Upton Druid Affordable Housing Portfolio

Global Real Estate Advisors (GREA) extends to qualified investors the opportunity to acquire the fee simple interest in Upton Druid Apartments, a 78-unit family affordable housing community including 29 properties in Baltimore, Maryland. All units are 100% supported by a Project-Based Section 8 HAP contract, specifically under a Mark-to-Market structure. The HAP contract was recently renewed in September 2025 for an additional 20-year term, extending through September 2045, providing long-term, stable, government-backed income.

The Properties benefit from consistent rent support through HUD, with annual rent increases tied to OCAF adjustments, with the next rent schedule taking effect in September 2026. The Mark-to-Market Use Agreement, originally executed in 2005, remains in place through 2035.

The Properties have recently shown significant operational improvement, achieving a REAC score of 86 in February 2026, which is currently pending final HUD review. This reflects improved physical condition and positions the asset favorably moving forward.

The current mortgage structure includes a first mortgage with HUD of approximately $730,164, a second HUD mortgage of approximately $1,354,784, and a third mortgage note payable to the City of approximately $368,467. Notably, the second HUD mortgage is fully forgivable at maturity in 2035, including both principal and accrued interest, creating a meaningful long-term financial benefit for new ownership. The subordinate debt will be paid off at closing.

While current ownership is limited to annual OCAF rent increases under the existing structure, there remains a clear opportunity to improve operations and overall performance through hands-on management and continued property upgrades. This affordable housing portfolio represents the only asset current ownership owns and manages in Baltimore, creating an opportunity for operational efficiencies for a local investor with an existing presence in the market.