Norfolk Port Warehouse Portsmouth Warehouse

Sale-Leaseback.
On offer is a 124,000sqft industrial facility in Portsmouth, Virginia. The facility offers an investor a fully-leased industrial asset located in a key port market near the Port of Virginia.
Location
The Port of Virginia / Port of Norfolk is one of the largest ports and projected to be one of the fastest growing ports in the nation as it is one of the most automated and efficient ports in the country. Land supply around the port is very limited restricting new development of industrial assets in the area to Suffolk which is further inland and away from the main highway connections. Additionally, the property has easy access to I-64. Goods shipping from the facility via truck or UPS will deliver within 2 business days to almost half of the country. The facility is a few blocks from 1 of the 2 main import terminals (PMT) from Asia and a few miles from the second facility VIG.
The Port of Virginia offers excellent access to the East Coast with a lower cost than other larger ports to the north (NY / NJ). The subject location also provides a larger labor force and closer proximity to larger populations and highway connections than the large ports to the south (Savannah & Charleston).
The Port of Virginia continues to experience rapid expansion and is heavily focused on automation to accommodate increasing container volume along the East Coast. A new terminal is fully permitted and planned a few miles away from the facility at Craney Island.
https://www.portofvirginia.com/facilities/craney-island/
The Facility
The facility consists of 4.06 acres of land improved with two connected brick buildings, a fully fenced truck court and parking area, and a small maintenance shop at the edge of the truck court. The buildings contain +-124,000 sqft and the maintenance shop is 1200 sqft. The buildings are further divided into 8 bays of ~15000 sqft all connected to one another. One bay includes conditioned office space in excellent condition (~5,000 sqft), and the rest of the space is warehousing space with bathrooms throughout. The facility is fully sprinkled by a dry pipe system. The roofs are sloped and the clear below the ceiling and sprinkler system is 14ft on the lowest points and up to 17-20ft in the middle sections (varying by bay). The building was evaluated in 2015 for historical tax credits and would almost certainly be eligible with a current review.
The facility had major improvements in 2021 and 2022 as the current tenant replaced a number of smaller shorter-term tenants.
Improvements included:
1. New roof on some sections & new gutters and downspouts
2. Brand new electrical connections for the entire facility
3. LED motion-censored lighting throughout the facility
4. Fans & security cameras throughout the facility
5. Office and bathroom renovation
6. Added additional emergency exits and lighting in every Bay.
7. New wooden fence & gates installed
Tenant
The main tenant and sale-leaseback opportunity is Blue Ridge Product Solutions LLC (Blue Ridge).
Blue Ridge uses the facility to operate its e-commerce and distribution business. The company imports its brands of products and sells them directly to partners including Amazon, Walmart, Lowe’s, Home Depot & Wayfair. The location close to the port saves the company costs on inland trucking and allows products shipped direct to customers to arrive to most customers within 2 business days using UPS & Fedex. Other benefits of the facility allow the company to store almost 1000 unique products efficiently. The operation accommodates 5000 pallet positions with ample office space and a large inbound / outbound area. The company will share its financials as part of the transaction as well as prepaying the 3rd year’s rent as a closing credit or via wire transfer depending on the buyer’s preference. The lease is structured at 5.5/ft for the 124,000 sqft facility NNN. The lease will be a 3 year term with 1 3 year option.
In addition Stewart Moving leases the maintenance shop and some parking spaces on a year to year term and has been present for over a decade for $9000/year.