Washington Post Sells Former Recycling Facility In Fairfax County
The Washington Post has sold a Northern Virginia industrial building it once used as a paper recycling facility.
Fortified Property Group bought the 94K SF industrial building at 6608 Electronic Drive in Springfield from the newspaper company for $8.1M, Fortified Managing Partner Michael Rabin said.
The building had been operated by the Post as a paper recycling facility until it was leased by Waste Management in 2011, Rabin said. The Waste Management lease expires in 2021, but Rabin is confident in Fortified's ability to re-lease the building if the tenant vacates. A shrinking supply of industrial property due to redevelopments coupled with a large demand from e-commerce users has created a strong market with low vacancy and rising rents, he said.
"We think regardless of where we are in the cycle, the fundamentals in this category will continue to improve," Rabin said. "Especially at our basis of $86/SF, we feel we have a protected investment with flexibility."
The investment firm was represented by AMR Commercial's Alexander Alperstein in the deal. Fortified is based in Los Angeles and has an office in Bethesda. It has acquired $200M in commercial property over about the last two years, Rabin said, focusing on value-add office, retail and industrial assets. In 2017, it partnered with Rappaport to acquire a shopping center in Bowie, Maryland.