Virginia Flex Portfolio Trades for $61M
Heritage Capital acquired three industrial buildings totaling 525,000 square feet within Crossways Commerce Center in Chesapeake.
New Jersey–based Heritage Capital has acquired Crossways Commerce Center I & II, a three-building, 525,082-square-foot industrial/flex portfolio in Chesapeake, Va., for $61 million, or $116 per square foot. The Capital Markets Group of Cushman & Wakefield | Thalhimer represented the seller, DSC Partners, of Washington, D.C.
The deal won Heritage Capital three properties—located at 1545 Crossways Blvd., 1449 Kristina Way and 1501 Crossways Blvd.—that are fully leased to a diverse tenant mix including General Dynamics, Fiserv (formerly known as First Data Resources), Sentara Healthcare, Safelite Fulfillment Inc., Mid-Atlantic Engineering and Regus.
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The 30-acre business park comprises five office and industrial buildings totaling 662,265 square feet. The other two properties evidently are being retained by DSC.
The sale was completed by Eric Berkman in Cushman & Wakefield’s Washington, D.C., office, as well as Eric Robison of Cushman & Wakefield | Thalhimer’s Capital Markets Group.
Robison told Commercial Property Executive that part of the portfolio was originally a truck manufacturing plant, which was redeveloped in the 1990s. He added that the portfolio includes Class A office, high-bay industrial space, as well as single- and multi-tenant flex space. The location provides immediate access to the Hampton Roads Beltway, a 56-mile-long loop of Interstate 64 and Interstate 664 that connects the Hampton Roads cities.
Earlier this month, DSC Partners and Hourigan broke ground on the first phase of a 110-acre industrial park in Richmond, Va.
Going strong
Industrial is performing better than any other CRE type in the Norfolk region, “with rents at all-time highs and vacancies at all-time lows,” according to a first-quarter report from Colliers. Current spec development, however, is expected to give tenants some relief; more than 5 million square feet of space is under construction, the most in the past 10 years.
READ ALSO: Port Volumes Help Fuel Industrial Real Estate’s Fire
Much of the region’s vigor comes from the Port of Virginia, which has put two new ship-to-shore cranes and other equipment into operation so far this year. In addition, a dredging project now under way will make the Port of Virginia the deepest on the East Coast by late 2024.
The Chesapeake submarket has a 6.5 percent overall availability, on an inventory of about 6.2 million square feet, and with no space currently under construction, according to the Colliers report.
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