BALTIMORE-Stewart’s Warehouse Distribution Center, a 165,000 square foot industrial building here has traded for $4.1 million, or $25 per square foot. Gil Neuman and Michael Mull of NAI KLNB represented the seller, Continental Realty Corp., and the company also procured the buyer, Goodier Baker, LLC. 

An older industrial building in a retail setting—it is positioned adjacent to the Reisterstown Road Shopping Center--4241 Brookhill Rd. is, in Neuman’s terms, an unconventional asset. “A lot of people wouldn’t look at it for that reason, but in the end we wound up having five offers,” he tells GlobeSt.com. The reason is simple he says. “There is a lot of money sitting on the sidelines looking for a home and very little product available.”

It also helped that the buyer was familiar with the tenant, which is a regional, not national credit, he adds. The building, which was built in 1961 and located on five acres of land, is 100% leased to Gardiners Furniture. The company recently renewed and extended its lease in the distribution center through August 2019. Headquartered in Baltimore since 1942, Gardiners Furniture operates five retail locations throughout the greater Baltimore region.

The pluses for the buyer are considerable, Neuman says, and outweigh the seeming drawbacks. The property is well maintained and located next to a major shopping venue with a stable tenant and future redevelopment potential, he says. In addition, the area surrounding Reisterstown Road Plaza is seeing significant economic development activity beginning with next year’s construction of a new 500,000-square foot office campus for the Social Security Administration, a project that is expected to deliver in 2014. In addition, the Reisterstown Plaza metro station is undergoing mixed use development.