Gateway Commerce Center is comprised of 8901 Snowden River Pkwy., a 960,000-sf building; 8700 Robert Fulton Dr., which has more than 700,000 sf of space and 6751 Alexander Bell Dr., a nearly 258,000-sf building. Tenants include Sears, Revlon, Time Critical Freight and Jack and Jill's Ice Cream.
Currently the buildings are 85% occupied, Hamilton Loving, district management with Rreef tells GlobeSt.com. However over the next year, either due to lease expiration or planned tenant moves, the buildings will be virtually empty. The acquisition price is reflective of these upcoming vacancies.
Rreef, which has retained CB Richard Ellis as leasing agent, is marketing the buildings to attract specific end-users for each of the buildings.
8901 Snowden River Pkwy., because of its four separate bays, with each with 200,000 sf to 300,000 sf of space is being positioned to national companies, Loving says. According to Rreef's research 8901 Snowden River Pkwy. is the only available one-million-sf warehouse/distribution facility in the vicinity.
The other two buildings will be marketed to local and regional tenants because they are smaller and divisible down to 200,000 sf to 300,000 sf. Loving says that he expects to see the building largely occupied again within 24 months. Asking rates will be consistent with class A product in the area, he adds.
The second part of Rreef's value add plans for Gateway Commerce Center is an exit strategy that includes a redevelopment. "In 15 to 20 years from now this will ultimately be a redevelopment play for us. The buildings get torn down and a new project is built, depending on what is appropriate at the time."
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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.
