6500 Telephone Rd

Investment Overview

6500 Telephone Road is a 5.43-acre industrial outdoor storage site in Mill Run Business Park, Warrenton, Fauquier County. Approximately 3.97 acres are leased to Virginia Electric and Power Company, which operates as Dominion Energy Virginia, a subsidiary of Dominion Energy, Inc. (NYSE: D) and the largest electric utility in the state. Dominion uses the fenced, graveled yard as a construction laydown site for the equipment, vehicles and materials behind its regional grid expansion. The lease runs from May 26, 2025 to May 26, 2030 at $534,362 per year, which is $3.09 per square foot on the leased area, with 3% annual increases and one 24-month renewal option carrying the same 3% step. Rent is paid annually in advance. The lease is gross: Dominion maintains its premises, is responsible for the fencing and is adding outdoor lighting and security at its own cost, while ownership pays real estate taxes and insurance. In-place NOI is $517,862, priced at $7,970,000 for a 6.50% cap rate. The site is zoned I-2 with a portion zoned I-1, and roughly 1.46 acres sit outside the Dominion premises. This property is offered individually and as one of three assets in SRG's Northern Virginia Utility-Leased IOS Portfolio, 10.52 acres across Fauquier, Prince William and Spotsylvania Counties that is 100% leased to Dominion Energy Virginia and Rappahannock Electric Cooperative. The portfolio is priced at $20,800,000 at a 6.50% cap rate, and a buyer may acquire this property on its own or all three together. Lease copies are available to qualified buyers on request.

Investment Highlights

• 100% leased to Dominion Energy Virginia through May 2030
• NOI of $517,862 at a 6.50% cap rate
• Rent paid annually in advance; 3% annual increases
• Tenant maintains the yard, handles the fence and is adding lighting and security
• 5.43 AC zoned I-2 and part I-1; ±3.97 AC leased
• Also offered as part of a three-property utility-leased portfolio