Thirty-one Frederick County CRE deals close in the third quarter ’17, but only one consumes 80% of the dollar volume!
As noted in last week’s post Frederick County Commercial Real Estate Sales On Pace To Top $400,000,000 By Year End, it’s the handful of big deals and the large number of smaller CRE transfers that are going to make this a banner year.
The second quarter of 2017 revealed the $86 million transfer of the Medimmune campus to AstraZeneca, and this time the Matan Companies sold one of their first ventures in the multifamily market at a very sweet price.
The story of the rise of Matan is for another time and one in and of itself; so for here let’s just say “Impressive.” In August of 2013, the firm acquired the former 26 acre campus of St. Johns Literary Institution (a.k.a. Prospect Hall) for a price of $4,250,000. With those funds the school, now known as Saint John’s Catholic Prep, went on to settle into a new educational facility in Buckeystown, just a few miles south of the city limits of downtown Frederick.
Less than 60 days from this writing, the 376 unit apartment complex Matan developed on the site – known as Residences at Prospect Hall was sold to HASTA Capital, a Mexico City based concern that focuses “on the Investment, Development and Management of residential multifamily rental assets in Latin America and the U.S.” The price…$72.2million! That equates to over $192,000 per unit for a mix of one and two bedroom garden apartments in the 13 building complex.
Not bad…not bad at all!
Considering that this one sale consumed 80% of the $89.8million last quarter, should we even discuss the other 30 transactions that closed between July 1st and September 30th of this year?
Sure, why not! Here’s a quick rundown:
- Flex/Warehouse/Industrial closed 4 transactions totaling 26,700 square feet for $1.25million.
- Mixed Commercial/Residential, which we have written a lot about in recent months, took nine deals to settlement at a collective price of $3,142,600 which averaged $139 per square foot.
- The office market closed 8 deals totaling 42,139 square feet for $6.113 million at an average price of $145 per square foot.
- Retail commercial real estate in Frederick County actually had a good quarter from the perspective of a price per square foot – averaging nearly $277/SF. There were only 4 transfers totaling 12,300 SF at a total gross figure of $3.4 million.
- Only 7.54 acres of commercial land transferred last quarter at a combined figure of $1,500,000 in four transactions.
There was one other multifamily transaction of note: Dreamer’s Cove Apartments, a 16 unit complex located at 302 Baughmans Lane, sold at a price of $2.2 million which averaged $137,500 per unit.
It really shouldn’t much of a lift for the Frederick County commercial real estate industry to close another 32 deals and $93 million in volume to reach a record of 160 and $400 million by year’s end!
Exciting times as local CRE is proving an improving economy right!
Rocky Mackintosh, President, MacRo, Ltd., a Land and Commercial Real Estate firm based in Frederick, Maryland. He has been an active member of the Frederick, Maryland community for over four decades. He has served as chairman of the board of Frederick Memorial Hospital and as a member of the Frederick County Charter Board from 2010 to 2012. He currently serves as chairman of the board of Frederick Mutual Insurance Company. Established in 1843, it is one of the longest enduring businesses in Frederick County.