- Rockpoint paid $108M, about $104 per SF, for the 1,034,470-SF, five-building Richmond Trade Center.
- Thalhimer’s Bo McKown says Richmond industrial vacancy is below 4% with rents still rising fast.
- The deal was off-market, and McKown expects institutional bid-sheet interest to broaden over the next 12 months.
Rockpoint, a real estate private equity firm, has acquired Richmond Trade Center, a five-building industrial campus in Chesterfield County, Virginia, for $108 million. The deal was announced Sept. 24.
The Class A campus totals 1,034,470 square feet, which works out to roughly $104 per square foot. It sits at 2601 and 2701 Bermuda Hundred Road in the Richmond MSA.
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A Location Built for Distribution
The campus is in Meadowville Technology Park, about two miles from Interstate 295 and six miles from Interstate 95. That puts tenants within quick reach of regional and national distribution networks.
Bo McKown, senior vice president in Thalhimer’s Capital Markets Group, called it an “excellent distribution location.” He added that the site also benefits from “recent data center activity in the immediate area.”
An Off-Market Deal in a Tight Market
Cushman & Wakefield | Thalhimer’s Capital Markets Group and the Cushman & Wakefield Industrial Advisory Group represented Rockpoint. McKown led the deal alongside Jonathan Carpenter, Graham Savage and Dawes Milchling of Cushman & Wakefield.
Asked about the competitive landscape, McKown said only that the deal was “off-market,” so there was no formal bidding process to size up. He deferred questions about Rockpoint’s underwriting to the buyer.
Why Institutional Money Keeps Coming to Richmond
McKown said industrial demand in Richmond “remains strong.” He put the market’s vacancy below 4% and said rents “continue to grow at a significant clip.”
He also sees more capital on the way. “Plenty of institutional capital” is active on both the acquisition and development sides, McKown said, and he expects bid-sheet interest to broaden over the next 12 months.
What to Watch
A sub-4% vacancy rate and rising rents give investors a reason to keep targeting Richmond, and off-market deals like this one suggest buyers are willing to move early to win assets. If McKown’s outlook holds, expect more institutional buyers and developers to compete for Richmond industrial product through next year.
