Marcus & Millichap has arranged the sale of a 1.5-acre parcel of land located at 5204 River Road in Bethesda, Md., in the Washington, D.C. MSA. Robert Bloch and Michael Mele, investment specialists in Marcus & Millichap’s D.C. and Tampa offices, had the exclusive listing to market the property on behalf of the seller, a single asset corporation. The buyer, 1784 Capital Partners, was also secured by Bloch and Mele.
The land sold for $11 million, or approximately $7.3 million per acre. 1784 Capital Partners intends to redevelop the site into a Class A self storage facility, according to Bryn Merrey, senior vice president/division manager of the firm’s Mid-Atlantic and Southeastern offices.
“1784 Capital Partners immediately recognized the special attributes of this site and were able to navigate the difficult requirements of the seller, its creditors and the bankruptcy court,” Bloch said in prepared remarks. “They mobilized very quickly to get this complicated deal done in a very short time frame and secure the site”.
The building currently on the Bethesda self storage site is used as an automotive body shop. According to Marcus & Millichap, the parcel represented a rare opportunity to secure one of the final remaining self storage development parcels in Bethesda, one of the country’s most affluent, high barrier-to-entry communities, boasting historically high occupancies and rental rates for storage. The surrounding demographic profile is among the best in the United States, with further high-density residential development occurring within 2 miles of the site.
“Very rarely does a development opportunity of this quality come to market,” Bloch explains. “The unprecedented price per acre is a testament to the nature of the opportunity, and the buyer had a clear vision that enabled them to compress their due diligence and win the deal in a very competitive process”.