Portfolio News Sep 18, 2017 Elion Partners

Elion Acquires 700,000 SF Industrial Portfolio in Washington DC Metro Area

Elion Partners has acquired a 700,000-square foot industrial portfolio in suburban Washington, DC. The property was acquired with Washington DC metro-based Buchanan Partners as a joint venture along with a co-investment by South American real estate developer and investor Pactia. The portfolio comprises 14 buildings just off Route 28 in the northern Virginia submarkets of Westfields, Chantilly, and Dulles. The seller was a joint venture of Ares Capital Corporation and Adler Group.

“With rising raw land prices, a strengthening submarket, and accelerating residential demand, we set out to find high-quality buildings that could be positioned as best-in-class industrial space for tenants serving this rapidly evolving area,” said Colin Dove, Project Manager at Buchanan Partners.” Added Buchanan Partners Principal Brian Benninghoff: “Class A industrial buildings like these provide many tenants more useful options than traditional office buildings or retail centers, at a better price.’ The new ownership plans to make capital improvements, including landscaping and amenities, while continuing to lease and manage the properties.

“This asset class aligns with our investment strategy of acquiring supply-constrained properties at or below replacement costs,” said Juan DeAngulo, Managing Principal, Elion Partners. “With sound operating fundamentals, we are excited to embark on this strategic joint venture with Buchanan Partners and look forward to continuing to grow our investments in this region.”

Northern Virginia’s Route 28 corridor features one of the nation’s densest concentrations of technology, cybersecurity, and government contractor businesses due to its proximity to the National Reconnaissance Office (NRO) and the Nation’s capital. Properties lining Route 28 provide immediate access to Washington Dulles International Airport, I-495 (Capital Beltway), and the Dulles Toll Road (Route 267) leading to Tysons Corner. Metrorail’s Silver Line extension to the airport and Dulles Greenway, currently under construction, has catalyzed development and planning of a large amount of residential, retail, and entertainment space in the area.

The newly acquired 14-building portfolio is spread across three different office parks along the Route 28 corridor: 3680-3863 Centerview Road in Dulles Business Park, 14420-14434 Albemarle Point Place in Westfields North; and 14280-14290 Sullyfield Circle in Sullyfield Business Park.