Penzance Expands Industrial Portfolio with Gateway & Linden Deal
Penzance, a leading owner, operator, developer, and investor in the Mid-Atlantic region, has announced the acquisition of Gateway & Linden, a six-building industrial portfolio located in Manassas, Virginia. This latest acquisition, totaling 212,086 square feet, was completed for $55 million and represents a significant expansion of Penzance’s industrial portfolio. The move underscores the firm’s strategic approach to real estate investment, with a particular focus on high-demand markets and industrial flex properties.
Strategic Expansion in Industrial Real Estate
Penzance has a long-standing history of investing across multiple commercial real estate asset classes, including multifamily, industrial, and data center properties. The acquisition of Gateway & Linden aligns with its goal of capitalizing on the growing demand for industrial space in the Northern Virginia market. As high-quality industrial flex properties become increasingly scarce, this investment strengthens Penzance’s position in one of the region’s most sought-after industrial hubs.
“This acquisition aligns with our strategy to expand in high-demand industrial markets and capitalize on our in-house expertise to drive long-term value,” said Lauren Kowall, Senior Vice President of Investments at Penzance. “In this supply-constrained Northern Virginia market, high-quality industrial flex assets like these are becoming increasingly scarce, making this a particularly valuable addition to our portfolio.”
Overview of Gateway & Linden Portfolio
The Gateway & Linden portfolio, previously owned by a partnership between Davin Holdings and The Davis Companies, consists of two industrial flex parks:
- Gateway Centre: Located at 7201-7401 Gateway Court, this 102,277-square-foot property was built in 1988.
- Linden Business Center: Located at 7245-7795 Coppermine Drive, this 109,809-square-foot property was built in 2001.
These properties offer a range of industrial flex spaces, making them ideal for businesses requiring warehouse distribution, light manufacturing, or data center support operations.
Prime Location and Connectivity
The Gateway & Linden portfolio is strategically positioned within the Route 29/I-66 corridor, offering direct access to Interstate 66, Prince William Parkway, and Balls Ford Road. This prime location enhances the property’s appeal for industrial users, as it provides seamless connectivity throughout the Washington, D.C. metropolitan area. The proximity to major transportation routes ensures efficient logistics and supply chain operations, making it a highly desirable investment.
Additionally, the property is located within Prince William County, a region experiencing rapid growth in data center development. With over 8.5 million square feet of existing data center space and projections indicating growth to 80 million square feet over the next decade, the need for industrial flex properties to support this sector is expected to rise. This positions the Gateway & Linden portfolio as a critical asset in meeting market demands.
Leasing Strategy and Property Enhancements
Penzance plans to implement an active leasing strategy to fill current and upcoming vacancies, ranging from 6,000 to 33,000 square feet. The firm also aims to enhance the property by converting office-heavy suites into industrial use, including raising dropped ceilings and adding dock doors to accommodate tenant needs. These strategic upgrades will optimize the functionality of the space and maximize its leasing potential.
JLL’s Metro DC Industrial Team has been selected to handle the leasing efforts for the property. With extensive experience in the industrial sector, JLL’s team will focus on attracting blue-chip tenants and marketing the property’s advantages to businesses looking for well-located and flexible industrial space.
Dan Coats, Senior Managing Director at JLL, expressed enthusiasm about the partnership, stating, “We are thrilled to partner with such a dedicated and hands-on local owner. Penzance’s commitment to the community aligns perfectly with our approach to delivering tailored, high-touch solutions. Together, we look forward to bringing these exceptional properties to market and creating value for both the ownership and future tenants.”
Market Trends and Investment Rationale
The industrial real estate market in Northern Virginia continues to see strong demand, particularly as industrial tenant displacement increases due to the rapid expansion of data centers. According to JLL’s Mid-Atlantic Capital Markets team, over 7 million square feet of industrial tenant displacement is being tracked, largely driven by data center development. The Gateway & Linden portfolio is well-positioned to retain current tenants who supply goods and services to data centers while also attracting new tenants willing to pay market rental rates in Manassas.
Bill Prutting, Senior Managing Director of Capital Markets at JLL, commented on the investment, stating, “JLL is tracking over 7 million square feet of industrial tenant displacement driven primarily by data centers. Given this trend, the Gateway & Linden portfolio is exceptionally well-positioned. It’s poised to retain current tenants who already supply goods and services to data centers while also attracting new tenants ready to meet market rental rates in Manassas.”
The scarcity of high-quality industrial flex properties in the region, coupled with Penzance’s ability to enhance and manage the assets effectively, makes this acquisition a strategic move for long-term value creation.
Strengthening Penzance’s Industrial Portfolio
With this acquisition, Penzance continues to strengthen its industrial portfolio while also expanding its growing development pipeline. The company remains committed to identifying investment opportunities that align with market trends and support long-term growth objectives.
JLL’s Mid-Atlantic Capital Markets team, including Bill Prutting, Craig Childs, and Chris Dale, served as sole advisors on the sale transaction, further emphasizing the strategic importance of this investment for both Penzance and the broader industrial market in Northern Virginia.
