The State of Maryland is looking for a development team to create a high-density, mixed-use, transit-oriented development at the Rogers Avenue Metro Station. The proposed venture, according to commercial real estate analysis, faces both promising opportunities and big challenges.
This month, the Maryland Department of Transportation (MDOT) issued a Request for Qualifications for a team to redevelop a nine-acre parking lot on the north side of the station. Development of the site, which is currently zoned TOD-1, could include office and retail space and more than 400 residential units.
Possible development option on the north parcel of Rogers Avenue Metro Station. Image courtesy of Maryland Department of Transportation.
Located within 15 minutes of downtown Baltimore, the site is within easy reach of major employment sources. It is also the closest station to Pimlico Race Course, which is currently undergoing a $400 million renovation to create a state-of-the-art sports venue.
The Rogers Avenue TOD Site Strategy, released in March, acknowledges that the proposed development faces some challenges.
Achieving high enough rental rates to support market-rate apartments could be difficult. According to the report, area demand for market-rate, multifamily housing from 2024 to 2028 is expected to total 444 units. For the same period, 547 units are in the development pipeline.
The area, however, does have a strong demand for affordable workforce housing. According to the report, 969 units will be needed from 2024 to 2028, and just 250 units are in the development pipeline.
Consequently, the Site Strategy recommends a mix of market-rate and affordable workforce housing.
“There needs to be sufficient rental rates to support a return on investment from an apartment development, and the challenge now is construction costs are high and don’t seem to be retarding fast enough to green light many developments,” said Owen Rouse, Senior Vice President of MacKenzie Commercial Real Estate Services.
However, high-density, mixed-use projects around transit hubs make development sense and are long overdue in Baltimore, Rouse said.
Other cities on the East Coast have surrounded subway and commuter rail stations with high-rise apartments and retail/commercial buildings.
“There should be demand at metro stops for housing and amenities, and that should make projects attractive to financing sources,” Rouse said. “There is limited land around metro stations, so you have a suppressed supply. From an underwriting standpoint alone, that works in your favor.”
The Baltimore region, he added, has multiple transit locations that make sense for TODs.
“We should think broader and look not just at Metro stations but also at MARC/Amtrak stations,” Rouse said.
For example, the West Baltimore MARC Station “is four parking lots and a train platform. That’s it,” he said.
Developing a modern, amenitized train station on site, plus high-density housing and retail around it, “could turn this into a gateway to Washington. From that station, you only have a few stops and, in 30 minutes, you’re in Union Station in D.C.,” Rouse said. “If you’re going to spend money on transit-oriented development, this would be a good place to look at.”
Featured in this article: MacKenzie Commercial Real Estate Services and the Maryland Department of Transportation.