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VIRGINIA BEACH, VA-A high bay distribution building here has sold for $6.7 million. The buyer of the fully leased 146,000-sf center was Cambridge Hanover, an industrial property investment fund. Crider & Shockey of West Virginia sold the property. R.L. “Abe” Ellis of Thalhimer, a member of the Cushman & Wakefield Alliance, represented both buyer and seller.

Located at 5901-5921 Thurston Ave. in Airport Industrial Park, Airport Industrial Center II is something an anomaly for the market, Ellis tells GlobeSt.com. “We have a largely owner-occupied industrial market here–it is about 65% to 75% owner-occupied. So investment properties come to market very rarely.” Crider & Shockey had owned Airport Industrial Center II for 12 years prior to putting it on the market and the property had performed very well, Ellis says.

Built in the early 1970s, the property is front loaded with 21-foot to 24-foot clear heights in the warehouse and minimal office build out. It didn’t have typical triple net leases in place, which meant deriving a true NOI was somewhat difficult, Ellis reports. “So the buyer did not purchase it using cap rate considerations but rather on the price per sf.” Typical investment trades in the industrial market here have ranged from $50 per sf to $75 per sf.

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