The Class Produce Group has purchased the warehouse building it’s currently occupying in Jessup for $11.5 million.
San Francisco-based real estate investment trust Terreno Realty Corp. sold the asset that it acquired in 2011 for an 11.9 percent internal return on investment. Allan Riorda, president and principal of Lee & Associates’ Maryland office, handled the sale of the 135,000-square-foot property representing the buyer and the seller.
“This warehouse/industrial building represented the inaugural investment for Terreno Realty Trust in the Mid-Atlantic region and, based on the continued health of the Baltimore-Washington, D.C., real estate environment and the high demand for products of this type, they earned a substantial return in a relatively short time span,” Riorda said in a statement. “The new owner acquired a strategically located and highly functional asset that is perfectly suited to support their real estate requirements in the long term.”
Industrial properties in the Washington and Baltimore metro areas have become increasingly valuable. Demand for the properties is being driven by factors such as a land-constrained market along with increasing demand for warehouse space to serve e-commerce companies.
A report from Newmark Knight Frank on the area’s industrial market performance in the fourth quarter of 2017 described it as “robust.” Last year the Baltimore-Washington area absorbed 2 million square feet of industrial space. That marked the third consecutive year the market had taken at least 500,000 square feet.