Case Studies - Northgate

Northgate Commerce Park – Suffolk, Virginia

The underwriting and entitlement of the Northgate Commerce Park (“NCP”) development opportunity procured by BlackRidge Real Estate Group, took almost three years to complete.  There were many substantial challenges, including:

BlackRidge identified this site early on in the underwriting process due to its superior location to the various Hampden Roads Ports, and the belief that our deal tested approach would allow us to successfully navigate the entitlement process through the City of Suffolk.  However, we understood that over the past 15 years, no developer had been able to secure the appropriate city approvals for a master planned industrial development within NCP.

Our team quickly determined the many due diligence challenges and immediately began the process of identifying the key decision makers as we embarked on a collaborative effort with the City of Suffolk and the EDA to find solutions to the outstanding development issues.  Through our measured approach with the City and the EDA, we turned political obstacles into project advocates with a long-term vision for the project.  Due to the size of this development, we were able to quickly identify our most appropriate institutional partner and quickly put forth a negotiated agreement based on an appropriate development structure.  In reaching agreement with ProLogis for the joint development of this site, we found a partner with an international record of accomplishment, a strong vision and the horsepower to help make NCP the preeminent industrial park in the Hampden Roads marketplace.

After years of meetings, hearings and calls to City Council, Planning Commission, City Staff and the EDA, our team was successful in fully entitling the 125-acre site for almost 2.2 million square feet of institutional, Class A industrial buildings in addition to obtaining much-needed infrastructure from the City and the EDA.  Although many hurdles lie ahead with the construction and future stabilization of this development, our keen understanding of this emerging market, the associated development issues and the ability to implement our proven strategy brought this prospective opportunity to life.  In the end, this development is poised deliver solid development returns along with providing the City of Suffolk a strong employment base in addition to significant property tax revenue.

Summary of this development:

Northgate Commerce Park – Suffolk, Virginia

Location:  Suffolk, Virginia - Northgate Commerce Park / I-664 & Nansemond Parkway
Acreage:  125 Acres
Buildable Square Feet:  2,200,000
Product Type:  Industrial - Warehouse/Distribution/Manufacturing/Light Assembly
Number of Buildings:  Six
Ranging in size from:  180,000 to 700,000 square feet

Overview:
The Northgate Commerce Park project is a joint development with ProLogis, the world’s leading industrial REIT and BlackRidge Real Estate Group.  This development project is ideally located within minutes of the new Mearsk Terminal and the Ports of Norfolk, off I-664 at Nansemond Parkway.  Buildings include 32’ clear heights, significant trailer parking and a variety of building sizes ranging from 144,000 square feet to nearly 800,000 square feet.  The cross-dock and single load building designs are highly flexible, allowing for a wide range of uses including warehouse distribution, manufacturing and light assembly operations.  This is one of the industrial infill developments within the greater Hampton Roads market area providing users reduced drayage costs and the benefits of the Park’s status as an enterprise zone.  Build-to-suit opportunities and inventory buildings are available.