(Read more on the industrial market.)
BALTIMORE-ProLogis has added to its seven-million-sf local portfolio with the acquisition of two industrial buildings here that total nearly 259,000 sf. ProLogis acquired the two buildings, one of which will continue to be occupied by a subsidiary of the seller, for $10 million. Fredrick P. Winner, Limited, a locally based beer and spirits distributor was the owner; Winner Distributing will continue to occupy 94,000 sf at 7616 Canton Center Dr. under a long-term lease.
It will be moving out of the second building, a 165,000-sf facility located at 1101 DeSoto Rd. Once it does, according to Mark Levy, VP and market officer for ProLogis in Washington DC/Baltimore, the company will begin a $3.5-million plus rehab of the building. "It will be completely overhauled," he tells GlobeSt.com. Construction will take about eight to ten months after Winner Distributing moves out in November with an expected delivery date of spring 2008, he adds.
ProLogis plans to market the building to companies in the small to medium bulk distribution space that need to be close to the Baltimore market, he says. "This is a local play. The market for that building will be local or regional distribution users that need access to the Baltimore city market. That could any service industry user, from construction to food." The asking rate for 1101 DeSoto Rd. will be $4.25 triple net.
The DeSoto Rd building is next to DeSoto Business Park, a fully occupied, 500,000-sf industrial park that ProLogis also owns--which was one of the reasons behind its decision to buy these buildings, Levy says. "Based on the success we had with that project we thought it was natural to acquire the building across street and continue to expand our base of holdings in this market," he adds. The transaction also fits with ProLogis' acquisition MO: acquiring assets in infill locations where there is strong rental growth and space demand.
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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.
