Prologis Pays $77M for Industrial Site in NoVA

The largest real estate investment trust in the U.S. has gotten its hands on yet another industrial property in Northern Virginia — and no, it isn’t a data center.

San Francisco-based Prologis (PLD), which manages a portfolio valued at nearly $200 billion, paid $76.5 million for the property at 43035 Little River Turnpike in Chantilly, according to the Business Journals and leasing materials. The REIT has renamed the property Prologis West Dulles Distribution Center, according to a spokesperson. Miami-based Elion Partners sold the 232,500-square-foot development, after completing it at the start of the year. 

CBRE (CBRE)’s Tony Russo, Bob Gibbs and Daniela Patino are handling leasing for the warehouse, according to an Elion brochure. Elion acquired the vacant property for development in 2021 for $13.1 million.

“Northern Virginia continues to see growing demand for high-quality, well-located logistics space … this building was delivered in January and was fully leased by the time of closing,” Danielle Schline, a Prologis senior vice president, told Commercial Observer in an emailed statement. “Being leased at delivery underscores both the strength of the industrial market and the high demand in this location.”

Schline added that the purchase brings the REIT’s portfolio to over 4.2 million square feet in Loudoun County, Va., alone. A Prologis spokesperson declined to reveal the names of the tenants at ELP Dulles.

Aside from February’s news flash that longtime CEO Hamid Moghadam would retire at the start of next year, Prologis has been making headlines both in and out of the Northern Virginia industrial market lately. 

Despite a tough year for industrial assets across the country, Prologis ended 2024 on a high note, according to its most recent earnings report. The REIT posted a 19 percent jump in its reported core funds from operations in the fourth quarter and quarterly revenue of $2.2 billion, compared with $1.8 billion during the same period in 2023. Much of that business is coming from the REIT’s stable of data centers — in March of last year it hired Chris Curtis, founder of Compass Datacenters, to lead a $7 to $8 billion data center investment strategy over the next four years, according to a Prologis spokesperson.

Just a few months later, the company requested the rezoning of 94 acres of land near Dulles International Airport. The parcel, not far from the ELP Dulles site, could become the foundation of a 4 million-square-foot data center complex if ultimately approved by officials in Loudon County.

Nick Trombola can be reached at ntrombola@commercialobserver.com.

Update: This story has been updated to include more information regarding Prologis’s data center investment strategy.