HANOVER, MD-California-based Buchanan Street Partners and Altus Realty Partners, a real estate investment firm in Arlington, VA., have partnered for the first time to invest in a value-add retail play in this Maryland submarket. The two firms leveraged about $6.9 million of equity—the majority of which was provided by Buchanan—to purchase a $22 million, 161,000-sf Food Lion-anchored retail center that is bordering the north gate of Ft. Meade. Buchanan also arranged the project acquisition and rehab loan from Wells Fargo Bank.

Capital improvement plans range from cosmetic renovations to theproperty, a re-lease of a vacant 60,000-sf big box store, the possible development of a pad site fronting on Annapolis Road, and a planned shift to city-provided water and sewer, according to Bob Dougherty, senior vice president at Buchanan Street Partners.

“The property is on septic and well water now,” he tells GlobeSt.com. It will convert to public utilities in February/March 2008.

Other improvements include resurfacing the parking lot and redoing signage.

As for the pad site, Dougherty says the duo are speaking with several drug stores and other small users right now that might be interested in developing it under a ground lease. “We haven’t gone to full marketing yet,” he says. The site could hold a facility between 4,000 to 12,000 sf.

Located at the intersection of Rockenbach and Annapolis Rds, Ridgeview Plaza presents a number of value-add opportunities to the firms. It is 53% occupied by a mix of national and local tenants, leaving the plaza ripe for a repositioning. Many of the long term leases are under market, and would be raised once they expire.

Also, area fundamentals are shifting, Terry Hindermann, principal of Altus tells GlobeSt.com, and will provide a huge influx of new traffic in the near term. “A new tenants base as well as the existing one will benefit from the growing office population here, in addition to changes at Ft. Meade’s [realignment under the 2005 Defense Base Realignment and Closure Act] and the growing residential developments.”

There is about 15 million sf of office development planned or underway in the area, he says. BRAC will add up to 36,000 jobs by 2010, meanwhile, through such initiatives as the relocation of the Defense Information Services Agency to Ft. Meade. Finally, there is a significant spurt of housing development scheduled for the area. “This is one of the more underdeveloped pockets of the Washington-Baltimore Corridor,” he says, “and the amount of housing permitted for construction is huge.” More people will be moving here from other BRAC-affected areas, he predicts, noting that few residents of Crystal City, for instance, are likely to be inclined to make the commute from Northern Virginia.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

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 © 2024 ALM Global, LLC. All Rights Reserved.