Topgolf property for sale, but high-end driving range will remain

The Topgolf Baltimore site is now available for purchase just under a year after its opening in South Baltimore’s growing entertainment district.

Located near M&T Bank Stadium and Horseshoe Casino Baltimore, the property is currently listed at $59.3 million by Matthews Real Estate Investment Services. The lease for the property has approximately 19 years remaining out of its initial 20-year term, as stated in the listing. If a new tenant takes over, they would be responsible for all aspects of the premises, including maintenance, taxes, and insurance, while the landlord would have no further obligations, according to an offering memo prepared by the real estate service. The memo also describes Topgolf as an “ideal, management-free investment for a passive investor.”

Topgolf Baltimore offers a high-tech driving range where individuals or groups can play target games while enjoying food and drinks. The listing memo also mentions that Topgolf is offering a corporately guaranteed lease with 10% rental increases every five years.

“It’s confirmed for sale. Can’t comment any further,” said Josh Ein, First Vice President of Matthews Real Estate Investment Services, the firm handling the listing. The Baltimore Business Journal was the first to report the listing.

Representatives from Topgolf International, Inc. issued a statement stating that the sale is solely a financial investment sale of the long-term lease and unrelated to the venue’s operations.

“The sale is simply a financial investment sale of the underlying long-term lease, and the future buyer will simply become the Topgolf venue’s landlord on the ground lease. This is a very typical transaction in the real estate industry where a long-term lease is transacted in the open market,” the statement explained. “The buyer/new landlord would be obligated to honor all aspects of our existing ground lease.”

Topgolf Baltimore opened on Oct. 28, 2022, marking the beginning of what is now known as The Walk @ Warner Street. This entertainment district is part of a larger plan to transform South Baltimore, initiated by Caesars Entertainment with the opening of Horseshoe Casino Baltimore in 2014. The goal is to develop the area surrounding the football stadium, which has long been considered underdeveloped, by introducing gaming and entertainment facilities to attract more visitors and businesses downtown and expand the regional tax base.

Caves Valley Partners, a Baltimore-based company, has been working with Caesars to revitalize the area over the past decade and has been acquiring land. Topgolf secured one of the parcels, and another went to The Paramount Baltimore, which had plans to open a music venue. However, The Paramount has faced legal and financial issues, resulting in construction being suspended.

Despite these challenges, Caves Valley Partners’ Arthur Adler remains optimistic about the future. Speaking at a panel discussion sponsored by the Greater Baltimore Committee, Adler mentioned that the concert venue is still expected to open next year and that Topgolf has already proven to be a successful addition to the area.

“Perhaps the most important thing was when we got the phone call about Topgolf. You know, Topgolf is perhaps the number one entertainment concept in the country right now,” Adler said. “Everybody wanted it.”

Adler also shared how they accommodated Topgolf’s request for 11 acres by allowing guests to park at the casino’s garage and relocating the Baltimore Animal Rescue and Care Shelter. The Topgolf Baltimore site currently occupies approximately 7 acres.

The golfing facility, spanning 65,000 square feet, features three levels and employs over 500 associates. It offers 90 outdoor hitting bays, a full-service restaurant and bar, and event space for corporate and social gatherings.

Topgolf Baltimore is the third location in Maryland, following sites in Germantown and National Harbor. Several other Topgolf sites, including those in Fort Myers, Florida, and Omaha, Nebraska, have also been listed for sale this year.

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