As a part of our broader strategy of investing in emerging urban areas, we’ve acquired a property in Brentwood, MD (close to the border of Washington, DC) for approximately $5.1 million. The DC area’s costly housing market continues to drive growth in neighboring suburbs, making this current industrial space attractive for potential future redevelopment into retail and residential uses.
Business plan
This property is currently comprised of three industrial buildings and is positioned on a large 100,000 square foot (2.2 acre) lot, giving it the potential to be redeveloped into a mixed-use project featuring as many as 200 apartments and 5,000 square feet of retail. As of June 2019, all three buildings were leased and occupied. Our goal is to earn rental income from the current industrial tenants while we explore development opportunities.
Why we invested:
- Fast-growing area: Brentwood is located less than 25 minutes from downtown DC near FedEx Field and the University of Maryland. With rising property values in DC, we expect continued growth in neighboring suburbs over the next seven to ten years.
- Cash-flowing asset: The property is fully occupied and income-generating from day one, with the existing leases expiring between December 2028 and May 2029.
- Strong, stable local economy: With over 30% of residents employed by the government, the DC market is uniquely insulated from national economic downturns. In addition to federal workers, demand is driven by private sector employees that support the government, such as consultants, lobbyists, and lawyers. For more information, please see our DC market analysis.
As always, please don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.
