The Pinkard Group is doubling down on the booming industrial market in Prince George's County, acquiring a property near a new warehouse it is developing.

The D.C.-based firm announced Thursday it acquired the industrial building at 8700 Ritchie Drive in Capitol Heights, in partnership with Principal Real Estate Investors, for $12.3M.

The sale of the 103K SF property pencils out to $119 per SF. United Bank provided financing for the acquisition. The seller was Hampton Heights One LLC, a Wheaton, Maryland-based entity, property records show.

The property, built in 1999, last sold in 2000 for $4.8M, property records show. The building is 40% leased to building supplier Rew Materials.

The industrial market has remained one of commercial real estate's rare bright spots during the coronavirus pandemic, and demand has ramped up in the D.C. area over the last several months. Developers have been looking to break ground on new projects in the area to meet that demand.

Pinkard, in partnership with a Columbia Property Trust-managed opportunity zone fund, is currently developing a 160K SF last-mile warehouse at 716 Ritchie Road, less than a half-mile from the property it just acquired.

"8700 Ritchie Drive reflects The Pinkard Group's continued focus on acquiring and developing projects in infill, high-barrier markets and represents a rare opportunity to acquire an inside-the-beltway, Class-A industrial building well-below today’s escalating replacement cost," Pinkard Group principal Fred Underwood said in a release.