Ft. Ritchie Developer Recognizes $28M Loss on Investment
- April 11, 2011
Corporate Office Properties Trust (COPT), the company planning to convert the former Fort Ritchie in north central Maryland into a mixed-use development, last week said it would mark down the value of its $28 million investment in the site to zero.
The Columbia, Md.-based developer’s decision to recognize the non-cash loss in the quarter that ended March 31 comes after the Army revealed it had tested tactical herbicides, including Agent Orange, at the post, which closed following the 1995 round of base closures. In February, COPT said it expected further delays from litigation initiated in 2005 as a result of the news.
The disclosures “increase the level of uncertainty as to [COPT]’s ultimate development rights at the property and the future residential and commercial demand for the property,” the company wrote in a March 31 statement filed with the Securities and Exchange Commission, reported the Herald-Mail.
Despite the devaluation of its investment, COPT is not planning to abandon the reuse project, the newspaper reported.