Industrial Owner-User Sale in Berryville, VA at 351 Station Road for $14,000,000

Serafin Real Estate successfully brokered the sale of 351 Station Road, closing at a 3.66% Cap Rate to an Owner-User.

This transaction exemplifies a classic “value-add” play in the Northern Virginia market. While the in-place income reflected a 3.66% capitalization rate, the true value lay in the property’s significant vacancy, allowing an owner-user to acquire a massive footprint below replacement cost while benefiting from existing tenant income.

Sale Details: Strategic Owner-User Acquisition

The sale closed on January 20, 2026, at a price of $14,000,000. Joe Serafin and Grant Wetmore of Serafin Real Estate represented the seller in this transaction.

The deal highlights a specific trend in the current industrial market: Owner-Users are driving values beyond simple investment yield. By acquiring the property at a 3.66% cap rate on in-place income, the buyer secured immediate operational space for their own business while retaining the upside of leasing the remaining vacant units or expanding into them over time.

See the press release on Business Insider!

Sale Highlights:

• Sale Price: $14,000,000
• Cap Rate: 3.66% (In-Place)
• Buyer Type: Owner-User
• Listing Brokers: Joe Serafin & Grant Wetmore
• Asset Class: Industrial / Warehouse
• Date Closed: January 20, 2026
• Zoning: Industrial

Property Overview: 351 Station Road, Berryville, VA

351 Station Road is a substantial industrial facility located in the heart of Berryville, VA. The property features a 270,000 SF building situated on 22 acres of land. Originally built in 1940 and renovated in 1980, the site offers a unique combination of scale and heavy industrial utility.

Property Specifications:

• Full Address: 351 Station Road, Berryville, VA 22611
• Building Size: 270,000 SF
• Lot Size: 22 Acres
• Ceiling Height: 22 ft
• Occupancy at Sale: ~53%

Investment Highlights: The Value-Add Owner-User Play

The headline 3.66% cap rate tells the story of potential rather than stabilized yield. With the building only 53% leased at the time of sale, the asset generated an NOI of approximately $512,000. However, the intrinsic value for the Owner-User was the ability to occupy the available ~130,000 SF immediately.

• Owner-User Advantage: The buyer utilized the high vacancy rate as an asset, solving their own immediate space requirements without the need to displace tenants or wait for lease expirations.
• Below Replacement Cost: At approximately $51 PSF, the acquisition cost was significantly lower than ground-up construction in the D.C. Metro area.
• Income Offset: The existing tenant base provides a steady income stream that offsets the operating costs for the owner-user, effectively subsidizing their occupancy cost.
• Expansion Potential: The 22-acre lot and flexible zoning allow for future expansion or outdoor storage, a critical need for industrial operators.

Market Strategy and Positioning: Selling Potential over Yield

Joe Serafin and Grant Wetmore strategically positioned this asset not as a low-yield investment, but as a high-utility operational solution. Marketing a 3.66% cap rate to pure investors would have been challenging; however, by targeting the Owner-User market, the team highlighted the scarcity of large-block industrial space in the region.

The marketing narrative successfully shifted the focus from “Cash on Cash Return” to “Cost of Occupancy vs. Ownership.” This approach attracted a buyer who recognized that owning this 270,000 SF facility—even with a lower initial yield—was a superior long-term financial strategy compared to leasing comparable space in a tightening market.

Neighborhood Overview: Berryville & Clarke County

Berryville offers a strategic logistical advantage for industrial users. Located near the intersection of Route 7 and Route 340, the property provides easy access to the Winchester inland port and the broader Washington D.C. Metro area.

• Industrial Hub: Clarke County continues to grow its light industrial and logistics sector due to business-friendly zoning.
• Logistical Access: The location supports distribution networks reaching into Northern Virginia, West Virginia, and Maryland.

Conclusion: Complex Deal Execution

The sale of 351 Station Road at $14,000,000 showcases Serafin Real Estate’s ability to execute complex transactions where the value proposition is not immediately obvious on a spreadsheet. By identifying the right buyer profile—an Owner-User capable of unlocking the property’s potential—Joe and Grant closed a deal that maximized value for the seller while solving a critical real estate problem for the buyer.

Frequently Asked Questions (FAQs)

Q1: Why did this property sell at a 3.66% Cap Rate? The low cap rate reflects the fact that the building was only ~53% occupied at the time of sale. The buyer was an Owner-User who valued the vacant space for their own operations, rather than an investor looking solely for immediate yield.

Q2: What is a “Value-Add” Owner-User deal? This refers to a transaction where a business buys a property that has some income (tenants) but also significant vacancy or deferred maintenance. The “value add” comes from the owner occupying the vacant space and improving the property, which is often cheaper than buying a fully stabilized building.

Q3: Who represented the listing? The property was listed by Joe Serafin and Grant Wetmore of Serafin Real Estate.

Q4: What are the benefits for the Owner-User buyer? The buyer secured 270,000 SF of industrial space for $14M ($51 PSF), well below replacement cost. They also gain rental income from existing tenants to help pay the mortgage, while securing long-term control over their facility.