Scott Group Industrial Portfolio Trades

COLUMBIA, MD-Four separate industrial buildings consisting of nearly 200,000 square feet of space in Anne Arundel and Prince George’s County have traded in a portfolio sale for an undisclosed price. The seller was the Scott Group and the buyer was Korth Construction. NAI KLNB’s Christopher Kubler represented the Scott Group in the transaction. 

The portfolio consists of Crain Centre, a 75,000 square foot building in Glen Burnie in Anne Arundel County and three buildings in Prince George‘s County. These are the Dunmore Building, a 16,500 square foot building, Ritchie Business Center, a 54,400 square foot facility in Capitol Heights and the Rainswood Building, a nearly 47,000 square foot project in Landover. The buildings are cumulatively 83% leased and occupied by nearly 60 different tenants.

In general the industrial asset class is performing well for the nation—in the recent Labor Department employment statistics, the industrial sector was responsible for an eye-popping 50,000 new positions. In particular, the sector is doing very well in the Mid-Atlantic.

These particular buildings involved in the trade are located in submarkets with strong leasing fundamentals and vacancy rates that range between 4% to 8%. The portfolio is also positioned to serve both small and medium-sized companies, which require bay sizes of less than 3,000 square feet of space.

This, in fact, is a competitive differentiator in the Baltimore-Washington market, Kubler says in a statement, especially as average rents for smaller-sized industrial tenants are usually higher than those of larger industrial users. He adds: “risk is well-diversified based on the existence of nearly 60 existing tenants, with each leasing approximately 2,400 square feet of space.”