Fundrise Picks Up Sterling Warehouse in $21M Deal
Edge facilitates two warehouse deals in DC region
Fundrise, a real estate investing platform, has acquired 22480 Randolph Drive, a 76,500-square-foot distribution warehouse in Sterling, Va., for $20.8 million, Commercial Observer has learned. J1B Properties was the previous owner, according to property records.
“This acquisition illustrates our continued expansion into the industrial market, providing our investors with the opportunity to gain further access to one of the hottest sectors of real estate today,” Ben Miller, Fundrise’s CEO and co-founder told CO. “We believe that well located, last-mile logistics facilities near key ports and distribution networks will continue to see increasing demand due to the continued growth of e-commerce and permanent changes in consumer habits. As a result, we remain bullish on the space and believe these dynamics have the potential to produce strong performance for our investors.”
Edge represented both parties in the deal.
“This asset is an institutional grade distribution building located at ‘Main and Main’ of the Dulles distribution corridor,” Joe Friedman, a partner at Edge who brokered the deal, told CO. “Its tenancy, design and location are A-plus and checked every box for the industrial investors in the current market.”
The property is currently fully leased, with Forward Air, a national third-party logistics and last-mile delivery provider, serving as the majority tenant.
Developed in 2005 by the seller, the property is positioned in the Broad Run Business Park, a large cluster of distribution warehouses and data centers off Pacific Boulevard and Moran Road in Loudon County.
The building is close to Dulles International Airport and offers immediate access to VA Routes 267, also known as Dulles Toll Road. It features 24-foot clear ceiling heights, 27 loading docks, 180-foot truck court, 20 designated trailer drops and an expansion area for additional parking.
“Warehouse space is in demand due to a combination of insatiable leasing demand and lack of existing inventory and available land to service the growth of last-mile distribution,” Friedman said. “Since COVD began, equity shifted heavily into industrial and multifamily for these reasons.”
The buyer did not immediately respond to a request for comment.
In a smaller deal, Edge also executed the $3.2 million sale of a 22,174-square-foot flex/warehouse building at 4370 Lottsford Vista Road in Lanham, Md. Corporate Triangle was the buyer, and the Edge team would not disclose the identity of the seller.
Originally built in 1988 and located within the Washington Business Park, the building features 16-foot clear heights, and a high parking ratio.
“This asset generated significant interest, demonstrating the steady demand for well-located flex assets in Prince George’s County and close-in suburban Washington, D.C., submarkets,” Friedman said. “Flex assets offer a more favorable yield than the pure distribution industrial, but are still benefiting from the strong leasing demand for industrial space.”
The building is leased to tenants in the service industries of electrical contracting, office products, building insulation and pest control services.
The Edge team on both deals included Christine Klein, Wilson Purcell and Joshua Norwitz.
Keith Loria can be reached at Kloria@commercialobserver.com.