Investors continue targeting income-generating industrial assets as data center expansion reshapes Northern Virginia’s real estate market.
A major industrial real estate portfolio in Northern Virginia has changed hands for $132 million, highlighting continued investor demand for fully leased industrial properties as competition for development land intensifies due to the region’s expanding data center industry.
The Featherstone Industrial Portfolio, consisting of 734,395 square feet of industrial space across more than a dozen properties on Farm Creek Drive in Woodbridge, Virginia, was sold in a transaction arranged by commercial real estate services firm Newmark.
According to CoStar data, the buyer is Boston-based TA Realty, an investment management firm that oversees real estate investments for institutional clients worldwide.
Industry experts say the transaction reflects a growing investment strategy focused on acquiring stabilized, income-producing industrial properties instead of competing for increasingly scarce industrial land, much of which is now being targeted for data center development.
Ben McCarty of Newmark described the portfolio as a rare opportunity to acquire a large industrial asset in one of the country’s most competitive industrial markets. He noted that the offering attracted strong interest from institutional investors seeking exposure to Northern Virginia’s limited industrial supply.
The rapid growth of the data center sector has significantly reduced the amount of industrial land available for traditional warehouse development. As a result, existing industrial properties with reliable rental income are becoming increasingly valuable to investors.
According to the latest market data, the Woodbridge industrial market currently has a vacancy rate of 4.7%, reflecting healthy demand. Industrial rents are also expected to continue rising, with annual rental growth projected to reach 3.6% by the end of 2026, outperforming the broader Washington metropolitan area’s forecast of 2.7%.
Northern Virginia remains the world’s largest data center market, attracting significant investment from technology and infrastructure companies. The region continues to see increased acquisition activity as firms seek to strengthen their presence in this high-growth market.
TA Realty has already demonstrated its interest in Northern Virginia’s expanding data center sector. Just last month, the company acquired a Sterling, Virginia development site for $60 million. The property was marketed as being fully entitled for data center construction, allowing future development without additional legislative approvals.
At the time of the transaction, the Featherstone Industrial Portfolio was 100% leased to 45 tenants representing a diverse range of industries. The portfolio’s existing rental rates also provide opportunities for future income growth as leases expire and are renewed at current market rates.
The industrial properties were previously owned by Stockbridge Capital Group and Rosenthal Properties, which purchased the portfolio in 2021 from Finmarc Management for approximately $104.2 million, according to CoStar records.
Current tenants within the portfolio include Coleman Worldwide Moving and Tailored Move, among other industrial and logistics businesses.
Transaction Details
The seller was represented by Newmark’s brokerage team, including Ben McCarty, Cris Abramson, Will Bradley, Dustin Volz, and Nick Signor, who advised on the successful completion of the $132 million sale.
Source: Original reporting by Jonathan Lehrfeld, CoStar News.
