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$2,900,000

Est. payment - /mo

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19,031 SqFt

Price Dropped by $450K

501, 493, & 489 MAIN STREET Prince Frederick, MD 20678

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SOL & MAISON

hello@solandmaison.com +1(855) 765-6241

UPDATED:

02/21/2025 06:42 PM

Key Details

Property Type Commercial

Sub Type Office

Listing Status Active

Purchase Type For Sale

Square Footage 19,031 sqft

Price per Sqft $152

Subdivision Duke Street Commons

MLS Listing ID MDCA2013822

Originating Board BRIGHT

Year Built 2005

Tax Year 2023

Property Sub-Type Office

Property Description

The Seller's operating structure is set up in three layers. Initially as a Land Condo (Old Field Commons) with 6 building sites each with 10% direct ownership interest (60%) and a 40% undivided common interest representing the common areas. Of the 6 pad sites, 3 are operated by single business owners and 3 are operated as condominiums with multiple condominium suite owners. The allocation of the common area charge among the 6 sites is based on building square footage. Building capacity is maximized for each site. The next level is shared building expenses. Each condominium building has separate shared building expenses that are allocated by the ratio square footage of each condo unit to the whole in each building. Taxes and utilities are billed by individual condo units. Each condominium unit provides insurance coverage to include their use of the common areas. There is not a separate liability policy covering Old Field Commons. The third level is management fees. Both the Land Condominium and the three building condominiums have the authority to contract for management services, which are currently done as a part of the Prince Frederick Association (the Seller). These management fees are separately calculated for the CAC and Building Operating Costs and allocated to the building site owners or the condominium unit owners. What is for sale are 8 individual units in 3 buildings where the Sellers control 19,031 square feet of 26,430 in total. Typically, the occupancy cost to the tenant can consist of Rent, CAC, Building Operating Costs, Management Fees, Taxes and insurance. In this case, the Seller currently absorbs most of these typical pass -through costs on a gross lease basis. It is anticipated as leases renew, they will be replaced with true net leases. The net effect is that the leases are grossly under market and produce a relatively low NOI. The asking price reflects this in the cost per finished foot is a remarkably low $139 per square foot in a $220 square foot market. With new management and an adjustment to current market rents, the NOI over 2 years could rise to at least $18 per foot, that would reflect a growth in ROI and a restated cap rate of 13%, and an increase in value based on an 8% cap rate of $1,367,600 over the $2,900,000 paid. This is a great property with a reliable mix of tenants - medical, legal, dental, insurance, and government,-Very convenient to the court house, governmental center and hospital , - In the heart of historical Old Town Prince Frederick. A comprehensive property management effort over the short term will generate 30%+ increase in equity. Call for a detailed rent roll and financials.

Location

State MD

County Calvert

Zoning TC

Interior

Hot Water Electric

Heating Heat Pump(s)

Cooling Central A/C

Flooring Other, Wood

Heat Source Electric

Exterior

Garage Spaces 218.0

Utilities Available Cable TV Available

Water Access N

Roof Type Asphalt

Street Surface Access - On Grade,Black Top

Accessibility Other, 32\"+ wide Doors, Ramp - Main Level, 2+ Access Exits, Doors - Lever Handle(s), Doors - Swing In, Elevator

Road Frontage City/County

Total Parking Spaces 218

Garage N

Building

Foundation Block, Crawl Space

Sewer Public Sewer

Water Public

New Construction N

Schools

School District Calvert County Public Schools

Others

Tax ID 2-143844

Ownership Condominium

Security Features Fire Detection System

Special Listing Condition Standard

Listed by Michael P O'Brien • O'Brien Realty ERA Powered