Office Warehouse

Highland Technology Center

540 / 550 Highland Street, Frederick, MD 21701

Listing Price: $19,000,000

Cap Rate
7.57%
Gross SF
198,388
Price/Gross SF
$95.77
Lot Size
27.96 acres
Year Built
1974
Rentable SF
198,388

Investment Overview

Marcus & Millichap has been retained as the exclusive broker for the sale of the flex industrial investment opportunity at Highland Technology Center (the Property). Highland Technology Center consists of two one-story flex industrial buildings located at 540 and 550 Highland Street in Frederick, Maryland. The Property features approximately 198,388 net rentable square feet of Class B flex industrial space on 27.96 acres. Approximately 7.5 acres remain undeveloped green-field to the East of the property. The entire property is deemed be located in the Opportunity Zone and the future owner will enjoy the benefits of this designation. The property currently has approximately 440 paved parking spaces with room for expansion. Highland Technology Center is 90% leased to 20 tenants in 23 leasable units. The largest occupant is the Triumph Group (NYSE: TGI) with more than 115,045 rsf. under lease. 540 Highland is leased to Triumph Group with terms that include a non-economic ground lease. The stand-alone building, which was built by Triumph Group can be leased out for added income when the lease with Triumph Group terminates. Triumph Group is not expected to renew or extend its lease but remains under lease through June 30, 2022. The second-largest tenant is Straightline Printing / Engage, with approximately 39,400 rsf. under lease. They have been in lease for over 14 years and has made many significant capital improvements making this a mission-critical site deep into the future. Located at the cross of major highway systems I-70 (E/W) and I-270/40 (N/S), the property 40 miles from Baltimore and Washington DC making a geographical "triangle". Frederick County MD has $20M sq. ft. with a falling vacancy rate of 6.4%and a rental growth rate of 4.1%. There is a high demand for Flex industrial space with a small inventory, no vacancy and no planned construction.

Investment Highlights

  • Location near Proposed Amazon H2 site - Entire Site deemed an Opportunity Zone
  • Below market rents - value add,flexible redevelopment options
  • Rare- Flex office technology Park - 40 Miles from Baltimore MD and Washington DC

Exclusively Listed By

  • Tim Giambrone

    Senior Vice President Investments

    Email Tim

    License(s): GA: 265556

    Atlanta

  • John A. Mundell

    First Vice President Investments

    Email John

    License(s): MI: 6506046921

    Detroit

Broker of Record

  • Bryn Merrey

    Senior Managing Director Investments

    License(s): MD: 646476

    Maryland

Office Warehouse

Highland Technology Center

Listing Price: $19,000,000

Cap Rate
7.57%
Gross SF
198,388
Price/Gross SF
$95.77
Lot Size
27.96 acres
Year Built
1974
Rentable SF
198,388

Investment Highlights

  • Location near Proposed Amazon H2 site - Entire Site deemed an Opportunity Zone
  • Below market rents - value add,flexible redevelopment options
  • Rare- Flex office technology Park - 40 Miles from Baltimore MD and Washington DC

Investment Overview

Marcus & Millichap has been retained as the exclusive broker for the sale of the flex industrial investment opportunity at Highland Technology Center (the Property). Highland Technology Center consists of two one-story flex industrial buildings located at 540 and 550 Highland Street in Frederick, Maryland. The Property features approximately 198,388 net rentable square feet of Class B flex industrial space on 27.96 acres. Approximately 7.5 acres remain undeveloped green-field to the East of the property. The entire property is deemed be located in the Opportunity Zone and the future owner will enjoy the benefits of this designation. The property currently has approximately 440 paved parking spaces with room for expansion. Highland Technology Center is 90% leased to 20 tenants in 23 leasable units. The largest occupant is the Triumph Group (NYSE: TGI) with more than 115,045 rsf. under lease. 540 Highland is leased to Triumph Group with terms that include a non-economic ground lease. The stand-alone building, which was built by Triumph Group can be leased out for added income when the lease with Triumph Group terminates. Triumph Group is not expected to renew or extend its lease but remains under lease through June 30, 2022. The second-largest tenant is Straightline Printing / Engage, with approximately 39,400 rsf. under lease. They have been in lease for over 14 years and has made many significant capital improvements making this a mission-critical site deep into the future. Located at the cross of major highway systems I-70 (E/W) and I-270/40 (N/S), the property 40 miles from Baltimore and Washington DC making a geographical "triangle". Frederick County MD has $20M sq. ft. with a falling vacancy rate of 6.4%and a rental growth rate of 4.1%. There is a high demand for Flex industrial space with a small inventory, no vacancy and no planned construction.

Exclusively Listed By

  • Tim Giambrone

    Senior Vice President Investments

    Email Tim

    License(s): GA: 265556

    Atlanta

  • John A. Mundell

    First Vice President Investments

    Email John

    License(s): MI: 6506046921

    Detroit

Broker of Record

  • Bryn Merrey

    Senior Managing Director Investments

    License(s): MD: 646476

    Maryland

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