Property Location and Overview
Situated in Hanover County, Virginia, the newly acquired warehouse by a Richmond firm is a pivotal asset in the region’s booming logistics landscape. Nestled in the Cardinal Commerce Center, this warehouse benefits from its close proximity to Richmond’s economic hub. Access to Interstate 95 significantly boosts logistics efficiency, aiding both freight operations and employee commutes. The 332,000-square-foot facility, originally planned to enhance Performance Food Group Co.’s distribution capabilities, is designed for large-scale distribution, specifically meeting the food sector’s demands. Its role in enhancing Hanover County’s economic growth is clear, leveraging the area’s strong workforce and strategic transportation infrastructure. By focusing on simplicity in investments, such as this property, investors can achieve long-term financial goals without the complexities of intricate deals. The property’s location offers seamless access to major sites like Richmond International Airport and Richmond Marine Terminal, strengthening its supply chain connectivity.
Transaction Details
A Richmond-based firm successfully acquired a Hanover warehouse for $128 million. This transaction highlights the demand within the industrial real estate market. The warehouse is now among several high-value properties, similar to the recent $244M sale of 21 Penn Plaza in Midtown West, showcasing strategic investments in lucrative real estate markets. The deal is one of the largest recent industrial transactions in the Richmond area. Detroit’s real estate market boom serves as a parallel to this industrial success, illustrating how strategic investments can transform areas into high-value markets despite previous challenges. The acquisition was concluded in late October 2025. The acquisition reflects significant financial implications. It highlights the robust market trends in Hanover County, a vital logistics hub. The buyer’s strong local ties and strategic approach underscore the value of high-quality, income-generating properties.
Key Transaction Details:
| Aspect | Description |
|---|---|
| Purchase Price | $128 million |
| Finalization Date | Late October 2025 |
| Buyer’s Focus | High-occupancy, income-generating properties |
| Seller’s Profile | Institutional or private owner (undisclosed) |
| Market Trends | Competitive cap rates; strong investor interest |
Tenant and Leasing Information
The SanMar Corp. positions itself as a significant player in the industrial environment. This is achieved by utilizing the Hanover warehouse as a pivotal distribution hub.
SanMar has been the sole tenant since before the facility’s sale. They benefit from its strategic placement along the I-95 corridor, enhancing logistical capabilities.
Leasing strategies have secured its substantial footprint within the Richmond area. This aligns perfectly with SanMar’s objectives.
JLL’s Gareth Jones, Chris Avellana, and Charlie Polk oversee Northlake II leasing. However, no leasing representative is noted for the SanMar transaction.
The strong demand for modern warehouses emphasizes the tenant benefits of Hanover’s competitive industrial space. It underscores its role as a logistic stronghold.
SanMar’s continued tenancy reinforces Hanover County’s economic posture. This also amplifies market demand.
Building Specifications and Features
At the Richmond industrial site, the vastness and adaptability of the warehouse facilities highlight their market dominance.
The Hanover warehouse is one of three prominent buildings on the site. It features sturdy construction materials like precast or tilt-up concrete wall panels and a structural steel frame system.
Loading areas are equipped with multiple dock doors and overhead motorized roll-up doors, ensuring efficient access.
The flexible building sizes, combined with innovative features, cater to diverse tenant needs.
Key specifications include:
- Building Size: The total capacity is approximately 949,100 square feet. Individual buildings range from 20,000 SF to 260,000 SF.
- Ceiling Heights: Average heights are around 32 feet, allowing for adaptable space configurations.
- Concrete Slab Construction: The use of 6 to 7-inch thick concrete ensures durability.
In light of construction costs escalating due to inflation and tariffs, such robust infrastructure investments in Richmond provide crucial competitive advantages.
Market Context and Development Trends
Richmond’s commercial real estate scene is familiar with change, and now Hanover County is experiencing a pivotal shift in growth and industrial demand.
The area is currently expanding its industrial sector with an increased emphasis on data centers.
Economic indicators show strength, with GDP reaching $7.9 billion in FY 2024. The labor force has reached a peak of 62,768.
Despite an industrial vacancy rate of 8.0%, business interest is high. This is evident with Hanover County’s record visitor expenditure of $229 million in CY 2023.
New constructions, like those at Crescent Business Center, cater to the need for light industrial spaces.
Developers are focusing on larger warehouses. This leaves opportunities for small-bay advancements, which are promising for further economic development, benefiting local industries.
El Paso’s strategic border location highlights how advantageous infrastructure can boost industrial sectors, providing a lesson for Hanover County’s future development.
Assessment
The acquisition of the Hanover warehouse for $128 million exemplifies the significant shifts currently unfolding within the commercial real estate market. Richmond firm’s strategic move highlights their expansion efforts and aligns with prevailing development trends.
As market dynamics continue to evolve, such high-value transactions underscore the region’s growing appeal to investors. This deal not only reflects market confidence but also sets a precedent for future investments.
It signals potential transformations in property values and regional economic environments.
