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Denver firm to buy Hagerstown warehouse for $41.2 million

December 07, 2010|By HEATHER KEELS | heather.keels@herald-mail.com

HAGERSTOWN — A Denver real estate investment company praised Hagerstown as a prime distribution hub in a report announcing its agreement to buy a local warehouse for $41.2 million.
Industrial Income Trust struck a deal Nov. 30 to buy a roughly 824,000-square-foot warehouse in the Hunters Green Business Park, currently leased to The Home Depot, according to documents filed with the U.S. Securities and Exchange Commission.
“The Hagerstown distribution market has rapidly become a primary hub for East Coast products moving up and down the seaboard,” the company wrote in its SEC report.
The 70.3-acre property is at 16500 Hunters Green Parkway, west of Hagerstown, less than a mile from the intersection of Interstates 70 and 81.
It is being sold by New Boston Fund, which bought it in 2003 for $26.5 million, according to state tax records.
Timothy R. Troxell, executive director of the Hagerstown-Washington County Economic Development Commission, said the building has been on the market for about three years.
Troxell said that when New Boston Fund bought the property, there was no tenant in the building.
“We were helpful in landing Home Depot shortly after New Boston bought it,” Troxell said.
The existence of a tenant might help explain the higher purchase price by Industrial Income Trust, he said.
The Home Depot’s lease extends through Sept. 30, 2016, and is expected to be assumed by the new owner, according to the SEC filing.
The sale is expected to close in the first quarter of 2011, the report said.
Troxell said it was a “good sign” that New Boston Fund was able to sell the building and that the new owner is interested in continuing the lease with The Home Depot, keeping those jobs in Hagerstown.
Troxell said he agreed with the company’s comment that Hagerstown had become a primary hub for products moving up and down the East Coast.
“I can tell you that in the last, probably, six months, we’ve had at least three large distribution center-type clients looking for a facility here along the I-81 corridor, of a similar size,” Troxell said.
He said it has been tough to find existing buildings not already in use, so the EDC has promoted potential building sites to those companies instead.

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