HANOVER, MD-Two recent industrial trades in this part of Maryland highlight the growing recovery of the industrial sector. One was the sale of Cabot Business Center, a new class A two-building industrial/flex complex totaling 98,855 square feet located at 7449 and 7455 Race Rd. ING Clarion Partners purchased it for $12.28-million from Boston-based Cabot Properties Inc.
Another was the Industrial Income Trust of Denver agreement with New Boston Fund to acquire a Hagerstown, MD-based warehouse that is leased to Home Depot for $41.2 million, according to a filing with the Securities and Exchange Commission.
Investor appetite for such assets is now very strong, CBRE’s Bo Cashman, tells GlobeSt.com. Cashman and Jonathan Beard represented Cabot Properties in the first transaction.
Constructed in 2008, Cabot Business Center is a shallow bay building that is 78% leased to three tenants. It also features a 10,000-square-foot PAD site and 24-foot clear heights in a concrete tilt up design. The Home Depot-leased warehouse, acquired by Industrial Income Trust, is an 824,000-square-foot building located at 16500 Hunters Green Parkway.
In 2009, the region saw about $54 million of industrial sales, Cashman says. Year-to-date, there has been $101 million with another $65 million expected to close by year-end. The market hasn’t returned to normal, he adds. For that to happen, trades would need to be in the $450-million-to-$500-million range. “So we are not back yet but we are doing much better than we did last year,” Cashman says.
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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.
