Matan Cos.’ Plans To Circle The Beltway With Industrial Assets
FREDERICK, MD (via GLOBEST.COM) – The Matan Cos.’ purchase of Plaza 500, a 502,830-square foot industrial park in Alexandria, Va., is part of the company’s plan to develop a larger presence around the Beltway especially in Northern Virginia, Dan Cain, development manager for the company tells GlobeSt.com.
“The majority of our assets are in Maryland. Our goal is to expand more around the Beltway, particularly in Prince George’s County,” he says.
In some cases that will mean acquiring assets, such as the 34-acre Plaza 500, which technically speaking is a mixed-use complex comprised of industrial, warehouse, flex office space and storefront retail.
In other cases, Matan Cos. will develop the assets. Indeed, it plans to break ground on a spec basis on a 155,000-square foot, class A industrial property in Dulles, Va., in the Spring. It acquired the 10 acres last year for about $3.4 million. The development costs for the property, located at 45978 Maries Rd., will be roughly $110 per square foot, or $17 million, Cain says.
Matan also has another spec project underway, Cain says: Wedgewood West, a 675,000 square foot project located at the corner of New Design Road and English Muffin Way in Frederick. Phase I totaled 180,000 square feet and delivered fully leased last year. Phase II, which consists of two 30’ clear warehouse buildings totaling 323,000 square feet, is scheduled for an early Summer 2017 delivery.
Matan has a very specific user in mind as it builds out its portfolio, according to our conversation with Cain. He also talked about the company’s short- and long-term plans for Plaza 500. Some excerpts:
Why we are expanding around the Beltway
We are predominately in Maryland and we know those tenants very well. They are in Maryland — but also in Virginia and they ask us, ‘why aren’t you in Virginia?’
About our focus on spec industrial
There is a tremendous amount of demand for it by traditional industrial users, some of whom have been outpriced or displaced by newer trends. A lot of the older product has been ripped down to make way for mixed-use projects. Data center users and online retailers have gobbled up much of the remaining industrial space. Traditional users still have strong demand for industrial properties meanwhile.
Our search for good sites
We are actively looking for good sites on which to build, but the competition for land is very high and land prices are rising. The best cases are sites such as the land in Dulles, which is in an industrial neighborhood. That said, industrial rents are supporting the cost of new construction including the land prices.
Our plans for Plaza 500
We have some long-term leases there so Plaza 500 will remain a warehouse site for at least seven to ten years. After that, the use may shift. MRP and JBG Cos. have made acquisitions in the area and may be planning mixed-use projects.