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Warehouse

1 Shenandoah Valley Dr

1 Shenandoah Valley Dr, Strasburg, VA 22657

Listing Price: $12,825,000

Cap Rate
6.07%
Gross SF
410,450
Price/Gross SF
$31.25
Lot Size
21.26 acres
Year Built
1965
Rentable SF
410,450

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1 Shenandoah Valley Drive in Strasburg, Virginia, partially leased to United Parcel Service. The subject property consists of approximately 410,450 square feet of warehouse space and is situated on 21.26 acres of land. Clear heights in the asset vary, starting at 12’ in the office area, ranging from 16’, 18’, 20’, and 25’ throughout the property. Further, the asset exhibits 18 dock-high doors, 306 parking spaces, and excess land, allowing for truck parking and outside storage. With excess land, the property can accommodate truck parking and outside storage. During 2021, the property has undergone significant repairs that will allow the asset to be a dominant player the market. The asset is strategically located with proximity to Interstates 81 and 66. With below market rents, returns on the pro-forma cap rate has room to increase. With over 540,000 employees operating in 220 countries, the United Parcel Service (UPS) is a global leader in logistics. UPS offers a broad range of solutions, including the transportation of packages and freight, the facilitation of international trade, and the deployment of advanced technology to manage the world of business more efficiently. UPS is a publicly traded company and a longstanding member of the Fortune 500 list, generating nearly $85 billion in sales (UPS, Fortune). The subject property is situated within the Northwest segment of Virginia Regional, a large submarket that consists of the many rural areas throughout the state. Virginia Regional maintains an industrial inventory of 95.2 million square feet that helps facilitate trade among the highly populated areas of Washington D.C., Richmond, and Virginia Beach. From Q4 2020 to Q4 2021, the vacancy rate dropped 310 basis points to 5.1 percent. At 7.5 percent, Virginia Regional is enjoying its highest rate of market rent growth in over two decades. Despite strong fundamentals, construction activity has remained meniscal. With only about 210,000 square feet of industrial space in the pipeline, current construction represents just 0.2 percent of inventory. While tallying was not complete, net absorption in 2021 hit a record 2.9 million square feet towards the end of Q4 (CoStar).

Investment Highlights

  • 410,450-Square-Foot Manufacturing Asset Situated on 21.26 Acres
  • Clear Height is Variable - From 12' in Office Area, Ranging 16', 18', 20' & 25' Throughout Property
  • Features 18 Dock-High Doors, and 306 Parking Spaces
  • Excess Land for Truck Parking and Outside Storage
  • Strategically Located Industrial Warehouse with Proximate Access to Major Freeways
  • Pro-Forma Cap Rate Includes a Below Market Rental Rate for Room to Increase Return
  • UPS is a Tenant with Over 540,000 Employees, 220 Countries, and a Total Revenue of 84.6 Billion in 2020, There is a High Level of Credit
  • Property Has Undergone Significant Repair in 2021 for Continued Market Dominance

Exclusively Listed By

Broker of Record

  • Brian Hosey

    First Vice President/ Division Manager

    (202) 536-3700

    License(s) VA: 0225247494

    Virginia

Financing By

Warehouse

1 Shenandoah Valley Dr

Listing Price: $12,825,000

Cap Rate
6.07%
Gross SF
410,450
Price/Gross SF
$31.25
Lot Size
21.26 acres
Year Built
1965
Rentable SF
410,450

Investment Highlights

  • 410,450-Square-Foot Manufacturing Asset Situated on 21.26 Acres
  • Clear Height is Variable - From 12' in Office Area, Ranging 16', 18', 20' & 25' Throughout Property
  • Features 18 Dock-High Doors, and 306 Parking Spaces
  • Excess Land for Truck Parking and Outside Storage
  • Strategically Located Industrial Warehouse with Proximate Access to Major Freeways
  • Pro-Forma Cap Rate Includes a Below Market Rental Rate for Room to Increase Return
  • UPS is a Tenant with Over 540,000 Employees, 220 Countries, and a Total Revenue of 84.6 Billion in 2020, There is a High Level of Credit
  • Property Has Undergone Significant Repair in 2021 for Continued Market Dominance

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1 Shenandoah Valley Drive in Strasburg, Virginia, partially leased to United Parcel Service. The subject property consists of approximately 410,450 square feet of warehouse space and is situated on 21.26 acres of land. Clear heights in the asset vary, starting at 12’ in the office area, ranging from 16’, 18’, 20’, and 25’ throughout the property. Further, the asset exhibits 18 dock-high doors, 306 parking spaces, and excess land, allowing for truck parking and outside storage. With excess land, the property can accommodate truck parking and outside storage. During 2021, the property has undergone significant repairs that will allow the asset to be a dominant player the market. The asset is strategically located with proximity to Interstates 81 and 66. With below market rents, returns on the pro-forma cap rate has room to increase. With over 540,000 employees operating in 220 countries, the United Parcel Service (UPS) is a global leader in logistics. UPS offers a broad range of solutions, including the transportation of packages and freight, the facilitation of international trade, and the deployment of advanced technology to manage the world of business more efficiently. UPS is a publicly traded company and a longstanding member of the Fortune 500 list, generating nearly $85 billion in sales (UPS, Fortune). The subject property is situated within the Northwest segment of Virginia Regional, a large submarket that consists of the many rural areas throughout the state. Virginia Regional maintains an industrial inventory of 95.2 million square feet that helps facilitate trade among the highly populated areas of Washington D.C., Richmond, and Virginia Beach. From Q4 2020 to Q4 2021, the vacancy rate dropped 310 basis points to 5.1 percent. At 7.5 percent, Virginia Regional is enjoying its highest rate of market rent growth in over two decades. Despite strong fundamentals, construction activity has remained meniscal. With only about 210,000 square feet of industrial space in the pipeline, current construction represents just 0.2 percent of inventory. While tallying was not complete, net absorption in 2021 hit a record 2.9 million square feet towards the end of Q4 (CoStar).

Exclusively Listed By

Broker of Record

  • Brian Hosey

    First Vice President/ Division Manager

    (202) 536-3700

    License(s): VA: 0225247494

    Virginia

Financing By

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