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Warehouse

3027 E Madison St

3027 E Madison St, Baltimore, MD 21205

Listing Price: $5,000,000

Cap Rate
8.00%
Gross SF
49,846
Price/Gross SF
$100.31
Lot Size
1.86 acres
Year Built
1951
Rentable SF
49,846

Investment Overview

Marcus & Millichap is pleased to exclusively represent the ownership in the sale of 3021 East Madison Street, Baltimore, Maryland 21202, a 100% leased, 49,486 square feet (“SF”) infill Flex/Industrial Building and a 24,327 SF parking lot which also transfers with the sale located immediately across the street from 3021 E Madison identified as parcel 07-18-1631-001 (collectively the “Property”). With a 20-year tenure already at the Property, the State of Maryland (“State”) has renewed for another 10- year term at this established location for parole services. After 20 years, the renewal is based on a substantial retrofit of the building including all new buildout and modernization of the State’s office space, new roof, and HVAC , among other capital invested by the ownership totaling $2 million. While 85% of the Property’s income comes from this new 10-year government lease set to commence this fall, the State occupies less than 30% of the Property. The balance is leased to another tenured tenancy, The New Maryland Clothing Manufacturing Store, Inc. (“NMCM”) which occupies 35,000 SF. The open and unfinished industrial space is leased for $2.50/SF NNN, well below achievable rents in this close-in location. With most of the Property leased at a below market rate, there are opportunities to increase the net income as the NMCM lease rolls in 2027. In the interim, the below market rate reduces the risk of exposure in the income as a replacement tenant would likely pay roughly twice the existing rate. NMCM has two renewal rights at a minimum of 3% increases or market rent and has been at the Property for over 40 years. The Property will likely be a strong candidate for development by the next roll of the State lease in the Fall of 2031. The State was not provided a renewal option which provides flexibility in the future. Infill Industrial rents continue to soar due to last-mile delivery demand and attrition of the available inventory in favor of development

Investment Highlights

  • New 10 – Year Maryland State Lease
  • $2 Million in Capital Improvements
  • Additional ½ AC Parking Lot

Exclusively Listed By

Financing By

  • Jared Cassidy

    First Vice President Capital Markets

    Direct:

    Email Jared

    Washington, D.C., MD

Listing Price: $5,000,000

Cap Rate
8.00%
Gross SF
49,846
Price/Gross SF
$100.31
Lot Size
1.86 acres
Year Built
1951
Rentable SF
49,846

Investment Highlights

  • New 10 – Year Maryland State Lease
  • $2 Million in Capital Improvements
  • Additional ½ AC Parking Lot

Investment Overview

Marcus & Millichap is pleased to exclusively represent the ownership in the sale of 3021 East Madison Street, Baltimore, Maryland 21202, a 100% leased, 49,486 square feet (“SF”) infill Flex/Industrial Building and a 24,327 SF parking lot which also transfers with the sale located immediately across the street from 3021 E Madison identified as parcel 07-18-1631-001 (collectively the “Property”). With a 20-year tenure already at the Property, the State of Maryland (“State”) has renewed for another 10- year term at this established location for parole services. After 20 years, the renewal is based on a substantial retrofit of the building including all new buildout and modernization of the State’s office space, new roof, and HVAC , among other capital invested by the ownership totaling $2 million. While 85% of the Property’s income comes from this new 10-year government lease set to commence this fall, the State occupies less than 30% of the Property. The balance is leased to another tenured tenancy, The New Maryland Clothing Manufacturing Store, Inc. (“NMCM”) which occupies 35,000 SF. The open and unfinished industrial space is leased for $2.50/SF NNN, well below achievable rents in this close-in location. With most of the Property leased at a below market rate, there are opportunities to increase the net income as the NMCM lease rolls in 2027. In the interim, the below market rate reduces the risk of exposure in the income as a replacement tenant would likely pay roughly twice the existing rate. NMCM has two renewal rights at a minimum of 3% increases or market rent and has been at the Property for over 40 years. The Property will likely be a strong candidate for development by the next roll of the State lease in the Fall of 2031. The State was not provided a renewal option which provides flexibility in the future. Infill Industrial rents continue to soar due to last-mile delivery demand and attrition of the available inventory in favor of development

Exclusively Listed By

Financing By

  • Jared Cassidy

    First Vice President Capital Markets

    Direct:

    Email Jared

    Washington, D.C., MD

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