Bavar Properties Group plans distribution center

January 20, 1995|By Kevin L. McQuaid | Kevin L. McQuaid,Sun Staff Writer

Bavar Properties Group LLC has purchased a former steel-processing facility in Anne Arundel County with the aim of converting it into a distribution center.

Bavar intends to renovate and expand the vacant Jorgensen Steel building in Hanover to 192,000 square feet. The speculative $6 million project is scheduled to be completed in August.

"There has never been a better time to do a project such as this, because in the past two years the demand side of the equation has outpaced the supply," said David I. Bavar, president of Bavar Properties Group and a former principal of KLNB Inc., a real estate firm specializing in industrial property.

Financing for the renovation and addition to the 14-year-old building will be provided by First National Bank of Maryland.

The building is at 7463 New Ridge Road, in the 300-acre Baltimore Commons Industrial Park. Bavar Properties, a Timonium investment firm, bought the facility from the Earle K. Jorgensen Co., which abandoned the building in 1993. Robert Z. Smith, a KLNB Inc. vice president who represented Bavar and will market the facility, said the building's high ceiling and proximity to Interstate 95 via an extension of Route 100 will make it a "near-perfect" distribution facility. The building can stack items 40 feet high, and the ceiling in the planned addition will be 30 feet high.

With improvements in distribution technology, companies are increasingly opting for vertical storage.

Bavar's action marks the second time in as many weeks that a real estate developer has moved forward with plans for a speculative warehouse project in Anne Arundel County, in response to a surge in industrial real estate activity.

Last week, Constellation Real Estate Group announced plans for a new $10.5 million, 250,000-square-foot warehouse in its Brandon Woods Business Park.

Both groups said they decided to proceed because industrial vacancy in the Baltimore-Washington corridor has dropped to roughly 5 percent, the lowest level since 1988.

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