Mid-Size Suburban Office Building Brings in $17M

HUNT VALLEY, MD-Ownership of a 180,000-sf office structure has hit the market and brought in $16.5 million, or about $92 per-sf. Corporate Office Properties Trust acquired the structure from Sterling York LLC, which had been in possession of the property since buying it from Aircraft Armaments Inc. in 1998 for $12.5 million. The property, which occupies a 7.5-acre parcel, has a current assessed value of nearly $14 million, according to Baltimore County records. Located off I-83 just north of Baltimore, 10150 York is a five-story class A facility that was developed nearly 20 years ago as the corporate headquarters of AAI Corp. The high-technology systems manufacturer now makes its home in a 200,000-sf facility at 124 Industry Lane and other tenants have since made their home at 10150 York, including insurance company All Risks Ltd., which signed on for 43,000 sf of space last September. At the time of the sale, the building was occupied by a total of three tenants, leaving a vacancy of 23%. “With this acquisition the company has closed on $90 million of properties, well on our way to the stated acquisition goal of $100 million net of sales for 2004,” COPT president and COO Randall M. Griffin says. “This property represents an outstanding value added opportunity for us with an asset that is well located in the market and in close proximity to our two existing buildings in the market.” The company, which closed on a new $300-million unsecured revolving credit facility last month, relied on proceeds from the line of credit to execute the purchase of the property.