Multifamily has been the rock star commercial real estate asset class for some time. Signs, though, are pointing to a contender for that title: industrial real estate.
Case in point, the recent trade of 1900 Clark Rd., a 613,000-square-foot distribution center in the Havre de Grace submarket. It sold for $26.4 million–a 35% increase from the last time it traded in September 2009. “Nothing else changed about this product,” Cassidy Turley’s Jonathan Carpenter tells me. “The cap rate was just north of 7% with this last trade, down 250 to 300 basis points from the earlier sale.”
The center is fully leased to the Sun Products Corp. through February 2016. Cassidy Turley’s Baltimore Capital Markets team, including Carpenter, Jay Wellschlager and Philip Iglehart, brokered the transaction between the seller, a Hampshire Real Estate Cos. and MCB Real Estate JV, and the buyer, Bentall Kennedy, a large fund advisor. In general, institutional investors like Bentall Kennedy are gravitating toward industrial assets like this one, Carpenter says. “This product type and submarket are definitely on their radar screens now.” (credit, e morphy, globe st)