This property presents an excellent opportunity for development into a multifamily residence, condominiums, assisted living facility, or other commercial uses, pending a zoning change. The current owner has laid the groundwork with a detailed plan for a luxury hotel, supported by an extensive market study, ready to be shared with a serious buyer. Located in the heart of Hagerstown, Maryland, this historic two-story brick building, formerly a vibrant childcare center, is ideally positioned directly across from City Park. The property spans 2.67 acres and offers more than 24,000 square feet of adaptable space, including a fully finished basement. Its layout, featuring a broad central corridor, six classrooms, administrative offices, and restrooms on each floor, makes it versatile for various commercial endeavors. The site also includes a large fenced outdoor space and ample paved parking, enhancing its commercial viability.
The proposed Surrey Hill Hotel aims to redefine luxury accommodation, covering 34,000 square feet with 27 upscale guest rooms, a holistic spa, a premium restaurant, and a bar opening onto a stone patio overlooking City Park. The architectural plan integrates with the building's Neoclassical Revival roots, adding extensions that complement its historic charm. The property's legacy as the Surrey School since 1908, later serving as a childcare facility, is now poised for transformation into a boutique hotel and spa, aligning with Hagerstown's urban renewal efforts.
Located at 535 Summit Avenue, Hagerstown, Maryland 21740, the property enjoys strategic positioning at the intersection of Virginia Avenue and City Park Drive in Southwest Hagerstown, ensuring excellent connectivity. It is easily accessible, linking to major interstates and highways, with prime regional access.
Adding to its appeal, this property is situated in a high occupancy submarket experiencing strong rent growth. Washington County has seen the development of 17 million square feet of new warehouse space since 2020, highlighting the area's economic expansion. Moreover, the property is just minutes from the new Hagerstown Logistics Center, further underscoring its strategic importance and potential for a wide range of investors and developers looking to capitalize on the area's growth and development opportunities.
Hagerstown stands as the largest submarket in Washington County, acting as a crucial logistics hub that connects coastal markets with the Midwest and Southeast. Thanks to its prime location at the crossroads of I-70 and I-81, Hagerstown is home to distribution centers for several well-known brands and continues to draw new business. Over the past five years, more than 12 million square feet of industrial space has been leased, attracting developers and boosting the local economy. Notably, over 25% of the metro's employment is tied to the trade, transportation, and utilities sector.
Within a two-mile radius of the property, the industrial sector boasts approximately 515k square feet of space ranging from 15k to 100k square feet, with a low vacancy rate of 5.5%. Market rents for this asset class have remained stable at an average of $7.88 per square foot. Rents have seen an increase of over 10%, and the sales volume in the last 12 months exceeded $150 million, indicating a robust and growing market.
