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Fully leased Hagerstown industrial building fetches $9.25M

K&S Capital purchased a 297,000-square-foot industrial property in Hagerstown for $9.25 million.

Blind Industries and Services of Maryland currently fully occupy the building at 19224 Longmeadow Road. The property consists of the single-story structure, with clear ceiling heights between 30 and 20 feet, and 15 loading docks.

“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,” Adam Khosh, principal at K&S Capital LLC, said in a statement. “This section of the state is becoming increasingly popular to develop large-scale buildings as evidenced by Trammel Crow’s recent announcement to develop a new 1.2 million square-foot distribution center, on a speculative basis, nearby.”

Seller Camelot Real Estate LLC purchased the property in July 2014 for $5.6 million, according to state tax records. Industrial properties throughout Maryland remain the most in demand commercial real estate asset type. Much of the demand stems from the need for distribution and warehouse space from e-commerce firms.

The building is set on 20 acres of land, features rail access and is located roughly 5 miles from downtown Hagerstown.

Blind Industries and Services of Maryland manufacture products including napkins, paper towels and toilet paper at the site. Those firms, established by the Maryland General Assembly in 1908, provide employment opportunities to more than 600 workers, many who are blind.

Herbert Burgunder III, of PK Law represented K&S Capital. Derek Heckman of ReMax Commercial brokered the deal represented the seller. Brendan Harman, of MacKenzie Capital, arranged financing with lender ACNB Bank.

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