Lovett Industrial and Heitman Acquire Industrial Park in Chesapeake, VA
Lovett Industrial, the Houston-based real estate investment firm, in partnership with an affiliate of Chicago-based Heitman LLC ("Heitman"), a global real estate investment management firm, have acquired an approximate 720,000 square foot portfolio of industrial buildings in the urban core of Norfolk VA. Known as the Diamond Hill Distribution Center, the portfolio includes four buildings that are currently 100% leased at well below market rates, in a submarket with high barriers to entry.
Located on Rt 168 with adjacent access to I-64 and I-464, Diamond Hill's infill location not only allows quick access to the populations of Chesapeake, Norfolk and Virginia Beach, but also easy access to both NIT and VIG port terminals. The unique, infill location, and above-average building specifications enable the portfolio to cater to a diverse tenant base, including those needing a location to serve the last mile of the supply chain, along with port-oriented bulk storage and light manufacturing uses. All buildings have activatable rail spurs and rail doors in addition to suite sizes able to accommodate tenants from 60,000 square feet to 225,000 square feet. The portfolio is currently 100% leased to four tenants, and features a combined 96 loading positions/drive-in's, additional trailer parking, over 520 auto parking stalls and 27'-29' clear heights.
Ben Swift, Mid-Atlantic Market Lead for Lovett Industrial commented, "The Hampton Roads Industrial market boasts some of the strongest fundamentals in the country. With the economic engine of the Port of Virginia investing heavily in their operations and capacity, coupled with the billions of dollars of infrastructure improvements supporting the region, we believe this market is positioned well for continued growth and a strong demand for industrial space. We are excited to be working with Heitman on this acquisition and we look forward to a successful partnership."
The portfolio's strategic location provides immediate proximity to I-64 and I-464 interchange as well as Hwy 460 which is the direct southern route west to I-95 and Richmond. Diamond Hill also benefits from available rail access onto Norfolk Southern's main line as well as being next door to their Portlock rail yard. The region is also home to the largest naval installation in the world and the Newport News and Huntington Ingalls ship building yards, which support a large number of defense contractors and subcontractors who contribute significantly to the region's industrial demand.
Marketing and leasing efforts for Diamond Hill Distribution Center will be handled by Charles Dickinson of Harvey Lindsey Commercial Real Estate. Cushman & Wakefield served as broker on the transaction. Acquisition financing is provided by Voya Financial and was arranged by John Alascio of Cushman & Wakefield.
About Lovett Industrial:
Founded in 2020 and based in Houston, Texas, Lovett Industrial is a privately held vertically integrated logistics real estate investment platform that seeks to develop and acquire industrial real estate assets that are differentiated by their quality, location, and functionality. Currently active in Currently active in 8 markets across the United States, Lovett Industrial's portfolio consists of approximately 14.7 million square feet of completed, acquired, and under construction warehouses and in excess of 10 million square feet of warehouses planned for future development. Lovett Industrial's founders have combined over 60+ years of experience in the commercial and industrial real estate sectors. For more information, please see our website at https://lovettindustrial.com/.
About Heitman:
Founded in 1966, Heitman LLC is a global real estate investment management firm with approximately $51 billion in assets under management. Heitman's real estate investment strategies include direct investments in the equity or debt capitalization of a property or in the securities of listed and publicly traded real estate companies. Heitman serves a global client base with clients from North American, European, Middle Eastern and Asia-Pacific institutions, pension plans, foundations and corporations, and individual investors. Headquartered in Chicago, with additional offices in North America, Europe and Asia-Pacific, Heitman's over 350 employees offer specialized expertise ? from a specific discipline to local insight.
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