Investment Overview

Marcus & Millichap is pleased to exclusively represent 3612 LaGrange Pky in Toano, Virginia (Virginia Beach-Norfolk-Newport News, VA-NC MSA; Population: 1,799,674, Rank: 37th), a 103,795 SF industrial warehouse facility located in Stonehouse Commerce Park. Leased to C&F Enterprises, a wholesale home decor and gift company headquartered in Newport News, VA with five showrooms located across the United States. The tenant signed a new 6 year NNN lease which commenced in August 2022 with 3% annual rent escalations. Rents are below market (Subject Property $6.50 SF | Avg. Market Rent $9.49 SF; CoStar, 1Q 2023) and with significant upside potential to expand the building by adding up to 40,000 SF. The subject property has received ~$800,000 Capital Expenditure improvements since January 2021, including (16) new Trane rooftop units, (2) split systems (FDA registered), and life system improvements. The property built in 2004, 28’ clear height with 50’x60’ column spacing, reinforced concrete construction, and is situated on a 15 acre lot. The building features a 5,000 SF office buildout (4.8% GLA), fully air conditioned (FDA registered), ESFR sprinklers, ten docks with levelers, and one drive-in. The subject property is located just off I-64 (120,000 VPD) via Barhamsville Road (Route 30; 19,400 VPD). The Virginia Beach-Norfolk-Newport News MSA enjoys low 2.3% vacancy rate and annual rent growth of over 8% year-over-year (YOY). Toano is located mid-way between two large metro areas, Richmond, VA (35 minutes) and Virginia Beach, VA (1 hour), providing a highly educated workforce from nearby colleges (which include Old Dominion (Enrollment: 24,286), Regent University (10,365), College of William & Mary (9,517), Norfolk State University (5,616), Christopher Newport University (4,749) and Eastern Virginia Medical School (1,261)). Affluent area with Average Household Income of $120,332 in a 3-mile radius. In range of 54% of the U.S. population within one day’s drive.