The Creative Sale of 45,650 SF Industrial Warehouse at 10371 Central Park Avenue in Manassas, Virginia
Discover the successful sale-leaseback of a 46,650-square-foot industrial warehouse at 10371 Central Park Drive. Explore the creative strategy and innovative approach behind this prime real estate transaction in the competitive industrial market of Northern Virginia.
Property Highlights: Industrial Warehouse Sale and Details for 10371 Central Park Drive, Manassas, Virginia
The owner of 10371 Central Park Drive navigated the complexities of a special-purpose property with an Olympic-size pool, ultimately securing an $8.5M sale. The Serafin Real Estate team employed a tailored sale-leaseback strategy, attracting investment buyers and achieving a successful outcome for their client.
- Strategic Dilemma: The owners faced the challenge of selling the property, which was part-occupied by NVMS and leased to OCCS, a swimming league operating an Olympic-size pool—making the property a special-purpose use that limited its appeal.
- Tenant Value Challenge: Valuing the property was complicated by its unusual mix of uses, particularly the Olympic pool, which attracted a niche market of tenants. Past brokers struggled to find buyers who could appreciate the long-term potential.
- Sale-Leaseback Strategy: Serafin Real Estate devised an innovative solution: proposing a 15-year NNN sale-leaseback for NVMS, transforming them from an owner-occupier into a tenant. This provided prospective buyers with the security of long-term income.
- OCCS Lease Negotiation: Negotiating a lease extension for OCCS was a key element. The swimming league was initially on a short-term lease, but the team secured a 15-year NNN lease, making the property more attractive to investors.
- Targeting Investment Buyers: With both NVMS and OCCS signed to long-term leases, Serafin Real Estate shifted the focus to investment buyers, offering a stable cash flow and a promising cap rate. A comprehensive marketing strategy was implemented to reach the right audience.
About the 10371 Central Park Drive Location
10371 Central Park Drive is located in Manassas, Virginia, a growing industrial hub in Northern Virginia. The property benefits from proximity to major highways and distribution routes, making it a highly desirable location for both industrial and special-purpose use. The presence of OCCS and their Olympic pool added a unique element to this transaction, requiring a customized approach to maximize the property's value.
10371 Central Park Drive Full Story by Joe Serafin
Uncovering Overlooked Value in a Special-Purpose Industrial Property
When NVMS and OCCS first approached Serafin Real Estate, they had been unable to sell the property with previous brokers. The challenge was not only in finding the right buyer but also in crafting a strategy that would maximize the property's unique features. Serafin Real Estate understood that the combination of an owner-occupier and a short-term tenant needed to be converted into a more attractive investment opportunity.
Our solution? A sale-leaseback. We proposed that NVMS sign a 15-year NNN lease to remain in their 20,000 SF portion of the building, ensuring a stable income stream. Simultaneously, we negotiated a long-term lease extension with OCCS, securing a 15-year NNN lease for their swimming facility.
These efforts paid off. We brought the property to market as a strong NNN investment opportunity and quickly generated interest from a number of qualified investors. Our comprehensive marketing strategy, which highlighted both the property's location and its long-term lease agreements, led to multiple offers and ultimately a successful sale at $8.5M.
Results
- $8.5M Sale for 10371 Central Park Drive
- 46,000 SF Industrial Warehouse, with 20,000 SF occupied by NVMS and 26,000 SF leased to OCCS
- 15-year NNN Leases in place for both tenants
- Competitive bidding process with multiple offers
- Closed successfully after rounds of negotiations
Seller’s Testimonial:
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