1812-1820 Margaret Avenue

Marcus & Millichap is pleased to exclusively represent the ownership in the sale of 1812-1820 Margaret Avenue, Annapolis, Maryland (the Property). The fully-occupied 41,059 SF industrial facility sits on 1.65-acres in the Annapolis Design District, one of Maryland’s strongest industrial markets. Leased to six tenants with an average tenure of 12-years, the building has a long history of full-occupancy. One recent vacancy was leased within two days.

The property serves a unique tenant profile of primarily retail tenants with a warehouse requirement. Tenants such as Fisher Auto Supply, could easily be located on West Street, paying significantly higher rent. Similar tenants, such as Sherwin Williams and Advanced Auto Parts are located on West Street, paying $26.65/SF to $28.00/SF. Destination-retail/industrial tenants can save on rent by leasing within the Design District. While the newest nearby true industrial lease is $21.50/SF NNN, nearby showroom spaces have multiple tenants paying between $22.00/SF and $25.70/SF NNN.

The Design District is located within 5-minutes of both I-97 and Route-50, connecting the state capital to both Washington D.C. and Baltimore in under 40-minutes. With only 53 industrial-zoned properties within the city of Annapolis, the Design District submarket commands the highest industrial rents in the state and enjoys a 99.9% occupancy rate.

Excluding a recent 2,541 SF lease expansion signed at $19.50/SF NNN, current rents in the property range from $14.00 - $17.16/SF, with all leases except one being NNN. This creates a robust value-add opportunity to bring rents to market as leases expire.

The property is accessible from 3 different streets via 7 curb-cuts, and it features 7 drive-in doors, 5 loading docks and 20’7” warehouse clear heights. Every unit has at least one bathroom and 6 of the warehouse units are air-conditioned. There are six units with a small second floor finished office and two units with full second floor space.

This investment presents the opportunity to own a premier property in one of the strongest industrial markets in the state. With current rents in some cases $10/SF below market, a new owner can add significant value by moving rents to market as leases expire.