FRP Development Corp. is a full service Maryland real estate development management company specializing in commercial and industrial real estate. The company is one of two wholly-owned subsidiaries of FRP Holdings, Inc. NASDAQ ticker symbol “FRPH”, a Florida-based holding company engaged in the real estate business.
In 1989, FRP Development Corp. was formed with offices located in Baltimore, Maryland and since its inception has been engaged in the business of acquiring, developing, owning and operating commercial and industrial buildings predominately in the Baltimore/Washington DC/Northern Virginia market area. This market has consistently been ranked in the top tier for industrial/warehouse performance in the United States. We focus primarily on constructing Class A warehouses/office buildings between 60,000–150,000 square feet for multi-tenant use to create cash flow from leasing activities and our “cost-conscious” in-house property management team. We have also built and manage three office buildings. Additionally, over the years, we have opportunistically acquired 11 operating flexible warehouse/office buildings, typically in connection with a 1031 exchange opportunity. Today, our developed building platform consists of over 3.6 million square feet that we own and manage.
We own and are continuously entitling and developing several parcels of land that are at various stages of their development, from “highest and best use” studies to income producing ground rents. At FRP, our primary operating strategy has been to acquire, entitle and ultimately develop commercial/industrial business parks providing 5–15 flexible sized building “pads” which we then typically convert into our developed buildings portfolio. To date, we have converted a majority of these pad sites into developed buildings in 11 different business parks that we continue to own and manage. The remaining “pads” are fully entitled, located in four different business parks, and can support an additional 1.2 million square feet. Having these sites ready for vertical construction has rewarded us in the past and we believe will continue to do so in the future. It is the main reason why we were successful in winning three separate “build-to-suit” projects totaling 373,000 s.f. of class A industrial warehouses for a Fortune 500 company in 2012, 2013 and 2014.
In addition to our inventory of finished building lots, we have several other properties that were either spun-off to us from Florida Rock Industries in 1986 or acquired by us from 3rd parties. These properties, as a result of our “highest and best use” studies, are (i) being prepared for income generation through sale or joint venture with third parties, (ii) under interim term ground leases awaiting “higher value” markets, or (iii) under excellent valued long term ground leases.
Through our other operating subsidiary, Florida Rock Properties, Inc., we own 14 properties comprising approximately 15,000 acres currently under lease for mining rents or royalties. Other than one location in VA, all of these properties are located in Florida and Georgia. Based on history, we believe strongly in the potential for future growth in construction in these two States which directly benefits our mining royalties profitability. Additionally, these locations provide us with excellent opportunities for valuable “2nd lives” for these assets through proper land planning and entitlement. Our current mining tenants include Vulcan Materials, Martin Marietta and Cemex, among others. With over 400M tons of permitted reserves on our balance sheet, we view this part of our business as a very low risk opportunity with lots of upside potential for many years to come.