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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.