FOR SALE - $4,160,000 (6.13% cap rate) ~ Fully-leased, multi-tenant industrial building in Chantilly, VA. Built in 1986, the 32,000 SF property is divided into 12 units of approximately 2,600 SF each on 2 levels with a total of 4 docks and 4 drive-ins. The property benefits from a competitive advantage in the market due to its ability to accommodate a niche demand from tenants looking for smaller blocks of space. The property is currently leased to 8 tenants with staggered lease expiration dates over the next 5 years; minimizing potential losses in net operating income through diversification. Many of the contract rents are well below market; presenting huge upside potential to increase the property~s net operating income. In addition, many of the existing tenants have improved their spaces at their own cost and expense; increasing the likelihood that they will choose to renew at the expiration of their existing lease terms at the then market rate. The new owner will thus benefit from a higher net operating income without incurring transaction costs and vacancy losses. The property is a half mile from Route 50, 1 mile from Route 28, and 4 miles from I-66. Dulles International Airport is less than 15 minutes down with road, and with e-commerce expected to grow by 10% in 2020, the property is ideally positioned as both a distribution center and last-mile facility. Rents in the submarket have increased by nearly 4% over the past 12 months and are currently $1.19/SF higher than the metro average. The 2019 RCM-SIOR Industrial Sentiment Report predicts increased capital investment and continued cap rate compression in 2020; leading to further appreciation and providing a solid, long-term outlook. In fact, the average submarket cap rate dropped by 0.2% from Q3 to Q4 2019 (currently 6.1%) and the average sales price per square foot increased by $32/SF in the same time (currently $147/SF) with the average vacancy at the time of sale being 14.2%. Median sales numbers are even more positive at $156/SF and a 5.4% cap rate with 0% vacancy at the time of sale. With no properties scheduled to deliver in the next 12 months, vacancy rates should continue to decline and rents should continue to grow. Please sign the attached confidentiality agreement to review our offering memorandum.
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Listing information last updated on April 4th, 2020 at 9:03pm EDT.