(To read more on the industrial market, click here.)
WINCHESTER, VA-Manassas-based Extreme Steel Inc. has purchased an industrial flex property here for $3.55 million from Valley Industrial Plastics, which was also the tenant. The 32,000-sf property is located near Interstate 81 and Route 37 bypass at 380 Shady Elm Dr.
Conrad E. Koneczny and Betty L. Friant of Sperry Van Ness in Winchester represented the seller. Extreme Steel Inc., which represented itself, will do a sale-leaseback to allow Valley Industrial time to move out.
The property is located on nine acres and has already received approval from Prince George's planning authorities to expand another 30,000 sf, Koneczny tells GlobeSt.com. "They buyer plans to expand, although I don't know if it will expand the complete 30,000 sf that has been approved."
For the market, $3.55 million was a fair price, he says. Originally listed at $3.8 million, the property is highly specialized, fitted with infrastructure designed to handle the specific needs of the plastic molding industry, including built-in heavy cranes and materials handling equipment. "It was difficult to do comps [comparable analysis] on it."
As it turns out, it was the perfect facility for Extreme Steel, which uses the same equipment in its fabricating and construction of heavy metal building components. Extreme Steel leases space in Northern Virginia and was having difficulty finding additional space to expand, he says.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
