Heritage Capital Buys Hampton Roads Industrial/Flex Portfolio
The collection was 84 percent leased at closing.
Heritage Capital Group has purchased a five-property, 508,814-square-foot industrial flex portfolio in Chesapeake, Va., for $45 million. Teams from Cushman & Wakefield | Thalhimer and Cushman & Wakefield in Washington, D.C., represented the sellers, DSC Partners and Iron Point Partners.
The collection includes warehouse, laboratory and open office spaces on four parcels. A fifth parcel, of about 2.6 acres, provides additional parking. The location has immediate access to Interstate 64 and thereby easy connections to the port and nearby military bases and shipyards.
The assets were 84 percent leased by a total of 37 companies at the time of sale. About 60 percent of the roster is made up of medical and government-related tenants, including Sentara Healthcare and Chugach Government Solutions, Eric B. Robison, executive vice president of Capital Markets at Thalhimer, told Commercial Property Executive.
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Robison added that more than three-quarters of the occupied GLA has executed new leases or renewals since August 2020, showing the tenant roster’s resilience through the COVID-19 pandemic.
The buildings in the portfolio are:
• Battlefield Corporate Center, at 535 Independence Parkway (one story, 96,720 square feet);
• Greenbrier Technology Center I, at 814 Greenbrier Circle (one story, 97,194 square feet);
• Greenbrier Technology Center II, at 816 Greenbrier Circle (two stories, 82,229 square feet); and
• Greenbrier Circle Corporate Center, at 825 Greenbrier Circle (two stories, 126,874 square feet) and 1801 Sara Drive (105,797 square feet).
The Class B properties were completed between 1981 and 1987, according to information provided by CommercialEdge.
Robison and Bo McKown of Thalhimer’s Capital Markets Group, together with Eric Berkman and Kevin Sidney with Cushman & Wakefield’s Capital Markets team in Washington, D.C., represented the seller. Financing was sourced by the Cushman & Wakefield debt team of Michael Zelin, Marshall Scallan and Ryan McMahon.
Temporary lull
The Hampton Roads industrial space market is benefitting from clean energy and rail infrastructure improvements at the Port of Virginia, even as market activity moderated toward year’s end, in part of over labor concerns at the port, according to a fourth-quarter report from Cushman & Wakefield.
Industrial vacancy was up slightly, to 4.4 percent in December, but Cushman & Wakefield anticipates absorption gains this year.
In September, a joint venture of Rockefeller Group, Matan Cos, Mitsubishi Estate New York, Chuo Nittochi and Taisei USA LLC started construction on the first phase of Port 460 Logistics Center in Suffolk, Va. Upon completion, the property will comprise about 5 million square feet.
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