From Ace to Amazon
In 2019, Ashley Capital acquired an Ace Hardware 800,000 SF distribution center on a 155-acre site in the metro-Richmond, Virginia area. With Ace having recently vacated, the facility was the largest vacant building in the mid-Atlantic. Originally developed in 2001, the industrial facility suffered from years of neglect by its previous owner and the deferred maintenance was significant.
Ashley recognized the lack of large distribution centers in the region and this property’s ideal location in the Mid-Atlantic corridor. With direct access to the thriving Port of Virginia, as well as to a major consumer population in the Northeast and Southeast, the location would make the property an attractive prospect to the burgeoning e-commerce industry. An upgraded facility would not only offer the sought-after institutional features such as 30’ minimum clear heights, large column spacing, and ample trailer staging, but would provide superior ground parcel and truck load coverage, providing two-day transit for the entire East Coast, from Maine to Florida.
Ashley undertook a major renovation program that focused on enhancing the building’s existing physical attributes and converting the property into a regionally competitive facility well-suited for some of the world’s largest warehousing, logistics, and e-commerce companies. Now fully renovated, Virginia Gateway Logistics Center features a new roof, Ashley’s signature exterior and interior paint and finishings, dock door upgrades, and new LED light fixtures. The like-new facility will remain competitive for many years to come and can be expanded up to 400,000 SF.
Upon completion, Ashley promptly leased the entire distribution center to Amazon.com Services, LLC. CIBC USA provided a loan for the acquisition and renovation of the property, and, with a long-term lease in place, Lincoln Financial Group executed permanent financing.