Kelly Building in Sale/Leaseback

Deals & Transactions

Published in the November 30, 2020 issue of Maryland Newsletters. Please subscribe at

The Kelly Building, housing both office and warehouse in Upper Marlboro, sold recently.

Kelly Properties LLC sold the 25,000 square foot building at 8431 Old Marlboro Pike for $4.1 million recently. An entity adopting the building address, as 8431 Old Marlboro Pike LLC, is the new owner.

The building traded fully leased, as both Kelly HVAC and Kelly Electric
operate there, and they’ll remain in place on a lease going forward.
With two stories of office totaling 10,000 square feet, and 15,000 feet devoted to warehouse, the building sits on a total of 3.36 acres. (That includes a half acre of land on Burtons Lane).

Ed Luckett, Marcus Daniels, and Terry Rogers at NAI Michael repped
the seller, while Ken Griffin at NAI Michael and now with Friend
Commercial Real Estate, and Josh Bregman and Dominic Digiovannantonio at NAI Michael but now both at JLL, brought the buyer.

Winterizing Property

Winter Property Preparation

Market Insight

The Old Farmer’s Almanac says it’s going to be a colder than usual Winter, though the NOAA (National Oceanic & Atmospheric Administration) forecasts a milder Winter for the central lying states including MD, VA and DC. Plus, with so many people working from home, winterizing properties is more pertinent this year.

A building owner of vacant property should be well prepared by making sure the heat is set for a minimum of 50 degrees or higher and winterizing any plumbing within the building. The costs of preparing your vacant building for freezing temperatures are small compared to the costs and stress of dealing with a repair, which can sometimes be major.

I advise property owners to prep their vacant spaces or at least keep the heat on to make sure nothing freezes. Most listen, though a few did not or just plain old forgot. Well, some got lucky and nothing happened, while others paid the price when they found out that pipes had burst within the building.

Unfortunately, many times it is an adjoining tenant or a neighboring tenant/owner that eventually sees water flowing out of the entrance doors or loading doors of a property.

Don’t be penny-wise and dollar foolish when it comes to winter-prep on your property. Also, frequent property visits during these cold periods is also advised, since heating systems aren’t 100% reliable.

By Andy Mayr, CCIM, NAI Michael

Naylor Parcel Trades: Berman is Retail Buyer at Route 5 Center

Company NewsDeals & Transactions

Berman Enterprises has acquired a shopping center that fulfills the timeless real estate adage about location – it’s near the Naylor Road Metro Station. The Rockville firm acquired the 128,000 square foot retail center at 3100 Branch Avenue, in Temple Hills, for an undisclosed price. On 14.5 acres, it sits just opposite the Metro Station on Route 5 at Naylor Road. Berman will manage the property as retail for the foreseeable future, but envisions redevelopment on the parcel, zoned as it is for mixed-use.

It is the Metro location that has attracted interest in the past and that Berman anticipates will yield that redevelopment. JBG had put the ground under contract for a time when the huge CIS solicitation came out several years ago, with hopes to land the nearly 600,000 square foot build-to-suit requirement. JBG went as far as entitling a site plan that would accommodate the building, but the award went to the other leading Green Line contender, at the Branch Avenue Metro Station.

Tenants at 3100 Branch include the roller-skating throwback Temple Hills Skating Plaza, which is still open and playing the hits as the skaters go round. The seller was Isaiah 58 Properties and Berman bought it as BE Isaiah LLC. The retail center is Berman’s second Naylor-area buy, for it acquired the property at 3225 Naylor Road, in 2014, for $800,000.

Barbara Richman Kahn, Jeff Ludwig and Sally Ludwig at NAI Michael brokered the sale.

This story was published in Maryland Newsletters. If you are interested in subscribing to the Maryland Newsletters, please visit their website at

Marcus N. Daniels selected to Truist Community Advisory Board

Company News

Congratulations to Marcus N. Daniels for his appointment to the Truist Community Advisory Board! Marcus has an extensive background in community development and brings a wealth of knowledge to the Truist board. See below for Marcus’s message of thanks.

I am happy to share I have been selected to join the Truist Community Advisory Board. About a year ago during the merger of BB&T Bank and SunTrust Bank into what is now Truist, both banks made a $60 billion commitment to address some of the most critical issues in communities across the country from community economic development, education, affordable housing, healthcare and workforce development.

Truist is planning on making investments throughout its market area in Alabama, Arkansas, D.C., Florida, Georgia, Indiana, Kentucky, Maryland, Mississippi, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and West Virginia.

Truist will work with our Community Advisory Board composed of representatives of businesses and nonprofit organizations serving low- and moderate-income communities, with the goal of providing information and updates on the progress of the plan and obtaining input and feedback on emerging issues and challenges facing LMI families and communities.

I am very excited and thankful for the opportunity to continue to use my collective talents and skills to make our communities better and help provide opportunities to those who mostly need it. Learn more here: Thank you.

buying church property

Critical Steps for Buying Church Property

Market Insight

From The Religious Real Estate Review, August 2020
By Marcus Daniels, Ed Luckett, & Terry Rogers

Whether you’re just starting a ministry or your church’s congregation has outgrown its building, it’s likely that you’ve had to take on an unusual new role: that of a real estate expert. Although faith leaders understand how to preach effectively and build a community of believers, not many are equipped with the knowledge for buying church property. From evaluating the value of the property to gaining zoning approval to inspecting the facility, there are many steps church leaders need to go through before signing on the dotted line.

But church leaders are not the only ones who lack familiarity with the process of selling or buying church property. Many commercial real estate brokers also lack the familiarity with laws and regulations unique to religious properties.  Consequently, many lack the vision and strategic guidance to thoughtfully lead you through this process. Matters regarding church real estate require a specialized approach that should include an adviser who has both real estate expertise and experience working with churches.

If you are considering buying a church building or purchasing a nontraditional property to convert into your congregation’s new home, here are four critical steps to position your church for success.

Before you can even think about selecting a site, everyone from your church administrators to your congregation members need to be aligned in terms of your long-term vision and how the new building will help you achieve the objectives and goals you have set. An experienced church broker can help shepherd a congregation through conversations about location, property-specific issues and design decisions to avoid a disconnect within your congregation.

Get your business documents, attendance and balance sheets for the past three years and keep your financials safe and secure to be prepared to create a financial plan. Make sure your financial and organizational records are in order. You should be able to produce financial statements for the past three to five years, information about any existing debt obligations and current assets, as well as tithes and offerings. Additionally, review your articles of incorporation or bylaws, and determine who is going to be the signatory for the execution of the documents.

Next, you need to create a financial plan for how the congregation will lease or purchase the property. If you choose to lease, make sure you understand the real market value of the property so you know if you can handle lease payments. If you choose to purchase, you will probably use a combination of funding sources, such as a capital campaign, donations and bank loans. A good rule of thumb: Churches can borrow three times their annual giving.

There are many spiritual, emotional, and congregational considerations when selecting a site, and it’s helpful to remember that the “perfect property” doesn’t exist. Church leaders need to be flexible. For example, many churches are leasing or buying nontraditional church buildings because there is a low inventory of existing churches for sale. If you have identified a potential building, investigate local regulations and conditions, including easements, parking and zoning regulations, and utilities, to determine if the property can be used for religious purposes. Additionally, gain a clear understanding of what it will cost to convert the building into a suitable church.

Unfortunately, without the aid of an experienced church broker, many churches purchase buildings that aren’t zoned to be churches or that they ultimately cannot afford because they did not account for how much it would cost to repurpose or renovate.  If you do find an existing church building in a good location that fits within your budget, make sure it suits your needs and is in good physical condition, so renovations required are more cosmetic than infrastructural.

Unlike a traditional real estate agent who must string together the professionals necessary to complete the purchase of a property, an experienced church broker offers a full turnkey solution. It pays to find the right partners who can connect you with church lenders and capital campaign leaders, organize documents and reports, manage the zoning process, oversee the inspection of the facility and the construction process, seek congregational approval, negotiate the deal, and hand you the key.

This article is an excerpt from The Religious Real Estate Review, a newsletter providing the religious community with up-to-date news on real estate development specifically by houses of worship in the Washington DC Metro region. Each issue provides updates on recent transactions, real estate development, religious news, and upcoming community events.

Marcus N. Daniels, Ed Luckett, and Terry Rogers of NAI Michael are the editors and publishers of The Religious Real Estate Review and have over 30 years of combined experience in commercial real estate sales and leasing specifically with churches and houses of worship.

Click here to view the latest issue of the Religious Real Estate Review.

UMD social distancing pushes need for more housing

UMD Social Distancing Increases Need for Housing

Market Insight

UMD social distancing requirements push the need for more off-campus housing. New construction is underway for both on- and off-campus housing. Developments still progressing despite COVID-19 slowdown. The latest issue of the PGCRE Newsletter: Upper County is available! James Miers and Stephen Catalano discuss the latest news in College Park and the surrounding area. Read more below or click here for the full newsletter.


When the University of Maryland, College Park reopens on August 31st, social distancing rules will force changes in daily life: masks will be required in university buildings, students will be asked to wipe down surfaces they use, and classes of over 50 students will be entirely online.

Meanwhile, the university expects to house “more than 75%” of students who applied for on-campus housing, despite converting all triple and quad dorm rooms to doubles. Some dorm lounges will be converted to residences – a change that began prior to the pandemic – and some on-campus lounges outside of dormitories will be closed entirely.

The decreased density of on-campus housing means there is more demand for off-campus living. Private student housing living quarters tend to be less dense buildings already: accommodation per square foot is higher and the number of students using each bathroom and toilet is lower. For these reasons, it is likely that the demand for off-campus housing will increase in the short term as the pandemic reduces on-campus availability more than it has reduced demand for enrollment. According to one property manager at a student housing complex, phones have been “ringing off the hook” after the university first clarified its fall semester living guidelines and classroom rules on June 15th.


Ironworkers Trade Former HQ Buildings

Deals & Transactions

The Ironworkers Union had already moved to its new quarters in Largo. Now it has sold the property it left behind.

The Union turned 9100 Old Marlboro Pike over to the Baltimore Washington Labor District Council, in a $3 million deal just closed recently. The sale included two buildings, totaling 14,020 square feet, one that served as office and union hall, the other as a training center.

The Ironworkers Union, which includes the fearless folks that walk the steel beams on skyscrapers, had bought 9301 Peppercorn Place in Largo in early January, for $5.25 million. Marcus Daniels, Ed Luckett, and Terry Rogers at NAI Michael repped the Ironworkers on Old Marlboro Pike, while Andy Mayr at the same firm brought the Labor District Council.

Studio 3807

Multifamily Project Promote Route 1 Density

Company News

According to real estate data giant CoStar Group, this year over 800 multifamily units have been delivered in a market covering everything in northern Prince George’s County from the Beltway to the District line, and as far east as Greenbelt. Apartments in this market show 5.7% vacancy and 3.2% rent growth. These numbers are better than what industry experts have expected.

The effect on value is profound. Properties with the right mix of location, zoning, and size for multifamily construction are selling historically well. Access is crucial and proposed projects need parking or dense walkability. Many developers are still looking for streetside properties, either for current development potential or as long-term hold properties.

While some are asking if the market is in a value bubble, there are structural changes that will support density and greater values in the future too. Two new grocery stores along Route 1- Whole Foods and Lidl- are backing multifamily expansion as do offices like the WeWork near campus and music venues such as the Hall CP. The Purple Line is currently under construction. It will form a unique transit connection between Prince George’s and Montgomery Counties. This connection will promote denser development in each.


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