Stockbridge has acquired a 203,000 square foot industrial property in Maryland for US$56.6 million. This comes just under four years after the seller, TA Realty, purchased the property for a similar price. The San Francisco-based investment manager bought the Class A building at 8511 Pepco Place in Upper Marlboro, Maryland. Cushman & Wakefield, which represented the seller, confirmed the transaction, which was originally reported by CoStar.
Property and Tenancy Details
The 13-acre site is fully leased to the Harris Company, a mechanical contractor that has become a significant service provider for hyperscale data centre operators. The Harris Company initially occupied approximately 34 percent of the building before recently leasing the entire space. The property was built in 2008 approximately half a mile east of the Capital Beltway and close to Joint Base Andrews.
The property features a 190-foot truck court, 26 loading docks, two drive-in doors, 218 car parking spaces, and around 75 trailer parking spaces. TA Realty had acquired the asset in 2022 from a subsidiary of electrical distributor Sonepar for US$56.2 million.
Market Conditions and Parties Involved
Harris's expansion reflects the increasing demand the data centre industry in the Greater Washington region generates for industrial space for construction, infrastructure and operations. Cushman & Wakefield's Jonathan Carpenter, Graham Savage, Dawes Milchling and James Check were involved in this transaction.
- —Transaction Volume: US$56.6 million
- —Property Area: 203,000 square feet
- —Tenant: Harris Company (100% leased)
- —Seller: TA Realty
