TF Cornerstone has acquired a distribution center in Fredericksburg, Virginia, entering the once-hot industrial sector.
The firm of Tom and Fred Elghanayan purchased the property outside Washington, D.C. for $79.5 million from Blue Vista Capital Management and CSG Partners. The sellers developed the facility at the 95 distribution center in 2021, and FedEx is currently leasing the 486,000-square-foot building, which has 55 dock doors and 157 trailer stalls.
The deal was first reported by The Business Observer.
Fulfillment centers were a hot commodity even before the 2020 pandemic hit, triggering lockdown orders and stimulus checks, accelerating online shopping. To speed up deliveries, Amazon is doubling its delivery and delivery space across the country between 2020 and 2022.
But last year, Amazon acknowledged that it was buying far more industrial space than it needed, and demand for fulfillment centers had weakened.
Against this backdrop, the timing of TFC’s purchase of one is odd. The firm has traditionally focused on luxury rental apartments and retail in New York, but has numerous offices in Washington, D.C. Prior to the VA purchase, no industrial property rights were listed on its website.
Whether the Fredericksburg acquisition is part of TFC’s broader foray into the industrial sector remains to be seen. A company spokesman declined to comment.
Jonathan Carpenter and Graham Savage of Cushman & Wakefield led the brokerage teams for Blue Vista and CSG Partners, while buyers were represented in-house.
Earlier this year, the brothers’ company was born out of a famous toss a coin In 2009, secured construction loans totaling $735 million for a 1,386-unit apartment complex in Hunters Point, Long Island City.