Promark Partners Affiliate Acquires Mixed-use Property in Downtown Rockville
Date: Monday, May 15, 2017
Building and site offers strong future potential
Rockville, MD (May 12, 2017) — Acquiring a building in downtown Rockville that’s close to transit, shopping and dining, with plenty of parking, is a rare opportunity – and one that an affiliate of Promark Partners didn’t miss. The long-time real estate firm just closed on 451 Hungerford Drive, a 101,000 square-foot building in a desirable Montgomery County submarket.
The seven-story, 451 Hungerford is adjacent to Rockville Town Square and directly across the street from the second phase of the Rockville Town Center, where two new multifamily complexes are currently being built, with more planned. With 400 feet of prominent Rockville Pike frontage, this building enjoys near-capacity occupancy for both office and retail tenants, and offers significant opportunities for additional development in the future.
“Acquiring a well-established and stabilized property within walking distance to Metro and across the street from a town center is an opportunity we jumped at,” said Rob Eisinger, Director of Project & Asset Management for Promark Partners. “It is an asset that fits perfectly into our portfolio and aligns with our long-term ‘hold’ philosophy.”
Eisinger said that the property has three acres of surface parking that lends itself to the possibility of value-added development in the future. He said Promark plans to immediately invest in upgrading and modernizing the building’s mechanical systems to reduce operating and energy expenses. He added that Promark has longer term goals to improve the look and functionality of the common areas and façade of the building, which was built in 1980.
“The competing supply of class B office in this market, likely to be reduced as other properties redevelop, made this a compelling investment,” Eisinger said. “We think the shrinking supply of affordable office space close to Metro, along with the Town Center amenities, will keep this building well-occupied for years to come.”
Promark Partners recently transformed a 1960s-office building in downtown Silver Spring into Octave 1320, a 102-unit condominium building that sold out quickly at prices ranging from the $200,000s to $300,000. That project earned Promark Partners a 2017 ULI Real Estate Trends Conference award for Excellence in Adaptive Reuse.