nif­i­cant” own­er­ship and man­age­ment in­ter­est in the build­ing, con­structed in 2009.

A deal is in­tended to pro­vide H&S with new cap­i­tal for Har­bor East, where the devel­oper and part­ners re­cently broke ground on a new build­ing.

“We are com­mit­ted to en­sur­ing the long-term suc­cess of our prop­er­ties, with a fo­cused vi­sion of ad­vanc­ing Bal­ti­more City as a whole,” spokes­woman Me­gan McCloskey wrote in an email. “H&S Prop­er­ties De­vel­op­ment Corp. and their part­ners are, and will con­tinue to be, long-term hold­ers of real es­tate who will con­tinue to in­vest in Bal­ti­more City.”

H&S is con­trolled by the fam­ily of the late John Pat­er­akis Sr., who led re­de­vel­op­ment in Har­bor East. The city re­named the round­about at the cen­ter of the neigh­bor­hood for him on Thurs­day.

Kevin John­son, who was named pres­i­dent and chief op­er­at­ing of­fi­cer last year, will be CEO as of April 3.

Schultz, 63, is cred­ited with turn­ing around Star­bucks’ for­tunes since re­turn­ing as its CEO in 2008. He has over­seen the ex­pan­sion of the chain’s food and bev­er­age of­fer­ings and the growth of its pop­u­lar loy­alty pro­gram and mo­bile app. Star­bucks has cred­ited the re­wards pro­gram and app for help­ing con­sis­tently in­crease sales in the U.S., al­though growth has slowed re­cently and traf­fic slipped in the lat­est quar­ter.

Shares of Star­bucks slid 3.6 per­cent to $56.44 in af­ter-hours trad­ing. other, of course, is the White House.

Whether he’ll need to re­lin­quish his stake in the Trump In­ter­na­tional Ho­tel in Wash­ing­ton could come down to how a few words on a lease are in­ter­preted.

Trump ne­go­ti­ated for more than a year to se­cure the rights to use the gov­ern­men­towned build­ing where the ho­tel is now housed. The re­sult­ing lease it­self runs for hun­dreds of com­pli­cated pages. But Clause 37.19 on top of page 103 has sud­denly be­come the sub­ject of heated dis­cus­sion among experts on gov­ern­ment con­tract­ing law, and not a few Trump crit­ics.

If the as­sess­ment of some of the experts are cor­rect, the first 43 words of this clause could force Trump to un­load his eq­uity stake in the ho­tel just down the street from the White House. The key part: No “elected of­fi­cial of the Gov­ern­ment of the United States” shall be “ad­mit­ted to any share or part of this Lease.”

The Trump Or­ga­ni­za­tion did not re­spond to emails ask­ing for com­ment.

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