Newmark facilitates $20.4 Million sale of 8700 Ritchie Drive in Capitol Heights, Maryland
Capitol Heights, MD — Newmark announced the $20.4 million sale of 8700 Ritchie Dr., a 103,193 s/f last-mile distribution facility inside Washington DC’s Capital Beltway in Capitol Heights. The industrial asset traded from a joint venture comprising The Pinkard Group, a real estate investment and development company, and Principal Asset Management–a leading global financial company –to LBA Realty, a full-service real estate investment and management company.
Newmark executive managing director Cris Abramson and managing directors Ben McCarty and Nicholas Signor represented the seller in the sale transaction.
“Despite economic headwinds, institutional interest in the asset was robust,” said McCarty. “A dearth of product on the market, coupled with a limited development pipeline in Prince George’s County continues to drive investor demand for well-located assets in the region.”
The facility is 100% leased, with an in-place WALT of 6.64 years, to three tenants–HD Supply, a national industrial distributor of maintenance, repair and operations products; REW Materials, the fourth largest distribution company in the US of interior and exterior construction materials, services, and equipment; and The General Services Administration (GSA), the independent agency of the US government that manages federal property and provides contracting options for government agencies.
8700 Ritchie Dr. sits in the Washington DC industrial market, which encompasses 197 million s/f of product stretching two states and Washington DC. The Washington DC industrial market saw 4.79 million s/f of net absorption in 2022 and is currently showing its lowest vacancy on record at 3.4%. There is currently 6.1 million s/f of industrial product under construction in the market, accounting for only 3% of total inventory.