Real estate investment firms Elion Partners (“Elion”) and Buchanan Partners (“Buchanan”) today announced the acquisition of a 1.6 million square foot industrial portfolio, spanning 34 buildings spread across six locations in the Washington D.C. Metro area for $198.5 million.
Within this transaction, Elion and joint venture partner Buchanan have replicated their ongoing investment strategy, which focuses on investing in key assets at- or below- replacement cost with strong occupancy fundamentals in supply-constrained locations. The newly acquired assets are in close proximity to the Washington Dulles International Airport and service tenants primarily in the government contract sector.
“In addition to supporting our ongoing investment strategy, the fundamentals of industrial warehouse product in the Washington D.C. metro area align with our investment philosophy,” said Juan DeAngulo, Managing Partner and Co-founder of Elion Partners. “The portfolio creates a connection between national and regional logistics platforms, and our nation’s capital, by offering a wider array of tenant pillars which promote greater leasing velocity and simultaneously help offset potential future market volatility.”
Colin Dove, Principal with Buchanan Partners, noted that, “This investment expands our geographic footprint to strong submarkets for one-story flex and industrial product at a fraction of replacement cost in these locations. Many options will present themselves to enhance the value of these buildings and we are excited to have an innovative partner like Elion to help us achieve that goal.”
This announcement marks the second industrial portfolio acquisition in the Washington D.C. Metro area for Elion. In August 2017, the firm, along with Buchanan, completed a 700,000 square foot acquisition of a similar industrial product type. That acquisition included a 14-building portfolio spread across three locations just off Route 28 in the Washington D.C. Metro area, bringing the total portfolio to over 2.3 million square feet.