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Office

6855 Deerpath Rd

6855 Deerpath Rd, Elkridge, MD 21075

Listing Price: $4,400,000

Cap Rate
6.25%
Gross SF
40,000
Rentable SF
40,000
Price/Gross SF
$110.00
Lot Size
4.03 acres
Year Built
1988

Investment Overview

Marcus & Millichap is pleased to exclusively represent the ownership of 6855 Deerpath Road in Elkridge, Maryland, also known as, Dorsey Business Center - Building One (the Property) in the disposition of this 40,000 square foot flex-office center. At aption61% leased, the Property offers a blend of existing tenancy and the upside of prime space in the building yet to be leased. The Property is designed office, alternative, and industrial uses. Recently, flex properties have experience increased demand over traditional multi-story office buildings as a result of the COVID-19 crisis. As the product-type name suggests, the ‘flexibility’ of the space has proved ideal as a new era dawns with reconsideration of need and use of traditional office space. The fact that flex properties can cater a wide variety of uses, provides options should the office space not be used as planned in the future. Less infrastructure, such as lobbies, stairs, HVAC infrastructure, corridors, shared bathrooms, and elevators, leads to lower operation costs which, passed on to the tenant. This also further reduces the pressure of leasing space in a somewhat uncertain time. Finally, multiple on-grade entrances to the space directly from the parking into a tenant’s suite, gives the control of opening and use of the space back to the tenant, rather than being subject to constraints necessary with traditional multi-floor office buildings. Investment popularity of flex properties has also soared due to increasing scarcity of land in the metro Baltimore Washington region. Single-story flex properties are a low intensity use and are typically no longer the highest and best use for the area. There is increasing development pressure on flex properties, and as a result a decreasing supply of centrally located flex in key corridors between major population centers. The Property is an excellent example of low-density flex adjacent to a major transit center. The adjacent Dorsey MARC train station, just steps from the Property, is surrounded by new development and new neighborhoods. Over 1000 new apartments, condominiums, towns, and single-family homes are being completed and within a mile radius of the Property. Demand for new homes is at an all-time high which adds to the momentum of future development of Dorsey Business Park as a mixed use, transit-oriented center of moderate to high density. The Transit Oriented Development zone offers height options to 100 feet. With existing under-market leases in place, and a high likelihood renewal by tenured tenants, the Property offers a value-add opportunity for lease-up and improved rental performance, all the while, becoming an ever-more valuable re-development opportunity. FLEX PROPERTIES ARE IDEALTO CAPITALIZE ON HYBRID WORK MODELS

Investment Highlights

  • 60% Leased, Value-Add Opportunity -Anchored the Maryland State Police (AAA Credit) the Existing Tenancy. The Premier 15,200 SF at the Front of the Property is Available
  • Affordably Position, In-Demand Product-type - the Current Ownership Is Seeking As-Is, No Improvement Deals from Tenants, Which Has Limited Lease-Up.
  • Zoned T.O.D. and Steps from the Dorsey MARC Train Station, Developments Can Rise 60-100 Feet. Based Minimum Setbacks and 60 Feet, Roughly 300,000 SF Could Be Built

Exclusively Listed By

Financing By

  • Jared Cassidy

    First Vice President Capital Markets

    Direct:

    Email Jared

    Washington, D.C., MD

Listing Price: $4,400,000

Cap Rate
6.25%
Gross SF
40,000
Rentable SF
40,000
Price/Gross SF
$110.00
Lot Size
4.03 acres
Year Built
1988

Investment Highlights

  • 60% Leased, Value-Add Opportunity -Anchored the Maryland State Police (AAA Credit) the Existing Tenancy. The Premier 15,200 SF at the Front of the Property is Available
  • Affordably Position, In-Demand Product-type - the Current Ownership Is Seeking As-Is, No Improvement Deals from Tenants, Which Has Limited Lease-Up.
  • Zoned T.O.D. and Steps from the Dorsey MARC Train Station, Developments Can Rise 60-100 Feet. Based Minimum Setbacks and 60 Feet, Roughly 300,000 SF Could Be Built

Investment Overview

Marcus & Millichap is pleased to exclusively represent the ownership of 6855 Deerpath Road in Elkridge, Maryland, also known as, Dorsey Business Center - Building One (the Property) in the disposition of this 40,000 square foot flex-office center. At aption61% leased, the Property offers a blend of existing tenancy and the upside of prime space in the building yet to be leased. The Property is designed office, alternative, and industrial uses. Recently, flex properties have experience increased demand over traditional multi-story office buildings as a result of the COVID-19 crisis. As the product-type name suggests, the ‘flexibility’ of the space has proved ideal as a new era dawns with reconsideration of need and use of traditional office space. The fact that flex properties can cater a wide variety of uses, provides options should the office space not be used as planned in the future. Less infrastructure, such as lobbies, stairs, HVAC infrastructure, corridors, shared bathrooms, and elevators, leads to lower operation costs which, passed on to the tenant. This also further reduces the pressure of leasing space in a somewhat uncertain time. Finally, multiple on-grade entrances to the space directly from the parking into a tenant’s suite, gives the control of opening and use of the space back to the tenant, rather than being subject to constraints necessary with traditional multi-floor office buildings. Investment popularity of flex properties has also soared due to increasing scarcity of land in the metro Baltimore Washington region. Single-story flex properties are a low intensity use and are typically no longer the highest and best use for the area. There is increasing development pressure on flex properties, and as a result a decreasing supply of centrally located flex in key corridors between major population centers. The Property is an excellent example of low-density flex adjacent to a major transit center. The adjacent Dorsey MARC train station, just steps from the Property, is surrounded by new development and new neighborhoods. Over 1000 new apartments, condominiums, towns, and single-family homes are being completed and within a mile radius of the Property. Demand for new homes is at an all-time high which adds to the momentum of future development of Dorsey Business Park as a mixed use, transit-oriented center of moderate to high density. The Transit Oriented Development zone offers height options to 100 feet. With existing under-market leases in place, and a high likelihood renewal by tenured tenants, the Property offers a value-add opportunity for lease-up and improved rental performance, all the while, becoming an ever-more valuable re-development opportunity. FLEX PROPERTIES ARE IDEALTO CAPITALIZE ON HYBRID WORK MODELS

Exclusively Listed By

Financing By

  • Jared Cassidy

    First Vice President Capital Markets

    Direct:

    Email Jared

    Washington, D.C., MD

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