Lingerfelt CommonWealth Acquires Industrial Distribution Building For $7.8 Million, Announces Major Renovations
Press Release | Apr 1, 2021
Richmond, VA — April 1, 2021 — Lingerfelt CommonWealth Partners, LLC, a Richmond, Virginia-based commercial real estate investment firm, today announced the $7,800,000 acquisition of 4300 Carolina Avenue in Richmond, Virginia. The asset is a 223,479 square foot industrial facility located in Richmond Distribution Center near Richmond International Raceway. The building is currently unoccupied and construction will commence next week on a multimillion dollar comprehensive renovation and repositioning of the asset.
“Lingerfelt CommonWealth has a long history in the industrial sector spanning nearly four decades,” said Brian Witthoefft, Managing Director of Lingerfelt Commonwealth Partners. “The fundamentals of Richmond’s industrial market remain compelling. Vacancy rates market-wide are near 4% with less than 2% vacancy in Richmond Distribution Center. We have already secured a user for 25% of the property and interest in the remainder of the building is very active.”
Renovations to the property will take approximately three months and include structural improvements such as an expanded truck court and loading area, all new dock doors, seals, levelers, additional loading docks, a new LED warehouse lighting package, a modernized sprinkler system, and a new roof system. Additionally, the facility will receive cosmetic enhancements such as being newly painted, all new landscape design, and parking lot upgrades. “The location and bones of the facility are sound and our renovations will ensure that the building is appropriately modernized to meet the needs of today’s distribution and manufacturing users,” said Witthoefft.
Constructed in 1984, the facility was originally a design-build for the IRS. Certain elements of the original design, such as surplus vehicular parking, are no longer required and now provide Lingerfelt CommonWealth the opportunity to further develop the site. “We will develop a new 75,000 square foot stand-alone industrial building in the corner of the surplus parking area,” added Witthoefft. “We are currently in discussions with several potential build-to-suit users about that pad site.”
The company recently completed a similar repositioning of an industrial facility located at 1537 Air Rail Avenue in Norfolk, Virginia. Lingerfelt CommonWealth purchased that asset in 2018 for $8.0 million, invested $7 million in improvements while securing a user, and sold the property in November of 2020 for $21.695 million.
Commonwealth Commercial Partners, the company’s property management affiliate, will provide leasing, property and asset management services for the facility.