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May | Riegler Properties acquires 28-Acre site in Frederick for development

May | Riegler Properties, a diversified commercial real estate development and investment company headquartered in Washington, has announced the acquisition of a 28-acre site in Frederick from New York-based Envision for an undisclosed price.

Following the demolition of the existing 200,000 square foot building currently contained on the site, May | Riegler intends to break ground in late 2023 on two speculative logistics/warehouse buildings comprising approximately 450,000 square feet of space, with delivery anticipated for late 2024.

The site is located at 550 Highland St. and is within close proximity to Interstate 70, Interstate 270 and US Route 15.

Chris Kubler and Don Schline of NAI KLNB represented the seller in this transaction.

Known as Highland Logistics Center, the development strategy will consist of the construction of two single-story logistics warehouse buildings comprising approximately 190,000 and 260,000 square feet of space, respectively.

They will be constructed simultaneously and feature 32-foot clear ceiling heights, 52-foot column spacing, 60-foot speed bays and generous truck courts.  A surface parking lot will allow for approximately 470 parking spaces and 32 trailer parking spaces at each building as additional space suitable for Industrial Outdoor Storage (IOS), which is considered among the fastest-growing and in-need real estate asset classes.

Given its placement in a Federal Opportunity Zone, companies that lease space at Highland Logistics Center can take advantage of a diverse set of financial incentives, property and income tax credits, job creation tax credits and other exemptions.

According to research recently compiled by CoStar, approximately 15 million square feet of industrial/warehouse space exists in the Frederick submarket. Recent leasing activity has produced a net absorption of nearly 900,000 square feet of space, resulting in a 1.3% vacancy level. Just over 900,000 square feet of space is currently under construction and the average rent in the Frederick County region is $10.12 per square foot.

Acquisition financing has been provided by John Marshall Bank.