Extra out-of-town cash continues to pour into the Richmond area, with a agency from the Sunshine State making a splash for flex area in Henrico County.
South Florida-based Savlan Capital closed final week on two industrial and workplace buildings at 8575 and 8580 Magellan Parkway for a complete of $18.9 million.
The buildings complete 126,000 sq. ft and are positioned within the Windsor Enterprise Park between East Parham Highway and Interstate 295.
The smaller of the 2 is 8575 Magellan at 50,000 sq. ft. It’s leased to a CVS Well being subsidiary that makes use of it as a pharmaceutical storage and distribution facility. Savlan paid $8.8 million for the property.
The 76,000-square-foot constructing at 8580 Magellan bought for $10.2 million and is used as an information middle for Bon Secours Mercy Well being.
Savlan closed on the buildings Feb. 10. They had been most lately assessed by Henrico County at a mixed $15.2 million.
The sellers within the deal had been RU Windsor IV Richmond VA LLC and RU Omnicare Richmond VA LLC, entities which can be tied to numerous registered agent companies in Southern California.
County data present 8580 Magellan final bought in November 2018 for $10.5 million, whereas 8575 Magellan final bought for $7.4 million in July 2017.
The deal marks Savlan’s entrance to the Richmond market. Based in 2016, the corporate’s portfolio contains about 1 million sq. ft of actual property principally within the Southeast and Southwest.
CEO Zusha Tenenbaum stated the Windsor Enterprise Park deal included two niches that Savlan focuses on.
“We like medical actual property and we like flex offers. This Richmond location was a superb deal for us as a result of it combines flex and medical tenants,” Tenenbaum stated.
Whereas occupancy charges within the Richmond office market are faring higher than the nationwide common, Tenenbaum stated flex workplace area is much less risky than customary workplace area.
“I feel it’s as a result of flex is way simpler,” Tenenbaum stated. “I do see general larger occupancy in flex than in enterprise workplace.”
Savlan’s not planning any modifications for the buildings it simply acquired, nor will it look to show round and flip them.
“This isn’t a value-add deal, it’s a long-term maintain deal for us,” Tenenbaum stated.
Having household within the area initially put Richmond on Tenenbaum’s radar, however he stated the area’s various economic system, regular inhabitants progress and crime fee made it an attractive market to enter.
“We have a look at an entire bunch of various parameters and Richmond falls into lots of the parameters that we’re searching for,” he stated.
He added that Savlan additionally has an unnamed constructing in Fredericksburg below contract that’s set to shut subsequent month.
Regardless of having a lot of its holdings in southern states like Texas, Florida, the Carolinas and now Virginia, Tenenbaum stated Savlan’s open to going elsewhere.
“We don’t discriminate towards a superb deal,” he stated. “If we see an incredible deal in New York or California, we’d go there.”