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Bon Secours medical center in Chesterfield County to expand

Bon Secours St. Francis Medical Center in Chesterfield County, near Midlothian, will undergo a $108 million renovation and expansion and Skanska USA will do the work on it.

The construction will include renovations to existing spaces and adding two floors above the existing surgical department on the second floor, according to Skanska. The new third floor will have a medical-surgical nursing unit and the fourth floor will be used for intensive care beds and neonatal intensive care rooms.

The 179,000-square-foot renovation and expansion includes the addition of 55 acute care beds. Of that, about 69,000 square feet of existing space will be renovated and about 109,000 square feet will be new construction. It will increase the hopsital’s capacity to 185 beds, including expansions of obstetrical beds from 21 to 30, intensive care beds from 16 to 20, expansion of NICU from 10 open bays to 11 private rooms and three bays and expansion of medical-surgical services by adding 42 medical-surgical beds.

In the existing building, a former ICU unit on the third floor will be renovated to accommodate a 10-bed observation unit, repurposing existing patient rooms and support space. The fourth floor will be reconfigured to have a new 24-bed mother-infant unit with a well-baby holding nursery.

Additional renovations include:

  • an expanded gift shop;
  • an additional new retail pharmacy;
  • a new MRI suite;
  • a women’s imaging and a preadmission testing suite with associated support spaces; and
  • central plant upgrades including a new chiller, cooling tower and other medical equipment upgrades.

The project is expected to be completed by April 2024.

“St. Francis’ planned expansion is a response to an increased need for inpatient beds from patients for medical, surgical, obstetrical and intensive care, stemming in part from increased complexity of inpatient services and population growth, especially growth in the population of ages 65 and older who require more inpatient care than other age groups,” according to a December 2021 news release from Bon Secours. “This expansion will help meet a growing need for the community and will increase access to the hospital’s innovative resources, outstanding clinical staff and exceptional patient care.”

Metro releases 10-year strategic plan for development

The Washington Metropolitan Area Transit Authority, which runs Metrorail and Metrobus, released its first-ever strategic plan for joint development on Thursday, announcing an ambitious initiative to bring in 26,000 new housing units in Virginia, Maryland and Washington, D.C.

The document says that 40 Metro stations — including six in Northern Virginia — have more than 500 available acres that could lead to 31 million square feet of new multiuse development and yield $340 million in new annual tax revenue.

Northern Virginia stations with available space include: Braddock Road, Huntington and Van Dorn Street in Alexandria; East Falls Church and West Falls Church; and the Vienna/Fairfax station. West Falls Church has an existing joint development agreement with EYA LLC, Hoffman & Associates and Falls Church-based Rushmark Properties, which formed a partnership known as FGCP-Metro LLC, while Braddock Road and Huntington are expected to be under contract in the next 10 years.

The three remaining Virginia stations require additional planning for a variety of reasons, including property ownership divided between multiple parties, platform replacement costs and pending Virginia Department of Transportation plans.

At West Falls Church, plans include construction of townhouses between 2024 and 2026, pending the property sale and ground leases for the development’s first phase. In August 2021, WMATA signed an agreement with FGCP-Metro to build a 1 million-square-foot mixed-use development.

Metro notes that completed joint developments in Arlington County, Alexandria and Fairfax County are expected to bring in $49.3 million total in tax revenue this year, and it anticipates the localities will receive $1.089 billion in taxes over the next 30 years. The Metro system has partnered with private real estate developers since 1975, and as of this year, there are 55 projects either finished or under construction at 30 out of the 91 total stations.

Last year, Amazon.com Inc. announced a $2 billion Housing Equity Fund to preserve and create more than 20,000 affordable housing units in metro regions where it has a heavy presence, including Arlington. That fund will provide $125 million in below-market loans to developers working with WMATA to build more than 1,000 residences near transit in the D.C. area. So far, the e-tail giant has pledged to assist in developing apartments in Maryland.

Va. Beach shopping center sells for $8.5M

A shopping center near Lynnhaven Mall in Virginia Beach has sold for $8.5 million.

The Lynnhaven East and North Mall Shops, at 2701 and 2704 N. Mall Drive, have been sold by Rialto Capital Partners, but the buyer has not been disclosed, according to Colliers.

The property has 106,524 square feet and more than 96,000 square feet across the two parcels are vacant, according to Colliers. Dick’s Warehouse and Chipotle occupy space there.

The unnamed buyer has plans for “a repositioning and a re-tenanting of the centers” a Colliers spokesperson said.

Pembroke Mall to get makeover

Hanging out at the mall may soon take on new meaning in Virginia Beach.

Within a few years, Pembroke Mall could be home to thousands of apartment dwellers as part of a $200 million makeover of the vintage 54-acre retail property announced in November 2021.

“All we’re doing is changing with what the customer desires,” says Ramsay Smith, asset manager for Pembroke Square Associates, the company that in 1966 built Pembroke, the first enclosed mall in Hampton Roads.

The mall’s transformation is slated to include a seven-story, 153-unit senior-living community and a five-story apartment building with 324 units, two levels of parking and ground floor retail. The project also will feature a 14-story “dual-brand” hotel to be built on the site of the former SunTrust Bank building, with 209 rooms over a three-story parking garage. Smith, also president and principal broker of Pembroke Realty Group, declined to identify the flag of the hotel chain that will have two brands operating under the same roof, the first arrangement of its kind in the region.

Construction is expected to start around midsummer on the senior complex, which will go up on the northeast corner of the mall property. It will be managed by Virginia Beach-based Beth Sholom Village.

Construction of the hotel and apartments, to be built to the west of the Kohl’s store, is projected to start late in the fourth quarter.

Other possible additions on the horizon could include high-rise office buildings as well as a 40,000-square-foot health/fitness club.

The redeveloped mall is expected to open in 2024.

Starting in May, about 171,000 square feet of the existing mall property — roughly 20% of the mall’s nearly 900,000 square feet — will be demolished to make room for the new development. About 20 retailers, including Target, REI, The Fresh Market, Kohl’s and Old Navy, will remain open throughout the redevelopment.

On March 1, Virginia Beach Deputy City Manager and Economic Development Director Taylor Adams delivered a presentation to City Council stating that while the entire project has $161.4 million in private investment, the developers are requesting $24 million from the city to build two public parking garages with 808 spaces. Council is set to vote on the request on April 5.

The estimated net revenue to the city from the Pembroke redevelopment project would be $8.9 million over 20 years, Adams says.

April 2022 top five

The top trending major business stories on VirginiaBusiness.com from Feb. 15 to March 14 were led by news that Washington Commanders owner Dan Snyder bought Virginia’s most costly home, once part of George Washington’s Mount Vernon.

1  |  Dan Snyder owns Virginia’s most expensive house

The owner of the Ashburn-based Washington Commanders bought the $48 million River View estate in Alexandria. (Feb. 15)

2  |  DHG to merge with BKD, forming top 10 accounting firm

With 298 employees in Virginia, Dixon Hughes Goodman LLP — based in Charlotte, North Carolina — is the fifth-largest accounting firm operating in the commonwealth.  (Feb. 17)

3  |  Virginia ABC announces next Pappy Van Winkle lottery

The state-owned retailer gave customers two windows to win a chance at purchasing five varieties of the highly sought bourbon whiskeys. (March 2)

4  |  Churchill Downs to buy Colonial Downs, Rosie’s parent company

The Kentucky Derby host entered into a $2.4 billion agreement to buy the company that owns Colonial Downs racetrack and six Rosie’s Gaming Emporiums. (Feb. 22)

5  |  Williamsburg’s Midtown Row to be acquired for $122 million

Maryland-based Broad Street Realty Inc. announced plans to buy the mixed-use property near William & Mary. (Feb. 22)

Skanska tops out mixed-use building in McLean

Heming at 1800 Chain Bridge Road, a 28-story mixed-use building in McLean, has now been “topped out,’  Skanska announced March 23.

Heming at 1800 Chain Bridge Road, a 28-story building in McLean, has been topped out.

Representatives from Skanska, CallisonRTKL, IMEG Corp., and Skanska’s construction partners commemorated the construction milestone  by signing a steel beam and placing it at the highest structural feature of the building, a celebration referred to as topping out, or topping off.

The Heming is part of a 6.5 million-square-foot mixed-use development at Scott’s Run, across from Metro’s McLean Silver Line station, between the headquarters of Capital One Financial Corp. and Mitre.

The milestone means:

  • 120,000 cubic yards of material was excavated,
  • 37,000 cubic yards of concrete was poured,
  • 2,700 tons of rear was laid and
  • 380,000 pounds of post tension cables were used.

The Heming is expected to be completed in the fourth quarter. Title will have 410 apartments, 38,000 square feet of retail and restaurant space and a three-level outdoor public plaza. Construction began in January 2020 and Skanska invested $221 million.

Hilton Richmond Downtown completes multimillion-dollar renovation

Hilton Richmond Downtown’s multimillion-dollar renovation is complete, New Orleans-based management company HRI Lodging LLC announced March 24.

The renovation includes a new lobby bar and lounge and hybrid meeting space, as well as updating the fitness center, indoor pool and guest room bathrooms. The 250-room Hilton Richmond Downtown occupies the former Miller & Rhoads department store building at 501 E. Broad St.

Renovated lounge space is part of the renovation.Photo courtesy Hilton Richmond Downtown

“This renovation will significantly enhance the guest experience and serve the needs of savvy business and leisure travelers,” John Cario, the hotel’s general manager, said in a statement. “Given the property’s history as the iconic Miller & Rhoads, we knew the importance of preserving its unique character while ensuring modern day relevance.”

Hilton Richmond Downtown has more than 10,000 square feet of meeting space, including two ballrooms. Its new hybrid meeting space, called Ensemble, is 1,400 square feet and has an open space for collaboration, a projector display, a full kitchen and dining area and a private breakout space with a TV and conference table.

Columbus, Ohio-based private investment firm Rockbridge Capital LLC owns the hotel, and HRI Lodging LLC, a wholly owned subsidiary of HRI Hospitality LLC, provides hotel management services.

Super Chix to open 10 locations in Va.

Super Chix Chicken & Custard, a Dallas-based chicken sandwich franchise, plans to open 10 locations in Virginia, beginning with one in Williamsburg, the company announced March 23.

Virginia Beach-based management and development company S2K Hospitality will open the first restaurant in Williamsburg’s Midtown Row in the fourth quarter of 2022.

Midtown Row

“S2K Hospitality is excited to introduce Virginians to Texas-size, sumptuous chicken sandwiches that hands down will answer the age-long question of who makes the best chicken sandwich,” said Neel Desai, who oversees strategic growth and development for S2K, in a statement. “Our 10-store deal with this fast-growing franchise shows our commitment to bringing amazing food and an exceptional customer experience to the region.”

S2K also manages four Which Wich and two Your Pie locations across the Hampton Roads market.

The Williamsburg location of Super Chix will be about 3,200 square feet and will hire about 40 people. S2K is looking at spaces in Chesapeake, Newport News, Virginia Beach and Suffolk for the other nine locations planned, but has not yet signed leases, according to a spokesperson for the company.

Chesterfield medical office building sells for $12M

A medical office building in Chesterfield County sold for $12.25 million, Cushman & Wakefield | Thalhimer announced March 23.

Located at 7300 Ashlake Parkway, the 27,606-square-foot property is 100% leased to four tenants: Vital Care Family Practice, LabCorp, James River Cardiology and Absolute Dermatology & Skin Cancer Center.

Nashville, Tennessee-based Montecito Medical Real Estate bought the property from an entity managed by Henrico County-based Stanley Shield Partnership. Catharine Spangler and Eric Robison of Cushman & Wakefield | Thalhimer’s Capital Markets Group and Birck Turnbull in Thalhimer’s Richmond office represented the seller.

Montecito Medical owns several medical office buildings in Virginia and recently purchased a Virginia Beach one for $21 million.

McLean medical office building refinanced with $20M loan

Toronto-based commercial real estate firm Avison Young announced Wednesday that its debt and equity finance team had arranged a $20 million loan to refinance a medical office building in McLean.

Built in 1985, the three-story, 47,000-square-foot medical office building is located at 1420 Beverly Road. A partnership between Stewart Investment Partners and Chestnut Funds owns the building and finished renovating it from a general office building in 2021.

Jon Goldstein, an Avison Young principal, led the team representing the owner, along with principals Mike Yavinsky and Wes Boatwright, to secure the five-year fixed-rate loan.

“Ownership flawlessly executed their business plan by substantially upgrading the property and getting it stabilized in a short period of time. This refinancing opportunity was extremely attractive to lenders due to the high quality of the property, credit-worthy tenancy and the excellent location,” Goldstein said in a statement.