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DULLES, VA-In a $42-million deal, McLean, VA’s Aviation Facilities Co. Inc. sells 95% interest in Cargo Building 5–the 285,000-sf air cargo distribution facility at Washington Dulles International Airport–to San Francisco-based industrial real estate owner AMB Property Corp.

The on-tarmac air cargo facility is currently 99% leased to tenants including commercial companies Air France, Federal Express, and United Airlines, as well as the US Customs Service and US Department of Agriculture. AMB will retain a 5% equity interest in the property and will also continue to supply management and leasing services.

Located at the airport’s World Cargo Center, Building 5 is a 20-year-old property that consists of 250,000 sf of cargo handling room and about 35,000-sf of office space. The exterior property features 440,000-sf of aircraft “apron” or ramp space, 54,000 sf of storage space and a 582,000-sf airport ramp. In addition to room for jets, there is supplemental parking space to accommodate up to 310 vehicles.

For AMB the deal allows for the planned expansion of its on-tarmac presence, as well as the continuation of its current strategy. In a statement on the company’s second quarter 2002 earnings, AMB president W. Blake Baird says his company’s “full year acquisition volume is on track.” The transaction is in line with AFCO’s goals as well. “The sale of a 95% interest in Cargo Building 5 to AMB provided an excellent opportunity for our private investors,” AFCO president and CEO Frank Chambers says.

In a $95-million deal two years ago, AFCO sold 95% interest, while retaining 5% interest, in 20 air cargo properties across eight US airports to AMB.

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