Multiple Retail transfers consume the majority of the big deals, but one multifamily sale again dominates the volume for the period!
Since the third quarter of 2016, it has become a pretty good bet that there will be at least one transaction that closes over $10 million, and the period of April through June of this year has been no exception.
As a matter of fact, over the last eight quarters, there has been only one that has not met that mark. Including that single quarter in the last two years, Frederick County commercial real estate sales over the $10,000,000 figure has averaged $66 million per quarter, which is an average of 68% of each period. This quarter seemed to perfectly represent all those averages with $100 million in sales volume closed and one big deal that gobbled up $64 million of that total.
Forty-five other CRE deals closed to make up the remaining $36 million. By property types they break down as follows:
- Office settled 9 deals totaling 23,211 square feet for $2.78 million at an average price/SF of $120.
- Warehouse/Flex deals realized 7 transactions of 106,000 square feet for $9.57 million at an average price of $90/SF.
- Mixed Use Commercial/Residential also claimed 7 closings at an average rate of $170/SF for a total of $2,070,500.
- Retail property deals earned a good showing with 11 settlements totaling 213,400 square feet at a combined volume of $17.4 million.
- Multifamily, beyond the big one noted above (and detailed below), closed 2 additional apartment deals that averaged $418,000 and 4,000 square feet each.
Without question, with two consecutive quarters exceeding $100 million (January through March 2018 topped $110 million), this year’s sales volume has already exceeded 62% of 2017’s record-setting total of $340 million for commercial real estate transfers in Frederick County.
Big Deals Of Note
Apartments: The 404-unit Kingscrest Apartments located on Castle Court in the Ballenger Creek area sold for $64.25 million. The 304,000 square foot complex situated on 24 acres built in 1990 sold for a strong price of $159,000 per unit. It was purchased by Hamilton Zanze, a San Francisco based multifamily investment group that according to its website “specializes in the pursuit, acquisition, and hands-on operations of apartment communities in the Pacific Northwest, Southwest, Mountain States, and other target markets.”
Retail: Two big retail deals that qualified for top three status are worthy of mention.
First, the former 135,600 Walmart store on Monocacy Boulevard finally found a new owner/use. Many who drive along that booming stretch of retail along Route 26 on the northern part of the City of Frederick probably have already seen the new grey tower protruding from the new at home. The Plano, Texas, based home décor superstore chain was founded in 1979 and operates 165 stores in 35 states.
The second transaction of note is one that a Myron and son Will Randall investment group acquired this past June. The former owners of the Frederick News-Post paid a nice price for the 50-plus-year old 44,900 square foot Patrick Street Shopping Center located at 467 West Patrick Street. The what is likely Class C retail center on 4 acres changed hands for $3.9 million or $86.75/SF. Not knowing all the details of past ownership entities, it is likely that the Randall’s at one time held an interest in this property when it was held in the name of GS Communications, which the Delaplaine and Randall families founded a few decades back as Frederick County’s first cable TV company.
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