NAI KLNB has brokered the sale of the Stonewood Business Center, a four-building office/warehouse project consisting of nearly 150,000 square feet of space in the Columbia section of Howard County to J2J, LLC for $19.6 million. Christopher Kubler, Principal and Director for Investment Sales of NAI KLNB and Bob Smith, Principal of NAI KLNB represented the seller, an affiliate of The Sanford Companies. The assets are situated at 7165 – 7195 Oakland Mills Road.
Stonewood Business Center’s 7165 and 7175 buildings were constructed between 1983 and 1985. In 2009, the Seller completed renovated these buildings, delivered two new buildings, and dramatically expanded the parking field. The project features eighteen and twenty-four foot ceiling heights and are surrounded by a free, surface parking lot. Eight tenants occupy the four buildings. The sale included a parcel that will support development of a fifth building.
“The former owner created significant value in the project by upgrading two commodity, 1980-vintage small bay warehouses and elevating the exterior and interior spaces to the assets competitive in the marketplace,” explained Christopher Kubler of NAI KLNB. “This included increasing the parking ratio by more than three spaces per 1,000 square feet of space, which represented a substantial upgrade.
“The improvements transformed an asset that achieved the single digit net rents typical of warehouse property to space that attracted retail, quasi-retail and office users at double digit net rents. The new owner has acquired a well-maintained complex with long-term leases in place, with the additional opportunity to develop a fifth building within the parcel.”
The vacancy level for all low-rise office, flex/office and industrial space in the Howard County marketplace has decreased from 20% in 2009 to approximately 8.9% currently.
Founded in 1968, KLNB, LLC is comprised of two real estate services companies that includes NAI KLNB, a division that focuses on the sale and leasing of commercial office, industrial and warehouse properties, as well as KLNB Retail, which specializes in the sale and leasing of retail properties as well as tenant representation. The company is a joint venture of Paragon Commercial Property Management, a full-service provider of commercial real estate property and asset management services. In addition, the company formed a joint venture partnership with ColumbiaNational Real Estate Finance, LLC to create Arris Realty Capital, an entity that provides real estate financing options.
KLNB, LLC provides a full range of integrated brokerage, sales, financial, investment and strategic advisory services to the commercial office, industrial and retail marketplace. Headquartered in Towson, MD, the other four full-service offices are located in Columbia, MD; Washington, D.C., as well as Tysons Corner and Dulles, Virginia. For additional information visit www.klnb.com.
