As a part of our broader strategy of investing in emerging urban areas, we’ve acquired an industrial property in Brentwood, MD (just over the border of Washington, DC) for approximately $7.6 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 older industrial space attractive for potential redevelopment into retail and residential uses.
Business plan
The property is currently improved with two industrial buildings on a 117,000 square foot (2.7 acre) lot. The generous land area could accommodate a future apartment community of up to 300 units, including parking, amenities, and ground-floor retail. Our goal is to earn rental income from the two industrial tenants, an auto repair shop and a retail store fixtures supplier, while we explore development opportunities.
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.
- Cash-flowing asset with upside potential: The property is fully occupied and income-generating from day one. The 2.7-acre lot is large enough to be redeveloped into a higher density mid-rise building in the future.
As always, please don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.
