Sales of industrial properties in Frederick were strong during the first quarter of 2014.
Frederick’s commercial real estate market experienced a jump of 66% in dollar volume of sales during the first quarter, versus the first quarter of 2013. Here at MacRo we noted that owner/user activity was strong, with a focus on purchase or lease of warehouse and industrial properties.
The top five commercial real estate sales in Frederick County bear out that observation, as four out of the five largest sales were owner/user purchases, and most were industrial properties.
Following are the top five commercial real estate sales deals in Frederick during the first quarter of 2014:
1. $23,050,000 Overlook Manor Apartments – 1208 Alban Court
In March, Federal Capital Parters sold Overlook Manor Apartments to BH Equities, a multifamily property investment firm in Des Moines, in a portfolio sale of two properties that totaled $50,500,000. Federal Capital Partners had purchased the property in 2011 for $19,250,000. The property has 290 units and sold for $79,483/unit.
2. $17,205,000 Lafarge MidAtlantic quarry holdings – 788 acres
Bluegrass Materials LLC, a privately-held U.S. company, bought Lafarge MidAtlantic’s quarry properties during the quarter. The sale included 788 acres of industrial land ($21,32.27/SF) and approximately 60,000 square feet of commercial buildings. Lafarge, a French cement maker, sold 5 aggregate quarries in Maryland to Bluegrass Materials as a means of reducing corporate debt. The enterprise value of all 5 quarries totaled $320 million.
3. $3,175,000 Industrial Center East – 1560 Tilco Drive
Stulz Air Technology in Frederick purchased this building as an owner/user from Ed Scott of Kline Scott Visco. The 41,040 square foot building sold for $77.36/SF.
4. $2,050,000 McKinney Industrial Site – 4537 Metropolitan Court
Buckeye Development, LLC. sold this industrial flex building in to Trust Development and Management of Hagerstown. Trust Development will be an owner/user and plans to convert the building into an indoor gun range. The 32,300 square foot building sold for $63.47/SF. Rocky Mackintosh of MacRo, Ltd. represented the seller in the transaction.
5. $1,900,000 Riverside Center – 1291 Riverbend Way
Tire World purchased 1291 Riverbend Way from FSK Audi Lincoln Volvo in January; Tire World had been the tenant in the building and will stay on as owner/user. This retail auto repair shop is 15,000 square feet and sold for $126.67/SF.
The author: Kathy Krach is a commercial sales and leasing agent with MacRo.