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Office Medical

Suburban Office and Ground-Leased Medical Office

10335 & 10339 Kensington Pkwy, Kensington, MD 20895

Listing Price: $3,590,000

Cap Rate
4.80%
Gross SF
16,078
Rentable SF
16,078
Price/Gross SF
$223.29
Occupancy
89.2%
Year Built
1975
Lot Size
0.82 acres

Investment Overview

Marcus & Millichap is pleased to exclusively represent the ownership in the sale of 10335 Kensington Parkway, a suburban office building and 10339 Kensington Parkway, a ground leased dentist office, both in Kensington, Maryland (the “Property”). Located in the center of Kensington’s downtown, the combined 16,078 SF property offers small suburban office space and a prominent local dental practice. The property has a history of full occupancy and most tenants continued rent payments through the pandemic. The front office building, 10335 Kensington Parkway, is currently 89% leased. A new owner can add value both by filling vacancies and increasing rents to market. Rents average just $14.00/SF which, for small office suites, is at least $10/SF less than competing buildings in the area. The medical office in the rear, 10339 Kensington Parkway, is ground leased through March 2024 with one 10-year renewal option. The tenant paid for construction of the building. Current rent is only $18.74/SF NNN which is below other single tenant medical office leases. The renewal option is “at prevailing market rents.” Kensington is a small, affluent town located 30 minutes north of Capitol Hill. With most residents commuting to D.C. or nearby Montgomery County cities such as Bethesda and Rockville, the town has excellent public transit access. The Property itself is a 2-minute walk from the Kensington MARC station and is surrounded by restaurants and stores. This investment presents the unique opportunity to acquire a well-located, value-add suburban office asset along with a ground leased medical office. By raising rents to market, a new owner can achieve an attractive return with the prospect of future appreciation as Kensington continues to grow and develop.

Investment Highlights

  • Walking Distance to Marc Train, Downtown Restaurants and Stores
  • Significantly Below Market Rents With Full Control Over Leases
  • CRT-1 Zoning Encourages Development

Exclusively Listed By

  • Bryn Merrey

    Senior Managing Director Investments

    (202) 536-3727

    Email Bryn

    License(s): MD: 646476, DC: PB98372978, FL: BK3079114, VA: 0225215804

    Washington, D.C.

  • Robert Filley

    First Vice President Investments

    (202) 536-3736

    Email Robert

    License(s): DC: sp98366082, MD: 579129, VA: 0225079990

    Washington, D.C.

  • John Faus

    Associate

    (202) 536-3718

    Email John

    License(s): MD: 5002763

    Washington, D.C.

Office Medical

Suburban Office and Ground-Leased Medical Office

Listing Price: $3,590,000

Cap Rate
4.80%
Gross SF
16,078
Rentable SF
16,078
Price/Gross SF
$223.29
Occupancy
89.2%
Year Built
1975
Lot Size
0.82 acres

Investment Highlights

  • Walking Distance to Marc Train, Downtown Restaurants and Stores
  • Significantly Below Market Rents With Full Control Over Leases
  • CRT-1 Zoning Encourages Development

Investment Overview

Marcus & Millichap is pleased to exclusively represent the ownership in the sale of 10335 Kensington Parkway, a suburban office building and 10339 Kensington Parkway, a ground leased dentist office, both in Kensington, Maryland (the “Property”). Located in the center of Kensington’s downtown, the combined 16,078 SF property offers small suburban office space and a prominent local dental practice. The property has a history of full occupancy and most tenants continued rent payments through the pandemic. The front office building, 10335 Kensington Parkway, is currently 89% leased. A new owner can add value both by filling vacancies and increasing rents to market. Rents average just $14.00/SF which, for small office suites, is at least $10/SF less than competing buildings in the area. The medical office in the rear, 10339 Kensington Parkway, is ground leased through March 2024 with one 10-year renewal option. The tenant paid for construction of the building. Current rent is only $18.74/SF NNN which is below other single tenant medical office leases. The renewal option is “at prevailing market rents.” Kensington is a small, affluent town located 30 minutes north of Capitol Hill. With most residents commuting to D.C. or nearby Montgomery County cities such as Bethesda and Rockville, the town has excellent public transit access. The Property itself is a 2-minute walk from the Kensington MARC station and is surrounded by restaurants and stores. This investment presents the unique opportunity to acquire a well-located, value-add suburban office asset along with a ground leased medical office. By raising rents to market, a new owner can achieve an attractive return with the prospect of future appreciation as Kensington continues to grow and develop.

Exclusively Listed By

  • Bryn Merrey

    Senior Managing Director Investments

    (202) 536-3727

    Email Bryn

    License(s): MD: 646476, DC: PB98372978, FL: BK3079114, VA: 0225215804

    Washington, D.C.

  • Robert Filley

    First Vice President Investments

    (202) 536-3736

    Email Robert

    License(s): DC: sp98366082, MD: 579129, VA: 0225079990

    Washington, D.C.

  • John Faus

    Associate

    (202) 536-3718

    Email John

    License(s): MD: 5002763

    Washington, D.C.

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