Real Estate Journal Interactive, November 20, 1997
Research & Development
Velsor Properties Cuts First Deal, Buys 59,488-SF Building for $2.64 Mil.
CHANTILLY, Va. (11/20/97) In its first acquisition, Velsor Properties, a start-up real estate investment company based in McLean, Va., recently purchased the Hoppmann Building at 14560 Lee Road here from Hoppmann Corp. for $2.64 million.
The 59,488-square-foot R&D building was built in 1981 and is currently 100 percent leased to Hoppmann Corp., which manufactures packaging machinery. According to Chip Kelley, vice president of Velsor, Hoppmann plans to relocate to a new facility in Haymarket, Va., within two years. Once Hoppmann is gone, Velsor plans to renovate the Chantilly building to serve as a warehouse and lease it out to another tenant.
"We considered it a good long-term investment for the price," Kelley said. "We have acquired extra land for additional parking if it goes to a more intense use."
Carey Winston Institutional Investment Group agents Stephen Conley, John Duffy and Collins Ege represented Hoppman Corp. in the sale.
Velsor Properties, comprised of a dozen or so private investors who are mainly real estate professionals from around the country, this week is closing its second deal, the 104,000-square-foot Dulles West office building at Dulles Airport.
The building at 600 Service Road West in Chantilly, built in 1980, is 95 percent leased to tenants including the U.S. General Services Administration, Gemini Air Cargo and the Federal Aviation Administration.
Kelley would not disclose the purchase price, but said it will be a 23-year ground lease from Metropolitan Washington Airports Authority. The seller is Ohio Teachers Retirement System. Velsor plans to replace the curtain wall panels on the building.
Kelley said Velsor is currently negotiating two other industrial acquisitions in Northern Virginia.
"Our primary target is Northern Virginia but we will consider the District, and as third option, Suburban Maryland," he said. "We don't have a defined target, but I would consider it a successful year to buy two properties. It's a seller's market."