"The center's tenancy, location and assumable debt made it a very attractive purchase," says Putterman. Specifically, she continues, the ability to close with 15% equity and a mortgage in place for nine years at a fixed rate created a high cash on cash return that enabled the seller to entertain a high number of competitive offers and the buyer to capture an exceptional return on his equity.
"There were numerous buyers who saw great value in owning Ordnance Plaza," Thomas says. "The buyer was chosen amongst over a dozen candidates because of his 1031 requirement."
Other national and regional tenants at the property include Sports Authority, PetSmart, Sears, Staples, McDonalds and Planet Fitness. The center was purchased from an affiliate of the original developer, Price REIT in 2002. At the time there were 40,000 sf vacant in the complex, which the former owner fully leased.
According to the property's marketing materials Ordnance Plaza is benefiting from a more heavily trafficked Ordnance Road due to the completion of Route 10, which now allows the center to draw more heavily from the Baltimore area. Also, the center is bordered by two office parks that generate increased traffic.
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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.
