Trane distribution facility in Midlothian sells for $14.15M
National Harbor developer Peterson Cos.'s purchase closed Thursday
Fairfax-based Peterson Cos., known for developing National Harbor in Maryland, closed Thursday on its $14.15 million purchase of an off-market distribution facility in Midlothian.
The 83,025-square-foot facility, located at 14000 Justice Road, sits on a nine-acre parcel. It was constructed for Ingersoll Rand dba Trane Technologies Inc. and was completed in December 2018.
It is fully leased to a single tenant, Trane, and the 10-year net lease indicates a first-year net operating income of $705,712.50 with 2% annual escalations. The initial building envelope allows for expansion up to 100,000 square feet.
Peterson Cos. bought the property from Railey Hill Associates LLC. Chris Zarpas with S. L. Nusbaum Realty Co. represented Peterson, and Tucker Dowdy and Russell Wyatt with Commonwealth Commercial represented the seller.
Peterson has been focusing on industrial properties in anticipation of the rise in warehousing and distribution space needs, said Taylor Chess, Peterson’s president of development.
“From COVID, we’re able to really take advantage of that,” he said, “and since we’re in development of a couple hundred acres of industrial, when we’re buying income-producing property, we thought it was a good move to buy industrial income-producing property as well, and the Trane warehouse fits right in that.”