Robin Godwin: Federal Hill Mortgage Buys Key Highway Building for New Office

Federal Hill Mortgage purchased the 10,000 sq. ft. office building at 1240 Key Hwy. and relocated its office from 904 Light St. to its new building. The company purchased the building in February for $2.3 million.

The one-story building was previously home to an architecture firm. It has eight indoor parking spaces; eight outdoor parking spaces; a billboard; two office suites, including an 1,000 sq. ft. space leased by the Port of Baltimore; and an unfinished space.

Federal Hill Mortgage completed a $200,000 renovation of its office space. This included adding new floors, new ceilings, and “high-end” finishes.

Federal Hill Mortgage’s office space has 10 individual offices, a kitchen, a reception area, and a conference room. Federal Hill Mortgage co-owner Tammy Saul said in the future the 2,ooo sq. ft. unfinished space will be turned into a realtor and client lounge with a media center, a golf center, and gathering spaces. They are also planning to paint the exterior of the building and add a new sign with raised lettering.

Tammy Saul, who owns the company with husband Ryan Saul, said, “It’s the absolute perfect layout and size. It has significant space for our staff and gives us space to grow.”

Federal Hill Mortgage now has a team of 20 including four new employees.

The Sauls started the company out of their home 17 years ago and moved to Light St. in 2014.

Tammy Saul said they were looking for a new office for a few years after outgrowing their 2,000 sq. ft. space on Light St. The Sauls began negotiating a lease at 1240 Key Hwy. in early 2022, but the deal fell through when the property went under contract with an apartment developer.

“I was absolutely crushed,” she said. However that deal fell through and the property went back on the market in August 2022. Tammy Saul said her and Ryan Saul decided to take a “huge leap of faith” and try to buy the building themselves. After two months of negotiation, they got the building under contract.

Tammy Saul said 2022 was a difficult year for the mortgage industry and that the fourth quarter of last year was the toughest quarter since 2009. “It was a scary time in the industry, but I knew it was a temporary hump to get over.”

She said things are now on the upswing and she projects 2023 will be a stronger year than 2021 when Federal Hill Mortgage closed $312 million in loans. She believes interest rates will go down one to one-and-a-half percent by the end of the year.