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Peloton is leasing industrial space in Prince George's County to help distribute its connected stationary bikes and treadmills across the D.C. region.
The growing fitness company signed an 84K SF lease in a newly built warehouse project at 716 Ritchie Road in Capitol Heights, Bisnow has learned.
Developer Pinkard Group, in partnership with Columbia Real Estate Management, delivered the 159K SF industrial building last month, with the remainder of the spec development still vacant. Newmark worked with the team in developing and leasing the building, branded as Hampton Gateway.
The development team closed on a deal this month to sell the property to a large institutional investor, Pinkard Group principal Fred Underwood told Bisnow. He declined to disclose the name of the buyer or the price, and the sale hasn't appeared in public deed records.
The developer bought the 10-acre site in 2019. Pinkard financed the $21M project using the opportunity zone program, partnering with an opportunity zone fund from Normandy Real Estate Partners, which was acquired last year by Columbia.
"It was very successful, considering the fact it only took us 22 months to acquire, build, lease half of it and sell it," Underwood said. "So that’s really a strong testament to our team for getting that done."
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Underwood said Peloton was drawn to the accessible location of the site, which sits inside the Beltway within the Hampton Park industrial park. He also said it wanted new space that it could move into quickly.
"They were looking for access both to D.C. and to Northern Virginia, so this provides both within a relatively short amount of time," he said. "They were certainly looking for modern distribution space, and there’s a scarcity of that. They were looking for the ability to provide a lot of parking, and since we're a new building, we could do that. And they were looking for immediacy. We had the product and they needed it, and they could slot right in."
Peloton has grown quickly in recent years, especially as the coronavirus pandemic led more people to seek in-home workout options. It reported $1.26B of revenue in Q1, up 141% from the same quarter last year.
The company has faced supply chain issues that have led to long wait times for deliveries, and it announced plans in February to spend $100M to help expedite shipping. In March, it announced plans to build its first U.S. factory in Ohio, and it has signed industrial leases in the Denver and Boston areas.
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