An industrial property in Hanover currently occupied by Coca-Cola sold last month for $18.71 million, a sign of strength in the industrial market, said a broker who helped arrange the deal.
The 278,586 square-foot building, located on 20 acres, drew "a lot of interest" even though Coca Cola is moving to a new building in the fall, according to Jonathan Beard, senior vice president of CBRE Institutional Properties, who helped arrange the deal.
Beard said demand from institutional investors for industrial properties has driven up prices to levels not seen since before the recession. The vacancy rate in the Baltimore metro area for industrial properties was 9 percent, down from 10.5 percent at the same time a year ago, according to a quarterly report from by the Colliers International Baltimore office.
Coca-Cola said in February it would move its regional distribution center to a new 291,000-square-foot warehouse, also in Hanover. The previous owner CBRE Global Investors LLC, wanted to sell because it is focused on buildings with long term leases, Beard said. CBRE Institutional Properties and CBRE Global Investors have the same corporate parent, CBRE Group Inc.
The buyer of the 7448 Candlewood Road property, New Jersey-based Hartz Mountain Industries, Inc., plans to replace the roof and find a new tenant, Beard said.