NEW YORK--(BUSINESS WIRE)--Axonic Capital LLC and Edgehill Partners LLC have acquired Interstate Corporate Center, a 342,508-square-foot multi-tenant office portfolio with 14 buildings in Norfolk, VA. Edgehill Partners previously owned the property and elected to retain an ownership interest through a partnership with an affiliate of Axonic Capital. The existing building management team at Lingerfelt Commonwealth and leasing team at Colliers remain in place.
The portfolio boasts an unrivaled location with convenient access to I-264 and I-64, two of the region’s main thoroughfares, and is adjacent to Sentara Leigh hospital. Additional medical leasing velocity is projected as the hospital continues to grow in scale and importance including the new $93.5 million cancer center.
The portfolio is collectively 77% leased with approximately 50% of the current tenancy made up of healthcare focused tenants. Major tenants include Sentara Healthcare, Virginia Oncology Associates (a subsidiary of McKesson Corporation), and the Commonwealth of Virginia. The portfolio boasts longstanding relationships with tenants on the property – the average historical tenure of the aforementioned tenants is approximately 15 years.
The portfolio has benefited from approximately $6 million in capital expenditures over the past three years. As part of these renovations, ownership fully renovated select buildings for medical use while retaining others as office for medical administration and other traditional office users.
Matthew Weinstein, Partner at Axonic Capital, noted, “The growth of Sentara Leigh Hospital, a diverse tenant roster, the property’s great location, and continuity of ownership all contributed to an attractive risk-adjusted investment opportunity. We are excited to partner with Jon Gold and Hugh Balloch of Edgehill Partners and hope to improve the properties through an aggressive capital plan and leasing.”
Axonic Capital is a $3 billion (as of January 1, 2020) independent financial services firm, headquartered in New York City, offering asset management services across structured credit and commercial real estate (“CRE”) lending strategies.
Edgehill Partners is a Norwalk, CT based real estate private equity firm owned by Hugh Balloch and Jon Gold, focused on value-add and opportunistic commercial real estate. Edgehill's principals invest their own capital alongside institutional and high net worth partners.