Hanover, Northwestern Kick Off 1.7 MSF Maryland Campus
A joint venture between Hanover Co. and multiple institutional investors advised by Northwestern Mutual Real Estate has broken ground on Frederick Airport Park, a 118-acre, 1.7 million-square-foot campus in Frederick, Md.
Development partners include architecture firm MGMA and civil engineer Harris Smariga, as well as general contractor Conewago.
Cushman & Wakefield will market the project to potential tenants, while CBRE assisted Hanover in finding capital partners. Northwestern provided a $46.1 million, 5-year loan, according to public records.
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As a first phase, the team will develop two buildings on a speculative basis, expected to total about 508,000 square feet. The first facility is projected to come online in the third quarter of next year. Additionally, each of the two light industrial developments within the first phase will measure more than 250,000 square feet in a front-park, rear-load configuration.
These facilities are taking shape at 1620 and 1640 Bowmans Farm Road, providing easy access to Interstate 70. Downtown Frederick is about 2 miles away, while downtown Baltimore is some 48 miles southeast. The Ronald Reagan Washington National Airport is within 52 miles.
Cushman & Wakefield Executive Managing Directors Peter Rosan and McLane Fisher are in charge of leasing the project. CBRE Executive Vice Presidents Bo Cashman and Jonathan Beard worked on behalf of Hanover to find capital partners.
A need for light industrial space
The joint venture developer noted a heightened need for light industrial space as the reason for constructing on a speculative basis. According to a recent study by BKM Capital Partners, the subsector is resilient in a slower economy.
Besides Hanover Co.’s new project, Baltimore’s Frederick submarket had two more industrial assets underway, both developed by St. John Properties, CommercialEdge data shows. These are adjacent, taking shape at 4734 and 4744 Arcadia Drive, and each measure 60,240 square feet.
Baltimore’s industrial supply pipeline included 2.8 million square feet under construction, which meant a 1.3 percent expansion of existing stock, 60 basis points below the national rate, the most recent CommericialEdge report shows.
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