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The retail experience

Twisted Branch Tea Bazaar on Charlottesville’s Downtown Mall, entertains its Tea Club members with monthly tastings, while nearby New Dominion Bookshop offers story times and “Friday Night Writes,” an event featuring emerging writers.

And about a mile north at McIntire Plaza, outdoor gear and clothing consignment shop High Tor Gear Exchange has hosted outdoor equipment exchanges, workshops and even an art show.

This type of experiential retail is getting some of the credit for luring customers back to the city’s brick-and-mortar stores and giving them a bit of a post-pandemic bump, as vacancy rates in the city’s six primary shopping districts have dropped to the lowest point since January 2020, according to a report released in January by the Charlottesville Office of Economic Development.

“The general trend is that the vacancy rate has dropped a bit,” says Chris Engel, director of economic development for the city, although “there’s a fair amount of fluctuation. There’s been continual churn since the pandemic.”

In January 2020, just ahead of the pan-demic, the city had 20 vacancies among 450 retail properties, or a 4.47% vacancy rate. The following year, the number jumped to a 7.66% vacancy rate. As of January 2024, the city’s retail districts had 19 vacancies — a 4.2% vacancy rate.

The report surveys retail properties within the city’s six major shopping areas: Barracks Road; the Downtown Mall; McIntire Plaza; Preston Plaza; Seminole Square; and The Corner. The twice-yearly retail vacancy study is the 32nd such report conducted by the city’s economic development office.

Engel cites the value of experiential retail in the rebound. Business magazine Fast Company has noted it too, reporting in February that 80% of customers believe that the experience a company provides is just as important as its products and services. Examining consumer trends shaping retail this year, Fast Company recommended hosting “events, entertainment or classes. Whatever it is, make it something unique they can’t get from other retailers — or from shopping online.”

Here’s a look at how retailers across Charlottesville are responding to this trend and how the six shopping districts are faring:

Downtown Mall

One of the newest experience-rich stores in Charlottesville is The Beautiful Idea, which opened on the Downtown Mall in mid-September 2023. The shop is “one-third radical bookstore, one-third things like shirts and greeting cards. And the front third is flea market-style, with LGBTQ jewelry and artwork,” says co-owner Joan Kovatch, adding that a lot of the store’s art is “pretty politically radical” and “a little on the spicy side.”

More importantly, the store aims to be a community hub “with a queer focus. We want people to spend time and hang out. We want to be an actual welcoming space.”

None of Beautiful Idea’s three co-owners have owned a brick-and-mortar store before, but they’re learning the advantages of “selling an experience,” Kovatch says. The store hosts movie nights, book discussions and offers trainings on topics such as overdose prevention and online security.

Being located on the Downtown Mall has been great for foot traffic, according to Kovatch. Charlottesville’s pedestrian mall, which opened nearly five decades ago on the city’s historic Main Street, features community events and workshops and includes an outdoor music and entertainment venue.

The Downtown Mall area’s vacancy rate has dropped from 5.79% to 3.14% since the July 2023 economic development office’s study; there were six vacancies among the district’s 191 storefronts as of January.

Beautiful Idea’s neighbors on the mall include C’ville Arts, Daedalus Bookshop, Magpie Knits, Jean Theory and Decades Arcade, featuring vintage pinball machines and arcade games.

There are restaurants nearby, and when there are shows at nearby Paramount Theater and Ting Pavilion, “we see a lot more traffic,” Kovatch says. “There’s local traffic, but a lot comes from people visiting,” especially during the holidays. “It’s been bigger than we anticipated. We’ve been able to set some money aside for projects. Our longer-term goal is to have a community center.”

Seminole Square

Minerals & Mystics was “a walk-in place, but we’ve become a destination store. People come for who we are. They say, ‘We had to find out what your name is about,’” says owner Leah Williams.

The store, which sells sterling silver jewelry, incense, candles, rocks and minerals, also has expanded the number of experiences it’s able to offer customers since changing locations to a bigger storefront in Seminole Square this spring.

“Our space more than doubled when we moved. We have a coffee shop. We offer classes. Our goal is to offer holistic health in one area where people can have a moment of peace,” Williams says.

Minerals & Mystics owner Leah Williams (left) shows customers Mike McAdams and Hank Hall around her store at Charlottesville’s Seminole Square. Williams sells jewelry, incense, candles, rocks and minerals at her shop. Photo by Jeneene Chatowsky

The bigger space, tucked between a nail salon and a barber shop, is in a better location, offering more visibility, she adds. “As you come into the shopping center, you can really see us now. We’re already seeing some new faces.”

Other stores in the shopping center include Dover Saddlery, Super Shoe and Plan 9 Music.

Williams also hopes that new customers will be drawn to Seminole Square by a substantial renovation being undertaken in the shopping district.

Charlottesville-based Great Eastern Management Co. owns the shopping center, which includes a former Giant store and other commercial sites. Great Eastern plans to redevelop part of Seminole Square’s nearly 24 acres into a mixed-use development with at least 350 apartments.

“They’re moving toward groundbreaking. It probably will be early in 2025,” Engel says. “A lot of things have to come together to get a big project like that off the ground.”

Seminole Square, which opened in 1986, “has been in a rut,” Williams says. “The city wants to improve livability on Route 29. I’ll be interested to see how that will change things.”

Since part of the site is set to become an apartment complex, “we’ll see if people shop where they live.” In the meantime, Williams says, she isn’t daunted by the disruption. In her view, “construction makes people curious. I think we’ll see a lot of interest. It’s something new and different.”

The Corner

The number of retail vacancies at The Corner, located across the street from the University of Virginia, remains “pretty constant,” according to Engel.

While the retail vacancy rate rose from 3.28% in January 2020 to 4.91% in January 2024, retail locations at The Corner continue to benefit from proximity to U.Va. and UVA Health’s University Hospital, according to the city economic development report.

There are three vacancies out of 61 storefronts, up by just one vacancy from July 2023.

The Corner has attracted major chains such as CVS and fast food restaurant Raising Cane’s, which opened last October, but “if you calculate the figures, you’ll find … more stores [in the district] are small and locally owned,” Engel says.

For example, family-owned Mincer’s, which sells U.Va.-branded apparel, gifts and accessories, has been open since 1948.

One of the newest additions to The Corner is actually a return: Littlejohn’s, a New York-style deli, first opened in 1976 but closed during the pandemic. In mid-April, it reopened in the same space after four years.

“We’re fortunate to see a constant cycle of new small businesses,” Engel says, noting that Chaps Ice Cream, an old-fashioned ice cream parlor located on the Downtown Mall for more than 35 years, recently opened a second location at The Corner.

The Plazas

Vacancy rates remain stable at two small Charlottesville shopping centers, according to the economic development report.

Preston Plaza, a small shopping center in the middle of Charlottesville that was built in 1968, has no vacancies, according to the report. That’s been unchanged since January 2021. The plaza has 10 storefronts, including a bakery, an upscale consignment shop and several restaurants.

And McIntire Plaza, just north of the Charlottesville historic district, has seen miniscule changes since the July 2023 vacancy study. It currently counts just a single vacancy out of its 59 storefronts, which house antique stores, a jewelry store, a glass gallery, a coffee shop and math tutoring and custom-sewing services.

Given the location and low lease rates, that vacancy is expected to be filled quickly, according to the economic development office. McIntire Plaza currently has a 1.69% vacancy rate, which is anticipated to drop back to 0% in the next report.

What sets the two shopping areas apart from others in the city, says Engel, is that they offer “more accessible price points to local owner-operated businesses.”

Barracks Road

Martine Funari, founder and CEO of Fluffy’s Pet Shop, has been at Barracks Road

Shopping Center for five years. The store sells natural pet treats and vitamins, toys, accessories and pet outfits, including Halloween costumes. “We even have things for cats. We have cakes for cats for birthday parties in the shape of a fish. They’re cute as a button,” she says.

The outdoor strip mall located on U.S. Route 29 opened in 1957 in Albemarle County before the city annexed the land it sits on six years later. The shopping center got a facelift about a dozen years ago, with the removal of its concrete canopy. New design elements included a trellis structure, lounge seating areas, screening walls and a central fountain.

The city’s latest retail vacancy report finds an 8.33% vacancy rate at Barracks Road, up from 7.14%. That’s partly due to the closing of a 36,000-square-foot Bed Bath & Beyond store, Engel says. The big-box home goods chain filed for bankruptcy in April 2023. Barracks Road has 84 storefronts. The January report shows seven vacancies.

The COVID pandemic was hard on business, says Funari. The store was closed for more than four months amid the pandemic, but the pet shop has “a lot of regular customers, mainly connected with the university,” she says, and the shopping center is doing well overall. “There’s a mix of big stores, and there are a few mom-and-pops like us. It gives the place good equilibrium.”

Soma — a women’s lingerie, swimwear and sleepwear shop — opened in December 2022.

“Business really has picked up. We have a great following already,” according to Joann Rock, sales lead for the Soma store. A Chico’s FAS brand, Soma had been part of a nearby Chico’s women’s clothing store before opening in the separate storefront.

A big benefit of the Barracks Road location is the overall shopping experience, according to Rock. “People have shopped here for years and years. There’s a mix of clientele, a blend of stores. It’s a stable environment.”

A teenager who goes to Barracks Road to shop at Aerie, an American Eagle brand for young women, “might be with her mother who goes to us or goes to Chico’s,” Rock says. “I think that mix is doing well for us.” 

Keswick Hall Photo courtesy Keswick Hall

Charlottesville at a glance

Widely known as home to Thomas Jefferson’s Monticello estate and the University of Virginia, the Charlottesville region is located about 65 miles west of Virginia’s state capital. The city was founded in 1762, with the Jefferson-designed U.Va. campus founded 57 years later. The region is popular for vineyards, breweries and distilleries, as well as for access to the Blue Ridge Mountains. The area’s largest industries include higher education, health care, defense, hospitality and tourism. 

Regional population1

  • Charlottesville: 51,132
  • Albemarle County: 116,148
  • Buckingham County: 16,673
  • Fluvanna County: 28,214
  • Greene County: 21,370
  • Orange County: 37,629
  • Nelson County: 14,713

Major employers

  • University of Virginia/UVA Health
  • Albemarle County
  • Sentara Health
  • City of Charlottesville
  • U.S. Department of Defense
  • Northrop Grumman
  • Crutchfield Corp.
  • CFA Institute

Major attractions

Monticello, the home of America’s third president and author of the Declaration of Independence, is a UNESCO World Heritage Site that draws visitors from around the globe. You can see the distinctive Jefferson-designed Rotunda at U.Va. Another must-see for history-minded visitors is Highland, the Albemarle estate of President James Monroe. Charlottesville’s Downtown Mall is a good place to visit for eating, shopping and socializing. Take in the natural beauty of the surrounding Blue Ridge Mountains along Skyline Drive and the Blue Ridge Parkway and at Shenandoah National Park. Hikers will savor Instagram-worthy views from Spy Rock and Humpback Rocks. Take a break from picking apples and peaches at Carter Mountain Orchard with live music and apple cider doughnuts. Or take a tasting tour through area vineyards like Jefferson Vineyards, Trump Winery, Blenheim Vineyards and Pippin Hill Farm & Vineyard.

Major convention hotels

  • Boar’s Head Resort
     168 guest rooms and suites;
    22,000 square feet of meeting/event space
  • Kimpton The Forum Hotel
     208 guest rooms and suites;
    22,000 square feet of meeting/event space
  • Omni Charlottesville Hotel
    205 guest rooms and suites;
    12,441 square feet of meeting/event space

Boutique/luxury hotels

  • Albemarle Estate at Trump Winery
  • The Draftsman
  • Graduate Charlottesville
  • Keswick Hall
  • Oakhurst Inn
  • Quirk Hotel Charlottesville

Notable restaurants

  • C&O
    French, candorestaurant.com
  • Ivy Inn
    American, ivyinnrestaurant.com
  • Orzo Kitchen & Wine Bar
    Mediterranean, orzokitchen.com
  • Smyrna
    Mediterranean-Aegean, smyrnacville.com
  • The Ridley
    Southern, ridleyva.com

1 July 2023 estimates from University of Virginia Weldon Cooper Center for Public Service based on 2020 U.S. Census Bureau data

Dollar Tree to acquire 99 Cents Only stores

Chesapeake-based Fortune 500 discount retailer Dollar Tree has acquired 170 leases of another discount retailer, 99 Cents Only, the company announced Wednesday.

The stores are across Arizona, California, Nevada and Texas.

In April, Commerce, California-based 99 Cents Only filed for Chapter 11 bankruptcy protection and initiated a process to sell its assets, including inventory, owned real estate and store leases, according to a news release from Dollar Tree. Dollar Tree’s purchase includes the North American intellectual property of 99 Cents Only stores, on-site furniture, fixtures and equipment. There are 371 total 99 Cents Only stores, so Dollar Tree is not buying all the locations.

According to a Reuters report about the bankruptcy, 99 Cents Only planned to close 125 stores by April 30 and the rest by May 31. In its release, Dollar Tree said it “looks forward to welcoming customers from 99 Cents Only Stores as early as fall 2024.”

“As we continue to execute on our accelerated growth strategy for the Dollar Tree brand, this was an attractive opportunity to secure leases in priority markets where we see strong profitable growth potential,” Michael Creedon Jr., Dollar Tree’s chief operating officer, said in a statement. “The portfolio complements our existing footprint and will provide us access to high-quality real estate assets in premium retail centers, enabling us to rapidly grow the Dollar Tree brand across the western United States, reaching even more customers and communities.”

Dollar Tree had 16,774 stores across 48 states and five Canadian provinces as of Feb. 3. The stores operate under the brands Dollar Tree, Family Dollar and Dollar Tree Canada.

Capital One, Walmart end credit card agreement

McLean-based Capital One Financial is no longer the exclusive issuer of Walmart consumer credit cards.

The two Fortune Global 500 companies announced Friday that they had ended their consumer card agreement. The announcement follows problems first uncovered in late 2022 and early 2023, according to Reuters reporting.

Capital One became the exclusive issuer of Walmart’s private label and co-branded credit card program in the U.S. on Aug. 1, 2019, after the bank and retail giant announced the partnership in 2018. Their agreement followed the end of Arkansas-based Walmart’s nearly 20-year partnership with Synchrony Financial.

In April 2023, Walmart filed a lawsuit in the U.S. District Court for the Southern District of New York to end the partnership. The retailer said the bank failed to deliver customer replacement cards within five days and to promptly update transaction and payment information in customer accounts. A federal judge ruled in March that Walmart could end the credit card partnership with Capital One.

Cardholders, though, can continue to earn and redeem rewards, and until informed otherwise, can continue to use their Capital One Walmart Rewards cards wherever Mastercard is accepted, according to a news release.

Capital One retains ownership and servicing of the credit card portfolio, which, according to a Securities and Exchange Commission filing, totals approximately $8.5 billion in loans. The company expects to convert eligible customers into Capital One-branded cards.

The end of the agreement also terminates the companies’ revenue-sharing and loss-sharing agreements.

Capital One is in the process of buying Discover Financial Services in a $35.3 billion all-stock deal, but the deal has come under federal scrutiny.

As of March 31, Capital One and its subsidiaries had $351 billion in deposits and $481.7 billion in total assets. Capital One ranked No. 106 on Fortune magazine’s 2023 Fortune 1000 list and No. 386 on its 2023 Global 500 list.

Fed’s Fifth District economy grows slightly

The economy in the Federal Reserve’s Fifth District (a multistate region including Virginia, North Carolina, South Carolina, West Virginia and Maryland) grew slightly in recent weeks, according to the latest edition of the Federal Reserve’s Beige Book, released April 17.

Published eight times per year, the Beige Book is based on anecdotal information about economic conditions gathered from the nation’s 12 Federal Reserve Banks. It is compiled from reports by bank and branch directors, as well as information gathered from business contacts, economists, market experts and other sources. The April release is an update from the Fed’s March 6 report.

Here’s what the most recent Beige Book edition revealed about the direction the economy is taking:

Employment in the Fifth District grew at a moderate pace in the most recent reporting period, according to the Fed. Contacts continued to report difficulty finding workers but noted improvement. Finding skilled trades workers remained difficult. Wage growth remained moderate.

Fifth District prices continued to grow at a moderate annual rate in recent weeks. Prices received by service providers continued to grow at a rate of about 4%, according to survey respondents, and prices received by manufacturers continued to grow at a rate between 2% and 3%. Respondents most cited increased labor costs as the reason price growth remained elevated. Some firms reported that higher borrowing and energy costs have raised operating costs.

Manufacturing activity in the region declined modestly in this reporting period. Several respondents said interest rates negatively affected their businesses. A cabinet manufacturer, for example, reported that clients were canceling projects because they couldn’t wait any longer for interest rates to drop. Manufacturers also mentioned increased cost pressure from nonproduction services, like legal, medical and other insurance services.

Fifth District port activity declined slightly, and the Francis Scott Key Bridge’s March 26 collapse shut down traffic into and out of the Baltimore harbor and the city’s main port terminal. Shipments were diverted to other East Coast ports, including the Port of Virginia.

Overall, loaded container volumes at ports were slightly down. Import volumes increased largely because of retailers restocking consumer goods. Imports and exports of rolling stock, or railway vehicles, were down this reporting cycle. Air freight volumes remained flat, and shipping rates remained low because of overcapacity.

Trucking demand continued to slightly increase as retailers restocked but reflected a seasonal drop in volume. Rates in the truckload segment dropped because the industry is oversaturated, but companies in the less-than-truckload segment said they were able to negotiate flat to slight increases in contract rates due to decreased capacity.

Trucking firms reported no significant backlogs on new equipment, and parts availability improved. Driver turnover remained at the industry average, but some specialized positions, like mechanics, remained difficult to fill.

Retail spending was little changed in this reporting period, according to the Fed. Several retail and restaurant respondents reported unseasonably low customer traffic, although a furniture store and a hardware store saw increased sales and foot traffic, which they attributed to the seasonal pickup in the housing market and yard work. Hotel contacts said occupancy had only slightly increased but noted they had strong future bookings for the next few months.

Residential real estate firms noted it hadn’t been a robust spring market but that the housing sector continued to have pent up demand. Total closed sales dropped month-over-month. Average days on the market increased slightly but stayed below the historic average, while housing inventory remained tight. Although listing prices remained flat, many homes sold above asking price. Increases in construction costs moderated.

Commercial real estate market activity in the Fifth District improved slightly from the last report. Retail and industrial/flex space leasing continued to have higher rental rates and low vacancy rates. The office sector saw greater leasing activity from firms looking for more efficient space and moving to suburban locations.

A growing number of commercial office buildings, however, were unable to qualify for refinancing. Commercial real estate values declined due to slowing sales and negligible capital markets activity. Commercial contractors noted a lack of qualified candidates and rising material and labor costs.

Most Fifth District financial institutions observed a slight increase in loan demand in their business and commercial real estate loan portfolios. Deposit levels continued to modestly decline, and competition for any available deposits remained high. Loan delinquency rates remained stable from the March Beige Book report.

Nonfinancial service providers reported that demand for their services and revenues continued to remain stable. Wages and workforce issues were less of a challenge as they continued to modestly stabilize.

Chesapeake strip mall goes for $3.15M

A 7,800-square-foot retail strip center in Chesapeake sold for $3.15 million, according to a March news release from S.L. Nusbaum Realty.

Located at 1508 Sam’s Circle, Battlefield Shops has five tenants. It is shadow anchored by Walmart, Sam’s Club, At Home and Dollar Tree stores.

Battlefield Freedom Wash sold the property to Grit Andrew LLC. Doug Aronson, a senior managing director, and Carter Wells, an associate, both with SLN Capital Markets, represented the seller.

Fed’s Fifth District economy stays the course

Economic activity in the Federal Reserve’s Fifth District was little changed in recent weeks, according to the latest edition of the Federal Reserve’s Beige Book, released March 6.

Published eight times per year, the Beige Book is based on anecdotal information about economic conditions gathered from the nation’s 12 Federal Reserve Banks. It is compiled from reports by bank and branch directors, as well as information gathered from business contacts, economists, market experts and other sources. The March release is an update from the Fed’s Jan. 17 report.

Here’s what the most recent Beige Book edition revealed about the direction the economy is taking:

Employment in the Fifth District grew at a moderate pace in the most recent reporting period, according to the Fed. Firms reported that skilled and trades workers, like engravers and aluminum welders, were more difficult to find than other workers, like advertising firm employees.

Price growth was largely unchanged from the January Beige Book report; year-over-year price growth remained moderately elevated. Prices received by nonmanufacturers grew about 4%, while the growth in prices received by manufacturers remained about 2.5%. Sources in both sectors expected price growth to moderate over the next six months.

Manufacturing activity in the Fifth District softened in recent weeks because of uncertain business conditions. One coffee manufacturer reported that difficulties getting freight through the Red Sea was increasing its production times and future costs. Several firms reported difficulty securing financing, and most contacts cited a shortage of qualified labor as a major issue.

Fifth District ports reported good underlying demand despite disruptions in the Panama and Suez canals that affected shipping schedules. Ports saw a slightly lower volume of loaded imports but an increase in consumer goods imports. Loaded export volumes were unchanged. Spot rates increased sharply as carriers tried to offset the higher costs resulting from longer transit times. The ports reported no stack congestion.

Some trucking freight volumes in the region declined because of winter weather, but underlying trucking demand was good, according to the Fed. In the less-than-truckload segment, companies reported increased demand in the consumer segment resulting from retailers restocking inventory. In the truckload segment, customers pushed to decrease their shipping costs, and rates fell. Although truck drivers were easier to find this period, mechanic and some office positions remained hard to fill.

Retailers in the Fifth District saw a slight decline in sales and customer foot traffic in the most recent cycle. Some firms attributed the decline to bad weather conditions, while a few home improvement and building supply retailers cited a slow real estate market and higher borrowing costs to finance home improvements. Hotel and restaurant respondents also reported a slight slowdown, although hotel revenues in the Northern Virginia market were up as hotels had steady occupancy rates and were able to increase room rates.

Residential real estate activity improved slightly, as pent-up demand remained. Firms reported an increase in listings and buyer activity, but said buyers were tentative because of high mortgage rates. Days on the market increased slightly but were still below historic averages. Construction costs started to moderate, although the market was constrained by difficulty finding land and receiving permitting.

The commercial real estate market activity improved slightly in the most recent reporting period. Firms upgraded their office space and moved away from central business districts, and landlords offered concessions or incentives to potential tenants instead of raising rents. Suburban retail space remained limited, with low vacancy rates and increased rental rates. New construction, especially for office and multifamily projects, was constrained by rising building costs and a lack of available financing.

Loan demand softened modestly, reported Fifth District financial institutions, because of higher interest rates and continued economic uncertainty. Deposit balances began to decline modestly, and competition for deposits remained high. Loan delinquency rates have started showing modest increases, mainly in unsecured personal and auto portfolios.

Overall, nonfinancial service providers in the region saw stable demand and revenues. Wages and the labor market stabilized some, becoming less challenging for nonfinancial firms.

Small biz pilot program to aid Phoebus retailers

Five small retailers in Hampton’s Phoebus downtown historic district will receive micro grants and nearly a year of free professional guidance, thanks to funding from a state grant awarded to The Retail Alliance, a nonprofit trade association in Norfolk.

The Retail Alliance and the Phoebus Partnership, a nonprofit organization bolstering area small businesses, won the $100,000 grant in October 2023 from the Department of Housing and Community Development to launch a pilot program designed to help businesses in the 86-acre Hampton community grow.

Phoebus is already part of a Main Street program helping small businesses succeed, so it made a good candidate for the pilot program, says Jenny Crittenden, president and CEO of The Retail Alliance. The goal is to create a scalable model that can be replicated in multiple communities across the state, serving as a resource for small businesses.

The grant will pay for consultants with expertise in merchandising, e-commerce and preservation of historic building facades to conduct deep dives into the five selected businesses’ physical stores, online presences and financial health. 

At the end of January, organizers were scheduled to host an information session for interested retailers, and five winning businesses were expected to be selected in March. 

Through October, owners of the five businesses will meet with The Retail Alliance and consultants and receive data and insights on their customers. At the end of the process, they will receive grants of $3,000 to $5,000 to make suggested changes.

The DHCD grant is part of the Virginia Business District Resurgence Grant program, which leverages federal American Rescue Plan funds allocated to address post-COVID recovery needs. In addition to assisting the five businesses, the grant will fund three regional business improvement workshops to be held in Hampton through the fall.

Crittenden, who has 16 years of experience working with independent downtown businesses, notes that local shop owners have differing ranges of experience and knowledge, and the grant program will take that into account as it helps them improve their processes.

“Each retailer brings a set of skills to the table, but then there are things that they could learn to do better,” she says. “And as customers, we see small businesses from the outside and enjoy the experience, but we don’t understand everything behind the scenes.” 

Virginia Business Associate Editor Robyn Sidersky contributed to this story.

Three Norfolk retail buildings sell for $3.3M

Three retail buildings on a portion of a site used for commercial auto sales and service in Norfolk sold for $3.3 million on Dec. 22, 2023.

Michael Sifen Inc. purchased an approximately 5.39-acre portion of 7520 N. Military Highway from Freedom Industrial. The site includes a roughly 30,188-square-foot building, a two-story, roughly 3,030-square-foot building, and an approximately 11,112-square-foot building, according to Colliers. Norfolk property records list commercial auto sales and service as the property use, and the remaining portion of the property holds a Tesla store and service center.

Jeff Parker, Patrick Gill and Chris Read from Colliers represented the seller.

Virginia Beach retail building sells for $5.5M

A retail building in Virginia Beach sold for $5.5 million on Dec. 18, 2023.

Located at 5169 Virginia Beach Blvd., the freestanding retail building is 59,162 square feet, and the plot of land is almost 136,999 square feet, according to city property records. The current tenant is a Havertys Furniture store.

5169 VB BLVD LLC purchased the property from OLP Havertportfolio. Pat Mugler and Ricky Anderson from Colliers represented the buyer.

Arko names new CFO

Arko has named Robert E. Giammatteo as its chief financial officer and executive vice president, according to a Thursday announcement from the Henrico County-based Fortune 500 company that is one of the nation’s largest convenience store operators and fuel wholesalers.

Giammatteo will start his new role on Jan. 2, 2024. He will also serve as CFO of Arko subsidiary GPM Investments. Giammatteo takes the place of retiring Arko CFO Don Bassell, who has spent 17 years with the company and will stay on until April 2024 to assist with the transition.

Giammatteo joins Arko from Pittsburgh-based grocery chain Giant Eagle, where he was executive vice president, CFO and chief transportation officer. Before that, he served nearly 15 years in executive finance roles with retailers Ascena Retail Group, which owns brands such as Lane Bryant, Ann Taylor and Loft, and VF Corp., which owns The North Face and Vans.

Giammatteo has a bachelor’s degree in mechanical engineering and a master’s degree in aeronautical engineering from the Massachusetts Institute of Technology, as well as an MBA from MIT’s Sloan School of Management. He also has a master’s degree in mechanical engineering from Rensselaer Polytechnic Institute.

“We expect that Robb’s leadership and incredibly relevant, multisegment retail experience will significantly benefit the Arko team,” Arko Chairman, President and CEO Arie Kotler said in a statement. “As our business grows and continues to expand, his expertise in finance, strategic leadership and transformational management will help us skillfully reach new levels of development and management as one of the leading public companies in the convenience store industry.”

Arko is the parent company of GPM Investments and brought in $72 million in net income in fiscal 2022, compared with $59.4 million the previous year. It has about 1,500 employees in Virginia and nearly 14,000 worldwide.