BALTIMORE, MD–Goldman Sachs has acquired a three-building industrial portfolio located in Elkridge and Savage, Md., for $40.5 million, or close to $91 per square foot, from Terreno Realty. It is the second acquisition the institutional investor has made in Baltimore's last mile industrial sector this month, according to Jonathan Carpenter, executive director at Cushman & Wakefield, who helped arrange the sale, along with Graham Savage.
Goldman also acquired four industrial buildings totaling 650,000 square feet for $66.7 million from Exeter Property Group earlier this month and it sold a four-office portfolio in Columbia, Md., to CSG Partners for $30.1 million.
Another last mile transaction of note came in July when Cushman & Wakefield closed the sale of a major Mid-Atlantic industrial portfolio on behalf of its client, TA Realty. The buyer was Colony Northstar and the majority of the portfolio, 2.4 million square feet, was concentrated in the greater Baltimore metropolitan area with the remaining 400,000 square feet located in Philadelphia and Delaware.
All of this activity, not surprisingly, is affecting pricing, Carpenter tells GlobeSt.com.
“We've seen pricing shift over last six to nine months in this product type due to the growing appetite for last mile,” he says. “We are seeing a reduction in cap rates and going in yield.”
In the BWI Corridor, cap rates for infill class B is mid 5 and the class A product is sub 5, he says.
This compares well to other major consumer markets such as New Jersey and Los Angeles, which is how investors look at such transactions, Carpenter explains. “You get more yield in the BWI market compared to Los Angeles or New Jersey.”
The Terreno portfolio consists of 8730 Bollman Pl., in Savage, MD and 6660 Santa Barbara Rd., and 6675 Amberton Dr., in Elkridge.
BALTIMORE, MD–Goldman Sachs has acquired a three-building industrial portfolio located in Elkridge and Savage, Md., for $40.5 million, or close to $91 per square foot, from Terreno Realty. It is the second acquisition the institutional investor has made in Baltimore's last mile industrial sector this month, according to Jonathan Carpenter, executive director at Cushman & Wakefield, who helped arrange the sale, along with Graham Savage.
Goldman also acquired four industrial buildings totaling 650,000 square feet for $66.7 million from Exeter Property Group earlier this month and it sold a four-office portfolio in Columbia, Md., to CSG Partners for $30.1 million.
Another last mile transaction of note came in July when Cushman & Wakefield closed the sale of a major Mid-Atlantic industrial portfolio on behalf of its client, TA Realty. The buyer was Colony Northstar and the majority of the portfolio, 2.4 million square feet, was concentrated in the greater Baltimore metropolitan area with the remaining 400,000 square feet located in Philadelphia and Delaware.
All of this activity, not surprisingly, is affecting pricing, Carpenter tells GlobeSt.com.
“We've seen pricing shift over last six to nine months in this product type due to the growing appetite for last mile,” he says. “We are seeing a reduction in cap rates and going in yield.”
In the BWI Corridor, cap rates for infill class B is mid 5 and the class A product is sub 5, he says.
This compares well to other major consumer markets such as New Jersey and Los Angeles, which is how investors look at such transactions, Carpenter explains. “You get more yield in the BWI market compared to Los Angeles or New Jersey.”
The Terreno portfolio consists of 8730 Bollman Pl., in Savage, MD and 6660 Santa Barbara Rd., and 6675 Amberton Dr., in Elkridge.
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.
