X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SILVER SPRING, MD-After sitting empty without a single tenant for the last decade, the Silver Spring Office Portfolio–a 430,000-sf four-building group of class C properties–has found a new owner. Gramax Associates LP acquired the portfolio from the New York family-owned LHL Realty Cos. Vanguard Realty spearheaded the disposition on behalf of LHL, but is keeping mum on the financial details of the transaction, as per the family’s request. However, Maryland State Department of Assessments and Taxation records indicate that the real estate package was sold for just over $12 million. “This is a significant transaction in the hot Silver Spring market in that it dramatically reduces the vacancy rate from 15% to 10%,” real estate services firm Grubb & Ellis’s Pete Hill-Byrne notes.

LHL had owned the four buildings–located at 8060 13th St., 7915 Eastern Ave., 7923 Eastern Ave. and 7981 Eastern Ave.–for the last 30 years. The 180,000-sf structure at 8060 13th St. is also known as the Gramax Heliport Building. It was developed in 1960 and has a 2003 assessed value of $2.7 million. Records show that the 15-story tower sold for $5 million. Unlike the other properties involved, the 94,000-sf four-story building at 7981 Eastern Ave. underwent a renovation, in 1979, 20 years after its development. Its value is $1.2 million and it sold for approximately $2 million. Finally, 7915 Eastern Ave. and 7923 Eastern Ave. carry separate addresses but are often considered a single property, as they are divided only by a mere six feet. Built in the late 1950s, they are 96,000 sf and 60,000 sf, respectively, and have a joint value of $2.6 million. They were sold for a combined $5 million.

“I’ve been tracking the properties for three or four years,” Vanguard’s Alan Zuckerman shares with GlobeSt.com. “The family finally decided they were interested in selling, so I was able to bring in a buyer.” Finding a buyer would have been no simple feat had Zuckerman not kept such a close eye on the portfolio beforehand. “I sell properties that, as they say in the business, have a lot of hair on them,” he explains. “There were a lot of issues. There were four office buildings that had been vacant for 10 years. And the property is in a residential area, so I thought it would be good to find someone interested in converting the commercial buildings to a multifamily property.” The new owner, Gramax, plans to do just that. The company has been working with Maryland and Montgomery County officials to negotiate the transition of the property from office space to affordable residential units.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.