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Tag: commercial real estate

Midlothian shopping center under new management

A Midlothian shopping center anchored by a Food Lion is under new management after selling in late July for $19.6 million.

Norfolk-based S.L. Nusbaum Realty Co. will handle leasing and management for 15-acre Village Marketplace, located at 13100 Midlothian Turnpike in Chesterfield County. The 131,814-square-foot center’s tenants include Hallmark, H&R Block, Spectrum Paint, Kabuto Japanese Steakhouse, MY Taekwondo, Kidtopia, Diamond Billiards, Battle Grounds and Subway. Outparcel buildings located in the center were not included in the sale.

Village Marketplace LLC, an affiliate of SunCap Real Estate Investments, purchased the shopping center from Red Dog Capital LLC, which bought it in April 2022 for $12.6 million, according to Chesterfield County records.

While the center has consistently maintained near 100% occupancy, spaces ranging from 2,000 square feet to 4,970 square feet are available for lease, S.L. Nusbaum said in a news release.

“We are thrilled to include Village Marketplace in our property portfolio and eagerly anticipate collaborating with the landlord and our management team to achieve successful leasing and management outcomes for the center,” Carter Wells, an associate at S.L. Nusbaum, said in a news release.

Henrico County, Markel|Eagle acquire land for GreenCity

Henrico County and an affiliate of Markel|Eagle Partners LLC came to an agreement Thursday to purchase the 110-acre Scott Farm property, which will be a key part of the $2.3 billion mixed-use GreenCity development, for $35.1 million.

First proposed in December 2020, GreenCity plans to include what is billed as the nation’s greenest arena, with 17,000 seats, as well as two hotels with 600 rooms, about 2.2 million square feet of office space, 280,000 square feet of retail space, 2,100 residential units and green space and plazas, all expected to be finished by 2033 or 2034. In February, ASM Global was named to manage the arena, which is expected to be delivered in the third quarter of 2026.

The county Economic Development Authority approved agreements in which it will purchase the western Henrico land from the Commonwealth Foundation for Cancer Research, a nonprofit started by Richmond philanthropists Bill and Alice Goodwin, and resell it to Scott Farm Partners LLC. The limited liability corporation is an affiliate of Henrico-based real estate development firm Markel|Eagle Partners, itself a spinoff of Markel Corp. and Eagle Construction of Virginia. The company will develop the eco-district’s residential buildings and an 80-acre park, and the EDA approved a ground lease with Markel|Eagle to provide land for temporary parking for GreenCity Arena, until a parking garage is completed.

Thursday’s votes by the EDA now get the residential section of the project moving.

Next on tap is a development agreement between the county, Markel|Eagle and the EDA, which the Henrico County Board of Supervisors is set to consider Sept. 12, according to the county, and further actions will be taken in late 2023 or in 2024.

GreenCity properties. Image courtesy Henrico County

Henrico already has conveyed the 93.2-acre Best Plaza property at the intersection of Parham Road and Interstate 95 to GreenCity Partners, the development company run by Michael Hallmark and Susan Eastridge, for inclusion in the project. To complete the sale of Scott Farm, north of Best Plaza at the intersection of I-95 and Interstate 295, Henrico and Markel|Eagle each will contribute $17 million, and the EDA will provide $1.1 million, according to the county. 

Under the proposed development agreement with Markel|Eagle, Henrico’s costs will be reimbursed in 20 years or less. Each year, Henrico will receive the first $1 million of increased tax revenues generated by the development, with additional increases in revenues dedicated to a new, enlarged community development authority that will help fund the arena, according to Thursday’s announcement.

“With the EDA’s votes today, Henrico and its partners are another step closer to fulfilling the vision for GreenCity as the largest and most consequential development in our county’s history,” EDA Executive Director Anthony J. Romanello said in a statement. “It will generate tremendous opportunities and economic benefits for Henrico and our residents for decades to come. Economic development projects, especially those on this magnitude, almost always require significant partnerships. In the case of GreenCity, we are blessed to have blue chip partners in GreenCity Partners and ASM Global. Now, we’re thrilled to welcome Markel|Eagle as the official residential developer for GreenCity.” 

$27.5M apartment community in Chesterfield now complete

Construction of a $27.5 million luxury apartment community in Chesterfield County is now complete.

The Station at Chester includes 65 one-bedroom, 126 two-bedroom and 10 three-bedroom apartments with floor plans ranging from 650 square feet to 1,300 square feet. In addition to the community’s five apartment buildings, the complex includes a 4,000-square-foot clubhouse, a pool with cabanas, an outdoor fireplace and a grilling station.

“We are proud and excited to deliver this incredible new community in Chester for Schell Brothers,” Breeden Construction President Brian Revere said in a statement. “With meticulous attention to detail and unwavering dedication, we proudly unveil this remarkable development, a true testament to our commitment to creating exceptional spaces that inspire and enrich lives.”

Construction began in March 2021, and Richmond-based Breeden Construction served as the general contractor with Schell Brothers serving as the developer.

$98M Richmond apartment building to break ground in Q3

A $98 million luxury apartment building, The Ace Apartments, will be the newest addition to Richmond’s Scott’s Addition neighborhood.

The 1.7-acre project will have 295 luxury studio, one- and two-bedroom apartments that will average 753 square feet per unit, and 85% of the units will have balconies. The development’s plans also call for a 7,500-square-foot courtyard, a 4,500-square-foot club room and a swimming pool, as well as more than 13,000 square feet of ground-floor commercial space. Located at 1201 N. Arthur Ashe Blvd., The Ace will be seven floors — five of wood construction and a mezzanine over two floors of concrete.

Chicago-based Cresset Partners, Washington, D.C.-based Level 2 Development LLC and Washington, D.C.-based SJG Properties formed a joint venture to develop the property and expect construction to begin in the third quarter of this year. Developers expect initial occupancy beginning in the first half of 2025.

The venture is Cresset’s first from its third Qualified Opportunity Zone fund, launched in June 2022. Maryland-based Sandy Spring Bank and New York-based Five Star Bank have committed a $58.4 million construction loan for the development.

Fortune-Johnson, a Georgia-based contractor with four previous projects in the greater Richmond area and an office in Midlothian, is the project’s general contractor.

Global coworking franchise coming to Chesapeake

Venture X, a global coworking office space franchise, is entering the Hampton Roads market, with its first location coming to Summit Pointe in Chesapeake, Cushman & Wakefield | Thalhimer announced Tuesday.

HMP Properties LLC, a Venture X franchisee, has leased 18,543 square feet of space in the 555 Belaire office tower, which is part of Summit Pointe, a mixed-use development from Summit Pointe Realty LLC, a subsidiary of Fortune 500 discount retailer Dollar Tree Inc. Under development since 2018, Summit Pointe includes Dollar Tree’s corporate headquarters tower, as well as restaurants and the Mosaic, Vista and Helix apartment communities.

Sahil Patel, managing partner of HMP Properties, will oversee the buildout, opening and management of the Venture X location.

Rob Wright of Cushman & Wakefield | Thalhimer handled leasing negotiations on behalf of Venture X, which already has locations in Richmond, Fairfax, Ashburn and Arlington.

When Summit Pointe’s three phases are completed, which includes the extension of Belaire Avenue to better connect the project with the rest of the Greenbrier district, the development is expected to include 1.75 million square feet of office and retail space plus more than 1,400 apartment units.

$77.8M apartments break ground outside C-ville

Charlottesville-based GW Real Estate Partners, a vertically integrated multifamily construction and development firm, and Austin, Texas-based Virtus Real Estate Capital, have broken ground on a new, $77.8 million apartment community at the entrance to North Pointe, a 224-acre mixed-use community near Rivanna Station in Albemarle County.

The Ridge at North Pointe is located across from the University of Virginia’s North Fork Research Park, about 20 minutes north of downtown Charlottesville and 100 miles from Washington, D.C. The 279-unit community is scheduled to deliver in the second quarter of 2024.

“Charlottesville’s strong regional economy, high quality of life and the presence of the University of Virginia are consistently generating strong demand for housing in the metro,” Robert Gordon, a principal at GW Real Estate Partners, said in a statement. “With limited new apartment supply expected, The Ridge at North Pointe is poised to perform well. We look forward to offering best-in-class housing for residents in a beautiful setting with convenience to the area’s major employment centers.” The Ridge at North Pointe will consist of seven three-story walk-up buildings situated around a central clubhouse and pool deck. One-, two- and three-bedroom floor plans will average 988 square feet and feature keyless entry, quartz countertops, stainless steel appliances and other amenities including private patios or balconies. Surface parking for 502 cars, including 14 electronic vehicle charging stations, is also included.

North Pointe’s broader community will consist of single-family, duplex/quad and apartment housing, along with retail, restaurants, office and medical office space, and a hotel to be built in phases.

The project team for The Ridge at North Pointe includes Alexandria-based Heffner Architects PC and Fairfax-based Collins Engineers Inc. GW Builders, a wholly owned subsidiary of GW Real Estate Partners, is the general contractor.

The project is GW Real Estate Partners’ second ground-up multifamily development in Virginia. The firm broke ground on the 265-unit Montage at Marquis Apartments in Williamsburg late last year. That project is scheduled to deliver in the first quarter of 2024.

A regional economic driver, Rivanna Station is a subinstallation of Fort Belvoir in Fairfax County. Three of the top military intelligence gathering agencies — the Defense Intelligence Agency (DIA), the National Ground Intelligence Center (NGIC) and the National Geospatial-Intelligence Agency (NGIA) — have a presence there.

Virginia MOCA moving to Virginia Wesleyan campus

The Virginia Museum of Contemporary Art is moving from Virginia Beach’s ViBe District to Virginia Wesleyan University’s campus, with the aid of a $25 million gift, the museum and university said Tuesday in announcing the partnership.

The gift, from Jane Batten, Joan Brock and David and Susan Goode, will fund construction of the museum’s new space, Virginia Wesleyan President Scott Miller told Virginia Business. The museum, which will be about 30,000 to 35,000 square feet, is being designed by Tymoff + Moss Architects of Norfolk and Richmond-based Hourigan will serve as the contractor, Miller said. The museum could open as soon as 2025.

“This partnership will anchor us in our mission to present locally relevant, nationally resonant art that is exceptional,” Virginia MOCA President and CEO Gary Ryan said in a statement. “While Virginia MOCA remains an independent museum, our collaboration with VWU will allow us to do even more of what we do best: create groundbreaking exhibitions and engage the community in thought-provoking artistic experiences. Our mission remains the same, but we are now bolstered by our partnership with VWU and its amazing educational resources.”

Virginia Wesleyan students and instructors have exhibited at the museum in the past and MOCA has provided students with internships and work opportunities. As part of the move, which has been in the works for several months, the private university is also planning to launch a Master of Arts degree in arts management, Miller said, and other programs in arts and history could develop.

The current museum, which includes 38,500 square feet with 6,300 square feet of exhibition space, will remain open during construction of its replacement.

Virginia Wesleyan sits on the Norfolk side of the Virginia Beach border, just off Interstate 64, an entry point into the city that sees more than 31,000 cars daily, Miller said, adding that the museum’s new location will help make arts more accessible to the entire region. “The relocation to our campus actually puts it in the epicenter of the Hampton Roads community,” he said.

Batten, Brock and the Goodes have been major benefactors to the arts, educational and civic communities in Virginia and at Virginia Wesleyan, where the Jane P. Batten Student Center, the Batten Honors College, the Susan S. Goode School of Arts and Humanities, the Susan S. Goode Fine and Performing Arts Center and the Joan P. Brock School of Mathematics and Natural Sciences bear their names.

Miller said the museum, which will be constructed adjacent to the university’s arts center, will continue to have an independent board of directors.

CFA Institute sells Charlottesville HQ for $21.9M

The Charlottesville headquarters of CFA Institute sold for $21.9 million, Cushman & Wakefield | Thalhimer announced Tuesday.

The 150,000-square-foot office building, at 915 E. High St., is the former Martha Jefferson Hospital, which opened in 1904, according to Cvillepedia. CFA Institute, a nonprofit association of investment professionals, will lease back 47,000 square feet for its ongoing operations. The location has been the institute’s home since 2014, after a renovation that included sustainability features.

Thalhimer has been awarded the leasing by the buyer, Lo-Hi LLC, and the building will remain Class A office space. It is the only Class A building near downtown with parking. Lo-Hi will also be opening Lo-Hi Coworking, which will provide private executive office space for companies with up to 10 employees.

John Pritzlaff and Jenny Stoner of Cushman & Wakefield | Thalhimer handled the sale and lease negotiations on behalf of the buyer and will handle the office space leasing going forward.

Norfolk purchases struggling MacArthur Center

In early June, Norfolk City Council members approved plans for the city to purchase the struggling MacArthur Center downtown mall for up to $18 million.

The 23-acre mall is owned by Wells Fargo & Co., which holds the mall following a loan default by MacArthur Center’s previous owner, Connecticut-based Starwood Property Trust. 

MacArthur Center was listed for sale in January by JLL, though no price was listed at the time. The mall includes 914,751 square feet of leasable area. Current anchors are Dillard’s Inc., with 253,616 square feet, and Regal Cinemas, with 80,210 square feet. Another 160,000-square-foot anchor spot is vacant. The property also has a 4,000-space, multistory parking garage.

In recent years, the mall has lost major tenants such as Nordstrom, in April 2019, the Apple Store, in 2021, and restaurants Texas de Brazil and California Pizza Kitchen.

The city will now own everything at MacArthur Center except for the Dillard’s building, which is owned by the retailer.

Norfolk Mayor Kenneth Cooper Alexander says that buying the mall would enable the city to “play an active and strategic role” in the property’s future. In the short term, the city plans to continue operating MacArthur Center as a mall and planned to hold discussions with mall tenants in what Alexander said in early June was to be a “seamless” transition. The city did not initially release any long-term plans for the mall.

The mall’s most recent assessment was nearly $25 million — $20.7 million in land value and $4.2 million in improvement value. That’s down significantly from its
July 2022 assessment, when it was valued at $51.8 million, including $24.8 million for the land, city records show.

According to the purchase agreement, the city was to pay $11.05 million for the mall, with the rest of the city allocation going to cover consulting, legal and other fees. The deal was expected to close by August.

The mall is now more than half vacant, according to JLL. Starwood Property Trust bought the mall in 2014 for $265.5 million from Michigan-based Taubman Centers Inc., as part of the $1.4 billion purchase of seven shopping malls. However, Starwood defaulted on a $750 million loan in 2019, and MacArthur Center is now owned by Wells Fargo and managed by Syracuse, New York-based Spinoso Real Estate Group. 

Luxury RV park sets sights on Danville

Danville visitors could soon be setting up camp at the area’s first luxury RV park if City Council approves a special use permit for The Palace Resort, a project that could generate $1.3 million in annual city tax revenue.

The matter was set to go before Danville City Council on June 20, following the planning commission’s May 8 recommendation that Florida developer Joe Cubas be allowed to develop the 46-acre RV park near the North Carolina border. However, in response to neighboring residents’ concerns, City Council has tabled a decision on the RV park until a traffic impact study can be completed, which could take up to a year.

If approved, construction of the RV resort would take about six or seven months. Cubas, manager of J. Cubas Holdings LLC, had said in May that he had hoped to have the resort operating by late 2024, when the permanent Caesars Virginia resort casino in Danville is also expected to open.

The year-round RV park would have 333 RV sites, some with outdoor kitchens/gazebos, known as casitas. Other planned amenities include pools, spas, restaurants, a clubhouse, a gym, and tennis and pickle-ball courts. Shuttles would transport guests to the casino, as well as to downtown Danville, Martinsville Speedway, Virginia International Raceway and other destinations.

Cubas originally wanted to build The Palace Resort in Pittsylvania County, but its board of supervisors unanimously rejected the project last fall after residents voiced concerns about property values and the resort’s impact on nearby churches. Danville City Councilman Lee Vogler encouraged Cubas to seek a site in the city.

“I convinced him to give us a try,” Vogler says. “City Council is proactive in saying yes to things that bring in tourism and grow
our city.”

Danville’s location near the state line puts the region in good stead to tap into the booming RV industry, which has an annual economic impact of $2 billion in Virginia and $3 billion in North Carolina, according to the Herndon-based RV Industry Association.

“A number of our visitors travel by recreational vehicle,” Danville Economic Development Director Corrie Bobe says, noting that the planned RV park “will allow space for them to lodge and have quick access to tourism assets.”

The Palace Resort is another sign that Danville is successfully shedding its image as a fading textile town, Vogler says: “This is a big win for us and the region. It ties in with everything we’re doing to grow the economy.”