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Amazon-Leased Warehouse In Northern Virginia Sells For Record Price

The industrial property at 6885 Commercial Drive in Springfield.
The industrial property at 6885 Commercial Drive in Springfield.

A warehouse property just inside the Beltway in Northern Virginia that is partially leased to Amazon has traded hands for what the broker says is a record price. 

Black Creek Group acquired the newly built industrial property at 6885 Commercial Drive in Springfield for $52.75M, Transwestern announced Monday. 

The sale of the 190K SF property penciled out to about $277K per SF, a price Transwestern said represents a record for the submarket. Transwestern's Gerry Trainor and Mark Glagola represented the seller, whom they did not disclose. 

A development team including Ridge Development, the industrial arm of Transwestern Development Co., and Principal Real Estate Investors broke ground on spec on the property in 2018, the Washington Business Journal reported

Transwestern said the building was fully leased at the time of its delivery, with an unnamed international technology company occupying 68% of it. An Amazon job posting lists the property's address, and a source with knowledge of the deal confirmed Amazon leases the property. Goodman Distribution occupies the remainder of the building. 

The building features 32-foot ceiling heights and 194 parking spaces on a 7.3-acre site. It sits in Fairfax County, with a population of over 1 million, within a mile of the interchange of the Beltway and I-395, less than 15 miles from downtown D.C.

The industrial market has fared better than most real estate sectors during the coronavirus pandemic, as consumers have increased their use of online delivery services. Amazon announced in April it hired more than 175,000 people in its fulfillment and delivery network in response to increased demand.

The e-commerce giant said last week it plans to build more than 1M SF of new last-mile warehouses in Maryland. Its stock price closed Monday over $3,000 for the first time in the company’s history, putting its market capitalization at more than $1.5 trillion.

"The entire marketing process of this asset was performed during the stay-at-home orders related to the COVID-19 pandemic," Trainor said in a release. "To achieve record pricing on this deal is a testament to the strength of the industrial market and, in particular, last-mile distribution."