Penzance has acquired Gateway & Linden, a six-building industrial portfolio totaling 212,086 square feet in Manassas, Va. A partnership owned by Davin Holdings and The Davis Cos. sold the properties for $55 million.
The portfolio consists of two industrial parks. Linden Business Center is at 7245-7795 Coppermine Drive. The 109,809-square-foot property was built in 2001 and currently has nine tenants. Gateway Centre is at 7201-7401 Gateway Court. The 102,277-square-foot property was built in 1988 and currently has eight tenants.
Gateway & Linden is near the heart of the nation’s No. 2 hub for data center real estate absorption, according to CBRE’s data center trends report, where high-quality industrial flex assets are becoming increasingly scarce.
The buildings are positioned to serve warehouse users supporting the data center industry and the 8.5 million square feet of data center space currently there. Data center real estate within Prince William County is estimated to increase to 80 million square feet over the next decade.
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Essential roadways Route 29/I-66 corridor, Interstate 66, Prince William Parkway and Balls Ford Road are conveniently close to the Gateway & Linden portfolio.
A supply-constrained market
There are only 188,000 square feet of overall industrial product currently under construction, all scheduled to deliver during the first half of 2025, according to CBRE’s Northern Virginia fourth-quarter industrial report.
Nothing broke ground in Northern Virginia in the fourth quarter. Several Class A properties are expected to begin construction in early 2025.
“This acquisition of Gateway & Linden secures a prime industrial asset in Northern Virginia where industrial-zoned land is rapidly becoming scarce and existing properties are redeveloped for other uses,” Lauren Kowall, senior vice president of investments at Penzance, told Commercial Property Executive.
“Our strategy focuses on transforming vacant office-heavy spaces into higher-demand industrial facilities, positioning the property to capitalize on the growing need for warehouse space amid increasing challenges to new industrial development.”
JLL’s Mid-Atlantic Capital Markets team, including Bill Prutting, Craig Childs and Chris Dale, were the sole advisors on the sale transaction. JLL’s metro D.C. industrial team will lead leasing.
“Manassas stands out as a unique industrial market facing a shrinking supply of traditional industrial space, driven by the unprecedented surge in data center development over the past three years,” Prutting told CPE.
“This trend has significantly increased the long-term value of properties like Gateway & Linden, as long-established regional tenants seek new locations due to the redevelopment of their current sites.”