(To read more on the industrial market, click here.)
FREDERICK, MD-The Matan Cos., a real estate firm with a local office and one in Germantown, has acquired a 180,000-sf industrial facility here for $15.5 million. The fully leased building, located at 2421 Monocacy Blvd., was sold by Ruppert Properties. Andy Stape, Bob Filley, Joe Friedman, Will Wheeler and Mat Adler of Transwestern's Asset Investment Sales Group represented Ruppert.
Called the Frederick Trading Center, the industrial warehouse is set on 21.9 acres of developable land and located near the intersection of Monocacy Boulevard and Liberty Road. One of the tenants in the facility is Geico.
The building is doing well with a 100% occupancy rate, Elizabeth Norton, research director, Mid Atlantic of Delta Associates, tells GlobeSt.com. In 2006, at year end, the submarket had a direct vacancy rate of 10.8%, a slight increase from the year prior because demand had been soft in 2006, she says. "We do expect to see demand to pick up and Frederick is a stable market."
Another favorable sign for the market, she adds: all of the industrial product under construction in the market has a pre lease rate of 51%, which is slightly better than the norm.
Investment sales are also steady in the submarket. At roughly $86 per sf, the Frederick Trading Center closed at a price consistent at which properties in Frederick are trading, Norton says.
Other recent industrial trades in Frederick, as reported by GlobeSt.com include Washington Real Estate Investment Trust's acquisition of a five-asset industrial/flex portfolio for $26.5 million from an undisclosed seller and St. John Properties Inc.'s acquisition of a 104-acre tract of land near the intersection of Route 85 and Interstate 270 to build a $40-million flex/office park.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
