Lingerfelt picks up industrial portfolio in $105M deal with Partners Group

The Northlake Distribution Center south of Ashland. (Photos courtesy Lingerfelt)

In its first major deal since unloading an Innsbrook office portfolio in a turn toward industrial and multifamily properties, real estate investment firm Lingerfelt has picked up a group of industrial buildings in a nine-figure deal with an occasional collaborator.

Lingerfelt and Partners Group, a global investment firm, closed Thursday on a $105.6 million purchase of two distribution centers in the region: Walthall Distribution Center, on Ruffin Mill Road near Chester; and Northlake Distribution Center, on Lakeridge Parkway south of Ashland.

The properties consist of multiple buildings totaling 1.16 million square feet of space.

The companies announced the closing in a release. The transaction was not reflected in online property records Thursday.

The properties had been owned since 2007 by entities tied to BIT Investment Sixty-Five LLC, based in Baltimore, Maryland. The properties were all developed between 2000 and 2003, according to the release.

Lingerfelt and Partners Group said they plan to invest more than $10 million into upgrading the buildings with new roofs, improved lighting, new paint and cosmetic enhancements, and asphalt repairs and improvements to parking areas. Work is planned to start this spring, with completion expected within two years.

“This is an attractive opportunity for our partnership to acquire a portfolio of high-quality, stabilized industrial buildings with solid cash flow at current rents, which are far below where the market has trended over the prior three years,” Lingerfelt Principal Rob Valentine said in a statement.

The buildings are fully occupied by 18 tenants, including Owens & Minor, Mazda Remanufacturing and wholesaler Max Finkelstein. Valentine described the buildings as catering to small- to mid-size industrial users.

The Walthall Distribution Center on Ruffin Mill Road.

Totaling 868,000 square feet, Walthall Distribution Center consists of three buildings at 1900-1934, 1936-1962 and 1964-1984 Ruffin Mill Road in southeastern Chesterfield County. Northlake Distribution Center totals 293,000 square feet and is located at 11800-11900 North Lakeridge Parkway in Hanover.

Property records for those addresses put their latest county assessments at $77.3 million combined.

Both centers are located along the Interstate 95 corridor and include cross-dock and rear-load configurations, 32-foot clearance heights, multiple loading docks and Early Suppression Fast Response sprinkler systems.

Colliers International’s Matt Anderson and Harrison McVey are handling marketing and leasing for the buildings. Colliers also will provide property and facility management.

The purchase represents the fifth joint venture between Lingerfelt and Partners Group, a Swiss-based investment firm with U.S. headquarters in Denver, Colorado. Managing Director Brian Witthoefft said Lingerfelt typically partners with a private equity firm on transactions of this size.

He said JLL’s Patrick Nally and Bill Prutting listed the portfolio for the seller.

The deal comes three weeks after Lingerfelt bought 16 acres along Ruffin Mill Road for its planned Ashton Creek Distribution Center, a 174,000-square-foot industrial building near its Ashton Logistics Park, which is being developed. Property records show the company paid $1.5 million on Feb. 22 for the 16-acre site at 1611 Ashton Park Drive.

Lingerfelt plans to break ground on that project this year, as well as on a 325,000-square-foot building at Carmel Church Business Center in Caroline County, which is scheduled for delivery in January 2024. Ashton Creek Distribution Center is slated for delivery by the end of this year.

The portfolio purchase follows Lingerfelt’s $119 million sale of nine office buildings in Innsbrook late last year. The company also is collaborating with Hourigan and OrthoVirginia on a joint venture to developing a $50 million, 77,000-square-foot medical office building at Watkins Centre in Midlothian.

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