BALTIMORE, MD–For every seller looking to rightsize and/or upgrade a portfolio there is a buyer seeking yield. Or so it was with the Bethesda, Md.-based Fernau LeBlanc's acquisition of Corporate Office Properties Trust's remaining properties and land in the White Marsh submarket for $47.5 million.
The company acquired the portfolio of eight buildings for several reasons, Newmark Knight Frank's Cris Abramson, who helped broker the sale, tells GlobeSt.com.
There has been nearby infrastructure investment
The submarket of White Marsh is surprisingly attractive to investors these days, he says. “It is important to note that suburban office hasn't been the easiest to sell in recent years. But White Marsh has had billions of dollars of investment made in nearby road infrastructure along I-95, where it hits 695.”
It has superior amenities
“This is the most amenitized submarket around Baltimore's Beltway.”
The assets have been well maintained
COPT leaves its assets in very good shape when it sells. “Fernau LeBlanc's is not picking up someone else's pieces. It is inheriting an organized and orderly portfolio.”
There are solid credit tenants
White Marsh is a very underestimated, underappreciated market for many but the companies that realize what it has to offer are top quality, according to Abramson. “High-credit companies are here to access some of the best labor in the region for a reasonable price. It is cheaper than Howard or Montgomery Counties.”
The yield
Last but certainly not least, the portfolio has a north of 10% going in yield, based solely on the income-producing properties. There is also development potential for the land.
BALTIMORE, MD–For every seller looking to rightsize and/or upgrade a portfolio there is a buyer seeking yield. Or so it was with the Bethesda, Md.-based Fernau LeBlanc's acquisition of Corporate Office Properties Trust's remaining properties and land in the White Marsh submarket for $47.5 million.
The company acquired the portfolio of eight buildings for several reasons, Newmark Knight Frank's Cris Abramson, who helped broker the sale, tells GlobeSt.com.
There has been nearby infrastructure investment
The submarket of White Marsh is surprisingly attractive to investors these days, he says. “It is important to note that suburban office hasn't been the easiest to sell in recent years. But White Marsh has had billions of dollars of investment made in nearby road infrastructure along I-95, where it hits 695.”
It has superior amenities
“This is the most amenitized submarket around Baltimore's Beltway.”
The assets have been well maintained
COPT leaves its assets in very good shape when it sells. “Fernau LeBlanc's is not picking up someone else's pieces. It is inheriting an organized and orderly portfolio.”
There are solid credit tenants
White Marsh is a very underestimated, underappreciated market for many but the companies that realize what it has to offer are top quality, according to Abramson. “High-credit companies are here to access some of the best labor in the region for a reasonable price. It is cheaper than Howard or Montgomery Counties.”
The yield
Last but certainly not least, the portfolio has a north of 10% going in yield, based solely on the income-producing properties. There is also development potential for the land.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
