JESSUP, MD-Boston-based TA Associates Realty has acquired a 205,000-square-foot industrial warehouse here for $13.7 million. It is the latest sign that institutional investors see opportunity in the area’s industrial assets, says Cassidy Turley’s Jonathan M. Carpenter, who, along with colleague James S. Wellschlager, represented the seller Stayton Associates.
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Perhaps even more telling, this particular asset is not newly built—which is typically where institutional investors like to place their capital. The class B building, located at 8125 Stayton Dr., however, is fully leased to Capitol Express & Warehousing through 2018. That fact, along with its location, was a deciding factor for the buyer, Carpenter tells GlobeSt.com.
Institutional investors began targeting the Mid-Atlantic’s industrial assets in 2010 but it was in 2012 when their money flooded this asset class. “The volume of deals was up 75% to 80% year over year in 2012 and a lot of that activity was fueled by institutional investors, especially public and private REITs,” Carpenter says. There is still a smattering of small to medium sized deals taking place, he adds, but “I expect to see institutional investors continue to dominate the landscape this year.”
Baltimore’s submarkets are getting most of the attention from investors, primarily because it has a better supply of new product and because of the port. However, Carpenter says, the proximity of the Washington market is also key to investors’ interest.
Another trade illustrating these trends occurred earlier this month with the sale of the newly constructed and fully-occupied class A bulk warehouse for $43.15 million. Chambers Street Properties acquired it from a joint venture of Ryan Commercial, Emory Properties and Northwestern Mutual. CBRE’s Bo Cashman and Jonathan Beard represented the sellers in the deal.