20A — May 15 - 28, 2020 — M id A tlantic Real Estate Journal
M id A tlantic R eal E state J ournal
OLUMBIA,MD —Lee & Associates Mary - land, a fully-integrated Weiss and Whelan represent the seller, K.C. Real Estate Holdings Lee & Associates brokers sale of 123,000 s/f industrial building in Beltsville, MD for $15.5M C
to MD Rte. 200 and Interstate 95. The Baltimore-Washington Int'l. Airport is less than 20 miles away and the Port of Baltimore is 25 miles from the site. The structure is equipped with 24 foot ceiling heights and dock and drive-in loading capabilities. “Given the long-term lease commitments of three stable companies, combined with the excellent condition of the physical plant, this acquisi - tion represented a tremendous opportunity for NorthBridge Partners to break into the local real estate environment,” said Weiss. “NorthBridge achieved this purchase below building replacement value and activity within the local warehouse/in - dustrial market has shown no signs of slowdown based on the continuing real estate require - ments of logistics companies and local companies with light manufacturing and warehous - ing needs.” Weiss also completed a $14.1 million industrial/warehouse building sale at the end of 2019. for tending to patients with COVID-19 who are in need of acute care,” Wolfer said. 131,331 s/f of the five-story, 225,000 s/f building is occupied by 11 tenants. Some tenants in the 16.75-acre property include the Department of Veterans Affairs (VA), which occupies 29,012 s/f, and Conner Creek Life Solutions, a residential substance abuse treatment fa- cility which occupies 32,500 s/f. Working capital from the loan will, in part, fund the conver - sion of the remaining s/f into additional medical office space. “The Conner Creek complex provides value to the greater Detroit community that cannot be understated,” Wolfer said. “We are proud that we were able to secure the funding they needed to continue helping those in need of medical care, during this crisis and well into the future.” Conner Creek Medical Center
commercial real estate b r o k e r a g e and manage- ment f i rm, has brokered the sale of 12100 Bal - timore Ave., a 123,000 s/f warehouse/ i n d u s t r i a l b u i l d i n g l o c a t e d i n t he Be l t s - ville section o f P r i n c e G e o r g e ’ s County for $15.5 million.
Beltsville section of Prince George’s County, MD
industrial marketplace. Steve Weiss , senior vice president of Lee & Associates and Tom Whelan , principal of Lee & As- sociates represented the seller, K.C. Real Estate Holdings , in this transaction. Constructed in 1983, the building is 100% leased to tenants that include Ambius, Cheney Flashings and Pella Mid-Atlantic. It features road - side visibility from US Rte. 1 and is within close proximity ENGLEWOOD CLIFFS, NJ — A NJ lender has success - fully closed a loan for a medical facility as it expands its space to accommodate more healthcare providers. Global direct private lender Kennedy Funding announced that it has closed a $1.5 million loan to Conner Creek Center, LLC, of Detroit, Michigan. Funds will be used to pay off existing debt and for working capital. “Medical providers like Con - ner Creek Medical Center are more important than ever, especially in light of the grow - ing COVID-19 pandemic,” said Kevin Wolfer , CEO and president, Kennedy Funding. “Residents of Detroit and the surrounding area can access much-needed care in the com - munity.” According to Wolfer, Con- ner Creek Medical Center was recently selected by the state of Michigan as a site for test - ing and treating COVID-19 patients, further underscoring the importance of medical re - sources for the greater Detroit community at this time. “Conner Creek Medical Cen - ter has 60 beds and 19 venti - lators, which will be crucial
Also known as The James A. Cassidy Building, this repre - sents the inaugural acquisition for the buyer, NorthBridge
Partners – a commercial real estate and investment com- pany based in Boston -- in the Baltimore-Washington, DC
Federal Reserve delivers aggressive . . .
Kennedy Funding closes $1.5 million loan for Detroit healthcare facility
by SBA loans, a “Main Street Business Lending Program” was also announced, though details will be released at a later date. • Primary Dealer Credit Facility (PDCF): Revived to offer short-term loans to 24 large financial institutions. • Money Market Mutu - al Fund Liquidity Facility (MMLF): Relaunched to lend to banks on collateral they purchase from prime money markets. • Primary Market Corpo - rate Credit Facility (PMCCF): New facility to acquire new corporate bonds and provide loans to large businesses. Ini- tial funds announced at $100 billion. • Secondary Market Corpo - rate Credit Facility (SMCCF): New facility to acquire ex - isting corporate bonds and provide loans to businesses. Initial funds announced at $100 billion. • Term Asset-Backed Secu - rities Loan Facility (TALF):
quarter of this year, the Fed will employ open-ended bond buying. The central bank’s statement emphasized that “ag - gressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disrup - tions abate.” Federal Reserve Opens Range of Facilities to BackstopMarket Liquidity Fed to buy CMBS, sup - porting real estate liquid- ity. Fed action also includes the creation of three new facilities, reactivating three others, and significantly ex - panding the type of qualify - ing bonds the Fed can add to its balance sheet. New bond acquisitions will consist of agency commercial mortgage- backed securities, corporate bonds, and asset-backed secu- rities that range from student, auto, credit-card and small- business loans. In addition to purchasing securities backed continued from page 2A
Revived facility that lends to holders of student, auto, credit-card and SBA loans. In terms of real estate, inter- est rates at the zero bound is not a new phenomenon. The overnight rate spent seven years at nearly zero before be - ing lifted in December 2015. Low rates helped fuel the stron - gest investment real estate market on record, which is particularly impressive given the depth of the last recession and real estate’s involvement. Although Treasurys are near an all-time low, signifi - cant cap rate compression is not anticipated considering increased uncertainty. How- ever, a rise in spreads between interest rates and cap rates could emerge as an opportu- nity, though the spread will increase much less than inter - est rates fall as banks partake in some risk management. Steve Hovland is senior editor, senior analyst | re- search services at Marcus & Millichap.
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