KLNB's Investment Sales Group Brokers Two Deals in D.C. and Maryland Industrial Market Totaling $15.45M
KLNB, the full-service commercial real estate brokerage, announced today that Chris Kubler, principal in the Investment Sales Group, represented two buyers in the purchases of industrial properties in the Washington Metropolitan area: Korth Investment Properties acquired the Offenbacher industrial property portfolio which includes properties in Rockville, Md. and Gaithersburg, Md.; and Terreno Realty Corporation (NYSE:TRNO) purchased 2920 V Street in NE Washington, D.C.
The 110,710-square-foot Offenbacher portfolio consists of three properties: a 29,998-square-foot small bay warehouse on Taft Street in Rockville, Md.; a 29,307-square-foot small bay service center on East Diamond Avenue in Gaithersburg, Md.; and a 51,405-square-foot, three-building small bay industrial project in Gaithersburg, Md. The portfolio was 77% leased when presented to Korth Investment Properties.
“The Montgomery County industrial market has outperformed the broader market with the average asking rents of $11.66 per square foot and a vacancy rate of 7.6%,” Kubler said. “Korth Investment Properties’ purchase of this portfolio is a solid investment and with the addition of new tenants, I am confident it will continue to grow in value over time.”
Terreno’s acquisition of the 22,000-square-foot warehouse makes the corporation owner of nearly 10% of the entire warehouse inventory in Washington, D.C. The warehouse sold for $3.7 million, equating to approximately $172 per square foot. The seller was represented by Washington NewStar Realty. With the purchase, Terreno grew its presence on V Street, where it paid $115.5 million for an 820,807-square-foot, six-building, multi-tenanted portfolio in June 2015. Kubler says 2920 V Street was a smart investment for Terreno.
“Average asking rents for industrial space throughout D.C. have climbed from around $8 per square foot in 2012 to nearly $15 per square foot today. Over that same period of time, the vacancy rate has fallen nearly 7%,” Kubler said. “The favorable sale of this building is reflective of the strength of the D.C. industrial leasing market, and there is no doubt that it will make an excellent addition to Terreno’s existing V Street portfolio.”
KLNB is affiliated with NAI Global, an international real estate platform that provides resources and an enhanced range of services. Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions throughout the world. For more information about KLNB’s Investment Sales team, click here.
KLNB is a leading provider of commercial real estate services throughout the mid-Atlantic region. A full-service commercial brokerage and real estate services firm, KLNB provides a variety of services including tenant and landlord representation, leasing, investment sales, property management, financing, and appraisal & valuation services. Headquartered in Maryland, close to 80 full-time brokerage professionals work across KLNB’s five full-service offices located in Towson and Columbia, Md.; Washington, D.C.; and Dulles and Tysons, Va. http://klnb.com