Industrial Investors Attracted to the Hot Submarkets North of I-95
- Jul 07, 2014
The Baltimore industrial market is performing very well in the submarkets located to the north of I-95 (Baltimore City, Baltimore County East, and Harford/Cecil County), much better than in any other regions in the metropolitan area. According to reports from Cassidy Turley, compared to the same period last year, available industrial space in the Harford/Cecil County is taking an average of 11 months to lease. In the Baltimore/Washington Corridor submarket it takes 18 months.
The area also remains attractive to investors looking to scoop up industrial properties. One Liberty Properties, Inc. is one such investor. On June 26, the Great Neck, New York-based company purchased a distribution facility in Harford County, in a short-term sale/leaseback transaction, which increases its total 2014 acquisitions to $32.86 million.
The 258,000-square-foot property is located at 1805 Fashion Court, in Joppa. Procter & Gamble, the previous owner, sold it for $11.65 million, and will continue to occupy it until September 2015.
“Adding this well-located distribution facility to our increasingly diversified portfolio strengthens the quality of our cash flow. At the end of the lease term, we intend to reposition this asset, creating the opportunity to generate and enhance the return on our investment” Patrick Callan, CEO and President of One Liberty Properties, said in a news release.
Another company, Churchville Tile and Marble, purchased a 21,600-square-foot office and warehouse building in the Abingdon section of Harford County, with the intention to relocate its business. It paid $1.33 million to buy it from 5900 Erdman, Inc., an entity affiliated with Regal Bank & Trust.
The property was constructed in 1998, on two acres of land, at 1301-B Governor Court. Churchville Tile and Marble will use it as headquarters and showroom for its decorative and flooring products. Toby Mink and Luke Wilson of CBRE represented the buyer in this transaction. NAI KLNB principals David Fritz and Peter Dudley represented the seller.
NAI KLNB has also recently brokered the sale of the Kelso Business Park, a two-building portfolio with nearly 70,000 square feet of industrial and flex space in eastern Baltimore County. FRP Development Corp. bought the property for $4.85 million, from Kelso Business Park, LLC. NAI KLNB represented both the buyer and the seller.
The two buildings were constructed in 1999. 8515 Kelso Drive offers 35,690 square feet of space, while 8525 Kelso Drive offers 34,000 square feet. They are fully leased to nine tenants.
“Kelso Business Park represents the perfect complement to our existing portfolio of buildings located in the immediate area, and we were immediately attracted to the quality of construction and strategic location,” David deVilliers, Jr., President of FRP Development, said in a statement. “Our current plans are to retain ownership in Kelso Business Park for the long-term and plan to invest in capital improvements, including entire new roofs, over the next several years.”
Photo credits: NAI KLNB