Virginia ABC breaks ground on $91M HQ in Hanover County

Gov. Ralph Northam led a groundbreaking ceremony Tuesday for the Virginia Alcoholic Beverage Control Authority’s $91 million state headquarters complex in Hanover County, expected to open next year.

Virginia ABC’s existing warehouse in Richmond is just more than 295,000 square feet, but is operating at 100% capacity and “bursting at the seams,” said Virginia Secretary of Public Safety and Homeland Security Brian Moran, who oversees the ABC. With its move to Hanover County, Virginia ABC’s headquarters will occupy a 40-acre property — nearly double the size of its 22-acre property in Richmond.

“For ABC to keep pace with the growth of ABC stores and the craft beverage industry and position itself for future growth, it needs new space,” Gov. Ralph Northam said during the groundbreaking ceremony Tuesday.

The new ABC headquarters at the intersection of I-295 and Pole Green Road in Hanover County will include a 315,000-square-foot warehouse and a 95,000-square foot office building where approximately 500 of ABC’s 4,000 workers will be stationed. 

Demopolis, Alabama-based H&M Construction LLC — which has built distribution centers in other states — is handling the project. The total cost includes property, pre-closing costs, costs to build and furnish and make the building operational in 2021. ABC bought the 40-acre plot for $8 million.

ABC staff will remain at the current Richmond office until the project is completely finished, but there are no updates on how the current headquarters will be used once ABC vacates, Virginia ABC Public Relations Manager Dawn Eischen said. 

Virginia Commonwealth University (VCU) has the first right of refusal on the land. Although Northam’s most recent proposed budget would allow VCU to use the land for an athletic village, ABC could also lease it to the Richmond Flying Squirrels Minor League Baseball team to erect a new stadium to replace the 35-year-old Diamond.

ABC regulates alcoholic beverage sales at more than 19,000 businesses in Virginia and ships more than five million cases of product every year to its nearly 400 retail stores across the state. Northam said that ABC is also on track to add a new store each month over the coming year. ABC brought in $1 billion in revenue in 2019. 

ABC CEO Travis Hill says that the construction of the new headquarters is key to ABC continuing to grow revenue for Virginia.

“As these buildings rise, they will be a visible manifestation of our dedication to constant improvement and planning and be future-focused on the needs of our constituents,” he said Tuesday.