Terreno Realty Corp. has sold three industrial assets along the Washington-Baltimore corridor in Maryland for a total of $51.3 million. The properties, located in Anne Arundel and Howard counties, add up to roughly 340,000 square feet and are fully leased to 10 tenants.
The largest of the three is 7190 Parkway Drive in Hanover, Md., a 159,000-square-foot cross-dock distribution building located on 11.7 acres, which changed hands for $25.3 million. The 1968-built asset last traded in March 2014 for $18 million, when Terreno acquired it from Pearlmark Real Estate Partners, Anne Arundel County records show. The tenant roster includes Crate & Barrel, and the property is within 7 miles of Baltimore/Washington International Airport and 13 miles away from downtown Baltimore.
The second building, also relatively close to BWI Airport, is the 66,000-square-foot 7125 Troy Hill Drive in Elkridge, Md. Terreno sold the property for $9.3 million, eight years after buying it for $6.7 million. The rear-load distribution center, completed in 2003, is situated on 4 acres and is home to CSC Serviceworks, Continental Carbonic Products and Unitec. Central Baltimore is 15 miles away via Interstate 95.
The third property in the deal is the 115,000-square-foot rear-load distribution building at 9070 Junction Drive in Annapolis Junction, Md., which is located on 9 acres and came online in 1997. Terreno sold the asset for $16.6 million, five years after acquiring it for $10.4 million. The property’s tenant roster including Infors USA Inc., Safan Darley, McNichols Co., NeighborCare Home Medical and NSRI.
While the economic slowdown from the coronavirus pandemic has certainly affected all real estate sectors and decelerated transaction activity on the whole, industrial has been left largely unscathed, in part due to an acceleration of e-commerce as a direct effect of social distancing measures.
The segment, which saw the smallest uptick in CMBS delinquencies of all asset classes in May, is expected to record a relatively healthy evolution of vacancy rates over the coming quarters, which cannot be said of hotels and most of the retail sector. In this light, industrial transaction volumes actually grew in some of the hardest-hit markets as the pandemic unraveled, with Las Vegas a telling example.