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Miller Associates, Spy Rock Add 334 Units to Richmond’s M-F Boom

25 Mar 2014, 5:13 pm

By Adrian Maties, Associate Editor

Demand for apartments in metro Richmond is at a three-year high, with more than 1,200 units absorbed over the past six months, according to Real Data’s most recent market report. Occupancy has reached 94%, while the average rent hit $909. About 3,000 units are under construction. As developers rush to meet the growing demand, two developers recently announced plans to launch projects that will bring 334 units to the market.

According to Virginia Business, Robin Miller & Associates plans to construct a $27 million apartment building on Semmes Avenue between Ninth and Commerce Streets in Manchester. Called 800 Semmes, the project will deliver a 12-story building with 140 apartments, including 6 penthouses. Amenities will include a two-story parking garage, a pool and a fire pit.

Company principal Robin Miller expects the property to attract young professionals looking for the amenities offered by Richmond’s downtown, as well as mid-career professionals and empty nesters. Construction is scheduled to start next month. The first units are expected to be ready by summer 2015.

Richmond BizSense also reported that Spy Rock Real Estate is planning a $26 million, 194-unit project (pictured in rendering at right) on the site of the Coca-Cola bottling plant at Roseneath Road and Clay Street. Spy Rock acquired the project’s 4.5-acre site from the developer David Dagenhart.

Dubbed Preserve at Scott’s Addition, the project will consist of two parts. With the help of historic tax credits, Spy Rock will first convert a 121,000-square-foot building into 70 units with a club room, media room and fitness center. Also on the agenda is a new four-story, 124-unit building.

Preserve at Scott’s Addition will total 200,000 square feet. It is designed by Virginia Beach-based Cox Kliewer & Co. Wells Fargo is financing the project.

Photo credits: Spy Rock Real Estate

Zirpoli/Perrine Plans $40M Mixed-Use Project on Ocean View Ave.

21 Mar 2014, 8:00 pm

By Adrian Maties, Associate Editor

A new mixed-use project will bring up to 280 apartments and retail space to Norfolk. On March 18, the city council approved the $3 million sale of 5.7 acres at 719 E. Ocean View Ave. to Robert Zirpoli’s Ocean View Properties Inc.

The land consists of two parcels. It includes the former Ramada Inn site and the Senior Center in Ocean View. The hotel was previously a Voyager Motor Inn, a Ramada Inn and a Howard Johnson. The city condemned the building because of mold and structural problems. In 2010, it acquired and demolished the hotel. As of last July 1, the site’s assessed value was about $4.9 million.

Zirpoli/Perrine Development, which has also created subdivisions in Virginia Beach and Chesapeake, plans to transform the site into an upscale $40 million mixed-use complex that could help revitalize the Ocean View area. On Zirpoli/Perrine’s agenda is a gated apartment complex with between 250 and 280 one-,two-, and three-bedroom units. Also included are about 20,000 square feet of retail.

According to a proposal submitted by the developer last year, the complex will feature a pool and an exercise facility. Its architecture will reflect East Beach-style design.

The project will be developed in three phases. According to city documents, it will generate an estimate $450,000 in tax revenue annually. The developers have yet to disclose a timeline for construction.

Photo credit: City of Norfolk

Strategic Storage Trust Pays $6.7M for Hampton Self-Storage Facility

16 Mar 2014, 11:08 pm

By Adrian Maties, Associate Editor

Strategic Storage Trust Inc. has paid approximately $6.7 million for a 500-unit self-storage facility at 1343 Big Bethel Road. It is the non-traded REIT’s second acquisition in the area.

The property was constructed in 2007, on a 10.1 acre site, and consists of four single-story buildings offering 71,500 square feet of storage space. About 50% of the units are climate controlled. The rest are drive-up non-climate-controlled units. In a press release, Strategic Storage Trust said the new facility was 90% occupied at the time of the acquisition, and that it will be re-branded under the SmartStop Self Storage trade name.

“We acquired this facility for its newer construction and due to the growing military market in Hampton,” said H. Michael Schwartz, chairman and CEO of Strategic Storage Trust, in a statement. ”This acquisition is a perfect complement to our other multi-story self-storage building located five miles away in Hampton.”

Since its launch in 2008, Strategic Storage Trust has acquired 123 properties in 17 states and Canada. Its portfolio includes about 78,000 self-storage units and 10.3 million square feet of storage space. In Virginia, the company now owns six facilities with 3,800 units and 415,000 square feet of space.

Strategic Storage Trust’s Virginia portfolio also includes:

  • LaSalle Avenue in Hampton (640 units, 70,100 square feet of storage space);
  • Lee Road in Chantilly (860 units/83,400 square feet);
  • Williamsburg Road in Sandston (675 units/78,000 square feet);
  • Plank Road in Fredericksburg (610 units/59,600 square feet);
  • Colonial Court in Manassas (495 units/52,800 square feet).

Photo credit: Google Maps.

Richmond’s Short Pump Submarket Gears Up for Robust 2014

10 Mar 2014, 2:44 am

By Adrian Maties, Associate Editor

Cushman & Wakefield | Thalhimer projects that 2014 will be a good year for the Richmond retail market. As retailers and restaurants plan to grow and expand, a trend that started in 2013 and is expected to continue in 2014, the market will see stepped-up activity. It ended 2013 with more than 422,000 square feet of positive net absorption, an approximate 43 percent year-over-year increase, and with a vacancy rate decrease from 6.9 percent to 6.6 percent.

As a case in point, the Short Pump retail submarket is attracting robust activity. According to Cushman & Wakefield | Thalhimer, it has a vacancy rate of 3.1 percent, one of the lowest in the region, as well as the highest asking rent, $23.15 per square foot. It finished 2013 with 51,874 square feet of positive absorption and indications are that 2014 will bring more of the same.

Forest City Enterprises Inc., Short Pump Town Center’s owner, recently announced that it will add 15 retailers and restaurants occupying upwards of 62,000 square feet. The list includes:

  • American Eagle Outfitters/aerie;
  • Athleta;
  • Cooper’s Hawk Winery & Restaurants;
  • Free People;
  • Gymboree;
  • Justice & Brothers;
  • kate spade new york;
  • Madewell;
  • Michael Kors;
  • Oakley;
  • Rock Bottom Restaurant & Brewery;
  • True Religion;
  • TUMI;
  • Vans;
  • Versona Accessories.

Forest City also plans to start work on a multi-million dollar renovation soon. It will include new gathering spaces, redesigned fountains, additional landscaping, enhanced way-finding signage, updated restrooms, canopies over walkways, a new elevator and a new pedestrian bridge that spans the Main Plaza. The project is scheduled for completion before the holiday shopping season in November.

Also in Short Pump, NVRetail announced in mid-February that Cabela’s, a leading specialty retailer of hunting, fishing, camping, shooting, and related outdoor recreation merchandise, has leased 97,500 square feet at West Broad Marketplace. This will be the Nerbaska-based company’s second Virginia location.

Situated in the heart of Short Pump, West Broad Marketplace is a new mixed-use retail development. It will offer 350,000 square feet of space and will feature a mix of retail shops, restaurants, and amenities. NVRetail is developing the center, scheduled to open in the spring of 2016.

In a statement, NVRetail said Cabela’s will construct its “next generation” store prototype at West Broad Marketplace, and that the store will “surround customers in a unique outdoor experience.”  Cushman & Wakefield | Thalhimer’s Connie Jordan Nielsen has been retained to market and lease the additional retail at West Broad Marketplace. Mark Douglas is handling the mixed-use component.


Charts courtesy of Cushman & Wakefield | Thalhimer.
Photo credits: www.facebook.com/shortpumpmall

Suntex Buys Portsmouth’s Tidewater Yacht Marina

4 Mar 2014, 3:52 pm

By Adrian Maties, Associate Editor

Hampton Roads is known for its large military presence, shipyards, nationally significant port, miles of waterfront properties and its ice-free natural harbor, considered one of the world’s finest.

These factors prompted Suntex Ventures L.L.C. to purchase Portsmouth’s Tidewater Yacht Marina. The deal, announced Feb. 1, marks Suntex’s second acquisition of a local marina. Last year, the Dallas-based company’s Suntex Marinas affiliate bought the 325-slip York River Yacht Haven in Gloucester Point.

According to The Virginian-Pilot, Suntex Ventures bought Tidewater Yacht Marina for $8.75 million from GSKS Properties, a company controlled by Gordon and Katherine Shelton. The couple had owned the facility since 1978.

Tidewater Yacht Marina is a full-service destination marinas located at Mile Marker “0″ on the Intracoastal Waterway,  midway between New York and Florida. The marina features 300 wet slips including a megayacht dock, a comprehensive marine service center, marine store, floating pool, and fuel dock. It is also home to the 757 Crave on the Harbor restaurant, as well as a yacht brokerage firm, North Point Yacht Sales. According to the Tidewater Yacht Marina website, some 4,000 boaters stop there each year.

Suntex Ventures announced that John Muscarella, a 27-year Tidewater veteran and the marina’s longtime dockmaster, will stay on as its general manager.  The marina has 10 employees.

“Tidewater has been a true landmark for yachts in Virginia as well as the rest of the East Coast for many years,”  Ron TenEyck, vice president of operations for Suntex Marinas, said in a statements. “Suntex will continue the legacy and will also add many more amenities to the property.”

Photo credits: Suntex Marinas

USM Unveils $200M Arena Plan for Virginia Beach

22 Feb 2014, 11:22 pm

By Adrian Maties, Associate Editor

Virginia Beach now has competing proposals to consider for an 18,000-seat sports and entertainment arena. On Feb. 17, a team led by United States Management submitted a plan to build a $200 million venue by 2016.

Its plan follows one for an 18,000-seat venue submitted last November by W.M Jordan Co. of Newport News.

United States Management, part of Virginia Beach-based ESG Companies, wants to develop the facility across 19th Street from the Virginia Beach Convention Center. The facility would feature suites, premium seating, LED-screen scoreboards and ribbon boards.

The design/build team includes AECOM Architects of Kansas City, Mo., Norfolk’s Clark Nexsen Architects, Minneapolis-based Mortenson Construction, SB Ballard Construction Company of Virginia Beach, and West Conshohocken, Pa.-based SMG.

 The city of Virginia Beach would contribute land, parking spaces, offsite improvements, and related city services. USM is proposing to earmark 1% of the city’s hotel tax revenues to finance public infrastructure improvements. However, USM’s plan calls for construction to be financed privately. The city would not need to issue bonds or raise taxes on residents, according to USM.

In a statement, USM said that construction private financing will be provided by what it described as “banking interests in China.” The developers cited ties to those capital sources through China Machinery Engineering Corp. That Beijing-based company will provide construction management, help procure materials, and oversee the design/build team together with USM.

“At the request of the state, we spoke with CMEC about several potential projects in our area and mutually agreed that the arena would be the most viable and a good fit for our two firms,” said ESG Companies’ chief financial officer, Andrea Kilmer, in a statement. “We believe Virginia Beach and the Hampton Roads region are ready for a world-class arena,” she added.

Photo credit: The ESG Companies 

Frontier Financial Buys Chesapeake M-F Complex from Property Capital

13 Feb 2014, 11:15 pm

By Adrian Maties, Associate Editor

An affiliate of Frontier Financial has acquired Marina Point Apartments in Chesapeake from Property Capital Group. The selling price was not disclosed. CBRE Hampton Roads marketed the property for Property Capital.

The 104-unit complex is located at 1301 Canal Drive in Chesapeake’s Deep Creek section on the banks of a tributary of the Elizabeth River’s southern branch. It was constructed in 1965 and consists of 104 one-, two-, and three-bedroom units.

According to CBRE, the property has a net rentable residential area of 95,900 square feet. Units range in size from 790 square feet to 1,140 square feet. Amenities include hardwood floors, a children’s play area, and a slipway, which  residents can use to bring boats to and from the water. The property is surrounded on three sides by water.

The property’s location on the VA Route 17/George Washington Highway transportation corridor offers access to the shopping, entertainment and employment centers of Chesapeake and Portsmouth. Major employers located within a few miles of the property include Portsmouth Naval Hospital, the Norfolk Naval Shipyard, the Chesapeake Municipal Center, Chesapeake Regional Medical Center and Sentara Healthcare.

Marina Point Apartments is one of part of an eight-property, 1,644-unit portfolio  in the Richmond and Hampton Roads areas that CBRE Hampton Roads is marketing for Property Capital. The list includes Falling Creek, Village of Woodshire, Misty Woods, Jefferson East, Riverwalk, Cherokee Park and Great Bridge.  The CBRE team that represented Property Capital in the sale of the Marina Point Apartments includes Senior Vice President Dan Johnson and Vice President Hank Hankins of CBRE Hampton Roads, as well as Executive Vice President Andrew Boyer and Senior Vice President Jonathan Greenburg of CBRE’s  Washington/Baltimore  multi-housing team.

Photo credits: CBRE

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..

Dominion Packaging Pays $9M for Former Mazda Warehouse

5 Sep 2013, 6:50 pm

By Adrian Maties, Associate Editor

Dominion Packaging Inc. has acquired a 317,400-square-foot former Mazda warehouse at 5700 Audubon Drive. An affiliate of New Jersey-based Hampshire Real Estate Cos. sold the property for $9 million.

Located on a 16-acre parcel near Richmond International Airport, the one-story warehouse was constructed in 1989 for Mazda, which occupied it until 2004. Sunrise Construction then leased the property from 2008 to 2011.

Evan Magrill of Cushman & Wakefield | Thalhimer represented the buyer. CBRE Group Inc.’s Matt Anderson and John Carpin represented Hampshire Real Estate.

Anderson told the Richmond BizSense that the warehouse had been on the market since 2011 and has recently attracted a burst of activity, with two additional investors offering to buy it and several tenants looking to lease nearly half of the building. Anderson added that 5700 Audubon will continue to be used for manufacturing.

The sale boosts Richmond’s industrial market by taking more than 300,000 square feet off the block. According to a recent CBRE report, industrial and flex leasing in the area remain soft. During the second quarter, the Richmond market posted negative absorption of 138,796 square feet and average asking rents slipped to $3.93 per square foot.

Chart courtesy of CBRE Group Inc..

Cole Pays $81M for New Amazon Facility in Chesterfield County

21 Aug 2013, 7:34 pm

By Adrian Maties, Associate Editor

Just 10 months after opening last October, Amazon’s 1 million-square-foot fulfillment center in Chesterfield County has been acquired by an affiliate of Cole Real Estate Investments in an $81.3 million deal.

According to a filing with the Securities and Exchange Commission, Cole Corporate Income Trust Inc. paid $81.25 million for the property in a deal that closed on July 31. Completed at a cost of $85 million, the asset is located off of Interstate 295 in Meadowville Technology Park.

On the same day, Cole closed on the $69 million acquisition of an Amazon warehouse in Murfreesboro, Tenn. USAA Real Estate Co. was the seller of both properties, which are leased to Amazon through September 2027.

Cole has been on a Virginia buying spree of late. Its recent pickups include Hancock Village, a 153,853-square-foot shopping center in Chesterfield County acquired for $27.5 million, and The Shops at White Oak Village, a retail center in eastern Henrico County for which Cole paid $68 million.

In 2011, Amazon announced its plans to invest $135 million and open distribution centers in Chesterfield and Dinwiddie counties, creating over 1,350 jobs. It was the biggest job-creating business expansion program in the state since 2004. Earlier this year, the Greater Richmond Association for Commercial Real Estate also named the Chesterfield County facility its 2012 project of the year.

Photo credits: Google Maps.

Virginia Beach M-F Assets Command $73M for Harbor Group International

7 Aug 2013, 11:30 pm

By Adrian Maties, Associate Editor

Harbor Group International, L.L.C. has sold two apartment communities in Virginia Beach this summer. The properties total 730 units and commanded a combined $72.5 million.

Affiliates of Norfolk-based HGI sold the Chase Arbor apartment community in June to Los Angeles-based JRK Property Holdings, a subsidiary of JRK Investors. ARA’s Drew White and Mike Marshall, and Richmond-based broker Wink Ewing, represented the seller.

Virginia Business reported that the property traded for $44 million. HGI paid $35.35 million for Chase Arbor in 2011, when the Norfolk-based company acquired it as part of a nine-property, $166 million deal.

Constructed in 1983, the 430-unit Chase Harbor community is located at the intersection of South Independence Blvd. and South Plaza near Virginia Beach Town Center. Amenities include a swimming pool, tennis courts, clubhouse with a tanning bed, fitness center, dog park, and a volleyball court. The property was 94% occupied at the time of the sale.

In July, HGI announced the sale of the 300-unit Pembroke Lake apartment community to the Breeden Co, for $28.5 million. Pembroke Lake was acquired by HGI last year for $24.6 million and was part of the portfolio that included Chase Arbor.

“HGI was uniquely positioned to acquire the property as part of a large portfolio transaction and make the necessary upgrades to capitalize on its potential in a strong market,” said T. Richard Litton, Jr., the company’s president. “We are pleased with the property’s performance and the value it provided for our investors.”

Located near the intersection of Independence Blvd. and Pembroke Blvd./N. Witchduck Road, Pembroke Lake is close to the area’s major retail and employment centers and Virginia Beach’s downtown. At the time of the sale, the property was 96% occupied.

Photo: Google Maps.