NNN-Leased Defense Manufacturing Portfolio

Marcus & Millichap is pleased to exclusively represent the ownership in the sale of a five-building defense manufacturing portfolio located in Hagerstown, Maryland and Johnstown, Pennsylvania. The portfolio totals 97,379 square feet across 13.18 acres of industrial-zoned land and is 96% leased to Electromet Corporation, a defense manufacturer with a 51-year operating history. The remaining 4% is leased to Antietam Broadband, a full-service broadband provider with deep local roots. Electromet has a weighted average lease term of 3.11 years across four NNN leases, while Antietam Broadband recently signed a 1-year lease extension with three 1-year options.

Founded in 1974, Electromet Corporation is a precision manufacturer of custom enclosures used in mission-critical defense systems such as tactical ground vehicles, radar systems, and command-and-control platforms. Its products meet stringent military standards for strength, vibration resistance, and electromagnetic shielding, serving major defense programs and prime contractors including BAE Systems and General Dynamics.

Electromet was acquired in 2018 by Jonathan Engineered Solutions (JES) and became part of its Rugged Enclosures division. JES, owned by New York–based private equity firm JLL Partners, designs and manufactures precision motion-control and engineered hardware systems for the defense, aerospace, and industrial sectors. Founded in 1988, JLL Partners manages approximately $6 billion in committed capital and has completed over 50 platform investments across manufacturing, aerospace, defense, and healthcare. Their long-term capital support and strategic oversight provide a strong foundation for continued growth of JES and Electromet.

The portfolio consists of five buildings on four parcels — four in the same Hagerstown industrial park and one in Johnstown, PA. Electromet has operated from these locations for decades, employing approximately 142 skilled workers, many of whom have decades-long tenures with the company. Despite having roughly three years of remaining lease term, Electromet recently invested over seven figures upgrading its Eldridge Drive facility and purchasing new machining equipment. The company is also expanding production capacity at the Johnstown site and hiring additional employees to meet growing demand. Management has indicated that the buildings adequately support current and future operations, suggesting a high likelihood of lease renewal.

This offering represents an opportunity to acquire a portfolio of well-maintained manufacturing assets leased to a stable, defense-focused tenant with recession-resistant operations. Both Hagerstown and Johnstown are healthy industrial markets, with sub-200,000 SF vacancy rates of 5.6% and 3.9%, respectively. Given Electromet’s five-decade local presence, ongoing capital investments, and available expansion capacity, lease renewals in 2028 and 2029 appear highly probable.