Lingerfelt Sells Office Portfolio for $119M

HENRICO COUNTY, VA – Richmond, VA-based commercial real estate investment and asset management firm Lingerfelt has sold an 11-property office portfolio to Charlottesville, VA-based Seminole Trail for $118.9 million.

Seminole Trail purchased the portfolio for a 6.3% cap rate or $165 per square foot.

The 82%-leased portfolio comprises 723,103 square feet of space in and around Innsbrook in Henrico County, VA.

In 2020, Lingerfelt began to rezone five of the 11 office properties to the urban mixed-use designation in accordance with Henrico County’s comprehensive plan of densification and mixed-use development within Innsbrook. In November of 2021, Lingerfelt received unanimous approval to build 1,375 multifamily units within existing parking areas of five office buildings. Seminole Trail intends to proceed with the multifamily developments in due course.

Lingerfelt was one of the original developers within the Innsbrook park in the late 1980’s.

“Lingerfelt’s contributions to Innsbrook, in both physically built space and as a visionary in planning for Innsbrook’s future, has been instrumental to its growth and evolution into a mixed-use community,” says Jane DuFrane, SVP and market leader at Highwoods Properties Inc. and president of the Innsbrook Owner’s Association. “They have played a vital role along with Highwoods and the Innsbrook Owner’s Association in laying the ground work for future development in Innsbrook for years to come.”

Henrico County’s vision for the Innsbrook area is now materializing. The new Innslake Place Apartments opened in 2020 and the area has more than 1,000 new apartment units being delivered in the next six months with more in the pipeline.

“Given Lingerfelt’s history in Innsbrook and Henrico County, we had an obligation to advance the county’s initiative by establishing these multifamily entitlements, thereby setting up the opportunity for more future successful development within the park,” says Lingerfelt managing director Brian Witthoefft, who will continue to sit on Innsbrook’s board of directors and architecture review committee, which oversees new development in the area.

Lingerfelt and its investors still own eight properties in Innsbrook, totaling 240,000 square feet of office and flex warehouse buildings. The firm will continue to expand its operations and evolve its investment strategy and corporate restructuring. It remains active in the industrial and multifamily sectors and it has more than $775 million of regional projects that are currently under construction or breaking ground in 2023.