Besides, the vacancy rates for warehouse buildings in the region are so low that any business needing to lease space is going to have limited opportunities, said Bruce Levine, another partner in Equity Industrial.
The East Coast Commerce Center, the new name for the project, is on the site of the former Camptown Races property in northern Hanover. The project, initially called the Graymont Industrial Park, is off Hickory Hill Road about 2 miles north of Ashland.
Raith Capital and Equity Industrial, through their Hickory Hill Road Virginia LLC entity, acquired the two parcels totaling 189.4 acres for $4.745 million in September.
Becknell Industrial, the Indianapolis-based developer of warehouse distribution centers across the nation, had initially planned to develop the site for home improvements retailer Lowe’s. But the retail chain decided in recent months to locate its 1.2 million-square-foot distribution facility on Commerce Road in South Richmond, just off Interstate 95 near Ruffin Road.
When Lowe’s decided to pull out of Hanover, Becknell approached Raith Capital and Equity Industrial about buying the property and developing it.
“The phenomenon in the market right now as it pertains to supply chain and costs and available land and permitting is the perfect storm,” Levine said.
