Is Industrial The New Real Estate Rock Star?

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)

Advertisements

Leave a comment

Filed under Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s