Chambers Street Properties Buys 801 KSF Warehouse in Greater Baltimore
- Dec 06, 2012
Chambers Street Properties continues building up its industrial portfolio with the acquisition of an 800,797-square-foot Class A warehouse/distribution facility in a Baltimore suburb. The purchase (reported to be about $50 million) also includes a 15-acre adjacent land parcel that gives the REIT the potential to add up to 400,000 square feet to the facility.
Gateway at Riverside is located in a Belcamp, Md., industrial park with access to Interstate-95 and Route 40. Located in Harford County, it is about 40 minutes from Baltimore, 60 minutes from Philadelphia and 90 minutes from Washington, D.C. It is one of the strongest East Coast distribution markets because about 30 percent of the total U.S. population can be reached within a day’s drive of Harford County.
“This is a highly desirable asset leased to a strong tenant in an excellent location, with future development potential in the supply constrained greater Baltimore market,” said Phil Kianka, executive VP and COO for Chambers Street Properties.
The REIT, previously known as the CB Richard Ellis Realty Fund, did not disclose the tenant but Commercial Property Executive has learned that it is Noxell, a subsidiary of Procter & Gamble. Chambers Street Properties would only say that the property is fully leased to a wholly owned subsidiary of one of the world’s largest consumer product manufacturing companies.
Chambers Street Properties also did not disclose the seller but the Baltimore Business Journal has identified it as Preston Scheffenacker Properties of Lutherville, Md.
The building, which is accessible by rail, was constructed in 1991 and renovated in 2005. It has 30-foot clear height ceilings, 82 dock high loading doors, and two outdoor trailer storage areas that can handle more than 230 trailers.
Gateway at Riverside is Chambers Street Properties’ first acquisition in Maryland. The REIT recently closed on a warehouse/distribution building in Rogers, Minn., a suburb of Minneapolis. The price was not disclosed but the Class A, 280,577-square-foot facility at 20000 S. Diamond Lake Road is fully leased on a triple-net basis. During the previous quarter, Chambers Street Properties bought a fully occupied 1.1 million-square-foot warehouse/distribution center in Gardner, Kan., a Kansas City, Kan., suburb. Like the Maryland purchase, this acquisition also had adjacent land for future development. In September, the REIT acquired a 1 million-square-foot warehouse/distribution facility in Koblenz, Germany, with an existing joint venture partner, Goodman Group. The building, which is newly constructed, is fully leased by the European operating subsidiary of a global ecommerce provider on a triple-net basis until 2023. It was the company’s sixth acquisition in Germany.
As of November, Chambers Street Properties, a Maryland REIT with its headquarters in Princeton, N.J., had at least 125 properties in the United States, Europe and Asia. Most of its portfolio consists of single- or multi-tenant office buildings and warehouse/distribution facilities.