Investment Overview

Marcus & Millichap is pleased to exclusively represent the ownership in the sale of 214 Eastern Avenue, Annapolis, Maryland (the Property). Built in 1973 and renovated in 1999, the 10,065 SF flex building is currently fully occupied by 2 tenants. The building features 5,220 SF of renovated office space, sky-lights that provide abundant natural-lighting, 4,845 SF of warehouse space with one drive-in door, and a roof that was replaced in 2018. It sits on a 0.25-acre lot with WME zoning (Waterfront Maritime Eastport) and is leasable to a multitude of maritime uses. Located in Eastport, the maritime district of Annapolis, it is a 5-minute drive from Annapolis City Dock and 10 minutes from the Naval Academy. The Annapolis Maritime Museum & Park, Chesapeake Boating Club, Eastport Yacht Center, and more are all within a short walk from the Property. Comparable office and industrial properties nearby enjoy occupancy exceeding 99% and low tenant turnover. The first-floor tenant is Weems and Plath, an internationally-acclaimed manufacturer of nautical and weather instruments for military, government, commercial, and recreational uses. They have a 96-year operating history and have occupied 8,265 SF of warehouse and office space for the past 25-years. With below market rent and about 4.5 years remaining on their lease, there is a significant value-add opportunity in October of 2028. The 2nd floor is 1,800 SF of office space that has been occupied by the same tenant since July 2021. Their lease expires November 30th, 2024, and their current rent is about $13/SF below market. Additionally, the owner previously had approved plans to expand the 2nd story space by 2,793 SF (these approvals have expired). Overall, this investment offers the opportunity to own a waterfront flex property in the high-barrier-to-entry maritime district of Annapolis. There is significant value-add potential in raising rents and converting leases to NNN as they expire. A new owner may also be able to expand the 2nd floor as the current owner had planned. For a qualified borrower, the Seller will provide 5% interest-only seller-financing up to 65% LTV.