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Officials with Virginia Commonwealth University are discussing with the Altria Group the possibility of buying its 450,000-square-foot research building in downtown Richmond, the two parties acknowledged separately this week.
The Altria Center for Research and Technology, which opened in 2007, sits on more than four acres at 600 E. Leigh St. and is assessed for $275 million. School executives have been holding “active discussions with state budget leaders” about purchasing it, VCU spokesperson Grant Heston noted in a statement.
“Though the building was not listed for sale, Altria agreed to discuss a potential sale when approached by VCU and the Commonwealth of Virginia,” David Sutton, a spokesperson for Altria, the parent company of tobacco products manufacturer Philip Morris USA, said in a statement.
Sutton added that if the deal comes to fruition, Altria plans to construct a new research facility in Richmond, likely at Philip Morris USA’s Manufacturing Center complex, located near Interstate 95 in South Richmond.
In 2022, the National Science Foundation included VCU for the first time on a list of the top 50 public research universities.
“This recognition comes despite significant need for new, modern research facilities,” Heston said. “Additional research space is a priority for VCU, Richmond and the Commonwealth and is crucial to delivering new drugs, medical devices, pharmaceutical advancements and breakthroughs in disease prevention and treatments.”
VCU’s Massey Comprehensive Cancer Center and Medicines for All Institute, an initiative to improve global access to medicines, as well as some of the university’s academic health sciences programs such as the School of Pharmacy, could move into the new facility. The space, Heston stated, also “would help the health system add more fully private rooms to the VCU Medical Center.”
Constructing a new building the size of the research facility would likely cost more than $700 million and take at least a decade, according to Heston.
VCU has not set a timetable for making a decision. Any agreements would need to be reviewed and approved by the VCU Board of Visitors, the Virginia General Assembly and the governor’s office, according to the university’s statement.
VCU and VCU Health have had a controversial history with downtown development deals in recent years. In spring 2023, news broke that the university’s health system was planning to pay developers $72.9 million to back out of a $325 million downtown development project with higher costs than the university had anticipated.
Known as the Clay Street Project, VCU planned to build a medical office tower and a multiuse project at the site of the City of Richmond-owned Public Safety Building at 10th and Clay streets. Ultimately, VCU paid about $5 million to demolish the Public Safety Building in a promise to the city — bringing the university’s costs to nearly $80 million. VCU Health also had an agreement with the city government to pay about $56 million to make up for lost tax revenue, but the city and VCU Health have not yet reached an agreement over that money. Ultimately, state watchdog JLARC recommended changes in governance for the health system. In September, VCU Health’s board voted at the request of VCU President Michael Rao to eliminate his dual title as VCU Health president, noting the “title was misleading as it implied an operational role which did not exist.”
Since real estate owned by VCU would likely be tax exempt, the city’s coffers could take a hit if VCU’s deal to acquire Altria’s research facility becomes a reality.
In a brief response to a request for comment, Margaret Ekam, a city spokesperson, said in a statement, “At this time, we are still gathering information about the proposed plan.”