This was a value-add play for the buyer, which is an East Coast-based company that represents investors, according to Friedman. The seven buildings, a mix of office, flex, and industrial uses, are only 84% leased. However the mix of tenants is decidedly investment grade, with such high-profile companies as the US Department of the Navy, Lockheed Martin, CACI, Serco and SAIC occupying space there. These firms service the nearby Patuxent River Naval Air Station in St. Mary's County.
According to the marketing materials for the park, the average total lease commitment of existing tenancies is eight years and tenants that have been in occupancy for longer than one year have expanded their premises by an average of 40% during their tenure.
The buildings--five low-rise office buildings and two office/warehouse properties--range in ages from 1979 to 1996, and provide for a broad range of space requirements including general office, shop/assembly, R&D, flex and high-bay, 24-foot clear warehouse.
Friedman tells GlobeSt.com that the company plans to reposition the buildings through a rehab and potential expansion. Asking rates for the available office space are $17 to $18 per sf, full service. For the flex portion, they are $13 per sf, full service.
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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.
