The 203,000-square-foot building near Washington is fully leased to Harris Company, a mechanical contractor serving data-center clients.
Stockbridge acquired 8511 Pepco Place, a 202,976-square-foot industrial facility in Upper Marlboro, Maryland, for $56.6 million. TA Realty sold the property. Cushman & Wakefield arranged the transaction.
The building is fully leased to Harris Company, one of the nation's largest mechanical contractors. Harris expanded into the balance of the building and occupies 75,000 square feet at the neighboring 8520 Pepco Place, Cushman & Wakefield said.
Harris is a provider to data-center hyperscalers. The facility is located adjacent to I-495 and I-95, providing direct connectivity throughout the D.C. Metro region. The property is approximately 15 miles from Washington.
Jonathan Carpenter, Graham Savage, Dawes Milchling and James Check of Cushman & Wakefield's Mid-Atlantic Industrial Advisory Group represented TA Realty in the transaction.
"8511 Pepco Place offered a compelling opportunity to acquire a Class A industrial asset with strong existing tenancy from Harris Company and immediate access to the entire Washington, D.C. metropolitan region," Carpenter, an executive managing director with Cushman & Wakefield, said.
The Deployment Angle
Family Office Real Estate Daily Desk · our analysis, not the source's
The transaction valued the building at roughly $279 per square foot. That pricing reflects the strength of single-tenant industrial properties leased to operators serving the data-center sector, even in tertiary Maryland submarkets.
For family offices considering co-investment alongside institutional sponsors in logistics or industrial platforms, this deal illustrates the valuation premium attached to assets with hyperscaler-adjacent tenants. Harris Company's expansion into neighboring space signals lease renewal likelihood and potential for long-term cash flows with minimal tenant rollover risk.
A direct-ownership strategy would require underwriting the credit profile of a single mechanical contractor and the durability of data-center construction demand in the Mid-Atlantic. The highway access and proximity to Washington provide geographic optionality, but the lack of multi-tenant diversification means residual value depends entirely on Harris or a comparable replacement tenant.
An LP commitment to a platform rolling up similar assets would offer diversification across tenant rosters and metro areas. The downside is lower control over individual asset underwriting and exposure to broader sponsor acquisition discipline. For principals seeking concentrated exposure to the data-center supply chain, a separate account or programmatic joint venture with a sponsor active in the corridor would allow deal-by-deal selectivity while sharing diligence costs.
