AEW and Redgate to Break Ground on a 285,000 Sq. Ft. Industrial Facility in the Baltimore-Washington Corridor
- Jul 25, 2014
By Adrian Maties, Associate Editor
A new industrial distribution facility is coming to the Baltimore-Washington Corridor. AEW Capital Management and Redgate Capital Partners, two Boston-based companies, plan to take advantage of the hot Baltimore-area industrial market and will start construction on a 285,000-square-foot building in the fourth quarter of the year.
The new facility will be named the Hollins Ferry Logistics Center. It will be constructed on a 17.23-acre development site at 4803 Hollins Ferry Road, in Halethorpe. AEW Capital Management and Redgate Capital Partners purchased the site last month, together with a 279,016-square-foot industrial building located at 4801 Hollins Ferry Road. The price of the transaction was not disclosed.
AEW Capital Management is developing the project on behalf of one of its institutional clients. Redgate Capital Partners will serve as the development manager. The cost of the project was not disclosed. It is scheduled to be completed in 2015.
Cassidy Turley’s Jarred Testa, senior vice president and principal, and Tilghman Herring, associate vice president, have been retained as the exclusive leasing agents for the Hollins Ferry Logistics Center. According to Testa, the new industrial facility will be ”state-of-the-art” and will offer many of the features industrial users are looking for, including a high dock door ratio, above-market average trailer storage, ESFR sprinkler and 32-ft. clear ceilings.
“This property is also located in an Enterprise Zone which will further strengthen the value of this Class A warehouse facility through lower real estate taxes and tenant income tax credits,” Jarred Testa said in a statement for the press.
“The Baltimore-Washington Corridor is one of the strongest industrial markets in the U.S. and given the low vacancy rate within the Class A industrial space, combined with improving market fundamentals, gives us great confidence that this is the time to deliver this type of state-of-the-art product,” added Ralph Cox, a principal at Redgate.
In its Q2 Industrial Market Report for the Baltimore metro area, CBRE said that construction activity has increased over the quarter. More than 4.2 million square feet are currently under construction and expected to deliver in the Baltimore City, Baltimore County East, Harford/Cecil County, and Baltimore/Washington Corridor submarkets by the first quarter of 2015. However, about 94.2 percent of the total space is already pre-leased.
Charts courtesy of CBRE.