MacKenzie Commercial Real Estate Services Brokers Sale of 4201 Mitchellville Road in Bowie, Maryland for $6.15 Million
Five-story, 50,000 square foot office building acquired by Beatrice Loving Heart Agency
MacKenzie Commercial Real Estate Services, LLC has brokered the sale of 4201 Mitchellville Road, a five-story building in Bowie, Maryland containing nearly 50,000 square feet of commercial office space to Beatrice Loving Heart Agency for $6.15 million. Formerly the corporate headquarters for Washington Saving Bank, the asset was 30% leased and occupied at the time of the sales transaction. Owen Rouse, Senior Vice President, Investment Sales and David McClatchy, Senior Vice President, Principal with MacKenzie Commercial Real Estate Services represented both the buyer and the seller in this transaction.
“An uncertain interest rate environment, rising prices for construction materials and tenant improvement costs, and higher vacancy rates among commodity office buildings in the suburbs were among the numerous obstacles and headwinds our team overcame to bring this transaction to the finish line,” explained MacKenzie’s Owen Rouse. “Marketing a well-leased commercial office building in current conditions is a tall task. Finding a credit-worthy buyer for a 30 percent occupied asset in the county adds another layer of difficulty but we were able to clear every hurdle to the satisfaction of both parties.”
Rouse adds that it is essential for owners and investors considering selling assets to be “keenly aware of what is transpiring in their specific submarket by consuming timely market intelligence that can provide guidance in their decision-making.” He adds that “holding an asset too long in an illiquid or declinig market can force owners to become extended checkwriters due to rising expenses and vacancies.” Rouse says that “investors cycle into and out of positions for specific reasons and assets can become increasingly difficult to manage as they age.”
Delivered in 1997 and featuring roadside visibility from MD Route 301, the building is surrounded by a free surface parking lot offering approximately 140 spaces. Nearly 50,000 people reside within a five-mile radius of the building, including nearly 40,000 households with an average household income of more than $180,000. More than 90,000 people also work within five miles of the building and 65,000 vehicles pass the site on a daily basis from MD Route 301.
Beatrice Loving Heart Agency, a group which moves elderly and disabled individuals from institutions, nursing facilities and hospitals to their homes, intends to relocate its corporate headquarters from Lanham later this year. The agency is making plans to assume one floor within the building to house its operations.
A number of retail centers with grocery store, big-box and restaurant tenants are located in close proximity including Bowie Town Center, Bowie Gateway Center and Collington Plaza. Representative nearby retailers are Best Buy, BJ’s Wholesale Club, Burlington, Giant Food, The Home Depot, Lowe’s, and Safeway. 4201 Mitchellville Road is positioned 15 miles from Annapolis, 20 miles from BWI Airport and Washington, D.C. and 30 miles from Baltimore.
“4201 Mitchellville Road is a high-visibility commercial office asset which has retained its architecture character,” added MacKenzie’s David McClatchy. “Beatrice Loving Heart Agency was able to acquire the building, and assume a strategic location within the Baltimore-Washington Corridor, at significantly below replacement cost. The asset also appealed to the buyer based on the opportunity to fill the remaining vacancies and generate additional income.”
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
