ANNAPOLIS, MD-A rare class A office building here has traded for $11.2 million. Called the Power Technology Center, Belvedere Management purchased the 63,100-sf building from Cousins Team II LLC. The Manekin Investment Services team of Donald Schline, Owen Rouse and Gregory Masi brokered the transaction.

Located at 201 Defense Hwy., the three-story, 17-year-old building is fully occupied by several long-term tenants, which include Anne Arundel Medical Systems and Alion Science and Technology Corp. Rents are below market in the building and Belvedere Management plans to push rates as part of its value creation strategy.

According to Schline the building traded at an unusually low cap rate–a reflection of the growing institutional investor demand for stabilized assets in Annapolis, which has a limited supply of such assets and, in some cases, high barriers to entry. First Potomac, for instance, made its first acquisition here in June after waiting for some time for the right asset to come on market, as reported in It acquired Annapolis Commerce Park East, a two building industrial flex complex for $19.3 million.

“Office vacancy rates in Annapolis are less than 3% and will remain historically low, for the foreseeable future, allowing landlords to increase rental rates,” Masi says. Meanwhile, development costs for new office properties remain high. At minimum, new office product will demand rental rates in the low $30s. Power Technology Center also features covered and surface parking and tenant balconies. It is close to Annapolis Mall, Arundel Medical Center, Downtown Annapolis and the US Naval Academy.

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?


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


Join GlobeSt

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

  • Free unlimited access to'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 and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.