The 13,000-square-foot building is located near the intersection of Parham and Staples Mill roads. (Mike Platania photo)
As traditional industrial districts like Scott’s Addition and the Westwood area continue to transform into predominantly mixed-use residential neighborhoods, a prominent local developer is making a bet that there’s still a need for industrial space outside the city.
Thalhimer Realty Partners last month purchased a flex industrial building at 2809 Ackley Ave. for $1.9 million.
TRP principal Drew Wiltshire said the firm was drawn to the building because it’s seeing increased demand for warehouse space in central locations driven by the loss of industrial space closer into the city.
“In the Dabney Road (area in Westwood) and in Scott’s Addition, the warehouse space has been upgraded to office uses that are higher-end or torn down completely with other uses built behind it,” Wiltshire said. “It feels to me like a lot of these (industrial) tenants are being pushed out farther west in these infill locations.”
TRP is planning to lease out the 13,000-square-foot building, which had been occupied by the seller, HVAC firm Superior Plumbing, Heating & Air. Wiltshire said the company is not viewing the Ackley deal as a redevelopment site.
One such example of the trend Wiltshire cites is Roy’s Electric Motor Sales & Service, which sold its Scott’s Addition warehouse over the winter and relocated to Mechanicsville. Its old home on Moore Street is now set to become a 400,000-square-foot mixed-use project.
Drew Wiltshire
Wiltshire added that TRP particularly liked the location of the 1.1-acre Ackley parcel near Parham Road and Henrico’s massive GreenCity project, which would rise about three miles east down Parham.
“We feel it’s well positioned to take advantage of shortages of infill warehouse space toward the city, and emerging uses and jobs out in that portion of Henrico County,” Wiltshire said.
The county most recently assessed the property at $1.3 million.
TRP is planning some minor cosmetic changes to the building, but Wiltshire said it’s been largely kept in good condition. Thalhimer’s Chrissy Thexton and Graham Stoneburner are marketing the space.
Such industrial investment deals aren’t totally out of the norm for TRP. Late last year it spent nearly $8 million on a Chesterfield warehouse.
The May 26 Ackley deal is on the smaller end for TRP, which is currently building nearly 500 apartments in Scott’s Addition across two projects and is on the team that’s leading the $2.4 billion Diamond District redevelopment.
Among other TRP projects in the works is the former Sampson Coatings warehouse in Manchester, which the firm is planning to raze to make way for a seven-story, 250-unit apartment building. Wiltshire said TRP is in the design phase of that project and hopes to break ground in early 2024, but the economic landscape of high interest rates and construction costs still must be navigated.
“We’re trying to position the projects for when we get more clarity on financing costs and interest rates,” Wiltshire said. “We’re hoping to be busy at the end of this year and going into next.”
The 13,000-square-foot building is located near the intersection of Parham and Staples Mill roads. (Mike Platania photo)
As traditional industrial districts like Scott’s Addition and the Westwood area continue to transform into predominantly mixed-use residential neighborhoods, a prominent local developer is making a bet that there’s still a need for industrial space outside the city.
Thalhimer Realty Partners last month purchased a flex industrial building at 2809 Ackley Ave. for $1.9 million.
TRP principal Drew Wiltshire said the firm was drawn to the building because it’s seeing increased demand for warehouse space in central locations driven by the loss of industrial space closer into the city.
“In the Dabney Road (area in Westwood) and in Scott’s Addition, the warehouse space has been upgraded to office uses that are higher-end or torn down completely with other uses built behind it,” Wiltshire said. “It feels to me like a lot of these (industrial) tenants are being pushed out farther west in these infill locations.”
TRP is planning to lease out the 13,000-square-foot building, which had been occupied by the seller, HVAC firm Superior Plumbing, Heating & Air. Wiltshire said the company is not viewing the Ackley deal as a redevelopment site.
One such example of the trend Wiltshire cites is Roy’s Electric Motor Sales & Service, which sold its Scott’s Addition warehouse over the winter and relocated to Mechanicsville. Its old home on Moore Street is now set to become a 400,000-square-foot mixed-use project.
Drew Wiltshire
Wiltshire added that TRP particularly liked the location of the 1.1-acre Ackley parcel near Parham Road and Henrico’s massive GreenCity project, which would rise about three miles east down Parham.
“We feel it’s well positioned to take advantage of shortages of infill warehouse space toward the city, and emerging uses and jobs out in that portion of Henrico County,” Wiltshire said.
The county most recently assessed the property at $1.3 million.
TRP is planning some minor cosmetic changes to the building, but Wiltshire said it’s been largely kept in good condition. Thalhimer’s Chrissy Thexton and Graham Stoneburner are marketing the space.
Such industrial investment deals aren’t totally out of the norm for TRP. Late last year it spent nearly $8 million on a Chesterfield warehouse.
The May 26 Ackley deal is on the smaller end for TRP, which is currently building nearly 500 apartments in Scott’s Addition across two projects and is on the team that’s leading the $2.4 billion Diamond District redevelopment.
Among other TRP projects in the works is the former Sampson Coatings warehouse in Manchester, which the firm is planning to raze to make way for a seven-story, 250-unit apartment building. Wiltshire said TRP is in the design phase of that project and hopes to break ground in early 2024, but the economic landscape of high interest rates and construction costs still must be navigated.
“We’re trying to position the projects for when we get more clarity on financing costs and interest rates,” Wiltshire said. “We’re hoping to be busy at the end of this year and going into next.”