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Buchanan, Elion Acquire 700,000 SF VA Industrial Portfolio for $81M

Buchanan Partners, a leading real estate development firm headquartered in the Washington, DC region, has teamed with Miami-based real estate investment firm Elion Partners to acquire a 700,000-square foot industrial portfolio in suburban Washington, DC for $81.15 million. The portfolio comprises 14 buildings just off Route 28 in the northern Virginia submarkets of Westfields, Chantilly, and Dulles. The seller was a joint venture of Ares Capital Corporation and Adler Group.

“With rising raw land prices, a strengthening submarket, and accelerating residential demand, we set out to find high-quality buildings that could be positioned as best-in-class industrial space for tenants serving this rapidly evolving area,” said Colin Dove, Senior Project Manager at Buchanan Partners.” Added Buchanan Partners Principal Brian Benninghoff: “Class A industrial buildings like these provide many tenants more useful options than traditional office buildings or retail centers, at a better price.’ The new ownership plans to make capital improvements, including landscaping and amenities, while continuing to lease and manage the properties.

“This asset class aligns with our investment strategy of acquiring supply-constrained properties at or below replacement costs,” said Juan DeAngulo, Managing Principal, Elion Partners. “With sound operating fundamentals, we are excited to embark on this strategic joint venture with Buchanan Partners and look forward to continuing to grow our investments in this region.”

Northern Virginia’s Route 28 corridor features one of the nation’s densest concentrations of technology, cybersecurity, and government contractor businesses due to its proximity to the National Reconnaissance Office (NRO) and the Nation’s capital. Properties lining Route 28 provide immediate access to Washington Dulles International Airport, I-495 (Capital Beltway), and the Dulles Toll Road (Route 267) leading to Tysons Corner. Metrorail’s Silver Line extension to the airport and Dulles Greenway, currently under construction, has catalyzed development and planning of a large amount of residential, retail, and entertainment space in the area.

The newly acquired 14-building portfolio is spread across three different office parks along the Route 28 corridor: 3680-3863 Centerview Road in Dulles Business Park, 14420-14434 Albemarle Point Place in Westfields North; and 14280-14290 Sullyfield Circle in Sullyfield Business Park. The buildings are listed below, along with the rentable square footage of each.

Dulles Business Park

3680 Centerview Drive 59,767 SF

3684 Centerview Drive 55,080 SF

3750 Centerview Drive 78,820 SF

3855 Centerview Drive 43,010 SF

3859 Centerview Drive 34,309 SF

3863 Centerview Drive 45,671 SF

Sullyfield Business Park

14280 Sullyfield Circle 44,545 SF

14290 Sullyfield Circle 37,845 SF

Westfields North

14420 Albemarle Point Place 89,042 SF

14424 Albemarle Point Place 31,132 SF

14426 Albemarle Point Place 33,676 SF

14428 Albemarle Point Place 33,966 SF

14432 Albemarle Point Place 49,344 SF

14434 Albemarle Point Place 59,200 SF

ABOUT BUCHANAN PARTNERS:

Buchanan Partners has entitled, developed, and owned properties on over 2,000 acres of land in Maryland, Virginia, and the District of Columbia. The firm has over 4,000 multifamily and single- family residential units in its development pipeline, including The Landing at Cannon Branch in Manassas (VA), Heritage Hunt in Gainesville (VA), and Glenmont Metro Center in Wheaton/Glenmont (MD). Recently completed or acquired projects include BerkleyNet Center at Innovation Park, The Kingsley in Old Town Alexandria, and Lakeside II and III in Loudoun County. For more information about Buchanan Partners, visit www.buchananpartners.com.

ABOUT ELION PARTNERS:

Elion Partners is a Miami-based real estate investment group with a highly differentiated strategy, focused primarily on off-market assets identified through an exclusive relationship network, with a track record of exemplary risk-adjusted returns. In executing its strategy, the investment approach has remained consistent over time: acquire or develop at or below replacement cost, use conservative leverage and manage actively to add significant value at each step of the asset life cycle. Now in its eighth year, Elion manages more than $1 billion in real estate across four funds and three stand-alone vehicles, and is a fully-registered SEC investment adviser. Learn more at elionpartners.com. For updates from Elion Partners, follow @elionpartners.