IRG Launches Build-to-Suit Project Near Port of Virginia

Rendering of the new distribution facility. Image courtesy of IRG

Industrial Realty Group LLC has reached an agreement to develop a 227,000-square-foot distribution facility in Suffolk, Va., close to The Port of Virginia. RoadOne IntermodaLogistics, a distribution and logistics company, will fully occupy the new building. Harvey Lindsay Commercial Real Estate represented both parties in the leasing negotiations.

The Port of Virginia is at the forefront of technological improvements and is one of the fast-growing shipyard complexes in the U.S., with $1.4 billion invested in innovative equipment, Stephan Edwards, CEO & Director of Virginia Port Authority, said in prepared remarks.

Industrial Realty did not disclose additional details on the project. The company acquired the 40-acre lot in June 2022. The development will include cross docking and is designed for efficient transportation to aid the movement of cargo from the Port of Virginia to other U.S. markets. The property’s proximity to the busy Port of Virginia was one of the main factors that attracted RoadOne to the project.

The Port of Virginia’s advantages

The project is based on a strategic initiative that aims to facilitate the connectivity between RoadOne’s shipper clientele and its national network. The 277,000-square-foot industrial facility is IRG’s third build-to-suit project near the Port of Virginia, an area where there is great demand for industrial space, said Stuart Lichter, president of IRG. The project is expected to gain significant investment and to bring 100 new jobs. The developer is anticipating delivery in the third quarter of 2023.

Harvey Lindsay Commercial Real Estate’s Senior Vice President & Director of Industrial Brokerage, Industrial Sales and Leasing, Charles Dickinson, worked on behalf of both parties during the lease agreement.

In July, the company signed a ground lease for a 50-acre development parcel in New Orleans, for a future 1 million square feet build-to-suit industrial project. Earlier this year, the company announced its plans to develop two other industrial properties, including an approximately 910,000-square-foot, two-building project in Suffolk, and a 72,000-square-foot facility Portsmouth, Va., designed to fulfill the needs of Unis LLC.