TF Cornerstone Pays $80M for DC-Area Industrial Asset

95 Distribution Center. Image courtesy of Cushman & Wakefield

TF Cornerstone has acquired 95 Distribution Center, a 486,720-square-foot industrial property in Fredericksburg, Va. Blue Vista Capital Management and CSG Partners sold the asset for $79.5 million, with the assistance of Cushman & Wakefield.

In 2019 the property became subject to $19 million in financing through a line of credit from EagleBank, according to Stafford County records. In 2023, the previous owner extended the said line of credit, bringing debt to $53 million.

Completed in 2021 on 90 acres, 95 Distribution Center came online in 2021, featuring 40-foot clear heights, between 50- and 55-foot column spacing and ESFR fire sprinklers, as well as 55 dock doors, five drive-in doors, 157 trailer stalls and 567 car parking spaces. The Class A single-story building is fully leased to FedEx.

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Adjacent to Interstate 95 at 180 Centreport Parkway, the property is 50 miles from Washington, D.C., and 66 miles from Richmond, Va., near Stafford Regional Airport. The surrounding area includes an Amazon Fulfillment Center.

Cushman & Wakefield Executive Managing Director Jonathan Carpenter, Managing Director Graham Savage, Executive Director Doug Longyear and Executive Vice President Eric Robison represented the sellers in the transaction.

Some 3 million square feet of industrial space have changed hands in the metro since the beginning of the year, according to CommercialEdge research. One of the largest properties that traded was Paragon Park, a four-building, 685,682-square-foot campus in Sterling, Va.; Link Logistics acquired the Class A asset from Corporate Office Properties Trust.

Positive signs for Washington, D.C.’s industrial market

In the first quarter of 2023, the Washington, D.C., industrial market registered a positive net absorption, more than 645,000 square feet, a JLL report shows. The market continued to perform positively, with rents up 21.7 percent from the same quarter of last year and a total vacancy of 3.7 percent.

As of May, the national vacancy rate increased by 20 basis points month-over-month to 4.3 percent, while the average asking rent was up 740 basis points year-over-year, according to a recent CommercialEdge report.