Baltimore-based real estate company acquired 259-acre site in Anne Arundel County last summer and intends to build up to 1 million square feet of industrial development
Chesapeake Real Estate Group, LLC (CREG) and EverWest Real Estate Investors, LLC (EW), on behalf of an EverWest separate account client, have executed a lease with Best Buy for 500,400 square feet of space within Brandon Woods III, a 259-acre site located near Fort Smallwood Road in Anne Arundel County. The Baltimore-based real estate company acquired the site from Exelon Corporation last summer and, through a partnership with EW, intend to build up to 1 million square feet of industrial development. Matt Laraway and Scott Skogmo of Chesapeake Real Estate Group represented the landlord and Michael Royce of Avison Young represented Best Buy in this lease transaction.
Best Buy plans to consolidate three existing locations throughout the Baltimore-Washington, D.C., metropolitan region to occupy the building at 7550 Perryman Street. CREG broke ground on this speculative building - featuring 36-foot-clear ceiling heights - last year, and it is currently 90 percent completed. It is considered the largest industrial speculative project ever constructed in Anne Arundel County and one of the largest built in the state of Maryland. Best Buy expects to take occupancy in March 2019.
The facility, which will support approximately 200 jobs, will be used to warehouse and distribute large products to stores throughout the Mid-Atlantic region. It will also serve as a hub for the home delivery and installation of major appliances and large televisions. In addition, a portion of the space will contain Best Buy service and repair technicians for consumer electronics and appliances.
“This lease validates our decision to acquire the 259-acre site last summer and immediately proceed with the speculative development of more than 500,000 square feet of space. We intend to capitalize on current demand and the strong market fundamentals by moving forward right away with our second building that will be 340,000 square feet,” explained Matt Laraway, SIOR, Partner, Chesapeake Real Estate Group. “With strategically located, large-scale sites becoming increasingly difficult to assemble, our team understood the tremendous opportunity to create Class ‘A’ warehouse and distribution product to service emerging e-commerce and logistical requirements. Among the major strengths of Brandon Woods III is its access to nearly 50 percent of the nation’s population within a one-day truck drive and its immediate proximity to the Port of Baltimore and Baltimore-Washington International Airport.”
Best Buy, which operates approximately 1,000 U.S. stores, is the leading provider of consumer technology products and services
“We’re excited to expand our supply chain capabilities with this new, larger distribution center,” Best Buy spokesman Jeff Shelman. “With the growth of our appliance business and our strong market share position in home theater, this facility will help us serve our customers more effectively and more efficiently.”
In addition to starting the additional 340,000-square-foot building, Chesapeake has also initiated design on a 150,000-square-foot building that will deliver in mid-2019 and a fourth building consisting of between 80,000 and 100,000 square feet of space.
Brandon Woods III is located within the Brandon Wood Business Park, an Anne Arundel County business community originally developed by Constellation Real Estate, the real estate subsidiary of BGE. Sites were developed and leased to companies with large distribution and warehouse requirements, including Reliable Churchill, Fila USA and Under Armour.
“Anne Arundel County’s multi-modal transportation assets, particularly access to the Port of Baltimore and BWI-Marshall Airport, will greatly benefit Best Buy,” said Anne Arundel County Executive Steve Schuh. “This deal is just the latest to speak how attractive the industrial market is in the greater Baltimore region.”
Chesapeake Real Estate Group recently entered into a joint venture partnership with Atapco Properties to acquire a 52-acre parcel of land, located at the intersection of MD Route 43 and Interstate 95 in the White Marsh section of Baltimore County. Plans call for the development of approximately 750,000 square feet of industrial ecommerce space, commercial office and retail space on the site. Last year, the company acquired more than 100 acres in Harford County for the development of approximately 400,000 square feet of space. Chesapeake is also actively developing projects in Baltimore City, Baltimore County and Prince George’s County.
Chesapeake Real Estate Group, LLC, headquartered in Baltimore, Maryland, is a fully-integrated commercial real estate operating company that focuses on real estate development, leasing, property management and brokerage services. The company owns a diverse portfolio encompassing Class “A” industrial and commercial office properties, as well as retail centers. Chesapeake Real Estate Group also participates in joint venture partner arrangements on select investments. The firm currently has more than two million square feet of industrial projects planned or under construction in the Mid-Atlantic region and over three million square feet under management. Notable projects include the Perryman Logistics Center, Port 95 Industrial Park, Penn 95 Commerce Center, Baltimore Crossroads @95 and 210 Allegheny Avenue. For more information visit www.cregllc.com
EverWest Real Estate Investors, LLC, a wholly owned subsidiary of GWL Realty Advisors, is a real estate investment and operating company based in Denver, Colorado, whose goal is to create significant value for investors through a combination of capital appreciation, strategic acquisition, development, capitalization, repositioning, and management of commercial real estate assets. For more information visit www.everwest.com
