Lovett Industrial, the Houston-based real estate investment firm, in partnership with an affiliate of Chicago-based Heitman LLC (“Heitman”), a global real estate investment management firm, has acquired an approximate 720,000 square foot portfolio of industrial buildings in the urban core of Norfolk VA. Known as the Diamond Hill Distribution Center, the portfolio includes four buildings that are currently 100% leased at well below market rates, in a submarket with high barriers to entry.
Located on Rt 168 with adjacent access to I-64 and I-464, Diamond Hill’s infill location not only allows quick access to the populations of Chesapeake, Norfolk and Virginia Beach but also easy access to both NIT and VIG port terminals. The unique, infill location and above-average building specifications enable the portfolio to cater to a diverse tenant base, including those needing a location to serve the last mile of the supply chain, along with port-oriented bulk storage and light manufacturing uses. All buildings have activatable rail spurs and rail doors in addition to suite sizes able to accommodate tenants from 60,000 square feet to 225,000 square feet. The portfolio is currently 100% leased to four tenants and features a combined 96 loading positions/drive-ins, additional trailer parking, over 520 auto parking stalls and 27’-29’ clear heights.
Ben Swift, Mid-Atlantic Market Lead for Lovett Industrial commented, “The Hampton Roads Industrial market boasts some of the strongest fundamentals in the country. With the economic engine of the Port of Virginia investing heavily in its operations and capacity, coupled with the billions of dollars of infrastructure improvements supporting the region, we believe this market is positioned well for continued growth and strong demand for industrial space. We are excited to be working with Heitman on this acquisition and we look forward to a successful partnership.”
The portfolio’s strategic location provides immediate proximity to I-64 and I-464 interchange as well as Hwy 460 which is the direct southern route west to I-95 and Richmond. Diamond Hill also benefits from available rail access onto Norfolk Southern’s main line as well as being next door to their Portlock rail yard. The region is also home to the largest naval installation in the world and the Newport News and Huntington Ingalls shipbuilding yards, which support a large number of defence contractors and subcontractors who contribute significantly to the region’s industrial demand.
Charles Dickinson of Harvey Lindsey Commercial Real Estate will handle marketing and leasing efforts for Diamond Hill Distribution Center. Cushman & Wakefield served as broker on the transaction. Acquisition financing is provided by Voya Financial and was arranged by John Alascio of Cushman & Wakefield.
