The Challenge
Mercy Medical Center, Inc. desired to expand its campus southward onto property owned by Provident Bank of Maryland. Mercy desired to utilize the property for the construction of a much needed parking facility and a medical office building which would serve primarily as a women’s medical center. The parties began discussion to purchase the property but were unable to reach any agreement on purchase price given the significant devaluation of the property since its purchase by Provident in the mid-1980’s.

The Solution
MacKenzie did an initial valuation of the property and concluded that Mercy could not purchase the property for Provident’s cost basis in the property.  Consequently, a land lease arrangement was structured where Mercy leased the property from Provident but also leased certain office portions of the project once completed back to Provident as a means of compensating Provident for its high cost basis in the property.  Negotiations also involved the City of Baltimore and the Baltimore Development Corporation. At the same time, MacKenzie represented Mercy in the purchase of a leasehold interest in a parking garage contiguous to its campus located at 330 Guilford Avenue.  The purchase of 330 Guilford Avenue together with the construction of the new parking and medical building projects on the Provident property, have allowed Mercy to solve its present and future parking problems as well as provide for the expansion of the existing medical campus.

Mercy Medical Center

Services Provided:                       
• Leasing & Sales
• Corporate Consulting & Strategic Planning
• Development Services
• Construction Services