Federal Capital Partners Buys Halethorpe Distribution Facility For $11.5M
- Oct 12, 2014
Federal Capital Partners recently announced the acquisition of an industrial distribution facility in the Baltimore area. The Chevy Chase-based company paid $11.5 million for the property which it purchased from Alliance Partners.
The facility is located in Halethorpe, at 2209 Sulphur Spring Road. It is close to both I-95 and I-695, just south of downtown Baltimore. Alliance Partners purchased it in 2012, for $3.1 million. The company then invested $4 million to renovate the property. The project upgraded the dock areas, and added high efficiency lighting, a new roof, site asphalt and new security features.
Erik Weinberg, vice president of Federal Capital Partners, noted that “2209 Sulphur Spring offers one of the only existing large contiguous blocks of industrial warehouse space in the supply-constrained Baltimore market. FCP has planned additional site and building improvements to complement the recent renovation and to further enhance the facility’s position in the market.”
According to the Baltimore Business Journal, 2209 Sulphur Spring was vacant at the time of the sale. FCP has hired Cassidy Turley to lease the property. Jarred Testa, principal and senior vice president of Cassidy Turley, said it ”has many amenities that industrial users in the market desire, including ample trailer parking, secure access and outside storage.” Recently, Cassidy Turley has also been retained by Prologis to lease its Baltimore-Washington Industrial Park portfolio, in nearby Jessup. The portfolio consists of eight office-warehouse buildings totaling 828,000 square feet.
Last week, Cassidy Turley released two Q3 industrial reports for the I-95 North and I-95 South markets. In them, the commercial real estate services firm describes the Baltimore metro area as one of the strongest second-tier markets in the United States.
The I-95 South industrial market experienced approximately 630,000 square feet of positive absorption in the third quarter of 2014. Most of this activity was located in the Corridor submarket. The area’s overall vacancy decreased to 12.24% in Q3, with average rents reaching $5.94 per square foot.
Meanwhile, I-95 North experienced approximately 130,000 square feet of net negative absorption in the third quarter of the year. This led to an increase in vacancy to 7.68%. The average rent was $4.02 per square foot.
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