PS Business Parks acquires industrial portfolio in NoVa for $143.3 million
- June 11, 2018
PS Business Parks Inc. has acquired Northern Virginia Industrial Park and Fullerton Industrial Park in Springfield for $143.3 million. The portfolio includes 19 buildings with 1.1 million square feet situated on 65 acres of land.
According to PS Business Parks, a real estate investment trust based in Glendale, Calif., the portfolio is 76 percent occupied with an average customer size of 6,800 square feet.
The buildings are located in the Springfield/Newington industrial submarket where the company already owns three industrial parks totaling 606,000 square feet with an historical average occupancy of 95 percent since 2000.
Combining the new parks with the company’s existing parks creates an industrial portfolio totaling 1.7 million square feet, for an 11 percent submarket concentration.
PS Business Parks says it plans to reposition the new properties with near-term capital to improve occupancy.
“This acquisition enhances PSB’s industrial presence in Northern Virginia,” Maria R. Hawthorne, the company’s president and CEO, said in a statement. “The location is superb as it is adjacent to Fort Belvoir and just south of the Pentagon in a densely populated area with excellent access to transportation. We have a strong team in place ready to execute on our strategy of building and leasing small-bay industrial suites. “
The company said the acquisition was funded with 1031 exchange proceeds generated from three previously announced dispositions and cash on hand.
PS Business Parks Inc owns 28.3 million rentable square feet of primarily industrial property with about 4,900 commercial customers in six states and a 95 percent interest in a 395-unit apartment complex.