4305 Lime Kiln Road

Marcus & Millichap is pleased to exclusively present 4305 Lime Kiln Road, an 8.3-acre industrial outdoor storage property in Frederick, Maryland. The site offers +/- 7 usable acres, General Industrial (GI) zoning, a potential rail spur, and 14,710 SF of service buildings featuring two loading docks, six drive-in doors, office space, and shop space - a rare combination of functionality and zoning flexibility.

GI zoning is the County’s most flexible industrial designation and the only zoning that permits unrestricted outdoor storage. Only 71 properties carry GI zoning, and just five sites are investor-owned and leasable. All competing sites are fully occupied, reflecting an exceptionally limited supply of IOS-capable sites.

It is surrounded by major industrial users such as Bimbo Bakeries, United Rentals, ABC Supply, a Kroger distribution center, a Home Depot distribution center, Builders FirstSource, McCormick Paint, and others. With no nearby outdoor storage competition and with quick access to I-270, I-70, and US-15, the location has proven highly attractive to super-regional users servicing the high-income suburbs around D.C.

When the site was previously vacated by LKQ, ownership received immediate leasing and purchase interest from major national operators including White Cap, BrandSafway, EquipmentShare, ABC Supply, United Rentals, First Energy, and Concrete General, demonstrating the depth of demand for GI-zoned IOS sites.

The site is currently NNN-leased to Rowan Green Data, LLC (DBA Rowan Digital Infrastructure), a leading national hyperscale data-center developer that is developing three hyperscale data-centers in the Quantum Frederick data-center campus, 7-minutes to the south. While construction of the three data centers will be finished prior to the lease expiration, Rowan has the land and utility capacity to develop additional datacenters. Further, their stated business strategy is multi-phase buildouts in concentrated locations, and their planning and construction approvals reflect that strategy.

The tenant’s current rent is well below market, and its 2028 renewal option resets rent to Fair Market Value. The most recent IOS lease in Frederick County was a 2024 lease for $2.60/Land SF for 1.59 Acres. This upside is further supported by materially higher IOS rents in neighboring Montgomery County, where rates range from $2.75–$3.50/land SF in Gaithersburg and $4.00–$6.00/land SF in Rockville.

The highly constrained supply of IOS-capable sites, demonstrated leasing demand and below market rent provides a future owner with a clear path to embedded rent growth upon renewal or re-tenanting. Further, the 15-year construction timeline of Quantum Frederick is projected to create 48,000 jobs and generate $10.5 bn in economic impact, which should support future rent growth.