A pair of flex office buildings in Henrico were bought by a Florida firm. (Courtesy of Savlan Capital)
More out-of-town money continues to pour into the Richmond region, with a firm from the Sunshine State making a splash for flex space in Henrico County.
South Florida-based Savlan Capital closed last week on two industrial and office buildings at 8575 and 8580 Magellan Parkway for a total of $18.9 million.
The buildings total 126,000 square feet and are located in the Windsor Business Park between East Parham Road and Interstate 295.
The smaller of the two is 8575 Magellan at 50,000 square feet. It’s leased to a CVS Health subsidiary that uses it as a pharmaceutical storage and distribution facility. Savlan paid $8.8 million for the property.
The 76,000-square-foot building at 8580 Magellan sold for $10.2 million and is used as a data center for Bon Secours Mercy Health.
Savlan closed on the buildings Feb. 10. They were most recently assessed by Henrico County at a combined $15.2 million.
The sellers in the deal were RU Windsor IV Richmond VA LLC and RU Omnicare Richmond VA LLC, entities that are tied to various registered agent services in Southern California.
County records show 8580 Magellan last sold in November 2018 for $10.5 million, while 8575 Magellan last sold for $7.4 million in July 2017.
The deal marks Savlan’s entrance to the Richmond market. Founded in 2016, the company’s portfolio includes about 1 million square feet of real estate mostly in the Southeast and Southwest.
CEO Zusha Tenenbaum said the Windsor Business Park deal included two niches that Savlan focuses on.
“We like medical real estate and we like flex deals. This Richmond location was a good deal for us because it combines flex and medical tenants,” Tenenbaum said.
While occupancy rates in the Richmond office market are faring better than the national average, Tenenbaum said flex office space is less volatile than standard office space.
“I think it’s because flex is much easier,” Tenenbaum said. “I do see overall higher occupancy in flex than in business office.”
Savlan’s not planning any changes for the buildings it just acquired, nor will it look to turn around and flip them.
“This is not a value-add deal, it’s a long-term hold deal for us,” Tenenbaum said.
Having family in the region initially put Richmond on Tenenbaum’s radar, but he said the region’s diverse economy, steady population growth and crime rate made it an enticing market to enter.
“We look at a whole bunch of different parameters and Richmond falls into a lot of the parameters that we’re looking for,” he said.
He added that Savlan also has an unnamed building in Fredericksburg under contract that’s set to close next month.
Despite having much of its holdings in southern states like Texas, Florida, the Carolinas and now Virginia, Tenenbaum said Savlan’s open to going elsewhere.
“We don’t discriminate against a good deal,” he said. “If we see a great deal in New York or California, we’d go there.”
A pair of flex office buildings in Henrico were bought by a Florida firm. (Courtesy of Savlan Capital)
More out-of-town money continues to pour into the Richmond region, with a firm from the Sunshine State making a splash for flex space in Henrico County.
South Florida-based Savlan Capital closed last week on two industrial and office buildings at 8575 and 8580 Magellan Parkway for a total of $18.9 million.
The buildings total 126,000 square feet and are located in the Windsor Business Park between East Parham Road and Interstate 295.
The smaller of the two is 8575 Magellan at 50,000 square feet. It’s leased to a CVS Health subsidiary that uses it as a pharmaceutical storage and distribution facility. Savlan paid $8.8 million for the property.
The 76,000-square-foot building at 8580 Magellan sold for $10.2 million and is used as a data center for Bon Secours Mercy Health.
Savlan closed on the buildings Feb. 10. They were most recently assessed by Henrico County at a combined $15.2 million.
The sellers in the deal were RU Windsor IV Richmond VA LLC and RU Omnicare Richmond VA LLC, entities that are tied to various registered agent services in Southern California.
County records show 8580 Magellan last sold in November 2018 for $10.5 million, while 8575 Magellan last sold for $7.4 million in July 2017.
The deal marks Savlan’s entrance to the Richmond market. Founded in 2016, the company’s portfolio includes about 1 million square feet of real estate mostly in the Southeast and Southwest.
CEO Zusha Tenenbaum said the Windsor Business Park deal included two niches that Savlan focuses on.
“We like medical real estate and we like flex deals. This Richmond location was a good deal for us because it combines flex and medical tenants,” Tenenbaum said.
While occupancy rates in the Richmond office market are faring better than the national average, Tenenbaum said flex office space is less volatile than standard office space.
“I think it’s because flex is much easier,” Tenenbaum said. “I do see overall higher occupancy in flex than in business office.”
Savlan’s not planning any changes for the buildings it just acquired, nor will it look to turn around and flip them.
“This is not a value-add deal, it’s a long-term hold deal for us,” Tenenbaum said.
Having family in the region initially put Richmond on Tenenbaum’s radar, but he said the region’s diverse economy, steady population growth and crime rate made it an enticing market to enter.
“We look at a whole bunch of different parameters and Richmond falls into a lot of the parameters that we’re looking for,” he said.
He added that Savlan also has an unnamed building in Fredericksburg under contract that’s set to close next month.
Despite having much of its holdings in southern states like Texas, Florida, the Carolinas and now Virginia, Tenenbaum said Savlan’s open to going elsewhere.
“We don’t discriminate against a good deal,” he said. “If we see a great deal in New York or California, we’d go there.”