DC-Area Industrial and Office Property for Sale

Wednesday, August 10, 2016

Update:  HFF closed the sale of this property. Please click here to view our current commercial real estate listings.

HFF, as exclusive representative for the owner, is marketing for sale Largo 95, an institutionally-owned, multi-tenant office/flex property comprising 149,795 square feet across two buildings. Largo 95 is strategically located minutes outside of Washington, D.C. with direct access to the Capital Beltway (Interstate 95/495) and within walking distance of the Largo Town Center Metrorail Station (Blue/Silver Line).

Largo 95 is currently 96.7 percent leased to 10 tenants, with government, medical and credit tenants comprising 73.4 percent of the tenancy. The single-story industrial and office property has an average remaining lease term of 7.2 years, and only 15.5 percent of tenancy expires prior to April 2020. In addition, Largo 95 has averaged 92 percent occupancy over the last 11 years, dramatically outperforming the surrounding market.

Located at 1100 and 1200 Mercantile Land in Largo, Maryland, the industrial property for sale is and will be the recipient of substantial demand from the adjacent $651 million Regional Medical Center, which is expected to open in 2020 and be operated by the University of Maryland and Dimensions Healthcare. The opportunity offers investors a highly lucrative and stable in-place cash flow with immediate value creation through retaining and attracting medical tenants that will value proximity to the new medical center. The flex property is also well positioned to capture additional value from the redevelopment potential in accordance with the Largo Town Center Sector Plan, adopted in 2013.

Situated on 11.24 acres in Prince George's County, Largo 95 is less than six miles from Washington, D.C., which, with a population of more than nine million, is the third largest metro economy and one of the most resilient and economically-stable markets in the United States. Home to the country’s most educated and wealthiest employment base, Prince George’s County's economy is strengthened by the recent growth and development of several key economic engines, including the Regional Medical Center (2020), Joint Base Andrews, National Harbor, Tanger Outlet Center, NASA Goddard, University of Maryland University College (UMUC) Academic Center at Largo and the arrival of MGM at National Harbor (end of 2016). Each of these projects is on track to bring thousands of new jobs, ancillary development and further community investment.

The flex buildings are located between Maryland’s two largest employers, the University of Maryland and Joint Base Andrews. Each of these economic drivers has experienced substantial growth over the last decade and created millions of square feet of auxiliary demand in the surrounding area. Largo 95 is near expansive amenities, including FedEx Field with more than 2.5 million square feet of retail between Boulevard at the Capital Centre, Largo Town Center, Largo Plaza and Woodmore Towne Centre at Glenarden.

Office/Flex Building Investment Highlights

  • Outstanding Access and Amenities:  The Capital Beltway provides immediate access around Washington, D.C. and the Prince George’s County market. Route 50 and Central Avenue provide immediate access into Washington, D.C and Annapolis, Maryland, making Largo 95 one of the best-located properties in the area. Three ingress/egress points to the Capital Beltway (Arena Drive, Route 202 and Central Avenue) within one mile of the property give Largo 95 tenants connectivity to suburban Maryland, Northern Virginia and the Washington, D.C.-Baltimore Corridor. Largo 95 is walking distance to the Largo Town Center Metrorail Station (Blue/Silver Line) connecting Washington, D.C., Maryland and Virginia. The property is located near the New Carrollton Rail Station, which provides local and Mid-Atlantic service via Metrorail’s Orange Line, MARC’s commuter trains and Amtrak’s northeast regional trains.
  • Strong Track Record of Outstanding Performance:  Largo 95 is 96.7 percent leased to 10 tenants in a variety of sectors; government, medical and credit tenants comprise 73.4 percent of the tenancy. The industrial property with office space has a high record of tenant retention, averaging approximately 90 percent-plus occupancy and dramatically outperforming the surrounding market. Largo 95 has consistently attracted exceptional tenancy, and currently 56 percent of the tenants hold a AAA credit rating. The industrial property for sale will immediately benefit from the completion of the Regional Medical Center and have the ability to retain and attract medical tenants.
  • Largo Town Center Micro Market Poised for Extraordinary Growth:  Largo Town Center Metrorail Station has been selected by WMATA’s planning board as one of the four stations identified for future growth. Prince George’s County’s Office of Planning approved the Largo Town Center Small Area Plan in 2014 to promote urbanized transit-oriented development within a half mile of the Largo Town Center Metrorail Station and create a strong sense of “place.” Projected to be completed in 2020, the new medical center, located at Largo Town Center, will dramatically accelerate the growth and redevelopment of the surrounding area. Additional medical office demand will be met by adjacent properties as sufficient medical office was not included in the hospital development. More than 200 acres surrounding the Largo Town Center Metrorail Station have been identified for billions of dollars of subsequent redevelopment and are in various stages of entitlement and planning.
  • Institutionally-Owned Property Well Positioned to Attract Incoming Medical Tenancy:  Largo 95 has been institutionally owned and professionally managed for more than 20 years. The property's low-rise office construction provides numerous competitive advantages and operational efficiencies, including limited core factor, design flexibility, low maintenance and multiple signage options. Additionally, the flex property for sale has high bay ceilings. Built in 1990, Largo 95 is an excellent example of quality office/flex property. Average in-place rents at Largo 95 are considerably lower than competitive multi-story office buildings with similar proximity to Largo Town Center and the future Regional Medical Center. This will make the property an appealing option for incoming demand.

Largo 95 is an opportunity for investors to acquire a flex office and industrial property for sale near Washington, D.C. The property will benefit from the major economic catalyst that the new Regional Medical Center will be when completed, increasing the demand for flex property. For more information on this commercial property for sale or other properties in the Washington, D.C., Maryland and Virginia areas, please contact Bruce Strasburg in HFF's Washington D.C. office. 

By Topics