11 building corporate park overlooking MD Route 355 and near Interstate 270, comprising mix of single-story and two-story buildings, currently 68% leased
Finmarc Management, Inc., a Bethesda, Maryland-based commercial real estate firm, has acquired Frederick Corporate Park, an 11-building portfolio comprised of nearly 440,000 square feet of single-story flex/office and two-story commercial office buildings in Frederick, Maryland for $43 million from CIM Group. The corporate park was 68% leased with approximately 22 tenants at the time of the sale. Joe Hoffman and Aaron Rosenfeld of the law firm Kelly, Drye & Warren represented Finmarc Management in this sales transaction and Alan Zuckerman of Highland Realty was the sole broker. Metropolis Capital Advisors' Cliff Mendelson assisted in arranging financing for Finmarc
Frederick Corporate Park represents a tremendous opportunity to execute our value-add strategy in the dynamic Interstate 270 corridor with an institutional quality portfolio that has underperformed in recent years. We are taking an aggressive approach to leasing the vacant space at this project,” explained Sean Sullivan, Vice President of Finmarc Management. “The corporate park has been expertly maintained by the previous owner, with no significant capital improvements needed at this time. Numerous fundamentals exist in the Frederick region that provide us with extreme confidence to elevate the corporate park to full capacity in the near future. These factors include a diverse and highly-skilled labor market, proximity to Washington, D.C. and the economic tentacles of the federal government, the existence of a high-technology community, reasonably-priced housing and a high quality of life.”
The assets are located at 7485 and 7495 Horizon Way; 5303, 5305 and 5325 Spectrum Way; and 7430, 7435, 7445, 7450, 7470 and 7490 New Technology Way. Major tenants include Department of Veterans Affairs, Aeroflex, American Computer Development, Carey International, Meeting Play, Love & Company and Mad Fitness.
Frederick Corporate Park is immediately adjacent to MD Routes 85 and 355 and is within close proximity to Interstates 70 and 270. Dulles International Airport is located less than 45 miles away; and both Washington, D.C. and Baltimore can be reached in approximately one hour. A number of business and consumer amenities are within close proximity including Francis Scott Key Mall with a diverse selection of fast-casual and sit-down dining options. Also located across the street is Riverview Plaza featuring big-box stores The Home Depot, Target, Staples and Petsmart among others.
According to the Maryland Department of Commerce, nearly 300,000 people reside in nearly 100,000 households in Frederick County with an average household income approaching $110,000. The vacancy rate for commercial office buildings in Frederick County was 13.7% at the close of 2019 with rent expanding at the rate of 1.7% in the past year. There were no new building deliveries in the greater Frederick market in 2019.
Finmarc Management, Inc. is a fully integrated commercial real estate company that focuses on real estate investment, management, leasing and development of retail, industrial/flex, and office properties throughout the Mid-Atlantic region. The firm presently owns and manages a diverse portfolio encompassing nearly 6.6 million square feet of commercial properties located in Maryland, Washington, D.C., Virginia, Delaware and Pennsylvania. For additional information, visit www.Finmarc.com
