1788 Holdings Completes $8.25 Million Disposition Of 59,050 Square Foot Industrial/Warehouse Building In Harrisburg, Pa

During six-year hold period, real estate investment firm retenanted 1400 Hagy Way to elevate occupancy of building and adjacent 30,000 square feet of IOS land to 100 percent

Falls Church, VA (September 16, 2026) – An investment affiliate of 1788 Holdings, LLC has completed the $8.25 million disposition of 1400 Hagy Way, a Harrisburg, Pennsylvania property containing a single-story 59,050 square foot industrial/warehouse building, as well as an adjacent 30,000 square foot Industrial Outside Storage (IOS) parcel to a private buyer. CBRE’s Kevin Foley, Brian Pfohl and Austin Wolitarskyrepresented 1788 Holdings, a privately-owned real estate investment firm which owns and manages a national commercial real estate portfolio spanning 13 states, with a market value exceeding $250 million.

1788 Holdings acquired the asset, which was substantially-leased to two tenants, in 2020. The following year, one of the tenants experienced a business downturn due to the impact of the COVID pandemic. A second tenant missed its renewal option which provided the owner with the opportunity to recapture the space when that lease expired.  Concurrently, a building supply firm, Capitol Building Supply, which was leasing space in a nearby 1788 Holdings property, expressed a need for larger accommodations which were more suitable for its long-term needs. After arranging a lease buy-out with the tenant which was looking to downsize, the Capitol Building Supply subsequently leased the entire 59,050 square foot building, as well as the 30,000 square foot IOS land parcel.

“Our team’s creative marketing and leasing strategy, fueled by the strong relationships we have established with Harrisburg-area tenants, delivered practical real estate solutions to multiple parties,” stated Larry J. Goodwin, Principal, 1788 Holdings. “The resulting transactions significantly improved the property’s lease economics while creating a viable path to market the asset as an investment-grade, single-tenant net leased property to the 1031 investment market. This forged an outcome with a substantially more attractive result for our investor group than the previous circumstances initially suggested.”

Delivered in 1993 and renovated by 1788 Holdings in 2023, 1400 Hagy Way is equipped with 22-foot ceiling heights, 10 dock-high doors, and four drive-in, grade-level doors. The building backs up to N. Cameron Street (PA Route 22) and is adjacent to Interstate 81 and less than 13 miles from Harrisburg International Airport.

“Rather than allowing unfavorable markets to dictate an unsatisfactory result, we proactively and aggressively managed the situation to our advantage, and delivered the best possible outcome for all parties involved, including our investors,” Goodwin added.

1788 Holdings focuses on the identification, acquisition, asset management oversight, and repositioning of industrial/warehouse and Industrial Outside Storage properties located in primary and secondary markets throughout the country. The Northern Virginia-based group owns and manages approximately 40 assets, comprising more than two million square feet of space - including 88 IOS acres - with a market value exceeding $250 million.

“Our investment thesis emphasizes the identification and acquisition of opportunities which provide operational value creation and market repositioning among Class B and C light industrial and IOS assets in selected Class A locations throughout the country,” Goodwin said. “Recent acquisition and disposition activity, coupled with access to ready capital and local real estate knowledge, has further substantiated our position as a preferred and proven counterparty. 1788 Holdings is backed by an agile team with the resolve and capital to take advantage of economic and market conditions to the benefit of our investment partners.”

1788 Holdings, LLC is a Northern Virginia-based commercial real estate investment and management with more than $250 million of Assets Under Management (AUM). Founded in 2010, the company has substantial experience and an established track record in deal sourcing, underwriting, financing, asset management and disposition. Visitwww.1788holdings.com

1788 Holdings Completes $9.96 Million Sale Of 75,000 Square Foot Industrial Building To Catalyst Investment Partners

Asset, located at 6901 Rolling Mill Road in Baltimore City, includes two acres of Industrial Outside Storage land and is 100 percent leased by Dejana Truck & Utility Equipment

Falls Church, VA (September 15, 2026) – An investment affiliate of 1788 Holdings, LLC has executed the $9.96 million sale of 6901 Rolling Mill Road, a 75,000 square foot industrial/warehouse building situated in Baltimore, Maryland to an Industrial Outside Storage (IOS) property aggregator. The asset, which includes two acres of IOS land, is 100 percent leased and occupied by Dejana Truck & Utility Equipment. Bryn Merreyand John Faus of Marcus & Millichap represented 1788 Holdings, a privately-owned real estate investment firm which owns and manages a national commercial real estate portfolio spanning 13 states, with a market value exceeding $250 million.

Dejana Truck & Utility Equipment, a division of NYSE-traded Douglas Dynamics, Inc., has occupied 6901 Rolling Mill Road since 2005. The company utilizes the building, which is located adjacent to Interstate 95, to upfit bareback truck chasses with its own line of cargo and dry freight bodies, and as a ship-through distribution center for several product lines.

During its five-year hold period, 1788 Holdings, together with the tenant, completed property improvements to enhance the interior and exterior environments, instituted asset management protocols to increase building operation efficiencies and it negotiated a long-term extension with Dejana.

“The sale of this fully-leased asset highlighted the skill of our team in identifying the remediable aspects of the property which were detrimental to its market value and then executing a multi-year plan in order to sell a very different product back into the market five years later,” stated Larry J. Goodwin, Principal, 1788 Holdings. “The result for our investors were significantly better returns than those which were underwritten. Our ability to achieve the sales price for this institutional-quality asset is a testament to our strategy of buying and upgrading under-managed and under-leased Class B/B- quality assets in Class A locations,” he added.  “In this case, the asset’s strategic infill location near the Port of Baltimore and its 50/50 blend of building gross leasable land industrial outside storage represented the perfect canvas for our repositioning program to outperform expectations both operationally and financially.”

1788 Holdings focuses on the identification, acquisition, asset management oversight, and repositioning of industrial/warehouse and Industrial Outside Storage properties located in primary and secondary markets throughout the country. The Northern Virginia-based group owns and manages approximately 40 assets, comprising more than two million square feet of space - including 88 IOS acres - with a market value exceeding $250 million.

“We have sustained confidence in both the national economy and commercial real estate sector, particularly the industrial/warehouse asset class, and we intend to remain aggressive and active in our approach for the foreseeable future to seize emerging opportunities,” added Goodwin. “Development activity has slowed, and this has fueled rental rate escalation and increased competitiveness for these properties, especially those with outside storage amenities. 1788 Holdings has the right team, determination and ready capital to take advantage of economic and market conditions to the benefit of our investment partners.”

1788 Holdings, LLC is a Northern Virginia-based commercial real estate investment and management with more than $250 million of Assets Under Management (AUM). Founded in 2010, the company has substantial experience and an established track record in deal sourcing, underwriting, financing, asset management and disposition. Visit www.1788holdings.com

Lisa Goodwin Joins 1788 Holdings As Principal, With Responsibility For Driving Institutional Investment Platform

30-year commercial real estate professional previously held management-level development, leasing and operations roles with MRP Industrial and Liberty Property Trust

Falls Church, VA (September 10, 2026) – Lisa Goodwin has joined 1788 Holdings, LLC, a privately-owned real estate investment firm which owns and manages a diversified and highly-differentiated national portfolio spanning 13 states, as Principal. The 30-year commercial real estate professional has responsibility for building and overseeing the firm’s institutional investment platform and driving growth through acquisition activity and cultivating new investor relationships with groups seeking exposure to mid-size industrial projects located in primary and secondary industrial markets. Goodwin spent the last nine years as Senior Vice President, Development at MRP Industrial.

1788 Holdings focuses on the identification, acquisition, asset management oversight, and repositioning of industrial/warehouse and Industrial Outside Storage (IOS) properties located in primary and secondary markets throughout the country. The Northern Virginia-based group owns and manages approximately 40 assets, comprising more than two million square feet of space - including 88 IOS acres - with a market value exceeding $250 million.

Goodwin will set the strategic direction of 1788 Holdings’ institutional investment platform and have direct oversight of capital raising and value creation activities related to overall portfolio performance. This includes establishing and strengthening relationships in the commercial real estate brokerage community, capital markets sector, and with property owners and investors.

“Joining the 1788 Holdings team provides the perfect opportunity to leverage the extensive business and real estate relationships I have established, work with an entrepreneurial-driven team, and help identify emerging opportunities which provide undeniable value to our investors,” Goodwin said. “The company consistently demonstrates the ability to acquire assets that need redevelopment or repositioning strategies, due to being mis-marketed, under- leased, under- managed, or under- invested, and to then employ tactics that unlock value to benefit its investor partners. We see a long runway ahead, and intend to remain aggressive in our approach to attract capital to fuel our future acquisition pipeline.”

Goodwin adds that 1788 Holdings has historically funded its acquisitions utilizing a proprietary high net worth investor syndicate that has largely capped its acquisition size at assets priced at $20 million and below.  The new corporate strategy entails augmenting that focus by pairing larger capital partners that have business plans similar to those that 1788 Holdings has previously executed, to target larger asset sizes and pricing denominations which were beyond 1788 Holdings’ reach under its high-net-worth investor-funded platform. 

“This pivot will enable me to focus on an untapped segment of the market for 1788 Holdings, and our core team is completely capable of supporting both platforms comfortably,” she said.

During Goodwin’s time at MRP Industrial, a Maryland-based commercial real estate development and investment company, she assisted in the efforts to acquire multiple land sites in Maryland, Pennsylvania and Virginia, and was responsible for the leasing of nearly nine million square feet of space across the company’s portfolio of developments.

Previous to MRP Industrial, Goodwin spent nearly 10 years overseeing all development, acquisitions, leasing, and asset and property management functions for Liberty Property Trust’s (NYSE: LRY) Maryland regional office as Vice President. This included the development of nearly two million square feet of space. She also handled asset management functions for New Boston Fund and Archon Group.

1788 Holdings, LLC is a Northern Virginia-based commercial real estate investment and management with more than $250 million of Assets Under Management (AUM). Founded in 2010, the company has substantial experience and an established track record in deal sourcing, underwriting, financing, asset management and disposition. Visit www.1788holdings.com for more information.

County’s First Wawa Opens in Gaithersburg

Montgomery County’s first Wawa, located at 405 S Frederick Ave (355) in Gaithersburg, held their grand opening on Mar. 7. The festivities began at 7:45 a.m. with the Wawa general manager doing the honors of counting down the moment when the doors open for the first time at 8 a.m., with free “In My Wawa Era 60th Anniversary,” T-shirts for the first 100 customers.

The newly added Wawa is liked by fans because of the expansive food options they have to offer, specifically their big, hoagie-style sandwiches that you can order via touch screen. Wawas are also famous for customer service, scrupulously clean bathrooms, decent gas prices, free air for your tires and no-charge ATMs. They’re a comforting presence for travelers and a community hub for neighborhoods. This year Forbes ranked them #12 in their Halo 100 list of brands that consumers love. “The new Wawa is just somewhere I can go for food now because they also serve things like smoothies, hoagies, breakfast, sandwiches and waffles,” sophomore Aidan Green said.

The new addition adds to the variety of options students can choose from to get food, gas and snacks. Previously, students were limited to places like Fallgrove which has Chipotle, Moby Dick, Wingstop, Jersey Mike’s and the newly added Sarah’s Handmade Ice Cream. “The new Wawa adds cool new things that I couldn’t get before. When I see Wawa on road trips it’s always so cool to visit and get food and now I have one local,” sophomore Blake Graham said.

The Wawa was welcoming to customers who came to the grand opening. The first 100 customers to attend were given T-shirts and were welcomed in with workers waiting for them, cheering them on through the inside of the main entrance. “Opening day was fun for me. They gave out a lot of free things and I was able to meet people like the mayor, fire chief, and police chief, which ended up being an all-around good experience,” Green said.

Customers were invited to participate in a brief ceremony with remarks about the impact Wawa has on its community, a “Hoagies for the Heroes” hoagie-building competition between police and fire departments, and an official ribbon cutting with Wally Goose.

Wawa is an American chain of convenience stores and gas stations originating in the Philadelphia metropolitan area and now located along the East Coast of the United States, operating in Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Washington, D.C., and Florida.

Wawa and their associates continuously seek out opportunities to make them the best neighbors they can be, according to their website. “I could really tell how great of a company they really are by how welcoming they were on opening day,” senior Landon Silbert said.

Maverick Commercial Mortgage, Inc. Announces $9,000,000 Financing On Over 150,000 SF Spread Across 3, Single- Tenant Industrial Buildings in Michigan.

Maverick Commercial Mortgage, Inc. has funded a first mortgage loan for $9,000,000 with a repeat borrower based in Bethesda, MD. The loan, provided by a regional bank, is a 5 year loan that will be swapped at closing to provide a competitive 5-year fixed rate loan.

The subject properties are 3 separate buildings spread across Michigan. A 74,026 square foot building in Pontiac, a 26,571 square foot building in Farmington Hills, and a 51,138 square foot building in Bay City.

This is Maverick’s third time closing a loan with this client. The borrower, 1788 Holdings, LLC, is a Maryland based national real estate investment firm specializing in purchasing and repositioning older vintage light industrial properties and industrial outdoor storage prop- erties.

About Maverick Commercial Mortgage, Inc.

Maverick Commercial Mortgage, Inc., arranges a wide variety of commercial real estate loans ranging from $2,000,000 to $100,000,000 for its middle market real estate developer and investor clients.

Montgomery County’s first Wawa opens

Montgomery County has its first Wawa — now open in Gaithersburg. 

The convenience store/gas station opened its doors Thursday at 405 South Frederick Ave.

Customers lined up for the grand opening, which included a T-shirt giveaway for the first 100 customers.

“Judging from this line of people behind me, we’re going to be very busy,” said Wawa Area Manager Chris Maccubbin. 

“I used to go to the Wawa in Frederick,” said lifelong Gaithersburg resident Michael O’Connor. He said, “Everyone in the town is excited.”

Mayor Jud Ashman and the city council proclaimed it “Wawa Day” in the City of Gaithersburg. The grand opening event featured a “Hoagies for Heroes” hoagie-building competition between police and fire departments.

Maverick Commercial Mortgage, Inc. Announces $7,500,000 Financing On a 150,000 SF Multi-Tenant Industrial Building in Chicago, IL.

Maverick Commercial Mortgage, Inc. has funded a first mortgage loan for $7,500,000 with a repeat borrower based in Bethesda, MD. The loan, provided by a regional bank, is a 5 year loan that will be swapped at closing to provide a competitive 5-year fixed rate loan. A por- tion of the loan proceeds will be used for capital improvements to the property post closing.

The subject property is a fully occupied multi-tenant industrial building on Chicago’s south side. The building is 100% leased to 2 ten- ants, Chicago Transit Authority and SCR Transportation. The industrial market on the south side is effectively close to full occupancy

This is Maverick’s second time closing a loan with this client. Maverick financed the closing of the adjacent properties with this borrower allowing for the creation of an industrial park by this borrower. The borrower, 1788 Holdings, LLC, is a Maryland based national real es- tate investment firm specializing in purchasing and repositioning older vintage light industrial properties and industrial outdoor storage properties.

About Maverick Commercial Mortgage, Inc.

Maverick Commercial Mortgage, Inc., arranges a wide variety of commercial real estate loans ranging from $2,000,000 to $100,000,000 for its middle market real estate developer and investor clients.

1788/Riverside Business Center, Llc Sells 423,900 Square Foot Riverside Business Center In Whitehall, Pa To Buligo Capital Partners For $34.65 Million

Former owner of single-story light industrial building, located at 1139 Lehigh Avenue, increased occupancy of warehouse component of asset from 87% to 100%

Bethesda, MD (April 11, 2022) – 1788/Riverside Business Center, LLC, an affiliate of 1788 Holdings, LLC., a Bethesda, Maryland-based real estate investment company, has sold Riverside Business Center, a 423,900 square foot single-story light industrial building in Whitehall, Pennsylvania to Buligo Capital Partners for $34.65 million. 1788/Riverside Business Center acquired the asset, located at 1139 Lehigh Avenue, in 2018 for $11.65 million and increased the occupancy of the warehouse component of the project from 87% to its current 100% during its four-year hold period. Michael Hines of CBRE’sRadnor/Philadelphia office represented the seller in this transaction.

“We were initially attracted to Riverside Business Center based on the unique opportunity to acquire a high-quality Class B light industrial property that was substantially leased with in-place rents significantly below market, as well as the compelling opportunity to build significant value with a strategic capital investment program, aggressive leasing effort and cost-efficient property management strategy,” stated Larry J. Goodwin, Principal, 1788 Holdings. “The property contained every fundamental necessary to achieve this objective, led by an irreplaceable location, a strong tenant base and the extreme acceleration in demand for industrial, light manufacturing and warehouse space throughout the Lehigh Valley corridor.”  

Riverside Business Center overview

Constructed in 1910, Riverside Business Center has been improved and renovated on numerous occasions, including the investment of more than $9 million by the previous owner in 2006 to convert the property from a single-user manufacturing facility into a multi-tenanted warehouse and light manufacturing facility. The conversion included the installation of 31 dock doors and 23 drive-in doors, the installment of modernized HVAC and lighting and plumbing systems, substantial improvement to all tenant suites, a complete exterior brick and concrete makeover and parking lot upgrades.

Positioned on approximately 34 acres of land, Riverside Business Center features average ceiling heights of 20 feet, the availability of ample automobile and truck parking and a dry sprinkler fire protection system. Abutting the Lehigh River, the center is located adjacent to Lehigh Valley Thruway (US Route 22), with immediate access to Interstate 78 and the Pennsylvania Turnpike. Lehigh Valley International Airport is less than three miles from the site, while Philadelphia is approximately 60 miles south and New York City is approximately 90 miles west of the project. This location places the asset within a one-day truck drive to approximately one-third of all consumers residing in the United States.   

Summary of value enhancement strategy executed during the hold period

1788 Holdings implemented a series of value enhancement strategies during its hold period from March 2018 to March 2022, including physical plant upgrades, rehabilitating an abandoned second floor of the office structure to allow the recapture of 13,000 square feet of office space, adding wayfinding signage, creating fenced-in outside storage areas for certain tenants and repointing and repainting the exterior. In addition, the new ownership established relationships with existing tenants, the local brokerage community and officials of Whitehall Township. In several instances, discretionary investments were made to upgrade tenant premises prior to lease expirations, and those decisions were rewarded with renewals from those tenants.

As the COVID-19 crisis took effect, 1788 Holdings worked closely with Riverside Business Center tenants to provide financial assistance, if needed, during the period of uncertainty. This included offering rent relief or rent abatement, allowing certain tenants to execute short-term leases, and permitting others to give back space while they navigated business challenges.

“Real estate is a relationship-driven industry and our first order of business upon acquiring Riverside Business Center was to develop open lines of communication with our tenants, and demonstrate that we have their interests in mind at all times,” Goodwin explained. “This corporate mission was validated during the height of the pandemic when several tenants faced unprecedented challenges and uncertainty, and we responded with concessions that assisted with their recovery. As companies achieved normalcy, our actions paid dividends with longer-term renewals, as well as higher lease rates to new entities signing leases at Riverside Business Center.”  

Seizing the opportunity to sell in response to market conditions

1788 Holdings acquired Riverside Business Center in 2018 at just over $27 per square foot, a price which represented less than 30% of the property’s replacement cost, and rental prices in the Lehigh Valley submarket averaged approximately $3.00 per square foot at the time of the acquisition. Although the plan was to hold the asset for 10 years, 1788 Holdings began exploring a possible sale last fall after detecting the continued compression of capitalization rates for similar buildings in the region, which fell from 7% to the mid-4% range.  

CBRE was selected as the exclusive sales broker, and upon bringing the asset to the market, it solicited more than 10 qualified offers. At the time of the sale to Buligo Capital Partners, the average in-place industrial rent had risen to approximately $4.25 per square foot, and 1788 Holdings had elevated office rents from $2.40 triple net to $10 triple net. 1788 Holdings acquired the asset on a 9% cap rate and sold the building on a 5.625% cap rate.      

Sustained vibrancy of Lehigh Valley, Pennsylvania submarket

Riverside Business Center is located within the Lehigh Valley submarket, which is considered to be the 69th largest metropolitan area in the United States by population, It is home to nearly 700,000 people and has a Gross National Product (GNP) approaching $43 billion. According to the Lehigh Valley Economic Development Corporation (LVEDC), more than eight million square feet of industrial space was added to the submarket last year, increasing the total to nearly 140 million square feet of industrial space. More than 9 million square feet of space was leased, lowering the vacancy rate to 4.2%.    

Outlook of national industrial/warehouse space category

The brokerage firm Cushman & Wakefield stated in its 2021-2022 North American Industrial Outlook, “the tailwinds of e-commerce and heightened focus on supply chain resiliency will keep the industrial market in an upswing, with record construction and new all-time high rental rates on the horizon.” More than 481 million square feet of industrial space is expected to be absorbed throughout North America during this time period. 

According to CBRE’s U.S. Real Estate Market Outlook 2022, “on the heels of record transaction volume and rent growth amid extremely tight supply and high demand, the industrial real estate market will remain extremely strong in 2022. Demand will primarily be driven by growing e-commerce sales, the improving economy, population migration and the need for onshore safety stock inventory to avoid the supply chain disruptions of the past 18 months.”

1788 intends to deploy proceeds of sale to fund future value-add acquisition opportunities

1788 Holdings created the company’s light industrial platform in 2018 with the purchase of Riverside Business Center. The company has since expanded its targeted geographic footprint to seven states and continues to seek opportunities in additional markets. 1788 Holdings is particularly interested in acquiring under-performing warehouse/industrial assets with the opportunity to re-tenant, complete leasing programs and improve operational efficiencies.

“This disposition was a timely and successfully-executed thesis that rewarded our investors, and we intend to remain aggressive and active in our approach for the foreseeable future to seize emerging value-add properties in various asset categories,” said Goodwin. “We have particular interest in the light industrial and outside storage asset categories and have ready capital to immediately act on the opportunities before us.”  

1788 Holdings, LLC is a Bethesda-based commercial real estate investment company with a focus in the Mid-Atlantic and Southeast regions of the United States. The company’s capabilities include the acquisition, development and strategic oversight of highly-differentiated residential, office, retail and industrial properties, including Industrial Office Storage assets. 1788 Holdings now owns 17 properties totaling approximately 1.5 million square feet of space, as well as an additional 50 acres of outside storage space in Alabama, Florida, Georgia, Maryland, North Carolina, Pennsylvania and South Carolina, with a total market value of $137 million. For additional information, visit www.1788holdings.com

Former Harsco site sold

Investors are paying tens of millions of dollars for big warehouses in Central Pennsylvania. But there's also a market for stuff that needs to be stored outside.

• It's a market that prompted Bethesda, Maryland-based 1788 Holdings to pay $12.8 million for a 21.3 acre tract at 1001 Herr St., a former Harsco manufacturing site.

• "I personally love outdoor storage for one reason. It's a zoning code that, generally, jurisdictions are getting rid of," said Larry Goodwin, principal of 1788 Holdings.

• That means there is a dwindling supply but a steady demand, he said. "Somebody's got to hang out and take care of the legacy users. That market isn't going away."

Who are the users: While some products need temperature-controlled settings away from wind, rain, sun and snow, other products can be stored cost-effectively in the open air.

• The list includes trailers, shipping containers, solar arrays, porta potties and landscaping products, Goodwin said.

• Tenants at 1001 Herr St. include Capitol Building Supply, PP&L Electric Utilitiesand a pair of trucking companies, Martin Logistics and Midwest Transport, according to Goodwin and a press release from Marcus & Millichap, the real estate firm that brokered the sale.

• PP&L is the largest user, taking up 10 acres and a couple buildings totaling no more than 20,000 square feet, Goodwin said.

• Capitol Building is using 3.5 acres but is looking to add up to two acres more, as well as a new shed for storing drywall, Goodwin said. Capitol uses existing buildings totaling about 35,000 square feet.

• "They love this location and want to turn it into a regional hub," Goodwin said.

• He is marketing the remaining land to tenants with the help of John Van Buskirk, an agent with real estate firm Lee & Associates of Eastern Pennsylvania.

• Goodwin noted that he is hoping to work with neighbors to address flooding concerns in the area.

Who's the seller: A real estate partnership tied to John Moran Jr., the developer behind a neighboring property, the World Trade Center Harrisburg at 1000 Cameron St., according to Goodwin and county deed records.

• In July, Moran bought the Herr Street property for $505,000 from Capital Region Economic Development Corp.,which had bought the site in 2018 from Harsco.

• CREDC, an arm of the Harrisburg Regional Chamber, landed a state grant to study environmental contamination at the site with a goal of putting it back into productive use, said Ryan Unger, president and CEO of the chamber and CREDC.

• CREDC also wanted to ensure future owners understood the environmental risks, said Unger, who joined the chamber this summer.

• Moran leased the property while CREDC was studying it and had a sales agreement in place for when the environmental review was complete, Unger said.

• "An investment of that size is a positive thing for the region and the city," he said of 1788's purchase of the property.

• Efforts to reach Moran were not successful.

The background: 1788 Holdings owns 17 properties and 50 acres of outdoor storage space in Alabama, Florida, Georgia, Maryland, North Carolina, Pennsylvania and South Carolina.

• In addition to the Herr Street tract, the firm owns a roughly 59,000 square-foot warehouse with outside storage at 1400 Hagy Way in Harrisburg, Goodwin said, Tenants include ice cream maker Hershey Creamery and mail services companyCapitol Presort.

• 1788 also owns a 430,000 square-foot warehouse with outside storage at 1139 Lehigh Ave. near Allentown, Goodwin added.

The great outdoors: Outdoor storage areas now have their own nomenclature: They are referred to as industrial outdoor storage properties or industrial service facilities.

• And like any real estate asset worthy of dueling names, it has dedicated investors.

• One of the biggest is a Chicago-based outfit called Industrial Outdoor Ventures.

Bethesda company enters Baltimore industrial market as part of $57M buying spree

Two Baltimore warehouse properties were scooped up by a Bethesda investment trust this fall as part of a $57 million portfolio blitz.

1788 Holdings LLC acquired industrial facilities at 6901 Rolling Mill Road in East Baltimore near Patterson High School and 1601 Wicomico St. near M&T Bank Stadium as its first deals in the local market. The total acquisition cost for both properties was $22.8 million.

The local deals were part of a larger push by 1788 Holdings to expand its industrial base as the strong market continues its hot streak that started before and continued during the pandemic. Overall, 1788 Holdings has recently acquired more than 1 million square feet of space stretched across 14 properties for a total of $57 million.

Plans for the Baltimore warehouses are to set them up as large- scale outdoor storage operations. Such space has become critical to companies like automakers, construction suppliers and e- commerce firms that use the Port of Baltimore and Interstate 95 to deliver their goods to a holding spot before they are moved on to consumers.

The port has become a major cargo gateway and added new lines even as congestion at several ports across the U.S. has jammed deliveries. The surge in e-commerce has also added container deliveries through the port, which then are shipped out via rail to other destinations in the mid-Atlantic and Midwest.

"We believe the availability of this acreage represents a significant competitive advantage in the Baltimore city submarket,” said Larry J. Goodwin, principal of 1788 Holdings, in a statement. "As a port city, Baltimore is a primary destination for roll-on/roll-off cargo, particularly automobiles, trucks and heavy equipment cargo and there remains continuing demand for storage sites with immediate proximity. Most of the infill light industrial properties in the immediate trade area do not have excess land for this type of storage, and we are filling this ongoing need."

1788 Holdings has much of its portfolio based in the mid-Atlantic and Southeast. The firm's light industrial push started in 2018 after it acquired the 435,000-square-foot Riverside Business Center in Lehigh Valley, Pennsylvania. The company has since expanded its footprint into seven states.

A recent report by Cushman & Wakefield researchers said the hot industrial market was expected to continue into next year as more than 481 million square feet of industrial space is expected to be leased across the U.S.

Industrial Outdoor Storage catch attention of end-users and investors

The seemingly insatiable demand for large-scale warehouse/industrial buildings has breathed life into another, typically overlooked asset class that is drawing the widespread attention of both end-users and investors alike. Industrial Outdoor Storage (IOS), also known as Outdoor Storage Land (OSL), has emerged as a significant complementary necessity among logistics companies that need space to stage or provide short-term storage for products prior to shipping them to the next destination. The requirement is particularly acute in port city locations, such as Baltimore.

Bethesda, Maryland-based 1788 Holdings, LLC acquired two assets in Baltimore City over the past several of weeks – 6901 Rolling Mill Road and the 350,000 square foot 1601 Wicomico Street – in part due to the existence of available outside storage land, according to company principal Larry J. Goodwin.

“As a port city, Baltimore is a primary destination for roll-on/roll-off cargo, particularly automobiles, trucks and heavy equipment cargo, and there remains continuing demand for storage sites with immediate proximity,” Goodwin explained. “Most of the infill light industrial properties in the immediate trade area do not have excess land for this type of storage, and we are filling this ongoing need. The availability of this acreage represents a significant competitive advantage in the Baltimore City submarket and remains a point of emphasis in our ongoing acquisition strategy.”

Industrial Outdoor Storage has emerged as an valuable piece of the logistics supply chain, with end-users utilizing the space to sort through containers that have recently arrived on overseas vessels. Trucks, automobiles and construction vehicles are regularly placed on the lots in a “layover” situation, while awaiting their next transport to a final destination. The emerging asset class has been called “mission-critical” by some real estate experts and typically range in size from five to 20 acres.

“I often refer the Interstate 95 corridor as the East Coast main street for large-scale warehouse buildings. These facilities need backup land for trucks, materials and products of all sorts and other uses,” stated Mitch Gold, President and CEO of Gold and Company. “Operating an efficient logistics operation means everything in our current environment of next-day commerce, thanks to what many refer to as the Amazon effect. Just-in-time inventory has now become just-in-case inventory, which means warehouses are now overstocked with products they believe consumers will continue to purchase. All of this maneuvering requires trucks and trailers to move products around and sometimes there just isn’t enough space inside the warehouse.”

Gold points to the Fairfield Maritime District in Baltimore City which he terms “a gigantic parking lot full of cars and other vehicles in international transit that recently arrived from international ports of call.”

He adds that “the old trite saying that they’re not making any more land is true, and it remains a premium especially in the Baltimore region because land prices are less expensive than in New Jersey and New York. Plus, no one wants industrial projects around them due to environmental regulations and other complications. The Port of Baltimore is considered the #1 RoRo (roll on/roll off) destination in the country due to its closer proximity than other east coast ports to the mid-west, highway connections and heavy rail component.”

“Two to three years ago, interest and overall demand was increasing for this asset class but now, it has become so popular that the category even has its own name,” stated Dan Hudak, SIOR, Senior Vice President and Principal, MacKenzie Commercial Real Estate Services. “That’s when I realized the Industrial Outdoor Storage was evolving into something significant.

“Mirroring the dramatic growth of the warehouse and industrial sector, the shutdown due to COVID-19 lit a fire beneath the e-commerce industry and placed extreme pressure not only on existing inventory and the development pipeline, but also the need for land to park trucks and vehicles to transport product to consumers. Because of the high barrier of entry into this market, in part due to the dearth of industrial zoned land, suddenly, many different users were chasing relatively few outdoor storage spaces, with long-term users in the construction contracting and utility industries getting squeezed. Available land is always at a premium, but there was a new level of interest among developers to acquire land to build new product, and among end-users to store or stage materials and equipment.”

The trend is happening in Baltimore, in other port cities and nationally.

“The general consensus is that it will only become harder to find suitable outdoor storage sites,” Hudak said. “This, in turn, has dramatically increased pricing and has attracted the attention of real estate investors and private equity firms.”

Furthermore, current events could drive the demand even higher.

“The commercial real estate world is closely watching the movement of the national infrastructure legislation and its impact on the construction and development industries in particular,” Hudak added. “Its passage will especially kick infrastructure contractors into high gear, which will only heighten the interest and need for outdoor storage spaces.”

1788 Holdings Acquires Two Industrial Properties In Baltimore City To Fuel Continued Acquisition Strategy

Bethesda, MD-based company has acquired 14 assets totaling more than one million square feet of space and 38 acres across seven states in 2021, with $57 million total transaction value 

1601 Wicomico Street

1788 Holdings, LLC, a privately-owned commercial real estate and investment firm headquartered in Bethesda, Maryland, has recently acquired two industrial properties in the Baltimore City submarket as part of a regional strategy that has included the purchase of 14 assets totaling more than one million square feet of space and 38 acres across seven states. The group has acquired approximately $57 millionworth of assets in 2021, with a goal of nearly doubling its portfolio size with the acquisition of an additional two million square feet of space throughout the Eastern United States over the next 18 months. 1788 Holdings now owns 17 properties totaling approximately 1.5 million square feet of space, as well as an additional 50 acres of outside storage space in Alabama, Florida, Georgia, Maryland, North Carolina, Pennsylvania and South Carolina, with a total market value of $137 million.

“A confluence of enduring positive fundamentals, combined with our sustained confidence in both the national economy and commercial real estate industry, has fueled our approach over the past year, and we intend to remain aggressive and active in our approach for the foreseeable future to seize emerging opportunities,” explained Larry J. Goodwin, Principal, 1788 Holdings. “These factors include the sustained strength of the industrial, warehouse and outside storage asset categories, declining inventories, the availability of ready capital and the opportunity to acquire under-performing properties in which we can create significant value for our investors over the long-term.”

6901 Rolling Mill Road

Summary of recent Baltimore City acquisition activity

Since August, 1788 Holdings has separately acquired a 75,000 square foot light industrial/manufacturing building at 6901 Rolling Mill Road, as well as a 351,000 square foot light industrial/manufacturing asset at 1601 Wicomico Street for a combined $22.8 million. Situated on 6.4 acres of land, 6901 Rolling Mill Road is located just over one mile from the Eastern Avenue exit of Interstate 95 and features outside storage land and direct access to the Port of Baltimore. It is presently 100% leased to one tenant. 1601 Wicomico Street is positioned directly adjacent to Interstate 95 from the Russell St. North exit and features nearly three acres of outside storage land. It is 100% leased with three tenants.

“Acquiring Outside Storage Land (OSL) remains a point of emphasis in our acquisition strategy, as we believe the availability of this acreage represents a significant competitive advantage in the Baltimore City submarket,” Goodwin added. “As a port city, Baltimore is a primary destination for roll-on/roll-off cargo, particularly automobiles, trucks and heavy equipment cargo, and there remains continuing demand for storage sites with immediate proximity. Most of the infill light industrial properties in the immediate trade area do not have excess land for this type of storage, and we are filling this ongoing need.”

Industrial strength of Baltimore City submarket

Prologis, Inc., a real estate investment trust headquartered in San Francisco, recently published a market report which ranked Baltimore as the top performing market internationally, in terms of rental growth, at 11%. The report additionally stated that “in the years ahead, replacement cost growth and barriers to new supply in urban areas would continue to provide significant lift to the rental growth in Baltimore and other land-constrained markets.” The Prologis report stated that Baltimore had recently modernized its distribution network, and is now in line to serve the logistics needs of larger markets such as Philadelphia and New York.

Commercial brokerage firm CBRE reported a 1.6% vacancy level for industrial product in Baltimore City, which is significantly below the 5.1% vacancy rate in the larger Baltimore Metropolitan Statistical Area (MSA). CBRE further listed Baltimore as its fifth-best market in the United States for projected rent growth over the next five years, with cumulative rent growth expected to approach 32%. The group cited the limited ability to add new supply and rising replacement costs as major reasons for this increase.

Long-term acquisition strategy has multi-regional focus

1788 Holdings created the company’s light industrial platform in 2018 with the purchase of Riverside Business Center, a 435,000 square foot industrial building located in Lehigh Valley, Pennsylvania. The company has since expanded its targeted geographic footprint to seven states and continues to seek opportunities in additional markets.1788 Holdings is particularly interested in acquiring under-performing warehouse/industrial assets with the opportunity to re-tenant, complete leasing programs and improve operational efficiencies.

In its 2021-2022 North American Industrial Outlook the brokerage firm Cushman & Wakefield stated, “the tailwinds of e-commerce and heightened focus on supply chain resiliency will keep the industrial market in an upswing with record construction and new all-time high rental rates on the horizon.” More than 481 million square feet of industrial space is expected to be absorbed throughout North America during this time period.

“Unprecedented times such as these present extraordinary opportunities and we have the team, the determination and the capital to take advantage of economic and market conditions to the benefit of our investor group,” Goodwin concluded.

Q&A: Larry Goodwin on 1788 Holdings’ Industrial Strategy in DC Region

At 1788 Holdings, a real estate investment company based in Bethesda, Md., light industrial assets are a major focus, and the company has been increasing its reach in the Baltimore and Washington, D.C., region over the last few years. 

For instance, 1788 acquired a 10-asset portfolio of well-located retail pad sites — vacant lots near retail centers — throughout the Washington, D.C., metro. Eight of the sites are former Capital One Bank branches and two are land parcels that were to be developed as bank branches.