The 119,000-square-foot warehouse at 2301 Commerce Road was one of two that recently sold. (Courtesy Matan Cos.)
The sale of yet another piece of a South Richmond industrial complex has clocked in as the largest real estate deal in the city so far this year.
Locally based Hourigan Development and Washington, D.C.-based DSC Partners last week sold two sections of its Deepwater Industrial Park for $40.2 million, according to city property records.
The deal included two warehouses at 2301 and 3001 Commerce Road totaling 321,000 square feet. Maryland-based Matan Cos. was the buyer.
Matan’s purchase comes about a year after Hourigan and DSC sold off the complex’s largest building: a 1.2-million-square-foot, Lowe’s-anchored distribution center at 3021 Commerce Road. That piece was acquired by a California REIT for $128 million in what wound up being the second-largest real estate deal in the city in 2022.
Deepwater Industrial Park dates back to 2017, when Hourigan bought the 110-acre site for $8.5 million and cleared 17 aging warehouses to make way for the new project.
After building and selling the three warehouses, Hourigan and DSC have just one 3-acre piece of the complex left to develop, according to city property records. That last parcel is at 3205 Commerce Road and houses a 54-year-old tobacco warehouse. It’s unclear what their plans are for it. Hourigan CEO Mark Hourigan wasn’t available for comment by press time.
Matan bought both buildings in a single $40.2 million deal that closed Oct. 18. The city most recently assessed the two parcels at a combined $29 million. JLL’s Charlie Polk, Gareth Jones and Chris Avellana are handling leasing at the warehouses.
The Deepwater deal is the latest in the Richmond market for Matan, a nearly 50-year-old, privately held firm that develops and invests in industrial and life science office buildings. Its portfolio counts over 6 million square feet of such assets.
Managing director Jamie Minkler said Matan has historically done most of its business in the greater D.C. area but in recent years has increasingly headed south into the Northern Virginia, Richmond and Hampton Roads regions.
“A lot of the population growth is down that way,” Minkler said.
Its other local properties include Northlake II, a phased, 655,000-square-foot industrial project it’s currently building in Ashland. Minkler said this spring the company reached a milestone on that project when it delivered two of three buildings at Northlake II to tenants like HVAC firm Ferguson Enterprises, appliance supplier Chadwell Supply, and shipping firm Metropolitan Warehouse & Delivery.
It’s also on the hunt for tenants at Deepwater to fill the 119,000-square-foot northern building at 2301 Commerce Road, which it bought vacant. But Minkler said that it’s drawn solid interest from potential tenants.
“I think in short order we’ll probably be announcing a lease (for 2301 Commerce). Nothing’s finalized yet but there’s been really good activity,” Minkler said. “We were ready to buy it vacant.”
And half of its other 202,000-square-foot Deepwater building at 3001 Commerce Road is vacant, with the other half leased to Lowe’s.
Minkler said while leasing activity is a bit slower than it was a year ago, demand for industrial space between 25,000 and 100,000 square feet is still remarkably strong in Richmond.
“Everything’s taking a little bit longer, but there’s still a lot of demand,” Minkler said. “In particular, Richmond, out of all the markets we operate in…(demand is) the strongest.”
The 119,000-square-foot warehouse at 2301 Commerce Road was one of two that recently sold. (Courtesy Matan Cos.)
The sale of yet another piece of a South Richmond industrial complex has clocked in as the largest real estate deal in the city so far this year.
Locally based Hourigan Development and Washington, D.C.-based DSC Partners last week sold two sections of its Deepwater Industrial Park for $40.2 million, according to city property records.
The deal included two warehouses at 2301 and 3001 Commerce Road totaling 321,000 square feet. Maryland-based Matan Cos. was the buyer.
Matan’s purchase comes about a year after Hourigan and DSC sold off the complex’s largest building: a 1.2-million-square-foot, Lowe’s-anchored distribution center at 3021 Commerce Road. That piece was acquired by a California REIT for $128 million in what wound up being the second-largest real estate deal in the city in 2022.
Deepwater Industrial Park dates back to 2017, when Hourigan bought the 110-acre site for $8.5 million and cleared 17 aging warehouses to make way for the new project.
After building and selling the three warehouses, Hourigan and DSC have just one 3-acre piece of the complex left to develop, according to city property records. That last parcel is at 3205 Commerce Road and houses a 54-year-old tobacco warehouse. It’s unclear what their plans are for it. Hourigan CEO Mark Hourigan wasn’t available for comment by press time.
Matan bought both buildings in a single $40.2 million deal that closed Oct. 18. The city most recently assessed the two parcels at a combined $29 million. JLL’s Charlie Polk, Gareth Jones and Chris Avellana are handling leasing at the warehouses.
The Deepwater deal is the latest in the Richmond market for Matan, a nearly 50-year-old, privately held firm that develops and invests in industrial and life science office buildings. Its portfolio counts over 6 million square feet of such assets.
Managing director Jamie Minkler said Matan has historically done most of its business in the greater D.C. area but in recent years has increasingly headed south into the Northern Virginia, Richmond and Hampton Roads regions.
“A lot of the population growth is down that way,” Minkler said.
Its other local properties include Northlake II, a phased, 655,000-square-foot industrial project it’s currently building in Ashland. Minkler said this spring the company reached a milestone on that project when it delivered two of three buildings at Northlake II to tenants like HVAC firm Ferguson Enterprises, appliance supplier Chadwell Supply, and shipping firm Metropolitan Warehouse & Delivery.
It’s also on the hunt for tenants at Deepwater to fill the 119,000-square-foot northern building at 2301 Commerce Road, which it bought vacant. But Minkler said that it’s drawn solid interest from potential tenants.
“I think in short order we’ll probably be announcing a lease (for 2301 Commerce). Nothing’s finalized yet but there’s been really good activity,” Minkler said. “We were ready to buy it vacant.”
And half of its other 202,000-square-foot Deepwater building at 3001 Commerce Road is vacant, with the other half leased to Lowe’s.
Minkler said while leasing activity is a bit slower than it was a year ago, demand for industrial space between 25,000 and 100,000 square feet is still remarkably strong in Richmond.
“Everything’s taking a little bit longer, but there’s still a lot of demand,” Minkler said. “In particular, Richmond, out of all the markets we operate in…(demand is) the strongest.”