Hagerstown Industrial Trades for $40M

HAGERSTOWN, MD-Industrial Income Trust, based in Denver, CO, has acquired 16500 Hunters Green Parkway, a 824,298-square-foot warehouse and distribution facility here that is fully leased to Home Depot. It purchased the property from New Boston Fund for an undisclosed price.

A source close to the deal tells GlobeSt.com that it is believed to have traded at more than $40 million and below a 7.5% cap rate. CB Richard Ellis’ Bo Cashman, Jonathan Beard, Michael Hines and Michael Blunt represented New Boston Fund.

The property traded at a good price, acknowledges Cashman although he declined to discuss specifics. “There are limited high-quality properties on the market in the Mid-Atlantic region, so this transaction attracted multiple capital sources that were looking for long-term stable yields,” he tells GlobeSt.com.

Indeed, the deal highlights the peculiarities of the Mid-Atlantic’s industrial market and its so-not-great potential for change when the ProLogis and AMB Property merger occurs. The Baltimore-Washington industrial corridor consists of perhaps 70 million square feet of industrial space, compared to the one billion square feet or so of space available in other core markets around the country.

In short, the market is already competitive, and the entrance of a newly merged industrial player bolstered by economies of scale will not likely make that much of a dent in the market. “I can’t imagine how much more competitive it could become when quality properties come to market,” Cashman says.

Built in 2000, 16500 Hunters Green Parkway features 42-foot ceiling heights and a number of dock doors on all four sides of the building. Its design allows for full circulation and easy management of truck traffic as well as direct access to the interstate system.