Lee & Associates | Maryland recently concluded investment sales transactions for two condominium units contained within 8229 Cloverleaf Drive, a single-story building containing nine separate units within the 41,036 square feet. The combined sales activity was nearly $1.9 million and involved private investors utilizing funds in a 1031 exchange. The property is located just off Interstate 97 in the Millersville. Kate Jordan, principal, Lee & Associates | Maryland and Marley Welsh, vice president, Lee & Associates | Maryland conducted the transaction.
Constructed in 1998, the building was converted to an office/warehouse condominium use and features 17-footm 9-inch ceiling heights and rear loading docks. The recent sales were for condominiums consisting of 3,244 and 11,605 square feet of space.
Condominium units are typically acquired by companies that wish to eschew paying rent and, instead, build equity in their commercial real estate holdings. Consistently-sized organizations that are not likely to grow or shrink substantially including professional services and medical groups, as well as other organizations with a stable employee size.
“Condominium sales activity has been robust for the past several of years as fueled by historically low interest rates, the shrinking availability of small-sized offices and industrial/warehouse spaces in central Maryland and the trend towards real estate ownership,” said Jordan. “These two most recent sales involved investors recognizing the long-term value potential of these units given its occupancy by stable companies, combined with the strong fundamentals of the real estate environment. 8229 Cloverleaf Drive is an extremely unique real estate product that was quickly embraced by numerous owners.”