Having Lowe’s as a long-term tenant proved beneficial.
Earlier this week, a 1.2 million-square-foot warehouse at 3021 Commerce Road in the Deepwater Industrial Park sold for $127.7 million, city records show.
New distribution center Landed as a tenant at Loews After home improvement giant Hesitant to a similarly sized distribution facility in Hannover.
The property’s new owner is Realty Income Corp., a publicly traded real estate investment trust in California.
The seller of the deal is a local company called Hourigan Development. Construction of Deep Sea Industrial ParkWhen Hourigan bought the 110-acre lot for $8.5 million about five years ago, the site had 17 old warehouses. They were demolished to make way for a new industrial park.
The parcel pair at 2301 and 3205 Commerce Road, which Hourigan continues to own, was not included in Realty Income’s purchase. The two lots total 35 acres with approximately 300,000 square feet of industrial space being built.
According to city records, the property proceeds transaction closed on November 1. The parcel was recently valued at $6.2 million.
Hourigan Development founder and CEO Mark Hourigan and a spokesman for Realty Income Corp declined to comment.
According to its website, Realty Income Corporation’s portfolio has nearly 12,000 properties, 347 of which are in Virginia. The extent of his holdings in the Richmond area is unknown, but he still owns them. Chester Cigarette Packing Factory Purchased for $16 million in 2015.
The sale, valued at approximately $128 million, is the second largest real estate transaction within the city limits so far this year.the top seat $150 million sale of Gateway Plaza in July.
Evan Magrill, a Thalhimer broker who has been involved in industrial deals for nearly 30 years, sees property income and the Hourigan deal as a sign of strength in the local industrial market. said the vacancy rate for space is about 2%.
“The (industrial) product type is being favored. More companies are storing more goods and the economy is doing well,” said Magrill, who was not involved in the Rowsville sale. is showing no signs of disappointing.The pace may slow, but it is still a very strong market.”
Lowe’s building sold for about $106 per square foot. This, according to his Magrill, is also indicative of the times.
“A few years ago,[$106 per square foot]would have been expensive. Today, it’s not that expensive,” he said. “Construction costs are much higher than they used to be. They are expensive to build, lease and prepare tenants.
Magril said we could also see the impact of higher interest rates on the pace and structure of industrial deals.
“This may have been rushed because interest rates have risen. Perhaps buyers wanted to raise money before[interest rates]went up,” Magril said.
“It may be a quick sell right now, but it is also difficult to predict what interest rates will be in the long run. It’s hard to say.”
Meanwhile, Hooligan has another major culinary project on the South Side.
The company plans to Destroy the former Southern state silos At 2-4 Manchester Road, a 20-storey apartment tower and a 6-storey office building will be constructed.