K&S Capital acquired a 297,000 sq ft industrial/warehouse building in Hagerstown, Maryland, for $9.25m. Located on a 20-acre site, the asset traded for just over $31 per sq ft. The building is fully leased to Blind Industries and Services of Maryland. The seller, Camelot Real Estate LLC purchased the property in July 2014 for $5.6m. K&S Capital focuses on the acquisition of class B and C warehouse/industrial buildings located in the Maryland area.
“Pricing for warehouse/industrial product in Hagerstown remains extremely favorable, and we were attracted by the strategic location of the building and the presence of a highly stable tenant that is secured with a long-term lease,” said Adam Khosh, principal at K&S Capital. “This section of the state is becoming increasingly popular to develop large-scale buildings as evidenced by Trammell Crow’s recent announcement to develop a new 1.2 million sq ft distribution center on a speculative basis nearby. This level of investment will increase the value of all buildings in this product category and demonstrates how national developers perceive this submarket.”
