Rockville Industrial Buildings Trade in $13M Deal
Crystal Rock Development has acquired two industrial buildings at 12712 Rock Creek Mill Road in Rockville, Md. for $13.4 million.
The seller, GlenLine Investments, acquired the 60,100-square-foot property in mid-2019 from a legacy JBG Smith partnership. At the time of the deal, the buildings were 70 percent leased.
“We subsequently improved occupancy to 100 percent within 12 months, completed targeted capital improvements — including a new roof and some mechanical systems in need of replacement — and further diversified the rent roll,” Derek S. Grego, director of GlenLine Investments, told Commercial Observer. “With the business plan substantially wrapped up and strong interest from private investors for this product type, we elected to sell and redeploy into new infill industrial and covered land opportunities.”
Tenants include Marriott International, RAPA Therapeutics, Omega Studios and Cabana Natural Foods.
Edge brokered the sale on behalf of the seller and facilitated a 1031 exchange for the buyer.
“The property was a desirable investment because of its stabilized cash flow, versatility as a flex or industrial asset that can cater to growing space demand for e-commerce fulfillment, life sciences manufacturing and service industrial,” Joe Friedman, a partner at Edge, told CO. “Long term, the land has significant by-right density for high-rise office or multifamily.”
The two-building park was developed in 1984 and is situated just off Rockville Pike, within walking distance to the Twinbrook Metro station. The property is surrounded by a 2 million-square-foot life sciences and federal government research hub anchored by Health and Human Services, NIAID, NIH and FDA.
Joining Friedman on the deal were Edge’s Christine Klein, Wilson Purcell and Joshua Norwitz, who all represented the seller.
Keith Loria can be reached at Kloria@commercialobserver.com.