It is selling the portfolio to Montgomery County-based BECO Management without the land parcels. Jim Darby, Rob Foa, Gerry Trainor, and Dan Speilman of Transwestern's Institutional Commercial Group represented the seller in the deal.
Located in Washington Business Park, the portfolio consists of two office buildings and seven flex buildings on 47.6 acres of land that is located between Route 50 and Martin Luther King Blvd. It is 89% leased to several tenants, including CACI Enterprise Solutions, Verizon Directories Services, and Science Applications.
In general, flex and industrial product are doing very well in Prince George's County right now, Darby tells GlobeSt.com. "Flex product is doing slightly better than office product in some submarkets in Prince George's County," he says, attributing that trend to a general sluggishness in overall office leasing market and the fact that flex supply is somewhat constrained here.
Delta Associates recent statistics show that the Washington/Baltimore flex/industrial market closed 2007 on sold footing with net absorption above-average for the year. The average price per land, according to Delta, was $8.16 per sf. Average investment sales price was $80 per sf.
The deal was a good trade for both parties, Darby adds. Beco already has a significant position in the Washington Business Park, so the new portfolio is adding additional economies of scale to its operations there.
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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.
