Exclusive: Starwood Pays $146M for NoVa Amazon Facility
This is the first time the asset has changed hands.
Starwood Capital Group has purchased a 630,000-square-foot industrial property at 220 Centreport Parkway in Fredericksburg, Va. Peterson Cos. sold the asset for $146.3 million or $232 per square foot, according to Yardi Matrix information.
Truist Bank aided the transaction by originating a $97 million loan, which is scheduled to mature in October 2031. The deal marks the asset’s first sale.
Starwood Capital Group’s industrial portfolio in metro Washington, D.C., currently surpasses 5.3 million square feet across 22 properties, according to Yardi Matrix information. It comprises mostly Class B facilities located throughout the state of Virginia, namely in Alexandria, Manassas, Herndon, Chantilly and Ashburn.
A Fredericksburg distribution facility
Peterson developed 220 Centreport as a build-to-suit for Amazon. Completed in 2022 on an 81-acre site, the building features four grade-level loading doors and 142 dock-high loading doors. The property also includes 960 parking spaces.
Located some 8 miles from downtown Fredericksburg, the facility is close to Interstate 95 and U.S. Route 1, in an area that has seen significant development in recent years. In 2024, the local pipeline amounted to 5.7 million square feet of commercial space across 1,510 acres, according to Free Press Fredericksburg.
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The facility is part of Northern Virginia Gateway, an industrial campus currently including two other facilities of 559,480 and 530,000 square feet, respectively. The second building, located at 210 Centreport Parkway, traded this March for $111 million, according to the same data provider. TPG acquired the asset from Peterson Cos. using a $56.2 million loan from U.S. Bank.
This property is in fact one of the three industrial assets larger than 25,000 square feet that have changed hands within 3 miles of 220 Centreport since the beginning of the year. Another one was the 935,000-square-foot facility at 211 Centreport Parkway, which also sold this month. Morgan Stanley Investment Management paid $172.1 million for the newly delivered warehouse.
Northern Virginia’s industrial market recorded 266,000 square feet of net absorption at the end of the third quarter, according to a recent report by CBRE. Meanwhile, the vacancy rate rose to 3.9 percent after 283,000 square feet of new space was delivered. However, the rate had dropped from 7.6 percent over the last decade, with positive absorption registered quarterly since October 2023.
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