Chalmers Sells Gainesville Industrial Park for $57M
By Keith Loria March 14, 2023 12:21 pmreprints
JK Land Holdings has acquired Gainesville Business Park, a six-building, 369,443-square-foot industrial facility with an on-site booster station in Gainesville, Va., for $57 million.
CBRE represented the seller, Chalmers Property Company, which more than doubled its investment, having acquired the business park in 2020 for $27.3 million.
“The strength of the market as more industrial users are being displaced by data center demand made this an attractive deal,” Grant Chalmers, vice president of Chalmers Property Company, told Commercial Observer. “Chalmers is looking to grow its industrial investments in other Southeast markets.”
Located at 14235 John Marshall Highway, the property’s buildings were developed between 1980 and 2000.
Gainesville Business Park is near the new interchange of John Marshall Highway and Lee Highway, less than a quarter of a mile from Interstate 66.
At the time of the sale, the property was 98.2 percent leased to 10 industrial and warehouse tenants and one telecom tenant.
The property therefore provides a predictable cash flow in an extremely tight submarket in Northern Virginia, an area highly sought after by many industrial and data center investors, according to CBRE.
In 2022, Northern Virginia reached its 10th consecutive year of positive net absorption in the industrial sector, with vacancy dropping to a new record low of 3.5 percent, according to CBRE’s Northern Virginia Industrial Market Figures Q4 2022 report. The firm expects that global demand for e-commerce activity will drive an additional 2 billion square feet of logistics space demand over the next five years.
CBRE’s Bo Cashman, Jonathan Beard and Tony Russo represented the seller in the deal.
Keith Loria can be reached at Kloria@commercialobserver.com.