As a part of our broader strategy of investing in emerging urban areas, we’ve acquired a 61,000 square foot industrial building in Brentwood, MD (just over the border of Washington, DC) for approximately $4.1 million. This property is a block away from a similar one which we acquired at the same time. The area’s costly housing market continues to drive growth in neighboring suburbs, making this current industrial space attractive for potential future redevelopment into a mix of retail and creative office space.
Business plan
At the time of our acquisition, the building was vacant with an unfinished interior. Our initial business plan entails a light renovation to lease up the property to one or more industrial tenants, which we expect to cost roughly $2.4 million.
In the immediate term, our goal is to earn rental income from new tenants while we explore more extensive redevelopment plans and wait for the neighborhood to mature around our investment. In the future (3 to 5 years) we may elect to move forward with a full reimagining of the property if the economics support it.
Why we invested:
- Fast-growing area: Brentwood is located less than 25 minutes from downtown DC, near FedEx Field, the University of Maryland, and the up-and-coming arts district in Hyattsville, Maryland. With rising property values around DC, we expect continued growth in neighboring suburbs over the next seven to ten years.
- 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.
