Descriptif

Jones Lang LaSalle Americas, Inc. ("JLL") is pleased to exclusively present Hampton Roads Defense Portfolio ("the Portfolio") - a 273,164 SF industrial portfolio comprising four recently renovated buildings located in three of the most desirable infill submarkets in the Norfolk, Virginia area with access to the Port of Virginia, Norfolk International Airport, Naval Air Station Oceana, and 18 other military installations.

The Portfolio is 88% leased to eight diverse tenants, including defense industry leader Huntington Ingalls Industries, defense technology contractor Saronic Technologies, and Valkyrie Enterprises, a defense engineering and technology firm. Hampton Roads Defense Portfolio features an average tenant size of 29,964 SF, an 18% mark-to-market, and a weighted average lease term (WALT) of 4.1 years, providing immediate cash flow and near-term value creation opportunities. The Portfolio benefits from strategic positioning within the military-adjacent ecosystem, superior access to the Port of Virginia, and proximity to over 1.9 million Hampton Roads residents.

The Hampton Roads industrial market represents a compelling industrial investment market with robust rental growth of 12.1% CAGR since 2020. The Portfolio's strategic locations within Hampton Roads' infill submarkets offer compelling advantages including military positioning, a defense-driven employment base, and exceptional port and interstate access that facilitate logistics operations for defense contractors and government suppliers. Despite containing over 40% of industrial inventory, new development in the southside infill submarkets has been limited to less than 20% of completions since the start of 2024 due to stringent zoning regulations prioritizing housing and mixed-use development and a lack of available land.

The Norfolk MSA benefits from increased defense spending and national security priorities, which drive regional economic growth. Military and defense spending represent 35-45% of the MSA's GDP and is projected to grow following a 15% increase in the Department of Defense (DoD) budget. Due to current geopolitical priorities, renewed emphasis on maritime defense aligns directly with Norfolk and Hampton Roads' capabilities. Additionally, the Port of Virginia continues to thrive with 15% total Twenty-Foot Equivalent Unit (TEU) growth since 2020, $1.4 billion in port-specific infrastructure investments through 2027, and the recent completion of work to make it the deepest channel on the East Coast. Hampton Roads region continues to attract increased industrial activity and institutional investment interest.

Hampton Roads Defense Portfolio offers investors a unique opportunity with substantial mark-to-market upside in a supply-constrained location that serves as a critical hub for defense and logistics operations along the Eastern seaboard.

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Attributs

Superficie du bâtiment brute

25 378 mètres carrés

Occupation

88 %

WAULT

4.1 années

Hampton Roads Defense Portfolio (4 Propriétés)

Média

Points forts de l'investissement

STRENGTHENING MARKET FUNDAMENTALS & PORTFOLIO PERFORMANCE

-The Portfolio's short-term WALT (4.1 years) and 18% below market rents allow investors to take advantage of ever-increasing rents with 12.1% CAGR since 2020. Over the past two years, Hampton Roads Defense Portfolio outperforms the market with a weighted average downtime of less than 5 months across the Portfolio and just over 2 months for multi-tenanted buildings.

DEFENSE CONTRACTOR HUB

-Located across Norfolk's southside industrial submarkets near Naval Air Station Oceana, Norfolk International Airport, and the Port of Virginia, the Portfolio is strategically positioned to serve defense contractors and military-support services. The tenant roster reflects this defense-focused, military-adjacent location.

PREMIER PORT ACCESS

-The Port of Virginia is the fastest-growing port in the U.S. with 15% TEU growth since 2020. With $1.4 billion in recent and planned port infrastructure and $17 billion total port, transportation, and energy investment through 2027, plus a newly deepened 55-foot channel, it's the deepest port on the East Coast.

MODERN INFRASTRUCTURE WITH OPERATIONAL EFFICIENCY

-The Portfolio supports light manufacturing and R&D uses with 2,000+ amps of power available at three of four properties. Taylor Farm assets (built 2005/2007) feature 22+ foot clear heights, 30 total dock/drive-in doors, and rear-load configuration ideal for modern logistics. These specifications attract government-approved, international defense contractors with minimal capital needs.

-Almeda and Principal offer fully-conditioned spaces, purpose-built spaces functioning as HQ-style manufacturing, office, and distribution facilities.

DIVERSIFIED TENANT MIX WITH CREDIT QUALITY

-Eight-tenant portfolio averaging 29,964 SF across government & defense, healthcare & hygiene solutions, and building materials sectors, providing income diversification and reduced single-tenant concentration risk.