Single Tenant Investment Opportunity
220 Perry Street Petersburg Virginia 23803
$1,600,000
This single-tenant, long term lease investment opportunity is a chance for an investor to buy a strong cash flow building with market annual increases. The current lease with Pre-Con, a subcontractor for Honeywell International, Inc., has been in place for over 12 years. Back in the mid-1980s, this two-story building was repurposed for the current manufacturing use. The building has two floors of 20,000 square feet and a freight elevator. The property contains 1.719 acres just off the premier thoroughfare in Petersburg, US Highway 460.
The industrial market in the Richmond-Petersburg area is extremely strong as demand exceeds supply by a significant margin. Rental rates have risen considerably but remain much more reasonable compared to the Northern Virginia market, providing a long-term strategic advantage. Petersburg sits at the intersection of I-95 and I-85, making it a distribution hub for the entire East Coast.
220 Perry Street has a Modified Gross Lease structure with the tenant responsible for all utilities and maintenance of the building. The buyer of this property will be able to secure a robust return with very little management headaches.
*owner/agent.
ABOUT PETERSBURG
One of the most historic cities in Virginia, Petersburg has traditionally served as an important center of transportation and commerce. Old Towne Petersburg remains an important hub with its location along I-95 and CSX and Norfolk Southern rail lines. As a site for numerous events that have shaped the history of the Commonwealth during both the Colonial period and Civil War, Petersburg has developed as an attraction for heritage tourism. Today, Old Towne is a district of antique galleries, boutiques, craft shops, restaurants, cafes and a mix of renovated residences. Its home to historic and architecturally significant structures like the Courthouse complex and the Petersburg Visitors Center. Virginia State University is located across the Appomattox River. The campus stretches over 231 acres and includes an agricultural research facility known as the Randolph Farm, 18 academic buildings and 11 dormitories. With 5,400 students and 1,150 employees, many of those affiliated with the university choose Petersburg for amenities and housing. Along with a strong public revitalization effort, the presence of major institutions and employers in the Petersburg area have greatly improved the prospect for real estate investment. As evidence, the sale of the Mayton Transfer Lofts was a watershed moment for investment in the area. Previously, sales had never gone beyond $8 million. The 218-unit multifamily industrial conversion was completed in 2012 and sold for $21.5 million, or $98,000 per unit, in June 2018, which is a third higher than any other price per unit for Petersburg.
Ken Campbell is a commercial real estate veteran who brings over twenty years of transaction experience to his role as a broker at One South Commercial. Ken is highly experienced in transactions across North America. His expertise spans the commercial real estate spectrum with most of this work occurring in the office and industrial sectors.
Ken has represented both tenants and landlords across the country since he transitioned from in-house corporate real estate to brokerage over six years ago. He worked with a wide range of clients from individuals for Fortune 500 companies. Ken’s experience and knowledge provides his clients with a tremendous advantage in real estate transactions and make him a trusted and dependable partner.
Tom Rosman has been brokering investment real estate since the early 1990’s in the Richmond, VA, metro area. He has brought hundreds of transactions to a successful conclusion, including large apartment complexes, apartment buildings in historic neighborhoods, office buildings, retail properties, mixed use buildings, and numerous historic adaptive reuse properties.
Tom was one of the first brokers to recognize the transformative changes occurring in many of Richmond’s most architecturally significant but ignored neighborhoods. Having helped place many of the warehouses and other commercial structures in the hands of Richmond’s development community, Tom’s belief in what a property should be was never compromised by the condition it was in.
DISCLAIMER: This offering memorandum is intended as a reference for prospective purchasers in the evaluation of the property and its suitability for investment. Neither One South Commercial nor Seller make any representations or warranties with respect to the accuracy or completeness of the materials contained in the offering memorandum. Prospective purchasers should evaluate the property independently and rely solely on such independent evaluation in determining whether to purchase the property. The offering memorandum, pricing, and terms therein are subject to change or withdrawal at the discretion of Seller and One South Commercial, as Seller’s exclusive representative. *Information provided deemed reliable but not guaranteed
