Prologis Expands Virginia Presence with Latest Acquisition
The largest real estate investment trust (REIT) in the United States, Prologis (PLD), has added to its extensive portfolio with the recent acquisition of an industrial property in Northern Virginia for $76.5 million. This acquisition marks a strategic move outside the typical focus on data centers, highlighting Prologis’s commitment to expanding its logistics capabilities.
Details of the Acquisition
Located at 43035 Little River Turnpike in Chantilly, the property spans 232,500 square feet and has been renamed the Prologis West Dulles Distribution Center. The transaction was facilitated through Business Journals and various leasing materials. The property was previously developed by Miami’s Elion Partners, who completed construction at the start of the year before selling it.
Leasing and Market Demand
Prominent commercial real estate firm CBRE, represented by Tony Russo, Bob Gibbs, and Daniela Patino, is managing the leasing aspects of the new warehouse. Elion Partners had acquired the site for development in 2021 at a cost of $13.1 million.
Danielle Schline, a senior vice president at Prologis, emphasized the growing demand for premium logistics spaces in Northern Virginia, stating, “This building was delivered in January and was fully leased by the time of closing. Being leased at delivery underscores both the strength of the industrial market and the high demand in this location.”
Portfolio Growth in Northern Virginia
The acquisition reinforces Prologis’s substantial presence in the Loudoun County area, bringing its total holdings there to over 4.2 million square feet. While specific tenant names remain undisclosed, the leasing status reflects a robust industrial market in the region.
Company Overview and Future Plans
Despite the challenges faced by the industrial asset market nationwide, Prologis has shown resilience. The company ended the fourth quarter of 2024 with a significant 19% increase in core funds from operations, achieving quarterly revenues of $2.2 billion, a rise from $1.8 billion reported in the previous year.
Additionally, Prologis has been in the news concerning its broader strategic initiatives, including plans for data centers. In March of last year, Prologis engaged Chris Curtis, founder of Compass Datacenters, to spearhead a $25 billion investment strategy in data centers. The company has also sought to rezone a 94-acre site near Dulles International Airport, potentially paving the way for a 4 million-square-foot data center complex, pending county approval.
For further details, Nick Trombola can be reached via email at nt*******@****************er.com.
