- For sale
Colliers Virginia is pleased to present the opportunity to acquire the GSA NAVSEA Building in Norfolk, Virginia (the “Property”). The one-story building is a 71,774 square foot office property in Norfolk Commerce Park in immediate proximity to the Norfolk International Airport, Interstate 64, and Military Highway. The 100% leased asset offers strong in-place cash flow with two exceptional and nationally-recognized tenants, the largest of which is the U.S. Government. The U.S. Government has occupied the subject premises since 1992.
The office building is approximately 70% leased by the U.S. Government (General Services Administration) on a firm term lease of nearly 10 years through September 2028. The specific government agency use is NAVSEA which is the commonly referred to name of Naval Sea Combat Systems, a mission-critical agency of the U.S. Navy. Norfolk is home to the world’s largest Naval Base as well as many other Navy installations and support facilities. Construction of the tenant’s recently executed expansion is now under way with expected completion by January 2019, upon which the above-referenced lease extension will be documented.
The other approximate 30% of the office building is leased to Maersk Line, a wholly-owned subsidiary of A.P. Moller-Maersk. A.P. Moller-Maersk is an investment grade credit-rated international company with over $30 billion in 2017 revenues. Maersk Line is the world’s largest shipping company for international containers.
Norfolk Commerce Park is the closest office park to both the Norfolk Naval Base and Little Creek amphibious base and is centrally located to all other regional military installations as well.
The Norfolk area has over 1.7 million people and is a $100 billion economy. The defense sector is the top driver of the local economy and has received a substantial boost with the greatly expanded 2018 federal budget of approximately $717 billion for defense spending.
The subject building was developed with a classic brick and glass design and features an above-market 6.8 parking spaces per 1,000 square feet of rentable area.