Lightly marketed via a local broker with whom NorthBridge has previously worked with, limiting competitive exposure.
Property Description
60K SF distribution facility with 2-acres for potential expansion.
Well-positioned along the trade route between Hampton Roads (Port of Virginia) and Richmond/DC
Opportunity to construct a building expansion or an IOS site on the remaining 2-acre cleared parcel
Investment Thesis
The in-place rents for tenants unaffiliated with the seller were +/- 30% below market rent for comparable buildings in this location at the time of acquisition providing a future mark-to-market opportunity.
The Purchase Price represented a cap rate which NB believed to be 25-50 basis points above comparables at the time of acquisition.
NB estimated that its PSF basis was approximately 35% below replacement cost for Class A construction of similar vintage.
