FRP Holdings, Inc., a holding company, engages in various real estate businesses.
Segments
The company’s business segments are: leasing and management of industrial and commercial properties (the ‘Industrial and Commercial Segment’), leasing and management of mining royalty land owned by the company (the ‘Mining Royalty Lands Segment’), real property acquisition, entitlement, development, and construction primarily for multifamily, industrial, and commercial, or residential properties, either...
FRP Holdings, Inc., a holding company, engages in various real estate businesses.
Segments
The company’s business segments are: leasing and management of industrial and commercial properties (the ‘Industrial and Commercial Segment’), leasing and management of mining royalty land owned by the company (the ‘Mining Royalty Lands Segment’), real property acquisition, entitlement, development, and construction primarily for multifamily, industrial, and commercial, or residential properties, either alone or through joint ventures (the ‘Development Segment’), ownership, leasing, and management of apartment buildings through joint ventures (the ‘Multifamily Segment’).
The Industrial and Commercial Segment owns, leases, and manages in-service commercial properties, wholly owned by the company or through joint ventures. This includes eight warehouses in two business parks, an office building partially occupied by the company, and two ground leases.
The company’s Mining Royalty Lands Segment owns several properties totaling approximately 16,648 acres, currently under lease for mining rents or royalties, and an additional 4,280 acres through its Brooksville joint venture with Vulcan Materials. Other than one location in Virginia, all of its mining properties are located in Florida and Georgia.
The company’s Development Segment owns and continuously monitors the highest and best use of parcels of land that are in various stages of development. The overall strategy for this segment is to convert all of the company’s non-income producing property into income-producing property through an orderly process of constructing new apartment, retail, warehouse, and office buildings to be operated by the company or sold to, or joint ventured with, third parties. Additionally, the company’s Development Segment will acquire land outright or form joint ventures for new developments on land not previously owned by the company.
The Multifamily Segment includes joint ventures that own, lease, and manage buildings that have met its initial lease-up criteria. The company intends to transfer additional joint ventures from its Development Segment into this segment as they reach stabilization. Stabilization occurs when a minimum occupancy threshold has been achieved for a certain period of time.
Customers
In the Mining Royalty Lands Segment, the company has a total of five tenants currently leasing the company’s mining locations, one of which, the Vulcan Materials Company (‘Vulcan’ or ‘Vulcan Materials’), accounted for 23% of the company’s consolidated revenues in 2024.
Sales and Marketing
The company uses national brokerage firms to assist it in marketing its vacant properties. The company’s hands-on in-house management team focuses on tenant satisfaction during the life of the lease. The company employs this tactic because of its positive impact on its tenant renewal success rate over the years.
Properties
The company owns (predominately in fee simple, but also through ownership of interests in joint ventures) approximately 21,500 acres of land in Florida, Georgia, Maryland, Virginia, South Carolina, and the District of Columbia. This land is held by the company in four distinct segments: Industrial and Commercial Segment (land owned and operated as income producing rental properties), Mining Royalty Lands Segment (land owned and leased to mining companies for royalties or rents), Development Segment (land owned and held for investment to be further developed for future income production or sales to third parties), and Multifamily Segment (ownership, leasing, and management of apartment buildings through joint ventures).
Industrial and Commercial Segment: As of December 31, 2024, the Industrial and Commercial Segment included nine buildings at four commercial properties owned by the company in fee simple, as follows:
34 Loveton Circle in suburban Baltimore County, MD, consists of one office building totaling 33,708 square feet, which is 90.8% occupied (16% of the space is occupied by the company for use as the company’s Baltimore headquarters). The property is subject to commercial leases with various tenants.
155 E. 21st Street in Duval County, FL, is an office building property that remains under lease through March 2026. The company permitted the tenant to demolish all structures on the property during 2018.
Cranberry Run Business Park in Harford County, MD, consists of five industrial buildings totaling 267,737 square feet, which are 92.1% leased and occupied. The property is subject to commercial leases with various tenants.
Hollander 95 Business Park in Baltimore City, MD, consists of three industrial buildings totaling 247,340 square feet that are 100.0% leased and 100.0% occupied.
Mining Royalty Lands Segment
The company periodically engages consultants to examine remaining sand and stone deposit estimates and geological studies conducted by tenants and their industry professionals.
Mining Properties: The company owns a fee simple interest in 14 open pit aggregates quarries located in Florida, Georgia, and Virginia, which comprise approximately 16,648 total acres. The company’s quarries are subject to mining leases with Vulcan Materials, Martin Marietta, Cemex, Argos, and The Concrete Company. Aggregates consist of crushed stone, sand, gravel, fill dirt, limestone, and calcium, and are used primarily in construction applications.
Nine of the company’s quarries (located in Grandin, FL, Fort Myers, FL, Keuka, FL, Newberry, FL, Astatula, FL, Columbus, GA, Macon, GA, Tyrone, GA, and Manassas, VA; totaling 13,870 acres) are currently being mined, and five of the company’s quarries (located in Marion County, FL, Lake Louisa, FL, Astatula, FL, Lake Sand, FL, and Forest Park, GA; totaling 2,778 acres) are leased but are not currently being mined. The company’s typical mining lease requires the tenant to pay the company a royalty based on the number of tons of mined materials sold from its mining property during a given fiscal year, multiplied by a percentage of the average annual sales price per ton sold. In certain locations, typically where the sand and stone deposits on the property have been depleted, but the tenant still has a need for the leased land, the company collects a minimum annual rental amount. In the fiscal year ended December 31, 2024, aggregate tons sold with respect to the company’s mining properties were approximately 9,351,000.
Brooksville Joint Venture: Additionally, through a joint venture with Vulcan Materials, the company owns a 50% interest in 4,280 acres of mixed-use property in Brooksville, Florida, a portion of which comprises a ground calcium mine that is mined by Vulcan Materials. The company entered into the joint venture in 2006 for the purpose of jointly owning and developing the land as a mixed-use community. In April 2011, the Florida Department of Community Affairs issued its final order approving the development of the project, consisting of 5,800 residential dwelling units and over 600,000 square feet of commercial and 850,000 square feet of light industrial uses. Zoning for the project was approved by the County in August 2012. Vulcan Materials still mines on the property, and the company receives 100% of the royalty on all tons sold at the Brooksville property. In the fiscal years ended December 31, 2024, aggregate tons sold were approximately 203,000.
Other Properties: The company also owns an additional 36 acres of investment property in Brooksville, Florida.
Development Segment – Industrial and Commercial Land
As of December 31, 2024, this segment owned the following future development parcels:
54 acres of land that will be capable of supporting 635,000 square feet of industrial product located at 1001 Old Philadelphia Road in Aberdeen, MD (Crouse land adjacent to Cranberry Business Park).
17 acres of land in Harford County, MD, with a 258,000 square foot speculative warehouse project on Chelsea Road under construction, due to be complete in the second quarter of 2025.
170 acres of land located at 765 Mechanics Valley Road in Cecil County, MD, that can accommodate 900,000 square feet of industrial development.
Development Segment – Land Held for Development or Sale.
As of December 31, 2024, this segment was invested in the following development parcels:
Riverfront on the Anacostia: The Riverfront on the Anacostia property is a 5.8-acre parcel of real estate in Washington, D.C., that fronts the Anacostia River and is adjacent to the Washington Nationals Baseball Park. A revised Planned Unit Development (PUD) plan was approved in 2012 and permitted the company to develop, in four phases, a four-building, mixed-use project, containing approximately 1,161,050 square feet. The approved development includes numerous publicly accessible open spaces and a waterfront esplanade along the Anacostia River. The first phase (now known as Dock 79) was completed through a joint venture with MRP Realty (MRP), and consisted of a single building with residential and retail uses. Upon stabilization in July 2017, this building was the first in the company’s fourth business segment, now known as the Multifamily Segment. The second phase (The Maren), also completed through a joint venture with MRP, consists of a single building with residential and retail uses, and was added to the Multifamily Segment effective March 31, 2021. The final two phases, Phase 3 and Phase 4, remain under a first-stage PUD approval expiring April 5, 2025, permitting 599,545 square feet of hotel and office development with first floor retail. The company is in the process of modifying, amending, and extending the existing PUD to allow for residential development with first floor retail.
Hampstead Trade Center: The Hampstead Trade Center property in Carroll County, MD, is a 118-acre parcel located adjacent to the State Route 30 bypass. The parcel was previously zoned for industrial use, but the company’s request for rezoning for residential use was approved in December 2018. Management believes this to be a higher and better use of the property. The company is fully engaged in the formal process of seeking PUD entitlements for this tract, which is now known as ‘Hampstead Overlook’.
Square 664E: The company’s Square 664E property is approximately two acres situated on the Anacostia River at the base of South Capitol Street, less than half a mile downriver from its Riverfront on the Anacostia property and adjacent to its Verge project. This property is currently under lease to Vulcan Materials for use as a concrete batch plant through 2026.
Windlass Run: In March 2016, the company entered into an agreement with St. Johns Properties Inc., a Baltimore development company, to jointly develop the remaining lands of the company’s Windlass Run Business Park, located in Middle River, MD, into a multi-building business park consisting of approximately 329,000 square feet of single-story office and retail space. The project will take place in several phases. Construction of the first phase, which includes two office buildings and two retail buildings totaling 100,030 square feet (inclusive of 27,950 retail), commenced in the fourth quarter of 2017 and was completed in January 2019. As of December 31, 2024, Phase I was 78.6% leased and occupied; the subsequent phases will follow as each phase is stabilized. In 2024, the partnership agreed to spend up to $1.0 million dollars to amend and modify 218,620 square feet of office and retail development for 153 for rent residential units, up to four (4) one-acre retail lots for ground lease opportunities, and maintain the flexibility to construct a single-story office building totaling 21,760 square feet.
Estero: In August 2022, the company invested $3.6 million for a minority interest in a joint venture with Woodfield Development to purchase and develop 46 acres in Estero, FL, into a mixed-use project with 596 multifamily units, 60,000 square feet of commercial space, 20,000 square feet of office space, and a boutique 170-key hotel. While the joint venture attempts to rezone the property, the company will receive a preferred return of 8% with an option to roll its investment into equity in the vertical development or exit at that point. Vertical construction is expected to commence in 2025.
Buzzard Point: In November 2022, the company entered into a contribution agreement with MRP and Steuart Investment Company (SIC) regarding potential development of an estimated 1,200 multifamily units in four phases on land owned by SIC. The company entered into a separate agreement with MRP to perform pre-development obligations for the contribution agreement. The company owns 50% of the partnership with MRP.
Woven: In August 2023, the company entered into an agreement with Woodfield Development for the acquisition and development of a mixed-use project known as ‘Woven’ in Greenville, SC, to consist of an estimated 214 multifamily units and 10,000 square feet of retail space. The joint venture is in the pre-development and pre-closing phase in pursuit of vertical construction closing conditions. The company owns 50% at this time, with final ownership to be determined based upon contributions by the partners, land contributors, and other investors. Vertical construction is expected to commence in 2025.
Altman: The company entered into two new joint venture agreements in early 2024 with Altman Logistics Properties. The first joint venture is a 200,000 square-foot warehouse development project in Lakeland, FL, and the second joint venture is a 182,000 square-foot warehouse redevelopment project in Broward County, FL. The company anticipates construction to start on both projects in the second quarter of 2025.
Multifamily Segment.
As of December 31, 2024, this segment was invested in the following stabilized multifamily joint ventures:
Dock 79: Dock 79 (Phase I of the Riverfront on the Anacostia development) is a 305-unit residential apartment building with approximately 14,430 square feet of first floor retail space. The property is situated on approximately 2.1 acres of land located on Potomac Avenue in Washington, DC, across the street from Nationals Park.
The Maren: The Maren (Phase II of the Riverfront on the Anacostia development) is a 264-unit residential apartment building with 6,811 square feet of retail space located on Potomac Avenue in Washington, DC, across the street from Nationals Park.
Riverside: Riverside Joint Venture in Greenville, SC, is a joint venture with Woodfield Development, which includes a 200-unit residential apartment building. The property is located in an Opportunity Zone, which provides tax benefits in the new communities development program as established by Congress in the Tax Cuts and Jobs Act of 2017.
Bryant Street: On December 24, 2018, the company and MRP Realty formed four partnerships to purchase and develop approximately five acres of land at 500 Rhode Island Ave NE, Washington, D.C. The property is located in an Opportunity Zone, which provides tax benefits in the new communities development program as established by Congress in the Tax Cuts and Jobs Act of 2017. Construction was completed in 2021 on this mixed-use development consisting of 487 residential units and 91,520 square feet of first floor and stand-alone retail space.
408 Jackson: In December 2019, the company entered into a joint venture with Woodfield Development for the acquisition and development of a mixed-use project known as ‘.408 Jackson’ in Greenville, SC. Woodfield specializes in Class-A multifamily, mixed-use developments primarily in the Carolinas and DC. The project is located in an Opportunity Zone across the street from Greenville’s minor league baseball stadium and consists of 227 multifamily units and 4,539 square feet of retail space.
The Verge: On December 20, 2019, the company and MRP formed a joint venture to acquire and develop a mixed-use project located in an Opportunity Zone at 1800 Half Street, Washington, D.C. This property is located in the Buzzard Point area of Washington, DC, less than half a mile downriver from Dock 79 and The Maren. It lies directly between Audi Field, the home stadium of the DC United, and the company’s two acres (664E) on the Anacostia River currently under lease by Vulcan. The eleven-story structure has 344 apartments and 8,536 square feet of ground floor retail, and is located in an Opportunity Zone.
History
FRP Holdings, Inc., a Florida corporation, was incorporated in 2014.
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