Aside from the building, which is 94% occupied by eight businesses, the site also features a seven-acre parcel that can accommodate an additional 100,000 sf of distribution space. According to land records of the City of Chesapeake, the property has a total assessed value of $7.6 million.

"With in place rental rates well below market, we believe this property has significant upside potential by increasing the rents over the next 12 to 18 months as leases expire and through the additional development opportunity," says First Potomac chief investment officer Nicholas R. Smith. He adds that the Norfolk industrial market has experienced positive absorption for over a decade due to strong demand and supply constraints resulting from a lack of available land. "We believe the acquisition of 1400 Cavalier Blvd. provides a very attractive opportunity to take advantage of these market dynamics."