NEW YORK—Thylan Associates has paid $3.8 million to Hollowbrook of Dutchess LLC for the acquisition of the Hollowbrook 3 and 4 office building, located at 29 Marshall Road in Wappingers Falls, N.Y. Houlihan Lawrence Commercial Real Estate Group arranged the sale.

Totaling 50,000 sq. ft., the property is home to Dutchess Community College’s Southern Campus and New York State Department of Motor Vehicles’ Wappingers, N.Y. office.

The new ownership plans capital improvement at the property over the next five years.

“We are seeing increased demand for brick and mortar investments, which is beginning to boost the commercial real estate market,” Steven Salomone, Houlihan Lawrence director of real estate investment sales said. “Solid income properties with good tenants are commanding a great deal of attention in the last several months, and we expect that trend to accelerate in 2013.”