Office Retail Building Sold
NAI KLNB has brokered the sale of 9200 Old Annapolis Road, a 16,500 square foot project in Howard County that combines a mix of commercial office and retail space, for $2.9 million. Gil Neuman and Chris Kubler of NAI KLNB represented the seller, TIVIA LLC and Robert Smith of NAI KLNB represented the buyer, TSC/Old Annapolis Road LLC.
Positioned near the intersection of Bendix Road and MD Route 108 – just off MD Route 29 – the building was constructed in 1972 and is anchored by a branch of the Bank of America on the first level and features office space on the second level, which is currently 100% leased. The sales price was $193 per leaseable square foot.
“The sale was a multi-faceted transaction that responded to fast-changing capital market conditions and an unorthodox approach to our initial marketing strategy,” explained Gil Neuman of NAI KLNB. “Upon receiving the exclusive listing on the property, we made the decision to negotiate with a single buyer entity that offered the most appropriate and best-matched proposal for the asset. This occurred on the same day that we began marketing the building. The pricing of 9200 Old Annapolis Road was driven by the location of the project, the below market rents of the current leases and the high performance of the Bank of America branch office in terms of savings deposits,” he added.
“As the date of the closing approached, cap rates across the country rose dramatically, and we started to arrange a new, creative financing agreement for the buyer,” Neuman explained. “This package featured a mix of bank financing, equity and seller-held financing with a staggered pay-down schedule, collateralized by the buyer’s assets.
“In our current economic climate, it is becoming increasingly complicated to consummate sales transactions. Our targeted approach of knowing exactly who the appropriate and still-capable buyers are, coupled with our ability to creatively structure deals, represented our secret weapon in this deal. Suddenly the investment sale broker’s job has become much more than just a matchmaker,” he added.
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