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Pharrell urges Norfolk to speed up Military Circle development

During a news conference before his three-day Mighty Dream forum kicked off Tuesday, music superstar Pharrell Williams said he is waiting for Norfolk to officially approve his development team’s Wellness Circle project at Military Circle Mall, noting, “I’ve been told many times that we won it. … You have to ask the city. The ball’s in their court.”

Reached Tuesday through a city spokesperson, Norfolk city manager Larry “Chip” Filer confirmed that they are currently working with the Wellness Circle team.

“I can confirm that the city is in discussions with Wellness Circle regarding the exciting redevelopment of the Military Circle mall site,” he said. “The parties are currently negotiating deal terms so we may bring a world-class arena, affordable housing and more to the site. We are making good progress and I want to thank the individuals on the Wellness team for their steadfast commitment to the project. I look forward to finishing these initial discussions and moving on to the completion of the traffic analysis, economic impact and other studies needed to bring the project to life.”

Pharrell added that the project, which would include an arena and flagship Yellowhab school, as well as residential and retail components, does not have a set timeline, although he said he’s excited to move forward.

“There’s a couple of gatekeepers that are not necessarily happy about that, so they make trouble and kick up dust and do the things that they do,” Williams said. Though he did not name any specific people, Williams and Virginia Beach hotel developer Bruce Thompson, CEO of Gold Key | PHR, had a public spat in October 2021 after Thompson denied Williams the use of the Cavalier’s iconic front lawn for an 800-person party where controversial comedian Dave Chappelle would have performed. Thompson is part of a competing group that also submitted a proposal for the redevelopment of Military Circle Mall.

Reached Tuesday, Thompson said that he heard that Williams’ team was in negotiations with the city, adding, that Williams’ “proposal is very ambitious, and if they could pull it off, it would be great for Norfolk. We stand ready, willing and able to step in with an expansive, unique and economically viable development for sustainability and diversity if he is unable to find a pathway to bring his vision to reality.”

During his Tuesday news conference, Williams also joked about the “generic” developments that have characterized the region and called on city officials to move forward with the Military Circle redevelopment. “Over and over again … knockoff restaurants and generic brands. We deserve more. We are on the middle of the Eastern Seaboard. We can’t keep leaving it to five [or] six people with not the best taste. Sorry, I mean, am I wrong? No. I’m saying it with love. Open it up, guys. Open it up. This [development] should have been moving a long time ago.”

Norfolk’s EDA purchased the 75-acre property for $11 million and the nearby DoubleTree Hotel property for $2.4 million.

The Wellness Circle proposal includes 1 million square feet of office space, a 200-room hotel, 1,100 new housing units and a 15,000-seat arena. The project’s other developers include Virginia Beach-based Venture Realty Group and California arena management company Oak View Group, both of which are also co-developing the Atlantic Park surf park with Williams at Virginia Beach’s Oceanfront.

Two other development teams, including groups connected with Thompson and Pro Football Hall of Famer Emmitt Smith of Dallas Cowboys fame, submitted competing proposals for the project. The city returned $100,000 deposits made by each of the three developers in June, citing the amount of time it has taken the city to choose a developer, according to The Virginian-Pilot.

Stay tuned for Virginia Business’ coverage of Mighty Dream, taking place through Nov. 3 in Norfolk.

22 acres in Innsbrook to be developed into mixed-use

Newton, Massachusetts-based Northland has acquired 22 acres to build a mixed-use development at the “North End” of the Innsbrook area in Henrico County, from Raleigh-based Highwoods Properties.

The site is located on the north end of the Innsbrook Corporate Center, at the Intersection of Interstate 95, Nuckols Road and Lake Brook Drive. It already has 5.5 million square feet of office space, 3,400 apartment and residential units, seven hotels and 20 restaurants, according to a news release from Cushman & Wakefield | Thalhimer.

Jane DuFrane, senior vice president and Richmond market leader for Highwoods Properties, said that the northern area of Innsbrook does not have many food choices or amenities in easy walking distance so Highwoods sought a partner to develop retail. Highwoods is known for building office space , but knew this area needed to be a mixed-use community in order to help its customers retain and attract talent.

“We wanted to urbanize without increasing the traffic,” DuFrane said.

The site is zoned for up to 700 residential units (600 apartments, 100 condos), 55,000 square feet of retail and a 150-room hotel. Early-stage design and master planning efforts will begin this year, but the completion date has not been announced.

Highwoods Properties owns 12 acres adjacent to the site where it could develop 315,000 square feet of Class A office space as part of the 34-acre mixed-use development.

“The firm plans to introduce a diverse mix of retail options, including chef-curated restaurant concepts and amenity boutiques centered around activated open space, for both future multifamily residents and office tenants,”  Northland wrote in a news release announcing the acquisition.

“We’re thrilled to establish Northland’s entrance into the Richmond market with such a transformative, landmark project. Richmond, and especially the area’s numerous active suburbs, has long been a compelling target market for Northland given its consistently fervent population growth, institutional higher education ecosystem, and flourishing Fortune 500 job prospects,” Santo Dettore, associate vice president of development at Northland, said. “This site represents the next step of the Northland development platform, enabling us to leverage our extensive experience in mixed-use design and large-scale master planning to create a vibrant neighborhood for residents, employees, and visitors to the area.”

Sale negotiations were handled by Eric Robison of Cushman & Wakefield | Thalhimer’s Capital Markets Group, along with David Baird and Michael Denise of Cushman & Wakefield’s Baltimore land development team.

UPDATED: Richmond picks Diamond District development team

Updated Sept. 15

The city of Richmond announced Monday it has selected a joint venture including Richmond-based Thalhimer Realty Partners to build a new baseball stadium for the Richmond Flying Squirrels, as well as a mixed-use development surrounding the stadium, revitalizing the area into a new neighborhood to be known as the Diamond District.

The entire project is expected to cost $2.44 billion, with the first phase costing a minimum capital investment of $627.6 million, according to information provided by the city Tuesday. A Richmond City Council resolution to officially select RVA Diamond Partners LLC, sponsored by the mayor and seven city councilors, is scheduled for a vote Thursday. Because the venture involves the sale of city-owned land, seven out of nine council members must approve the motion.

Other partners in the RVA Diamond Partners joint venture include Washington, D.C.-based Republic Properties Corp., Chicago-based Loop Capital Holdings LLC and San Diego venue developer JMI Sports. According to the city’s announcement, the group committed to purchase the first $20 million of bonds needed to finance the stadium, which is required to be completed and open for the 2025 Minor League Baseball season.

According to Cushman & Wakefield | Thalhimer, the parent company of Thalhimer Realty Partners, the ballpark will have a capacity of 10,000, and the rest of the project will include 935,000 square feet of office space, 195,000 square feet of retail and community space, and two hotels with a total of 330 rooms.

The project also will include 2,800 residential units — both rental and 157 condos for sale — available at different price points, with 20% of rental units priced for households earning between 30% and 60% of the area median income, and 100 apartments under project-based vouchers for public housing residents. Twenty percent of all residences for sale will be priced for households earning between 60% and 70% of area median income, and the developers will put up a $1 million fund to assist home buyers with closing fees and associated costs.

The cost of the baseball stadium and public infrastructure will be financed with Community Development Authority (CDA) bond financing, the city said, which would not require Richmond to repay bonds if there is a shortfall. Bond financing will be repaid with tax revenue generated in the 67-acre development property, including taxes on real estate, businesses, meals, hotel revenue and baseball admissions. Local portions of the state sales tax, lease payments and other revenue will also be part of the deal.

An 11-acre park will also be part of the development, as well as open space and walkable blocks, connecting the Diamond District with the trendy nearby Scott’s Addition neighborhood, southwest from The Diamond across Arthur Ashe Boulevard. According to the city, the developers also wish to partner with the city’s School Board to develop a technical training center at the former Altria site on the city’s South Side, where the ONE Casino & Resort was set to be built.

The replacement of the Arthur Ashe Jr. Athletic Center, a nearly 40-year-old building that contains a 6,000-seat athletic facility and basketball court, will not be part of the first phase of the Diamond District development, but the Richmond City Council is expected to vote on a resolution to prioritize funding for recreational and extracurricular activities for city youth and young adults. The resolution pledges that the city will pursue “recreational and organizational opportunities previously served by the center on sites in the general proximity of the Diamond District prior to the transfer of the parcel” on which the Ashe Center is located and the future demolition of the center, which has been deemed too expensive to repair and maintain.

A 10-person panel that includes city employees and two City Council members chose the winning project, after 15 proposals were sent in. Last month, the city announced it had narrowed its choices to two teams: RVA Diamond Partners and Richmond Community Development Partners, which included San Francisco-based commercial real estate company JMA Ventures, Houston-based Machete Group and Tryline Capital, which has offices in Connecticut and New York, the Richmond office of Gilbane Building Co., Richmond-based Davis Brothers Construction Co. and Charlotte, North Carolina-based Odell Associates Inc.

Virginia Commonwealth University, which will use the new ballpark for off-season sporting events, and the Richmond Flying Squirrels will pay leases to use the stadium, the city has said. VCU plans to build a 40-acre athletic village east of the Diamond District, which could be made available to city residents through a separate use agreement, the city’s legislation says.

The replacement of The Diamond, the 37-year-old home of the Richmond Flying Squirrels AA baseball team, was the chief factor in the project’s timing. Lou DiBella, president and managing general partner of the Squirrels franchise, said Monday night in a statement: “The Richmond Flying Squirrels are proud to be an anchor tenant of this proposed revitalization and development of the Diamond District, a natural extension of the growth of our beloved hometown. The Squirrels will be the most well-known neighbors in a new, diverse and dynamic neighborhood. We commit to being a great neighbor and to making memories together for decades to come.”

In 2020, Minor League Baseball revamped its facilities requirements to include indoor batting cages, coaches’ rooms, locker rooms for female employees and other features that the aging Richmond stadium lacks. A document released last month by the city said, “A new ballpark must be built to keep Minor League Baseball in Richmond beyond the 2024 season.”

The entire multiphase project is expected to be completed in up to 15 years, with the inclusion of housing, hotel and retail space (and possibly office space), in addition to the stadium.

“This proposal meets our goals to equitably revitalize an underdeveloped part of our city and maximize its potential to enhance the quality of life for all Richmonders,” Mayor Levar Stoney said in a statement. “Commitments to affordable housing, minority business engagement, publicly accessible open space and a new ballpark mean that the Diamond District will be enjoyed by, built by and benefit all residents of our city. The Diamond District has long been a diamond in the rough. I look forward to seeing it shine.”

 

$55M affordable housing community moves forward in Richmond

The final two phases of Brady Square, a $55 million affordable housing community in Richmond, now have financing and approvals to move forward, developer Dakota Partners announced Tuesday.

The Massachusetts developer announced plans for the community in December 2021.

Dakota Partners purchased a 14.4-acre parcel at 2200 Brady St. on Richmond’s South Side. The complex will have 246 residential units. The first two phases, with 132 units and a community building, are under construction and 40-45% complete. The first phase is planned to include 66 units with 11 buildings and one community building; the second phase will be 66 units as well. The first phase is expected to be completed by May 2023 and the second in August 2023.

The third and fourth phases, each with 66 units, will bring the total to 264 units. Work on phase four started in early September and includes clearing the area for pads where its four buildings will stand. Phase four is expected to be completed in August 2023. The third phase will start at the end of September and is expected to be completed in May 2024.

All four phases will have one-, two- and three-bedroom garden and townhouse-style apartment units within two-story residential buildings.

Brady Square will target households earning 30%, 50% and 60% of the area median income household. The AMI in Richmond for 2020 was $51,421, according to the U.S. Census Bureau.

The undeveloped land was purchased from Drucker & Falk LLC, a Newport News-based commercial real estate company  focused on multifamily property management. Dakota received $700,000 from the Virginia Housing Trust Fund in July 2020 to help finance the first phase of the project, according to the state.

Diamonds in developers’ eyes 

Standing near the grand entrance of upcoming entertainment venue and food hall The Park at RVA, Orcun Turkay says he’s excited for the future of Richmond’s newly branded Diamond District. He calls it “Scott’s Addition 2.0,” referencing the trendy adjoining neighborhood.

Exact plans for the Diamond District, which will include a replacement for the city’s Minor League Baseball stadium, The Diamond, are not yet set, but Richmond City Council is expected to choose a developer soon.

Excitement about the new district is fueling adjacent projects like The Park at RVA, which plans to open this fall.

Located along Interstate 95 within view of The Diamond, The Park at RVA will offer duckpin bowling, mini-golf and multiple bars and restaurants, as well as a 200-seat venue for music and comedy shows. It will be housed in a 55,000-square-foot space on the second floor of a two-story industrial building owned by the project’s lead investor: Alexandria-based heating, ventilation and air conditioning contractor Michael & Son Services Inc. (CodeRVA, a regional magnet school for computer science,
is the first-floor tenant.) 

Turkay, The Park at RVA’s managing partner and vice president of operations, says the venue will offer more entertainment options under one roof than anywhere else in Richmond: “You can go to food halls and arcade bars, but not everything at once.”

Plans to redevelop the area surrounding The Diamond into a new mixed-use, mixed-income district built around a new stadium started a few years ago during discussions for the city’s Richmond 300 master plan for growth. This summer, the city narrowed the field to three competing development teams, which were pared to two finalists in August. There’s pressure to move forward, as work must begin quickly on a new Richmond Flying Squirrels stadium to meet newly adopted league facility standards and open by March 2025.

Greater Scott’s Addition Association board members have endorsed development team RVA Diamond Partners, a joint venture including Washington, D.C.-based Republic Properties Corp., Chicago-based Loop Capital Holdings LLC and Richmond-based Thalhimer Realty Partners Inc. “We made it extremely clear to the city … that we want this to happen,” says Rob Long, president of the board. “This is an awesome project.”  

Creating community vibes

In Virginia Beach, most tourists flock to the Oceanfront. But just a couple blocks west, you’ll find an area that feels a little more artsy and a lot more local.

In the 15-block ViBe Creative District, situated between the Virginia Beach Convention Center and the Oceanfront, coffee shops and restaurants operate out of former industrial spaces, alongside fences and crosswalks decorated with colorful murals.

Local business owners started discussing the need for creating a unified district around 2011. Over the next few years, the effort grew. By 2015, Virginia Beach City Council passed an ordinance establishing the ViBe as the city’s official creative district. What was once an underdeveloped and rundown industrial area — a place that was “not for people,” as one longtime resident puts it — has blossomed into a cultural mecca with trendy shops and weekend farmers markets.

Kate Pittman, executive director of the nonprofit ViBe Creative District organization, which supports and promotes the district, says the district’s founders deliberately planned for it to become the “No. 3 destination” in Virginia Beach, behind the Oceanfront and the upscale Town Center, a mixed-use district with a blend of retail, restaurants, hotels and office towers.

“The ViBe district is something that has very much that local flavor and really is the kind of locals’ opportunity to win and live the life of their dreams in their own hometown,” she says. “So, for us, we think it’s a beautiful asset [for] tourism because while [tourists are] here in Virginia Beach exploring the Oceanfront, they can come inland just a few blocks and get to meet and see local business leaders and local artists engaging in beautifying Virginia Beach and making it just something new and different and really enriching.” 

The ViBe district’s creation was no coincidence. It’s a primary example of placemaking — a term developers use to describe the purposeful development of people-centric public spaces and districts. Placemaking is defined by vibrant, transit-oriented walkable neighborhoods and a mix of retail, offices, residential and even hotels.

From farm to metropolis

Placemaking is more than just physical buildings or a design philosophy, says Juanita Hardy, managing principal of Silver Spring, Maryland-based Tiger Management Consulting Group LLC and a former senior visiting fellow for creative placemaking at the Urban Land Institute. It’s about what goes on around a development, including parks, public art and events programming — everything that attracts people to spend time in an area.

While there are multiple ways of interpreting it, placemaking in Virginia dates back at least 60 years, when developers had a vision for the transformation of Tysons Corner. What had once been a rural crossroads marked by farms and a mom-and-pop gas station has grown into a thriving edge city lauded by planners and developers as one of the nation’s premier examples of placemaking. 

Now known as simply Tysons, it evolved from office parks and a sprawling shopping mall into a budding metropolis that is now home to corporate headquarters for Fortune 500 companies such as Freddie Mac, Capital One Financial Corp., Hilton Worldwide Holdings Inc. and Booz Allen Hamilton Inc.

Tysons “represented something new and profoundly different for Fairfax and all of the suburbs,” says Terry Clower, a professor of public policy at George Mason University and director of Mason’s Center for Regional Analysis.

Featured in the 1991 book “Edge City: Life on the New Frontier,” by Joel Garreau, Tysons forged the way for the success of other planned communities and developments.

“I don’t think Reston could have happened without the success of Tysons,” Clower says, referring to the similarly successful Fairfax County community that also began as a planned development in the 1960s and has now grown into a nearly 16-square-mile district featuring suburban neighborhoods, corporate office towers and the mixed-use Reston Town Center.

While placemaking is hardly a new trend, the idea of placemaking as an economic development panacea and redevelopment tool has gained popularity, with local governments even creating positions to support it.

“In conversation after conversation with business executives, we hear that a sense of place is paramount,” says Anthony Romanello, executive director of the Henrico County Economic Development Authority, which appointed a dedicated placemaking manager this year. “Creating workplaces that are attractive, fun, walkable and engaging is as essential to economic development as low taxes, good roads, quality schools and a pro-business climate.”

Virginia offers a variety of examples of placemaking in different stages of development, ranging from billion-dollar projects in the planning stages to mature communities like Tysons.

Changing identities

In Arlington County, a new neighborhood, National Landing, is rising around Amazon.com Inc.’s $2.5 billion-plus HQ2 East Coast headquarters. 

Bethesda, Maryland-based JBG Smith Properties, the real estate company developing HQ2 and the surrounding area, is aiming to create a “vibrant, transit-oriented, walkable” neighborhood there, “with ground-floor retail and a mix of uses,” says company Vice President Jack Kelly.

National Landing encompasses three older neighborhoods: Potomac Yard (straddling the Alexandria-Arlington line), Crystal City and Pentagon City (both in Arlington). In decades past, these were largely business districts that emptied out at the end of the day, encouraging car-centric commuting back and forth from the suburbs. But local economic developers and JBG Smith are hoping to unite them under the National Landing moniker as one downtown district — a place where people can live, work and play.

The late 2018 announcement that HQ2 was coming to Arlington presented the opportunity for a “big shift in our planning and development … to move toward good urbanism,” says Tracy Gabriel, president and executive director of the National Landing Business Improvement District (formerly known as the Crystal City Business Improvement District).

Amazon HQ2 will have about 4.9 million square feet of office space, divided across two phases: Metropolitan Park, the first phase, is set to open in 2023, with two 22-floor office towers, a 2-acre public park and 65,000 square feet of ground floor retail. The second phase, PenPlace, slated to open in 2025, includes plans for three additional 22-story towers. It’s also expected to feature HQ2’s centerpiece, the distinctive, 354-foot-high spiral-shaped Helix building.

But more than that is planned for National Landing. 

“Everything we do is rooted in that idea that we’ve got a big opportunity to really change the identity of a place that’s been around a long time,” Kelly says.

That means creating public spaces where people can gather, as well as adding design elements to create a sense of continuity in the neighborhood. “It’s really all about that civic space,” he says, “identifying those areas that are meaningful to the community … and then creating a landscape and streetscape that is attractive and unifying … across large areas.”

While National Landing is already well underway to fulfilling its vision of becoming a new community, other placemaking projects in Virginia are in earlier stages.

In Henrico County, developers are preparing to redevelop the former Best Products Co. corporate headquarters campus, which closed in 1997, into GreenCity, a $2.3 billion, 200-acre mixed-use “ecodistrict” that will include an up-to-17,000-seat multipurpose arena; two or three hotels; about 2,200 housing units; and 2.2 million square feet of office space.

Developers Susan Eastridge and Michael Hallmark brought the privately funded GreenCity project to Henrico after a similar, publicly funded project they pitched to Richmond, the $1.5 billion Navy Hill development, failed to receive support from Richmond City Council.

Henrico’s government has embraced GreenCity, which was announced in December 2020 and approved for rezoning by the Henrico County Board of Supervisors less than 10 months later. GreenCity’s full buildout will take 10 to 12 years, says Eastridge, CEO of Fairfax-based Concord Eastridge Inc. Construction is expected to begin by late 2023 or early 2024.

One of the core components of the project is the arena, which developers hope will attract major sporting and entertainment events. Hallmark, founder of Los Angeles-based Future Cities LLC, has a background in designing arenas. The co-founder of a handful of sports arena architecture firms, he helped lead the design of projects such as Los Angeles’ Crypto.com Arena. He hopes that GreenCity’s status as an ecodistrict — a development focused on environmental sustainability — will draw interest from large music acts that have pledged to make their tours ecologically friendly.

He and Eastridge also anticipate that GreenCity will be a magnet for businesses and residents who care about saving the planet. GreenCity’s sustainability features include devoting more than 20 acres of rooftops for a solar energy farm and harvesting and reusing rainwater.

JBG Smith Properties is developing National Landing as a “vibrant, transit-oriented, walkable” mixed-use neighborhood around Amazon.com’s HQ2 East Coast headquarters in Arlington, says company Vice President Jack Kelly. Photo by Will Schermerhorn
JBG Smith Properties is developing National Landing as a “vibrant, transit-oriented, walkable” mixed-use neighborhood around Amazon.com’s HQ2 East Coast headquarters in Arlington, says company Vice President Jack Kelly. Photo by Will Schermerhorn

Places in the pipeline

Around the commonwealth, placemaking can also be seen in the planning and creation of new buzzworthy downtown districts. Examples range from Norfolk’s Military Circle Mall redevelopment and Richmond’s Diamond District to Chesapeake’s Summit Pointe.

Norfolk is in early negotiations with developers, including music icon and Virginia Beach native Pharrell Williams, to redevelop the old Military Circle Mall property into Wellness Circle, a proposed $1.1 billion mixed-use community with 1 million square feet of office space, a 200-room hotel, 1,100 new housing units and a 15,000-seat arena. The project’s other developers include Virginia Beach-based Venture Realty Group and California arena management company Oak View Group. (Two other development teams, including groups connected with Virginia Beach hotelier Bruce Thompson and Pro Football Hall of Famer Emmitt Smith, submitted competing proposals for the project.)

In nearby Chesapeake, Fortune 500 discount retailer Dollar Tree Inc. is developing a downtown district around its 12-story corporate headquarters built in 2018. The $300 million Summit Pointe development is expected to have 1 million square feet of office space, 500,000 square feet of retail and 1,400 residences when all 70 acres are fully built out.

In 2018, Chesapeake Mayor Rick West described Summit Pointe as “the beginning of a new downtown Chesapeake.”

That’s how Chris Williams, a senior vice president with Dollar Tree and its Summit Pointe Realty subsidiary, sees it, too.

“There really isn’t a place [like this] in Chesapeake, so I think between the restaurant and the residential spaces we are building, it gives the community a place to come and enjoy,” says Williams, who now sees people in Summit Pointe gathering at Wasserhund Brewing Co. in the evenings or jogging around the streets. “It really becomes a community.” 

Another district primed for placemaking is the area around the Diamond, the aging stadium that’s home to Richmond’s Minor League Baseball team, the Flying Squirrels. The city wants to build a new baseball stadium as the centerpiece of a new, pedestrian-friendly residential, business and entertainment district. It’s planned for a 67-acre site that currently includes the stadium and underdeveloped properties alongside Interstates 64 and 95, not far from the popular Scott’s Addition neighborhood. Three teams have submitted competing redevelopment proposals. The city’s evaluation panel was expected to recommend a developer in late July to Richmond City Council, which would have to approve the development agreement.

Good ViBes

While National Landing, GreenCity and other places are in earlier stages of development, Virginia Beach’s ViBe Creative District, which has been around for about seven years, is blossoming. 

After the city redeveloped the convention center in 2005, there wasn’t anything nearby to attract convention-goers — just lots of vacant storefronts and industrial properties. “There was a real need to … breathe new life into this area,” says Pittman with the ViBe’s nonprofit booster organization.

In response to that problem, local business owners Laura Wood, whose family owns Croc’s 19th Street Bistro, and Andrew Fine, co-chairman of The Runnymede Corp., came up with the idea for the ViBe, rallying businesses and property owners to develop the community.

Together, Wood and Fine co-founded the ViBe. Working with the city and the Hampton Roads Community Foundation, they were able to launch the nonprofit group and hire Pittman in 2016. The nonprofit, which has raised more than $1 million since its founding, has evolved into an entity that is able to collaborate with the city’s economic development office to create a matching grant program for the district’s small businesses.

Today, the ViBe has a coworking space, restaurants and artsy shops, and hosts bustling flea markets and farmers markets during weekends.

The ViBe’s nonprofit developed a cohesive identity for the ViBe by engaging local artists to produce an array of colorful neighborhood identifiers such as fence murals and brightly painted street meters, signaling the district’s emphasis on creativity.

Michael Hallmark, founder of Future Cities LLC, is co-developing GreenCity, a $2.3 billion redevelopment of the former Best Products corporate headquarters in Henrico County into a mixed-use ecodistrict with hotels, housing, offices and a multipurpose arena. Photo by Matthew R.O. Brown
Michael Hallmark, founder of Future Cities LLC, is co-developing GreenCity, a $2.3 billion redevelopment of the former Best Products corporate headquarters in Henrico County into a mixed-use ecodistrict with hotels, housing, offices and a multipurpose arena. Photo by Matthew R.O. Brown

“Creative placemaking through art supports a triple bottom line for sustainable communities and creative energy enhanced by creative arts,” says Wood, and that translates into economic benefits, health and environmental benefits, and social cohesion.

“We believed these creative and public art spaces must be discovered, seen, felt, heard, tasted, smelled and touched,” Wood says. “It could be explored on fence walls, streets, sidewalks, parking lots, open spaces and gardens, alleyways and buildings. I saw a blank canvas for ViBe and the 19th Street corridor via the Old Beach Farmers Market to create a heartbeat in our neglected neighborhood that could be filled with authentic local food, farmers, spaces with paint, native gardens and an environmentally friendly, artful soul and emotion to entice, with creative opportunities to be discovered.”

Another integral figure in the ViBe’s development is L.G. Shaw, president of Wave Riding Vehicles, a Virginia Beach-based retailer and manufacturer of surfboards and sporting apparel and goods.

Growing a community is not a new concept to Shaw. “Being surfers first, we’ve always had to build our own sort of clubhouse and community here in Virginia Beach,” he says. “Surf shops have always been a placemaking headquarters on accident — that’s where [surfers] went back in the day.” 

WRV had unused warehouse spaces around the district, so Shaw decided to lease the spaces to “cool little artistic” businesses like North End Bag Co., where shoppers can buy handbags made by hand right on premises. Nearby, Igor’s Custom Signs & Stripes makes hand-painted signs, banners and murals, and Jars of Dust makes and sells handcrafted ceramics carried by national retailer Anthropologie.

More than 50 businesses have opened or expanded operations in the ViBe since 2015, and real estate values within the district rose by more than $45 million collectively between 2015 and 2021.

It shouldn’t come as a surprise, then, that other developers are hoping to capture some of the ViBe’s vibe.

“I think the ViBe district has organically and authentically evolved into a vision of what Virginia Beach could be,” says Donna MacMillan-Whitaker, managing partner of Venture Realty Group, which is co-developing the nearby
$350 million Atlantic Park with Pharrell Williams. “We want to expand on and help anchor that.”

Tysons is a nationally recognized example of placemaking, evolving from a rural crossroads in the early 1960s to a budding metropolis that is a headquarters for several major global companies, including Capital One Financial Corp. and Mars Inc. Photo by Will Schermerhorn
Tysons is a nationally recognized example of placemaking, evolving from a rural crossroads in the early 1960s to a budding metropolis that is a headquarters for several major global companies, including Capital One Financial Corp. and Mars Inc. Photo by Will Schermerhorn

In its first phase, set to break ground in October, the Atlantic Park project, which will be about three blocks from the ViBe, calls for a 2-acre, manmade wave lagoon, 120,000 square feet of retail, 310,000 square feet of residential living space, 15,000 square feet of office space and a 3,500-seat entertainment venue.

The ViBe was “a true grassroots effort by a passionate and dedicated community group,” MacMillan-Whitaker says. “Look around the country at other successful cities — which cities are expanding, retaining their talented youth, growing their population, their tourism, and even their wages? Art and culture and placemaking are what people want to be a part of.”

 

 

 

 

 

 

Va. receives $22.7M to reclaim abandoned mine lands

The Virginia Department of Energy will receive $22.7 million in federal funding toward redeveloping abandoned mine lands across the commonwealth, Gov. Glenn Youngkin announced Wednesday.

The funding is aimed at redeveloping the sites so that they can be used to attract new development and job opportunities to the region. Handled through Virginia’s Abandoned Mine Lands program, funded projects involve mitigating safety hazards and environmental issues on the sites that resulted from coal mining prior to the implementation of the Federal Mine Safety and Health Act of 1977.

In March, Virginia Energy sought companies with three or more years of mining and reclamation experience to bid on remediation work at abandoned mine sites. Virginia has thousands of such sites awaiting reclamation, according to Youngkin’s office, and previous funding limited the number of projects that could be addressed in a grant year. The program has been getting about $4 million annually, creating more than 1,000 jobs since 2017, according to the state.

“We are excited to get to work and assist in getting others back to work with this announcement of federal funds,” Youngkin said. “Creating jobs in coal-impacted communities is a priority and through the reclamation and repurposing of these mined lands, we hope to see … additional economic activity for properties that can become suitable for development.”

Southwest Virginia has benefited from the federal Abandoned Mine Land Pilot Program, which has offered multiple rounds of funding to Virginia Energy, formerly known as the state Department of Mines, Minerals and Energy.

“Southwest Virginia has a ready workforce to complete the numerous infrastructure projects in Virginia,” Secretary of Commerce and Trade Caren Merrick said in a statement. “Our agency prides itself on economic development in this region and we will aid in continued job increases over the next 15 years with this specific funding.”

Virginia offered funding for these projects previously in 2021.

“There are thousands of features posing safety and environmental harm due to historic mining in Southwest Virginia and other areas of the state where coal was once extracted,” Virginia Energy Director John Warren said in a statement. “These funds will allow us to reclaim and repurpose just over 80% of the current inventory Virginia Energy has gathered since our AML program began in 1981.”

“Our AML team finally gets to complete projects and tasks that have been on our wish list for years,” Virginia Energy Deputy Director Will Clear said in a statement. “The impact this work will have on our region will be so significant for a growing economy and for community enhancement.”

 

Silver lining

As the long-delayed phase two opening of Metro’s Silver Line extension is set for later this year in western Fairfax and Loudoun counties, a development boom is following on the train’s wheels.

Reston and Herndon, as well as eastern Loudoun, have already attracted big corporate tenants to millions of square feet of office space, retail and residential properties freshly built and under construction along the Dulles Toll Road corridor.

It’s hardly a surprise, given the moves by large technology corporations and others to locate offices in western Fairfax. Of the nine Fortune 500 companies headquartered in the county, three are in Reston and one is in Herndon. The two areas hold more than
35 million square feet of office space, nearly a third of all the office space in the county.

Google LLC, Amazon Web Services Inc., Spotify, Qualtrics, SolarWinds Corp. and Neustar, a global information services company, all have presences in the area, and tenants at Reston Town Center include Fannie Mae, Meta Platforms Inc. (formerly Facebook) and Microsoft Corp. Federal contractor Peraton Inc. and seafood and chicken purveyor StarKist Co. are newcomers to the mixed-use development. 

“They want a place where they can go to lunch,” explains Victor Hoskins, president and CEO of the county Economic Development Authority. “They want to be able to go to the gym. They want to be able to go for a walk. They want to be able to bike to work if they want to.

“I think that combination is really attractive to the companies, and then they augment that with a lot of residential. So, there are a lot more people there. There’s actually energy there. Ten years of growth has really transformed the area.”

Chris Clemente is president of Comstock Holding Cos., the primary developer of the Reston Station and Loudoun Station developments along Metro’s Silver Line. Photo by Stephen Gosling
Chris Clemente is president of Comstock Holding Cos., the primary developer of the Reston Station and Loudoun Station developments along Metro’s Silver Line. Photo by Stephen Gosling

Back on track

For Fairfax County residents and commuters, the 23-mile, 11-station Silver Line Metrorail route connecting to Washington Dulles International Airport has been a long time coming. Phase one of the project, which was taken over by the Metropolitan Washington Airports Authority in 2006, was completed in 2014, and after several delays, the second and final phase is expected to be completed late this year, says Marcia McAllister, a spokeswoman for the project.

Since 2014, four stations in Tysons and the Wiehle-Reston East Station, where the multiuse Reston Station development is based, have been in operation. The second phase will include six more stations at Reston Town Center, Herndon, the airport and eastern Loudoun.

In the town of Herndon, Metro-adjacent development’s focus is on high-density mixed-use projects, including the redevelopment of eight suburban office buildings, says Dennis Holste, the town’s economic development manager.

In anticipation of the opening of the new Metro station, the town has developed cycling lanes and bus bays and performed several road-widening projects. “We’re trying to set the infrastructure in place,” Holste says.

In downtown Herndon, about a mile from the Metro station, the town and a developer, Comstock Holding Cos. Inc.,  formed a public-private partnership to develop 273 apartments, 17,000 square feet of retail space, an 18,000-square-foot arts center and a parking garage, Holste says. Also in the works is a plaza that will connect the station to Herndon Parkway.

Herndon has 5 million square feet of office space in the area and is seeing additional investment in downtown, where Aslin Beer Co. has opened a tasting room, he says. The results are akin to the goals of the late developer Robert E. Simon Jr., who founded Reston — named with his initials followed by “ton” — in 1964 as a high-density planned community where people could “live, work and play.”

The executive director of Reston Community Center, Leila Gordon, says that by the 1980s and into the 21st century, many Reston residents were looking to buy homes, raise families and have a “more typical suburban experience.” Between that cultural wave and the Reston project losing funding in the late ’60s, the community drifted from Simon’s original idea. 

But now, Gordon notes, many of the community’s newer residents want a more urban lifestyle and are living closer to public transportation. Gordon says the community center has seen a shift in programming needs since the first phase of the Silver Line opened. About 30 years ago, the center began holding 24 concert and performance events each summer. Now, in cooperation with Reston Town Center, it schedules more than 100 events from May through October. 

“I think we’re going to see less of the kind of soccer mom behavior of the ’80s and ’90s and more of the urban feeling for the kinds of things people do with their spare time,” Gordon says.

Nonetheless, Mike Batt, director of the Fairfax County EDA’s Talent Initiative Program, says the community has maintained its welcoming culture and been smart about development. “They’re keeping the growth right at the Metro stops that are opening,” he says. “All the established neighborhoods are still tree-lined.”

Major growth in Reston

Opened in 1990, Reston Town Center now has more than 2,000 homes, more than 50 retailers and 30 restaurants. It also has 5.1 million square feet of office space, including two new towers, one of which is 28 stories tall, according to the town center’s developer, Massachusetts-based Boston Properties Inc.

Jake Stroman, executive vice president and co-head of the D.C. region for Boston Properties, says that Fannie Mae and Volkswagen Group of America Inc. are leasing about 85% of the office space in the two towers.

The developer also expects to spend $2.5 billion to $3 billion on its expansion of Reston Town Center next to the incoming Metro station, Stroman says. The two-phase project includes a 508-unit, 39-story apartment tower under construction now that will contain about 12,000 square feet of retail and roughly 78,000 square feet of office space. In the next few years, the company plans to develop another 700,000 to 800,000 square feet of office space.

Sapna Yathiraj, marketing director for Boston Properties, says the company is renovating Reston Town Center’s fountain plaza and the pavilion, which becomes an ice-skating rink in the winter. The developer also is adding more seating to pedestrian areas.

A new fitness center, the St. James Performance Club, opened in April, and several new restaurants are coming, including Open Road Distilling Co., a Brazilian steakhouse and a Peruvian eatery, Yathiraj says.

The eventual opening of the Metro station at Reston Town Center will bring more people to the community, Yathiraj says, adding that Boston Properties plans to offer shuttle service to and from the station and throughout the town center.

The fact that the Metro station at Reston Town Center still hasn’t opened has not hindered Boston’s ability to lease space, Stroman says. Since the start of 2020, the company has leased 1.5 million square feet of office space.

Robert Goudie, executive director of the Reston Town Center Association, says that he and Simon, the founder of Reston who died in 2015 at the age of 101, worked on a task force with nearly 40 other people on a comprehensive review of the Reston master plan about 10 years ago. The goal was to plan a transit-oriented, mixed-use community to complement the arrival of Metrorail.

Since he became executive director of the association about seven years ago, Goudie says, he has seen delegations from South Korea, Japan, Australia and several states tour Reston Town Center to learn how to replicate it.

The 15 residential properties at the town center, with 5,000 residents, are fully occupied, and Fortune 500 federal contractor Leidos, along with Microsoft, Meta and Fannie Mae, have turned the property into a “who’s who of corporate America,” Goudie says.

He adds that the center has more than 100 shops and restaurants, though there have been some retail closures, reflecting national trends. “Brick and mortar globally is under siege,” Goudie says. “The internet is eating brick and mortar’s lunch.”

Surrounding the Wiehle-Reston East Station, the Reston Station development has more than 3.5 million square feet of office space, town houses, condos and apartment buildings standing on about 80 acres. The community’s primary developer, Comstock, plans to expand to a total of 6 million to
7 million square feet at Reston Station with 20 buildings, including 16 new ones.

Reston Station will be getting a JW Marriott Hotel with condos on top of it. The developer plans to redevelop a 1990s office park into a pedestrian-friendly neighborhood, says Comstock CEO Chris Clemente, whose offices overlook the development.

“It’s a neighborhood that is developing fast because of the demand for the kind of office buildings we are building here,” Clemente says.

Some of Reston Station’s office spaces have been fully occupied throughout the pandemic because they are home to federal contractors who chose not to work remotely, he says.

Comstock’s Loudoun Station development is next to Metro’s Ashburn Station, which is the last Metro station along the second phase of the Silver Line. Since the company bought the property in 2001, it has built out 2.5 million square feet, making it a smaller version of Reston Station, Clemente says.

And the company is planning additional buildings for its Loudoun Station development, which has about 700 existing apartments and a couple hundred thousand square feet of office and retail.

Although many businesses — as well as the state government — are coping with employees’ reluctance to return to fully in-person or hybrid work schedules, “people are going back to work,” Clemente says. “It’s slower than some people would like. But it’s going up every week.”

He calls the Silver Line an economic engine, even if its precise completion date was still not set as of early June.

“The Silver Line is doing exactly what it was intended to,” Clemente says. “It’s a big factor for where companies are locating in this region.”   

Carver Station to bring food hall, coworking space to RVA

Future Cities, the development firm behind the anticipated GreenCity development in Henrico County, has plans to renovate a historic substation in the Carver neighborhood of Richmond and turn it into a mixed-use development with a food hall, coworking space and micro retail.

Carver Station, which will be located near Clay and Harrison streets, will span about 30,000 square feet. It’s near Virginia Commonwealth University’s Monroe Campus and a block from the Siegel Center. The historic substation was originally built by the Virginia Railway and Power Company in 1910 and was decommissioned by Dominion Energy Inc. in 2018.

Michael Hallmark, one of the principals of Future Cities and a resident of the Carver neighborhood, said Jerome Legions, president of the Carver Area Civic League, approached the firm about redevelopment ideas. He gave the group ideas and his firm ended up buying the property and taking on the redevelopment as a project for Future Cities, which was based in Los Angeles but relocated when Hallmark moved to Virginia to join the failed Navy Hill redevelopment in downtown Richmond.

However, Hallmark and collaborator Susan Eastridge of Fairfax-based Concord Eastridge Inc. have found local success since then with the $2.3 billion GreenCity development and a second Richmond project to replace the city’s Public Safety Building with a $325 million VCU Health System medical office tower and multi-use project on 10th Street. Plans for a 20-story tower, though, have been downsized, according to recent news reports.

As for the Carver project, Hallmark said in an interview with Virginia Business that the group did not want the property to be occupied with more housing and came up with a more creative solution. He, along with fellow Future Cities co-founder Sean Duncan and project manager Jordan Greene, will lead the project.

“This became more and more interesting, like an antique car you find at a flea market,” Hallmark said.

One innovation is the use of “architecturally fun” shipping containers in Carver Station’s design for the coworking space, Hallmark said. They’re strong and sturdy and are the right proportions for an office pod, he noted.

A rendering of space in Carver Station. Courtesy Future Cities.

The food hall will be advantageous to restaurants that have struggled in the pandemic, he said, and this would allow some chefs to come back without investing in their own brick and mortar locations. They haven’t decided on the restaurants yet — instead, they want to “figure out the experience first,” then determine the types of food and “understand what the universe of Richmond area food is and what the food call community is,” and then curate after that.  The food and beverage lounge will be tucked under the room’s existing mezzanine.

One of the property’s unique features is an original 30,000-pound gantry crane that was used to swap out generators and rail car motors as part of Richmond’s 19th- and early 20th-century street car program, according to Future Cities. Where this crane is located will be known as “the crane room” and become a “community living room” used as a lounge for coworking by day and a casual small-plate restaurant with a wine and spirits lounge at night.

Carver Station’s food hall. Rendering provided by Future Cities.

Project architects are Danny MacNelly and Jason Dufilho of Richmond-based ARCHITECTUREFIRM, and Mark Kronenthal of Roth Jackson will represent the developer to obtain a special-use permit from the city of Richmond, the next step in the process. Newport News-based W.M. Jordan Co. will be the general contractor.

Richmond-based Rocket Pop will work with Future Cities to market the space to Richmond businesses.

Construction is set to begin early next year and be completed in 2024.

 

‘Novel’ project will add 275 apartments to Scott’s Addition

Crescent Communities, ParkProperty Capital and Thalhimer Realty Partners are developing a 275-unit apartment community in a joint venture on the border of Richmond’s fast-growing Scott’s Addition neighborhood and the city’s planned Diamond District.

Dubbed “Novel Scott’s Addition,” the community will be located at the former Wesco Distribution Site at 2902 North Arthur Ashe Blvd. The units will be studios, one-  and two-bedroom apartments and the top floor will have lofts. Most of the property will be five floors, with one wing rising to seven floors. The community will have a pool and pool deck, dining and gathering spaces including a fireside lounge, library, coworking rooms, dog park, spa, garden dining room, sky deck and resident speakeasy.

Construction will start this month and be completed by early 2024.

The apartment community site is located about 2.5 miles from downtown Richmond and across the street from the  Diamond District, which the city government is in the process of selecting a company to redevelop into the new Diamond District. Thalhimer Realty Partners is part of Diamond Partners, one of the three teams of finalists competing for the redevelopment project.

Charlotte, North Carolina-based Crescent Communities will develop the project in partnership with Atlanta-based ParkProperty Capital, marking the latter company’s entry into the Richmond market. TRP N Blvd LLC, an entity controlled by Glen Allen-based Thalhimer Realty Partners, contributed the 3.17 acres of land to the joint venture, in a $6.7 million transaction. Other partners on the project include architecture firm KTGY; civil engineering firm Kimley-Horn and Associates Inc.; landscape architect LandDesign; general contractor Clancy & Theys; and CID Design Group for interior design.

“We are excited to invest with such a high-quality developer in Crescent Communities and grow our footprint in the mid-Atlantic,” ParkProperty Capital Managing Director Brendan Whalen said in a statement. “This will be our first investment in Richmond and Scott’s Addition, and we see a lot of opportunity in this historic and quickly revitalizing neighborhood. As the first investment in our second discretionary fund, which invests in similar development opportunities throughout the major markets in the Sun Belt region, this is an important milestone for ParkProperty Capital on multiple fronts.”