Two projects in downtown Richmond win top awards from real estate group

The conversion of one of Richmond’s most iconic bank buildings, the 23-story Central National Bank Building, into apartments was named on Tuesday as the 2017 Project of the Year by the Greater Richmond Association of Commercial Real Estate (GRACRE).

The transaction winning the organization’s highest award was a nearly 100,000-square-foot lease for a new research operations headquarters for CoStar Group Inc. in the WestRock office building.  The headquarters, expected to create 732 jobs, was one of the largest office deals in the city in the past year.

Both projects are located in downtown Richmond, which has experienced a banner year in terms of drawing new companies, such as CoStar — a Washington, D.C.-based provider of real estate information and analysis — as well as expansions of existing companies. In fact, the majority of the awards in GRACRE’s 16th annual salute to outstanding estate projects and transactions in the region were located in Richmond. 

During an awards ceremony at the Country Club of Virginia that drew about 230 people, GRACRE recognized more than 20 projects ranging from a cidery to a community workspace and Publix, a new grocery store that is coming to Henrico County.

The winner of the Project of the Year award, Deco at CNB at 219 E. Broad St., is one of Richmond’s most dramatic Art Deco landmarks. Following a $40 million, multiyear renovation project, the 87-year-old former bank was transformed into 200 apartments that began to be leased last year. Currently, the occupancy rate is 70 percent. Amenities include a fitness center and a soaring, three-story central hall with a restored coffered ceiling that is expected to draw ground-floor retail.

The project’s developer was Douglas Development, based in Washington, D.C.  Other members of the development team were: general contractor, W. M. Jordan Co; architect; Commonwealth Architects; engineers, Dunlap & Partners;  and leasing broker, Drucker & Falk.

CoStar's location of a new operations headquarters at 501 S. 5th St. brought a seven-year, seven- month lease valued at nearly $20 million for the top three floors of the building, which overlooks the James River. The research facility will share the building with the headquarters of WestRock, a Fortune 500 paper company formed in the merger of MeadWestvaco and Rock-Tenn in July 2015.  Before the merger, the building was MeadWestvaco’s headquarters. When the project was announced in October, CoStar said it picked Richmond after a year-long search of nearly 20 cities, because it liked the presence of nearby colleges and universities, the city’s low cost of living and its quality of life.

The brokers recognized in the CoStar deal included those that represented the landlord: Kit Tyler, Ken Campbell and Matt Hamilton with Colliers International, Richmond, and those representing CoStar: Brian Berkey, Amy Broderick, John Benzier, Jenna Polivka and Matt Sullivan, all with Cushman & Wakefield | Thalhimer.  Campbell said in an interview that the building's location and amenities, including adjacent parking,  were also part of the appeal to CoStar. “The building is top tier,” Campbell said. 

Also recognized from the economic development community were Jane Ferrara, from the city of Richmond and Rowena Fratarcangelo, with the Greater Richmond Partnership.

Other winning projects:

Best Historic Reuse: Blue Bee Cidery, Scott's Addition in Richmond; Owner/Developer, Courtney Mailey.

Best Sustainable Design: Dominion Due Diligence Group, Henrico County; Owner/Developer, Rob Hazelton. 

Best Adaptive Reuse: Gather, Richmond; Developer, Hudson Century, LLC.

Best Urban Office: AvePoint, Riverfront Plaza, Richmond; Owner/Developer, Hertz Investment Group.

Best Suburban Office: Keiter, Innsbrook Corporate Center, Henrico County; Owner/developer, Keiter.

Best Community Revitalization: Black History Museum & Cultural Art Center of Virginia, Jackson Ward, Richmond; Owner/Developer, Tasha Chambers.

Best Industrial: Stone Brewing Co., Richmond; Owner/developer, City of Richmond, Jane Ferrara, and the city’s Economic Development Authority, Joey Smith.

Best Institutional: Queally Center, University of Richmond, Center for Admissions & Career Services; Owner/Developer, University of Richmond.

Best Multi-Family Mixed-Use: 93 Octane and Shiloh Lofts on Grace Street in Richmond; Owner/developer, Shiloh Development Richmond.

Best Retail: Shagbark restaurant, Henrico County; Owner/developer; Walter Bundy/ Gumenick Properties.

Best Medical Office: CJW Medical Center, Chippenham Campus Women’s Center, Richmond; Owner/developer, CJW Medical Center.

On the transactional sales side, the Best Office Sale was the Bank of America Center at 1111 E. Main St. in downtown Richmond. The buyer in the $42 million transaction was District Bay JV with Ardent Companies, and the broker was Thalhimer’s Eric Robison.

Other winning transactions:

Best Industrial Sale: Windsor Business Park, $33 million, Henrico County; Brokers; Evan Magrill, Dean Meyer, Eric Robison, Cushman & Wakefield | Thalhimer.

Multi-Family Sale: Hickey Creek, Park West End, and Champion Club Apartments, Richmond and Glen Allen; Listing brokers, Jackie Noel, Jason Hetherington, Will Matthews, Bruce Milam, Colliers International, Richmond.

Best Retail Sale: Midlothian Station Shopping Center, $5.9 million, Chesterfield County; Brokers, Martin Blum, Andrew Ferguson, Colliers International, Richmond. Will Bradley with CBRE/Richmond represented the seller.

Best Industrial Lease: Airport Distribution Center Building E, 216,000 square feet; Henrico County; Broker, Cliff Porter, Porter Realty Co. 

Best Suburban Office Lease: SunTrust Center (formerly Westmark One & Two), 212,000 square feet; lease value; $67 million; Henrico County; Landlord broker, Jeff Cooke, Cushman & Wakefield | Thalhimer; tenant broker,  Paul Silver and Brian Berkey, Cushman & Wakefield | Thalhimer

Best Urban Office Lease: ICMA-RC, Riverfront Plaza, Richmond, 55,491 square feet; investment value, $20 million; Landlord broker, Matt Anderson, Trib Sutton, David Wilkins, CBRE, Richmond; Tenant broker, Birck Turnbull, Cushman & Wakefield | Thalhimer

Retail Lease: Publix Super Market , 49,000 square feet, Henrico County; lease value, $12 million; Landlord broker, Alicia Farrell and Connie Jordan Nielsen , Cushman & Wakefield | Thalhimer; Tenant broker, David Crawford and Kevin South, Cushman & Wakefield | Thalhimer  (With CBRE at time of transaction.)