UPDATE: Elion, Buchanan Buy OPI’s Industrial Portfolio

GAITHERSBURG, MD—Real estate investment firms Elion Partners and Buchanan Partners have announced the acquisition of a 1.6 million square foot industrial portfolio, spanning 34 buildings in the Washington D.C. Metro area. The two buyers didn’t announce the seller but the specs of the portfolio match exactly to the one that Office Properties Income Trust announced it had sold this week for $198.5 million, excluding closing costs.

For Elion and Buchanan, the investment gave them key assets at-or below-replacement cost with strong occupancy fundamentals in supply-constrained locations.

“This investment expands our geographic footprint to strong submarkets for one-story flex and industrial product at a fraction of replacement cost in these locations,” says Colin Dove, principal with Buchanan.

This is the second industrial portfolio acquisition in the Washington, DC area for Elion. In August 2017 it and Buchanan completed a 700,000 square foot acquisition of a similar industrial product type. That acquisition included a 14-building portfolio spread across three locations just off Route 28 bringing the total portfolio to over 2.3 million square feet.