Scannell Properties Sells Cold Storage Facility for $85M
Performance Food Group Co. fully occupies the recently completed asset.
Scannell Properties has sold Performance Food Group @ Cardinal North, a 328,335-square-foot cold storage facility in Glen Allen, Va., for $85.4 million. The mission-critical distribution building is fully leased to Performance Food Group Co.
JLL worked on behalf of the seller and procured the buyer, an entity leading to Eaton Vance Real Estate Group, public records show. As of 2021, the company is part of Morgan Stanley Investment Management Corp.
The cold storage asset is part of Cardinal Commerce Center, a three-building industrial campus that came online in two phases, also including a 260,000-square-foot distribution center and a 186,900-square-foot speculative building.
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Completed last year, Performance Food Group @ Cardinal North features 160,000 square feet of freezer/cooler space, 32-foot clear heights, an almost 10,000-square-foot stand-alone vehicle maintenance and fueling facility and 138 trailer storage spaces. Additionally, the building has two drive-in doors and 52 dock-high loading doors.
The property occupies more than 59 acres at 10399 Washington Highway, close to interstates 95 and 295. Richmond International Airport and Richmond Marine Terminal are within a 21-mile radius, while downtown Richmond is within 14 miles. The facility is also less than 4 miles from Northlake Distribution Center, a 293,115-square-foot warehouse that traded last year.
JLL Capital Markets Senior Managing Directors Bill Prutting and Pete Pittroff, Senior Directors Craig Childs and Dave Andrews, along with Directors Josh McArdle and Christopher Dale, arranged the transaction on behalf of Scannell. Pittroff, Andrews and McArdle also represented Rockefeller Group in the sale of a 1 million-square-foot industrial park in Fort Mill, S.C.
Scannell’s recent industrial developments
Since its inception in 1990, Scannell Properties has completed more than 550 development projects totaling 158 million square feet. Last month, the firm announced plans for a 1 million-square-foot industrial park near Savannah, Ga., to be developed in partnership with INDUS Realty Trust Inc. The two-phase project is expected to break ground this quarter.
Scannell also started work on a 479,000-square-foot distribution and manufacturing facility in Salem, Ore., in November. The development is scheduled to come online next year.
Richmond’s industrial sector faces challenges
The Richmond-Tidewater market saw more than 1 million square feet of industrial space change hands year-to-date as of March, according to CommercialEdge information. This represents a steep decline from the almost 2.5 million square feet that traded during the same period of 2023.
In one of this year’s deals, a joint venture between Lovett Industrial and an affiliate of Heitman LLC acquired Diamond Hill Distribution Center, an approximately 720,000-square-foot industrial park in Chesapeake, Va. Link Logistics sold the property.
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