Finmarc Management Acquires Maryland Corporate Park
- Mar 10, 2020
Finmarc Management Inc., of Bethesda, Md., has acquired Frederick Corporate Park, an 11-building office/flex park totaling nearly 440,000 square feet in Frederick, Md., for $43 million. The seller was CIM Group.
The park consists of two-story office and single-story flex/office buildings and is 68 percent leased to about 22 tenants. The assets are at 7485 and 7495 Horizon Way; 5303, 5305 and 5325 Spectrum Way; and 7430, 7435, 7445, 7450, 7470 and 7490 New Technology Way. Major tenants include the Department of Veterans Affairs, Aeroflex, American Computer Development, Carey International, Meeting Play, Love & Co. and Mad Fitness.
Frederick Corporate Park is adjacent to MD Routes 85 and 355 and within close proximity to I-70 and I-270. Dulles International Airport is less than 45 miles away, and both Washington, D.C., and Baltimore can be reached in about one hour. Nearby amenities include Francis Scott Key Mall, with a variety of fast-casual and sit-down dining options, and Riverview Plaza featuring big-box stores The Home Depot, Target and Staples, among others.
Joe Hoffman and Aaron Rosenfeld of law firm Kelly, Drye & Warren represented Finmarc in the transaction, and Alan Zuckerman of Highland Realty was the sole broker. Metropolis Capital Advisors’ Cliff Mendelson assisted in arranging financing for Finmarc.
A hard market to pin down
In a prepared statement, Finmarc Vice President Sean Sullivan said that the asset, while well maintained, “has underperformed in recent years,” and that Finmarc will work aggressively to increase occupancy.
The suburban Maryland office market has seen significant fluctuations in deliveries and absorption since early 2017, with rents creeping up, even as average vacancy also rose slightly, according to a fourth-quarter report from Colliers International. In 2020, however, both deliveries and overall occupancy are expected to increase, based on several large move-ins that are anticipated, again according to Colliers.
In January, MedAmerica Properties finished its merger with Broad Street Realty LLC, leaving the resulting entity, Broad Street Realty Inc., with a portfolio of nine grocery-anchored retail centers. They include the 98,900-square-foot Vista Shops at Golden Mile in Frederick, Md.