Edge Commercial has brokered the purchase of 30 West Patrick Street, a seven-story building in downtown Frederick, Maryland comprising nearly 67,000 square feet of Class “A” office space to Lee Development Group for $15.9 million.
Joe Friedman, Partner, Capital Markets Group for Edge Commercial, represented the buyer and Julian Etches and Joe Donegan of Scheer Partners represented the seller, West-End Atlas in this transaction. The asset, also known as Patrick Center, was 90% leased at the time of the transaction, with major tenants including Bank of America Merrill Lynch, Miles & Stockbridge, Morgan Stanley and PNC Wealth Management.
Developed in 1987 and substantially renovated in 2015, the building features a two-story lobby atrium outfitted with contemporary finishes including marble flooring. It is contained within the arts and entertainment district in downtown Frederick and is adjacent to the Frederick County Courthouse and Carroll Creek Public Park with numerous fine dining and fast-casual restaurants located within walking distance.
Lee Development Group, a full-service real estate investment and management company headquartered in Silver Spring, Maryland, acquired the asset in a 1031 exchange for 13900 Connective Avenue in Aspen Hill, Maryland, a building they disposed of for $11.5 million last fall. Friedman, Partner and head of Edge’s Capital Markets Group, worked closely with Lee Development Group to identify and secure a suitable exchange property in the months leading up to the 1031 settlement as well as during the 45-day identification period.
“Understanding the pricing requirements and time constraints, we scoured the market and presented Lee Development Group with several opportunities, both on and off-market that exactly matched the company’s acquisition criteria,” explained Friedman. “In 30 West Patrick Street, the company acquired the “best in class” building in downtown Frederick and an extremely well-maintained building with a strong roster of stable and national tenants. With approximately 6,000 square feet of space available, Lee Development Group is working to fill this space and further increase the value of this asset.”
“This is a premier property in downtown Frederick, essentially the heart of the city’s financial and commercial district,” said Bruce Lee, President and CEO of Lee Development Group. “We are excited to acquire such a high-profile building with so much potential. It’s especially intriguing since its outside of our home base in Montgomery County,” he added. Lee Development owns and manages LDG, a family-owned business specializing for more than 90 years in commercial real estate management and development in Maryland.
Throughout his career, Joe Friedman has successfully completed more than $200 million worth of 1031 exchange transactions throughout the Maryland, Washington, D.C. and Northern Virginia area. Recent activity included brokering the $8 million acquisition of 115 South Union Street in Alexandria, Virginia on behalf of Curtis Investment Group, as well as the $53 million acquisition of 277 South Washington Street in Virginia for The W.C. & A.N. Miller Companies.
“The Edge team, led by Joe Friedman, executed a well-orchestrated strategy to identify viable acquisition opportunities, oversee the due-diligence program and successfully achieved closing within our timeframe,” said Bruce Lee. “We have tremendous confidence in their overall real estate market knowledge and ability to deliver insightful advice and guidance.”
Edge is a commercial real estate firm providing a full complement of advisory, leasing, investment sales and management services to clients with real estate holdings throughout the Washington, D.C., Maryland and Northern Virginia marketplace. Founded in 2007, the company currently leases and manages more than 8.5 million square feet of commercial office, flex/office, industrial/warehouse, retail and mixed-use space. Edge operates offices in Maryland, Virginia, Washington, D.C. and Pittsburgh, PA. Visit www.edgecre.com