Crescent Business Center
Merritt Properties Acquires Crescent Business Center in Ashland, VA
Merritt Properties announced today that it has purchased Crescent Business Center in Ashland, Virginia, for $41.3 million. The project includes five existing Class A industrial buildings situated on ± 20 acres, as well as an additional ± 19 acres for new development opportunities to meet the market's unprecedented demand for warehouse and distribution space. Merritt acquired the park from Crescent Business Center LC, a Thalhimer Realty Partners, Inc. development.
"With this acquisition, we continue to execute on our strategy of extending our presence in strategic growth markets from the Mid-Atlantic to the Southeast," explained Scott Dorsey, CEO of Merritt Properties. "Crescent Business Center offered us the ideal opportunity to establish our presence in Richmond with high-quality existing assets, a strong tenant base and land for additional shallow bay industrial development.
"Situated along I-95 ten miles north of downtown Richmond, the development currently includes five shallow-bay industrial buildings totaling 262,256 SF. With 100% occupancy, current tenants include Trane U.S., Electronic Systems, Motion Industries and Sunbelt Rentals. The Richmond Industrial market is one of the strongest performing in the Mid-Atlantic, with a 95% occupancy rate combined with a 10% increase in rental income over the past 12 months. Key market drivers include access to a robust interstate transportation system as well as proximity to Norfolk, the sixth largest port in the U.S.
Eric Robison of Cushman & Wakefield | Thalhimer's Capital Markets Group handled the sale negotiations on behalf of the seller. "Well located, high-quality industrial assets in Richmond continue to be highly sought after by investors. Despite headwinds in the economy, interest in Crescent Business Center was exceptionally competitive, with a number of offers coming from groups bringing new capital to the market. Merritt's execution on this transaction was first class all the way around, and we are pleased to welcome them to Richmond," comments Eric Robison.
Graham Stoneburner and R. Scott Douglas, SIOR, also with Thalhimer, have been named exclusive leasing representatives for Crescent Business Center on behalf of Merritt Properties. Thalhimer's Commercial Property Services Group will be handling the property management of Crescent Business Center; Jason Crowder, ACoM, Senior Portfolio Manager has been named portfolio manager for the center.