FRP Development Corp
Update
11/09/22
FRP Holdings, Ince. Announces Agreement with Steuart Investment Company & MRP Realty
FRP Holdings, Inc. (NASDAQ: FRPH) has executed an agreement with Steuart Investment Company (SIC) and MidAtlantic Realty Partners (MRP) for the development of up to ten mixed-use projects in the Capitol Riverfront and Buzzard Point submarkets of Washington, DC. These projects will come from four parcels of land owned by SIC, phases III and IV of The Company’s Riverfront on the Anacostia Development, the site currently leased to Vulcan Materials in Buzzard Point, and the existing mixed use multifamily/retail assets (Dock 79, The Maren, and The Verge) owned by The Company and MRP in the Capitol Riverfront and Buzzard Point submarkets. Upon completion and stabilization, these projects will comprise over 3 million square feet of mixed-use development including 3,000 residential units and 150,000 square feet of retail.
Under the terms of the agreement:
• SIC will purchase a share in a tenancy in common of 20% of ownership in Dock 79 and the Maren for $65.3 million, $44.50 million of which is attributable to The Company. Net of the portion of the mortgage assumed by SIC, FRP’s gross proceeds of the sale will be $19.95 million
• SIC will have the right to acquire a 10% to 20% share of The Verge, phases 3 and 4 of the Riverfront projects and Square 664E
• When developing SIC parcels, MRP and The Company will be responsible for all predevelopment work including entitlements, permits, zoning approvals, design, budgets, additional equity and construction financing required to begin each project. Any predevelopment costs incurred in this process will be converted into equity in the project. The partners will then go through an appraisal process for the land with the purchase price being the appraised value less the estimated environmental remediation costs. This pre-development work will be done through a joint venture between MRP and FRP.
“This is a unique opportunity to expand upon our existing footprint in one of the best markets in the world,” said John D. Baker II, CEO and Chairman of FRP Holdings, Inc. “When the dust settles on these projects, this partnership will control nearly every asset visible to the naked eye as you drive into our nation’s Capital from the south. It has the potential to be something really special.” For more information on this agreement, please consult the attached map of properties controlled by the partners in the agreement.
