Investment Overview

Marcus & Millichap is pleased to exclusively represent the ownership in the sale of an 81,379-square-foot manufacturing portfolio located in Hagerstown, Maryland. The offering consists of four industrial buildings situated on 9.78 acres across three parcels and two nearby locations. The portfolio includes highly functional manufacturing facilities ranging from 16,000 SF to 28,000 SF, along with an 11,379 SF office building. The properties may be acquired individually or as a portfolio. This offering presents a unique opportunity to acquire well-located industrial real estate with approximately 2.5 years of in-place income while planning for future occupancy or re-tenanting. Owner-users can acquire the facilities today, collect roughly $2,300,000 in base rent payments during the remaining lease term, and prepare for a future transition into all or a portion of the properties. Value-add investors can benefit from near-term cash flow while executing a lease-up strategy. The manufacturing buildings range in size from 16,000 SF to 28,000 SF and feature a combination of heavy electrical service, reinforced floors, dock and drive-in loading, and functional industrial layouts suited to a broad range of manufacturing and service uses. The newest facility, 861 Commonwealth Avenue, was constructed in 2019 and is fully air-conditioned. The portfolio's 9.78 acres also provide opportunities for expanded outdoor storage, additional parking, or future building expansion. Hagerstown continues to benefit from strong industrial fundamentals driven by its strategic Mid-Atlantic location and access to Interstate 70 and Interstate 81. Industrial properties under 200,000 square feet in Washington County have experienced low vacancy and positive absorption, supported by a growing labor force and limited supply of small- and mid-size industrial product. The portfolio's building sizes align with the deepest segment of the local tenant market, appealing to manufacturers, contractors, service providers, and other industrial users. The portfolio is currently 95% leased to Electromet Corporation, a precision manufacturer serving the defense industry with a 51-year operating history in Hagerstown. Electromet manufactures custom enclosures utilized in mission-critical defense applications supporting programs and prime contractors such as BAE Systems and General Dynamics. The remaining space is leased to Antietam Broadband, a locally established telecommunications provider. The existing leases provide buyers with near-term income while they prepare for the next phase of ownership.