Complete $3.5 Million Sale After Extending Lease, Creating Retail Condominium
April 8, 2015 – Philadelphia – Affiliates of Rubenstein Partners, L.P. (such affiliates together, “Rubenstein”), in partnership with an affiliate of Trammell Crow Company, announced the sale of a retail condominium property at Maryland Trade Center III (MTC III) for $3.5 million. The 0.5-acre property is occupied by a 2,675-square-foot PNC Bank branch under a long-term net lease. The purchaser was a private investor in net leased properties.
The partnership acquired MTC III in February 2012 and is leasing the office space following a significant renovation project. Within the past six months the building has seen more than 20,000 square feet of space leased to medical and office users. In addition to this significant leasing activity, the ownership extended PNC’s lease and transformed the bank branch into a separate condominium, which has now been sold through the transaction announced today.
“We constantly look for ways to unlock the value of the assets we acquire,” said Craig Zolot, Director of Asset Management for Rubenstein Partners. “In this case, we enhanced the operating income of the net lease retail portion of Maryland Trade Center III, and then packaged that improved income stream as a condominium unit, creating a separate asset we could sell. By doing so we were able to tap into the net lease market, where there is significant demand for bank branch properties.”
Andrew Fallon of Calkain Companies marketed the retail condominium on behalf of the partnership. Alan Fruitman of 1031tax.com and Real Estate Foundation, Inc. represented the purchaser.
“In addition to the retail condo sale, we’re pleased with the recent office leasing activity at Maryland Trade Center III,” added Trevor Vietor, Senior Vice President of Trammell Crow. “We attribute this success to a combination of the recent renovations, excellent location, and competitive rental terms.”
MTC III is a 196,000-square-foot office property located in the Greenbelt submarket of Washington, D.C. The property offers excellent visibility and access from I-495 and MD 295. Two Washington, D.C. Metro stations are located within 5 miles. Recent building renovations by Rubenstein Partners and Trammell Crow include modernization of the lobby and ongoing upgrades to restrooms & building systems. Surface parking is ample, and amenities include on-site daycare and deli, as well as 15 restaurants, three banks, a hotel, a grocery store, and a health spa within walking distance.
About Rubenstein Partners
Rubenstein Partners, L.P., founded in September 2005, is a private real estate investment management and advisory firm with operations throughout the Eastern United States. The firm is led by its founder, David Rubenstein, and a group of senior real estate executives, and is focused on directing and managing value-added office real estate investments, primarily in the Eastern United States. Rubenstein Partners’ predecessor company, The Rubenstein Company, LP and affiliates, founded in 1969, was one of the largest private owner operators of Class A office real estate in the Mid-Atlantic, owning and operating a portfolio of assets valued at approximately $1.2 billion at the time of its disposition in 2004. Since 2005, Rubenstein Partners has, on behalf of its investors and clients, invested in more than 10,000,000 sq. ft. of office real estate assets throughout the Eastern United States. For more information, visit www.rubensteinpartners.com.
About Trammell Crow Company
Trammell Crow Company, founded in 1948, is one of the nation’s leading developers and investors in commercial real estate. The Company has developed or acquired nearly 2,600 buildings valued at nearly $60 billion and over 540 million square feet. As of December 31, 2014, Trammell Crow Company had $5.5 billion of projects in process and $4.0 billion in its pipeline.
Trammell Crow Company’s teams are dedicated to building value for its clients with professionals in 16 major cities throughout the United States. The Company serves users of and investors in office, industrial, retail, healthcare, multi-family residential and mixed use projects. For those who occupy real estate, TCC can execute the development or acquisition of facilities tailored to meet its clients’ needs. For investor clients, the company specializes in joint venture speculative development, acquisition/re-development ventures, build-to-suit development, or providing incentive-based fee development services.
Trammell Crow Company is an independently operated subsidiary of CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, and the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). For more information visit www.TrammellCrow.com.