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Coastal Equities Buys Newport News Retail Center from Harbor Group for $12.9M

6 Feb 2014, 11:44 pm

By Adrian Maties, Associate Editor

In a $12.9 million deal, Coastal Equities Real Estates has acquired Newport Crossing Shopping Center in Newport News from Harbor Group International L.L.C.

Located on a 22-acre parcel on Oriana Rd. in the city’s Denbigh area, Newport Crossing is a 194,000-square-foot grocery-anchored community center with 1,300 parking spaces. Norfolk-based Harbor Group recently renovated the property. Coastal Equities, also of Norfolk, was represented by Gil Neuman, a managing director with Bethesda, Md.-based Greysteel Co.

“The sellers recently added a long term leased state-of-the-art Riverside Health Systems facility and regional headquarters,” Neuman noted in a statement. “The purchasers acquired a well-entrenched center with high grocery sales, the post-recession ‘new normal’ of a solid medical co-anchor and the opportunity to add value through further leasing.”

Newport Crossing’s tenant roster also includes Food Lion, Dollar Tree, Citi Trends, USA Discounters, First Virginia Financial Services.

“Harbor Group is pleased to have added value and through Greysteel’s institutional sales process secured a quality purchaser,” said Jordan E. Slone, Chairman of Harbor Group International L.L.C. “We congratulate Coastal Equities on their acquisition and wish them further success.”

 Photo credit: Harbor Group International LLC

Lingerfelt to Develop $20M Medical Facility in Mechanicsville

23 Jan 2014, 3:50 pm

By Adrian Maties, Associate Editor

OrthoVirginia and Bon Secours Richmond Health System announced last week that they will soon start construction of a $20 million medical facility on the Bon Secours Memorial Regional Medical Center campus  in Mechanicsville.

The facility will bring together under one roof a team of orthopedic and sports medicine specialists who currently occupy multiple locations in the Richmond area.

Lingerfelt Cos., the project’s developer, is scheduled to complete the three-story, 63,490-square-foot facility in December. Also on the project team are DPR Construction, architectural firm Price Studios, and engineering firm Rummel, Klepper  &  Kahl. The building is designed to achieve LEED certification and will create about 150 construction jobs.

Previously, Lingerfelt built a 70,000-square-foot medical office building for OrthoVirginia at Boulders Office Park in Richmond. That $25 million project opened in October 2012.

Photo credits: Price Studios

Cushman & Wakefield | Thalhimer Starts Year With 3 Residential Deals

11 Jan 2014, 7:27 pm

By Adrian Maties, Associate Editor

Cushman & Wakefield | Thalhimer has kicked off the new year at full speed, handling three separate residential deals.

Thalhimer Realty Partners Inc., an investment and development affiliate of the firm, acquired Timbercreek Apartments in a $3.5 million deal. Located at 2200 Chateau Drive, close to Chippenham Parkway and downtown Richmond, the property comprises 160 2-bedroom units averaging 777 square feet.

Thalhimer Realty Partners said in a statement that the property was about 95 percent leased at the time of purchase. Timbercreek Apartments was acquired through auction.com from an entity controlled by C-III Asset Management. Cushman & Wakefield | Thalhimer will manage the property.

In another Richmond multi-family transaction, Cushman & Wakefield | Thalhimer arranged the sale of Brookland Park Plaza, a 77-unit, age-restricted complex at 1221 E. Brookland Park Blvd.  Community Housing Inc. paid $600,000 for the asset and plans to redevelop the property. The seller, Wells Fargo Bank N.A., was represented  by Cushman & Wakefield | Thalhimer’s Jeffrey Cooke.

Built in 1909 as a city school, Brookland Park Plaza was converted to multifamily use in 1990. The three-story, 127,632-square-foot building is listed on the National Register of Historic Properties.

And in Chesterfield County, Cushman & Wakefield | Thalhimer’s Pete Waldbauer represented Cornerstone Homes L.L.C. in the $1 million acquisition of a 30-acre parcel in the Pointe at Magnolia Lakes neighborhood. Located on Ironbridge Road at Chalkley Road, the parcel was sold by Atlas VA I SPE L.L.C. Cornerstone Homes plans to build no-maintenance, energy-efficient  homes designed for active lifestyles.

Photo credits: http://www.thalhimer.com


Rouse to Buy Chesterfield Towne Center From Macerich as Part of $293M Deal

12 Dec 2013, 11:37 pm

By Adrian Maties, Associate Editor

As the holidays approach, Rouse Properties Inc. is about to find a major Richmond retail property in its Christmas stocking. The New York City-based REIT announced on Dec. 11 that it is under contract to buy Chesterfield Towne Center from Macerich as part of a two-property, $292.5 million deal.

Chesterfield Towne Center would be the first Virginia shopping center acquired by Rouse. Home to some 130 stores and restaurants, the 1 million-square-foot regional mall is anchored by Sears, Macy’s, Garden Ridge and JCPenney.

As part of the deal, Rouse is also acquiring the Centre at Salisbury, an 862,000-square-foot regional mall in the Eastern Shore community of Salisbury, Md.

Santa Monica, Calif.-based Macerich acquired Chesterfield in 1994 and renovated it in 2008. Rouse reported that inline sales average $360 per square foot and that the property is about 88 percent occupied.

For its part, Macerich has closed sales of eight retail properties so far in 2013  for approximately $560 million, generating $466 million of equity. Chesterfield Towne Center is one of four additional properties it is currently under contract to sell.

CBRE reports that Chesterfield Towne Center led Richmond’s southwest quadrant to outperform the region’s overall vacancy rate, which rose slightly to 8.4 percent during the third quarter. The quadrant registered positive net absorption of 25,000 square feet, the only Richmond submarket to post an improvement.

Photo credits: Google Maps
Charts courtesy of CBRE Group Inc..

Oceaneering International Plans Move to New 154,000-SF Chesapeake Facility

27 Nov 2013, 3:23 pm

By Adrian Maties, Associate Editor

Good news for the city of Chesapeake. In 2015, Oceaneering International Inc. will move into a $25 million, 154,000-square-foot office and manufacturing building that will serve as the company’s operating base in Virginia. The move will create about 70 new jobs and retain another 460.

Armada Hoffler Properties Inc. of Virginia Beach will build the project on 18 acres at a new industrial park in the Greenbrier section of Chesapeake. Construction is scheduled to start by the end of the year and be complete in early 2015. Houston-based Oceaneering has signed a 15-year lease on the building.

A major Chesapeake employer, Oceaneering provides engineered services and products, primarily to the offshore oil and gas industry. Oceaneering’s marine services unit has operated in Chesapeake for the last 13 years. It focuses on submarines, deep submergence systems and air cushion landing craft, primarily for the U.S. Navy, its main customer.

The Virginia Economic Development Partnership and the Chesapeake Department of Economic Development beat out North Carolina for the project. Gov. Bob McDonnell approved several incentives to retain Oceaneering, including a $750,000 grant from the Governor’s Opportunity Fund as well as a $750,000 performance-based grant from the Virginia Investment Partnership program.

The Virginian-Pilot reported that the Chesapeake City Council voted on Nov. 19 to authorize $2.2 million in state and city grants to help Oceaneering become the first tenant at the Greenbrier industrial park. In addition to the grant from the Governor’s Opportunity Fund, the package includes a $650,000 Virginia Department of Transportation Access grant and an $800,000 award from the city.

“Oceaneering is a major employer in Chesapeake, and with this project will create new jobs that exceed the annual prevailing wage in the region, and create new capabilities that support projected customer needs and its current highly skilled workforce. This expansion is a great win for Virginia and Hampton Roads,”  McDonnell said in a statement.

 Photo credits: Google Maps.

Hunt, TCG Tapped for Portsmouth Affordable Housing Project

19 Nov 2013, 6:57 pm

By Adrian Maties, Associate Editor

The Portsmouth Redevelopment and Housing Authority has selected Hunt Companies Inc. and TCG Development Advisors L.L.C., to redevelop the city’s Lincoln Park neighborhood.

Hunt, an El Paso-based developer, investor and manager, and TCG, the affordable housing consulting and development affiliate of The Communities Group, will redevelop about 200 affordable housing units. Many of those units, if not all, will be subsidized.

Working closely with Portsmouth officials, the team will employ LEED and Universal Design principles to maximize sustainability and create a safe and vibrant community, with many green parks and space for retail.

“Hunt is a strong advocate of the public-private partnership model, and with a continued ownership stake and overall management responsibility of this project, we and our partners will work to ensure a successful outcome for the Portsmouth community,” said Bill Little, senior vice president of Hunt’s public-private partnership development division. This year, Hunt has been selected for affordable housing projects by city agencies in Savannah, Ga., and El Paso, Texas.

“With (Hunt’s and TCG’s) experience and knowledge of HUD and other funding programs, we believe that the Lincoln Park revitalization will be well-planned and occur in a timely manner,” said Harry L. Short, executive director of the Portsmouth housing agency.

Photo credits: Google Maps.

Shamin Hotels Buys 700 Building for $7M; Plans to Plant 2 Hilton Flags

1 Nov 2013, 3:05 pm

By Adrian Maties, Associate Editor

The 18-story office building at 700 East Main St. in Richmond’s central business district has experienced hard times in recent years, but it about to get a new lease on life. Shamin Hotels, the Richmond region’s largest hospitality operator, has acquired the 181,000-square-foot building for $7 million and plans to convert it into a pair of Hilton-branded properties.

Shamin plans to build a 144-key Hampton Inn & Suites and a Homewood Suites with 100 guest rooms, as well as a 5,000-square-foot restaurant on the second floor and a 2,500-square-foot bar and coffee shop on the ground floor.

Developed in the early 1960s, the 700 Building currently has a low occupancy rate but was once home to such tenants as Richmond National Bank, Hunton & Williams and Merrill Lynch. It offers 212 covered parking spaces, with views of the State Capitol and the James River.

Construction is expected to start later this year. While the project will renovate the 700 Building, the property’s facade will be maintained. Once renovated, the building will continue to house the U.S. Post Office.

Jimmy Appich and Gareth Jones of Jones Lang LaSalle Inc. represented BH Properties; Shamin was represented by Cushman & Wakefield | Thalhimer’s Mark Douglas.

Thanks to the 700 Building’s recent addition to the Main Street Banking Historic District, which is listed on the National Register of Historic Places, Shamin is eligible to pursue historic tax credits.

According to research by Property Shark, the 700 Building previously traded in 2007, when BH Properties bought it from Wells Fargo for $8.2 million.

Image: Google Maps

VCU Plans March Kickoff for $51M Library Upgrade, Expansion

19 Oct 2013, 6:24 pm

By Adrian Maties, Associate Editor

Virginia Commonwealth University plans a March kickoff for a $50.8 million makeover of James Branch Cabell Library, which serves more students than any facility of its kind in the Commonwealth. Work on the 156,000-square-foot project is expected to be completed in September 2015.

Cabell Library opened in 1970 as a two-story structure and added three floors in 1975. It was built to serve 17,000 students and house two million volumes. Today, its constituency has nearly doubled to 32,000 students, ranking it as the Commonwealth’s busiest academic library. At the same time, Cabell now offers the lowest ratio of square footage per student any university library in Virginia.

To address that disparity, the expansion will add 93,000 square feet, much of it geared to students and faculty. Another 63,000 square feet of existing space will be improved. Items on the to-do list include a new entrance facing Shafer Court, media creation space, more space for special collections and archives, a flexible, presentation and event space, glass facades, exhibition and event space for arts programs, and an expanded Starbucks.

“VCU’s new library will have the most prominent spot on campus of any library building in Virginia, and more students will use it each day than any other library in the commonwealth,” said John Ulmschneider, university librarian, in a statement. “I cannot imagine a building anywhere in Virginia that will be more visible to students, faculty, and visitors, affect more students, or have a greater impact on student success.”

The library, which will remain open during the renovation, will be a candidate for LEED Silver certification.

Photo credit: Virginia Commonwealth University

Cushman & Wakefield | Thalhimer Tapped to Market Philip Morris Operations Center

10 Oct 2013, 9:53 pm

By Adrian Maties, Associate Editor

The Philip Morris USA Operations Center Facility in South Richmond has new representation. Cushman & Wakefield | Thalhimer has been selected to market the 570,000-square-foot property, succeeding CBRE Group Inc.

Located on a 186-acre site at 2001 Walmsley Blvd., the complex consists of more than 570,000 square feet of Class A space. It includes a 463,786-square-foot office and laboratory building, a 106,363-square-foot R&D and manufacturing building, about 61 undeveloped acres and a retail parcel of about four acres. The site is less than five miles from downtown Richmond and within a 20-minute drive of Richmond International Airport. It is accessible via Interstate 95 at Bells Road.

At most recent report, no asking price had been disclosed for the property, which Philip Morris USA initially brought to market in 2009. According to the city of Richmond, the land is valued at about $3 million, while the buildings are assessed at $27.9 million. Cushman & Wakefield | Thalhimer’s Jeffrey A. Cooke, L. Birck Turnbull and Austin H. Newman are representing the owners.

Cushman & Wakefield | Thalhimer has been active in the Richmond area in recent weeks. On Sept. 26, the company announced the sale of a 76,124-square-foot warehouse  near to the Philip Morris operations center at 3000 Transport St. DSJ Virginia Properties L.L.C.  sold the  property to Erin Enterprises for $2 million. The firm also negotiated industrial leases totaling 156,700 square feet in Chesterfield County. Of those deals, the largest was Hill Phoenix’s lease for 90,000 square feet of distribution space in Bermuda Industrial Park at 1821 Battery Dantzler Rd.


Photo credits:Cushman & Wakefield | Thalhimer


Clayco Breaks Ground on $110M Downtown Office Project

26 Sep 2013, 5:01 pm

By Adrian Maties, Associate Editor

The Richmond office market continued to stabilize in all submarkets during the first half as vacancy declined to 13.6%, according CBRE Group Inc. That is welcome news for the market and for developers like Clayco, which started construction this month on Gateway Plaza, a $110 million office project. Clayco Inc., the project’s developer, and city officials launched construction at a recent groundbreaking.

Located in the downtown business district Gateway Plaza will rise 18 stories on a parcel bounded by 8th and 9th Streets to the east and west, and Canal Street to the south. It will encompass 315,000 square feet of office space, more than 14,000 square feet of first-floor retail space and a 506-space parking garage. The projects glass tower is designed to LEED Gold standards. Completion is expected by the end of 2014.

An affiliate of New York-based Lexington Realty Trust provided the financing for the project. The city of Richmond is providing $11.3 million in bonds to finance 326 public parking spots and $3 million in performance grants.

McGuireWoods L.L.P. will be the building’s anchor tenant. It has already signed a lease for 217,000 square feet and expects to move in in 2015. Colliers International, which represented McGuireWoods, also serves as the project’s leasing agent.

“Gateway Plaza will be an attractive addition to the Richmond skyline and will offer significant benefits to the City of Richmond. Economic studies show that this project will generate 812 construction jobs with more than $50.7 million in wages; another 1,653 jobs, including retaining more than 630 at McGuireWoods; and new cumulative tax revenues for the City are estimated to be more than $117 million over the next 30 years,” Richmond Mayor Dwight C. Jones said in a statement.


Rendering: www.gatewayplazarichmond.com
Chart courtesy of CBRE Group Inc..