MacKenzie Brokers Sale of 40,300 sf Baltimore Industrial Building
KIMPE SAS, family-owned company involved in brick industry, acquires 3801 Southwestern Boulevard
KIMPE SAS, a family-owned French based business that distributes raw materials used in the brick industry, has acquired 3801 Southwestern Boulevard, a single-story, 40,300 square foot industrial building and 3901 Southwestern Boulevard, a separate three-acre land site. The asset straddles Baltimore City and Baltimore County in the Halethorpe area. Andrew Meeder, SIOR, Senior Vice President/Principal and David McClatchy, Vice President for MacKenzie Commercial Real Estate Services represented the buyer in this sales transaction.
Contained on a 6.6 acre site in its entirety and constructed in 1948, the building is adjacent to US Route 1 and situated less than two miles from Interstate 95, seven miles from BWI Airport, eight miles from Baltimore’s central business district and 26 miles from Annapolis.
Founded in 1995, KIMPE SAS is headquartered in France and operates production plants and warehouses internationally and domestically including Australia, Mexico, Spain and South Africa. Additional locations in the United States are in Houston and Oakland. The company provides materials utilized in the glass, clay brick and drilling industries.
“Market occupancy in this section of Baltimore City and Baltimore County is 96 percent so space is extremely limited, and buildings of this size rarely becoming available,” explained Andrew Meeder of MacKenzie Commercial Real Estate Services. “Just over 100,000 square feet of new development has been delivered over the past 15 years, which future exemplifies the tightness of the market and the severe land constraints. There is currently no available land for future development and the submarket has experienced seven consecutive quarters of positive net absorption.”
“Once the building became available, we immediately identified this asset as a prime opportunity for KIMPSE SAS, given the relative low cost of ownership and opportunity to purchase the building below replacement cost,” added David McClatchy of MacKenzie. “The combination of severe land restraints, insatiable appetite for single-story assets and increased government regulations on development have pushed land values to unanticipated levels so acquiring an existing building represented the most viable option for KIMPE SAS.”
The Baltimore Southwest submarket consists of approximately 3.2 million square feet of space and, over the past ten years, has remained an average occupancy exceeding 93 percent. The cost of developing comparable product exceeds $250 per square foot.
MacKenzie Commercial Real Estate Services is the real estate brokerage arm of The MacKenzie Companies, which operates six full-service divisions addressing all real estate asset classes including MacKenzie Management Company, LLC, MacKenzie Contracting Company, LLC, MacKenzie Capital, LLC, MacKenzie Investment Group, LLC and MacKenzie Multifamily Management, LLC. The company provides customized real estate solutions for institutional owners, investors, private companies and individuals. For additional information, visit www.mackenziecommercial.com.