Two-building industrial park at 1700 Richmond Highway is approximately 30 percent occupied
A joint venture partnership between North River Capital, LLC, Feldman Bergin Properties, and Queenswood Partners, LLC has acquired 1700 Richmond Highway, a two-building industrial park in Richmond, Virginia comprising 230,250 square feet of warehouse space. Formerly owned by NAPA Transportation, the asset was approximately 30 percent leased and occupied at the time of the transaction. This represents the first transaction for North River Capital, an industrial-focused real estate investment company with offices in Atlanta, GA and Charleston, SC, and the fourth Richmond-area acquisition for Feldman Bergin Properties, a Maryland-based privately-held real estate development and investment firm. Bo McKown and Isaac DeRegibus of Cushman Wakefield | Thalhimer represented the buyer and seller in this transaction and Will Bradley and Mark Williford of Newmark facilitated the joint venture arrangement.
Delivered in 1947 and situated on nearly 14 acres of land, 1700 Richmond Highway consists of two warehouse buildings comprising 162,700 and 71,250 square feet of space, respectively. The assets are equipped with 16- to 20-foot clear ceiling heights, an above market amount of dock-high loading doors and truck courts allowing for industrial outdoor storage of trailers and materials on-site. The business park fronts US Route 1 (Richmond Highway) and is located less than two miles from the Richmond central business district, with immediate access to Interstate 95, the major north/south highway serving the East Coast. The park is also approximately 11 miles from Richmond International Airport and five miles from the Port of Richmond and Richmond Marine Terminal.
The new owners intend to stabilize the property through an aggressive marketing strategy designed to bring the two-building portfolio to full occupancy. Former owner NAPA Transportation has agreed to a full-building lease for 71,250 square feet of space to maintain their presence within the business park. The partnership also intends to invest more than $2 million into the asset, including installation of modern dock doors, replacement of certain sections of the roof, installation of fencing and exterior lighting, and painting to improve the overall aesthetic appeal.
“We have been tracking the economic growth and vibrancy of the greater metropolitan Richmond market for an extended time and we believe that the region contains every necessary fundamental to continue its upward trajectory,” stated Samuel T. Wilmoth, Co-Founder and Principal of North River Capital. “This is led by an 11 percent increase in population over the past decade, with an additional nearly 20 percent increase predicted by 2050. Nearly 50 percent of the U.S. population can be accessed with a one-day truck drive and 75 percent of all U.S. residents can be reached with a two-day drive.
“Through our relationships in the Richmond brokerage community, we procured this opportunity in an off-market transaction at a price significantly below replacement cost. The construction cost for comparable new Class A warehouse/industrial product is over twice our acquisition price, which directly impacts our leasing rates. In addition, the availability of a full building in nearly ready-to-move in condition is attractive to end-users requiring immediate occupancy,” Wilmoth added.
According to Cushman Wakefield | Thalhimer’s Q2 Industrial Market Report, the vacancy rate for industrial space in the greater Richmond area was 4.2 percent, a figure that drops to 1.9 percent in Richmond’s Southwest Quadrant, where 1700 Richmond Highway is located. In addition, nearly 1.8 million square feet of industrial space has been absorbed this year. The report also quotes a Wall Street Journal article which ranks Richmond as the 11th hottest job market in the country, and a USA Today piece which named Richmond as the “most climate-resilient city in the nation.”
“Our leasing strategy is predicated on providing a value proposition for end-users in the market and providing features for infill buildings that include industrial outdoor storage space and deep truck courts,” said Feldman Bergin Properties’ Principal, Evan Feldman. “The demand for warehouse/industrial space has been soaring since the healthcare crisis, driven by the enhanced ecommerce habits of the American consumer and next-day delivery expectations. 1700 Richmond Highway can immediately fill a pressing need for companies looking for a regional presence with ready access to major population centers.
“Our partnership fully intends to achieve a critical mass of industrial properties in the Richmond area by aggressively pursuing additional value-add investment opportunities that match our investment criteria,” Wilmoth added.
Founded in 2024, North River Capital, LLC is a commercial real estate investment company which provides best-in-class investment services to achieve optimal risk-adjusted returns in commercial real estate opportunities throughout the Southeastern and Mid-Atlantic markets of the United States.
Founded in 2017, Feldman Bergin Properties is a commercial and residential real estate investment and development company specializing in multifamily and commercial asset development. The group owns a diverse portfolio in Maryland, Pennsylvania and Virginia consisting of 16 properties and more than 1.5 million square feet of space. For additional information visit www.feldmanbergin.com
Founded in 2024, Queenswood Partners, LLC is a real estate investment and advisory firm based in Richmond, Virginia led by Andrew R. Little. The company provides capital and debt/equity placement services to operators and sponsors of commercial real estate investments. www.queenswoodpartners.com.
