Please ensure Javascript is enabled for purposes of website accessibility
Upcoming Event

Best Places to Work in Virginia

Hamburger Menu Hamburger Menu

byline: Courtney Mabeus-Brown

Central Va. Transportation Authority names first leader

Chet Parsons will serve as the Central Virginia Transportation Authority’s first executive director, the organization announced Thursday.

Parsons has served as director of transportation for PlanRVA, also known as the Richmond Regional Planning District Commission, since 2019.

CVTA finances transportation projects across the Richmond region. It was established by the General Assembly in 2020 to provide and direct new funding opportunities for major transportation investments in the region. PlanRVA provides staffing to assist CVTA with administration, project evaluation and prioritization and other needs.

While Parsons will be the first person to serve in the CVTA’s executive director’s position, he has acted as its administrator since its inception.

“The appointment of Chet Parsons as the CVTA’s first-ever executive director reflects the high esteem he has engendered with members of the authority,” Richmond Mayor Levar Stoney, who also serves as CVTA chair, said in a statement. “Chet’s leadership, acumen and experience in the area of transportation are second to none and we are confident that he will help us move forward progressively and thoughtfully in addressing the region’s most important transportation needs.”

The CVTA has supported more than $460 million in regional transportation projects, in addition to more than $77 million in funding to the Greater Richmond Transit Co. (GRTC), which operates bus lines throughout the region. It has funded 45 projects, including widening 29 miles of Interstate 64 in New Kent County and developing parts of the 43-mile Fall Line Trail between Ashland and Petersburg, as well as a connector trail and bridge to the Henrico County’s upcoming GreenCity development.

Parsons has also served as a senior planner/project manager for Fortune 500 infrastructure engineering, planning and consulting firm AECOM, executive director of the Greater Morgantown Metropolitan Planning Organization in West Virginia and as a senior planner for Goochland County. He received a master’s degree in urban and regional planning from Virginia Commonwealth University and a bachelor’s degree from North Carolina State University. He holds certifications from the American Planning Association and its American Institute of Certified Planners.

“The CVTA has already made a significant contribution to the transportation infrastructure of Central Virginia, and I’m excited at this opportunity to build on the momentum moving forward,” Parsons said in a statement. “We are focused on ensuring that tax dollars going into the CVTA are leveraging critical investment in our communities — investments that will help grow the region and enhance our quality of life.”

NoVa Forvis partner elected to nonprofit board

Rob Hartnett, a partner at the Tysons location of accountancy firm Forvis, has been elected to the Hedge Fund Association’s board of directors.

Hartnett is a tax partner with Forvis’ asset management practice. The nonprofit Hedge Fund Association lobbies to advance transparency, development and trust in investments including hedge funds, private equity, venture capital, real estate and wealth management firms, institutional investors, family offices and service providers, according to a news release. Board members are industry executives who serve up to two three-year terms.

“I am honored to have been elected to the HFA global board of directors, and I am looking forward to working with the rest of the board and this great organization in the years ahead,” Hartnett said in a statement. “This appointment provides an opportunity for Forvis to have a prominent voice among the industry’s most passionate advocates and experts.”

Hartnett has more than 25 years of experience. He joined Forvis in June 2022 after serving as chief financial officer of Rocky Mountain Private Wealth Management from April 2020 to March 2022, according to his LinkedIn profile.

Forvis is a top 10 accounting firm formed by the 2022 merger of Charlotte, North Carolina-based Dixon Hughes Goodman LLP and Springfield, Missouri-based BKD CPAs & Advisors.

Low inventory, high interest rates strap Va. housing market

Homebuyers in Virginia are continuing to feel the strain of low inventory and high interest rates.

The number of active listings on the market is shrinking, and fewer new listings are coming on the market. Despite a brief uptick in inventory at the beginning the year, about 67% of the state’s counties and cities had fewer active listings on the market at the end of July compared with a year ago, with Northern Virginia continuing to have the largest reduction in supply, according to a Virginia Realtors report released Aug. 22.

There were 16,508 active listings across the state in July, 3,881 fewer listings than the same month in 2022, a 19% drop. A total 10,948 new listings came onto the market last month, about 2,800 fewer new listings than the same period in 2022, a 20.3% decrease.

“Inventory conditions are worsening in most local markets in Virginia,” Virginia Realtors President Katrina M. Smith said in a statement. “With mortgage rates at a 20-year high and a low supply of homes on the market to move into, some would-be sellers are choosing not to list their homes. However, it is a seller’s market, and most who do sell their homes are receiving multiple offers.”

A total 8,985 homes sold in Virginia in July, a 20.8% decrease from July 2022, with 2,361 fewer sales. However, low inventory and strong demand have continued to drive up the price for homes; the statewide median sales price rose $15,000 from July 2022 to $400,000 in July 2023, an increase of nearly 4%. The median home price in Virginia is now more than $100,000 higher than it was at this time five years ago.

In a statement, Virginia Realtors Chief Economist Ryan Price called the state’s housing market “slow but competitive.”  Sellers are averaging more than three offers for their listings, which signals the market remains competitive, he said.

“These competitive conditions are driving up home prices and will likely continue to be a factor into the fall market and beyond,” Price said.

NORTHERN VIRGINIA

Meanwhile, Northern Virginia continues to feel the slump when compared to the national market. While national home sales dropped 16.6% in July compared to the previous year, Northern Virginia sales fell 20%, and were down 23.5% compared to June. At the same time, prices increased 1.9% nationally while Northern Virginia prices surged 6.3%, an increase from the previous year but a drop from the prior month, according to the Northern Virginia Association of Realtors.

“July in the [Washington], D.C. area is a traditionally slower month for home sales as people vacation and Congress is out of session,” NVAR Board Member Rachel Carter, Alexandria branch vice president for Coldwell Banker Realty, said in a statement. “Even though sales are lower, people still looking to buy should expect higher prices since supply and demand are still not in sync.”

Mortgage rates topping 7% contributed to the tight supply of housing while pushing prices higher, according to NVAR. Nationally, the median home price in July was $406,700, an increase of 1.9% from July 2022. In Northern Virginia, the median sold price for a home in July 2023 was $691,000, a 6.3% increase from July 2022. However, NVAR said, homebuyers “got a break” from June 2023 as prices declined 3.8% from that period.

Across the country, unsold inventory sits at a 3.3 month supply, up from 3.1 months in June and 3.2 months in July 2022. In Northern Virginia, supply was at one month, down from 1.1 months in June and 1.23 months in July 2022., though it still remained close to the five-year average of 1.2 months of supply. The average days on the market in July 2023 was 15 days, no change from July 2022, and two days longer than June 2023.

“Our region’s sales dropped more than the country as a whole, but we continue to experience higher price escalation than the overall market since our area has very low inventory,” NVAR CEO Ryan McLaughlin said in a statement. “Factors for both are continued low inventory and high mortgage rates, which are affecting first time homebuyers in particular since they are competing with repeat homebuyers who have the advantage of utilizing their equity gains.”

Cash payments, propelled by high interest rates and buyers tapping into proceeds from selling their current properties, remained a popular way to buy a home. Nationally, all-cash sales accounted for 26% of transactions in July, up from 24% in July 2022. In Northern Virginia, cash sales accounted for 19% of all sales in July, up from 15% in July 2022.

NVAR reports on home sales for Fairfax and Arlington counties as well as the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton.

According to an Aug. 11 report from NVAR:

  • The number of closed sales in July 2023 was 1,444 units, a 20% drop compared with July 2022 and a 23.5% compared to June 2023.
  • The sold volume in July 2023 totaled more than $1.15 billion, a 16.5% decrease compared with July 2022 and a 23.9% decrease compared to June 2023.
  • The average sold price for a home in July 2023 was $806,574, an increase of 4.9% from July 2022 and down 0.8% from June 2023.
  • The number of active listings in July 2023 was 1,445, down from June 2023, when there were 1,567 listings.
  • The total number of new pending sales in July 2023 was 1,507, a 4.4% decrease month over month.

Bowman Consulting names new Fairfax branch manager

Reston-based Bowman Consulting Group has promoted Brad Glatfelter to manage its Fairfax County branch, the company announced Wednesday.  

Glatfelter joined the company as a project manager in 2014. As branch manager, he will oversee day-to-day operations, execute strategic business plans, drive utilization goals and maintain recruitment initiatives. He will also spearhead the diversification of the office’s project portfolio by exploring opportunities in the public and renewables sectors and focus on expanding the office’s regional reach.

“Brad’s promotion to branch manager is a testament to his outstanding contributions and demonstrated leadership,” Scott Delgado, executive vice president and regional manager at Bowman, said in a statement. “We have complete confidence in Brad’s strategic vision for our Fairfax office and in his ability to further elevate our standing in Northern Virginia.”

Glatfelter received a bachelor’s degree in civil, environmental and infrastructure engineering from George Mason University in 2008, according to his LinkedIn account, and previously worked in the school’s facilities department until joining Bowman.

“I am truly eager and honored to embrace this new role as branch manager,” Glatfelter said in a statement. “With a team of dedicated professionals standing behind me, I have unwavering confidence that we will not only meet but exceed our goals as we seize new opportunities in the region.”

Bowman has 1,700 employees in more than 70 offices across the country and provides planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement and other technical services. It acquired Maryland engineering firm Richter & Associates in April.

 

AREP, partners acquire Ashburn townhome community

CityHouse Ashburn Station, a 200-unit luxury townhome community in Loudoun County, has sold for $120 million.

New York-based Rithm Capital, McLean-based American Real Estate Partners and New Jersey-based GreenBarn Investment Group closed the purchase from Dream Finders Homes on Monday.

AREP and GreenBarn are co-general partners for the project. Rithm is providing equity capital, in part through its partnership with GreenBarn, and providing debt financing through its Genesis subsidiary.

Phase one of CityHouse Ashburn Station will be available to rent in mid-August. The team will deliver the remaining phases over the next 15 months.

“With this acquisition, our partnership is taking an opportunistic investment approach to redefine and elevate the [build-to-rent] sector, one that encapsulates AREP’s signature strategy of creating truly unique properties in vibrant and emerging locations and our agility to invest in high-impact niches of the real estate market,” Brian Katz, AREP co-founder and president, said in a statement.

CityHouse Ashburn Station is located near the Silver Line’s Ashburn Station Metro stop.  Unit sizes will average 2,000 square feet and offer attached garages, large island kitchens, full-size side-by-side washer and dryers and smart home functionality with resident amenities including sports courts, communal outdoor green spaces, pet-friendly facilities and indoor/outdoor entertainment areas.

Charlottesville-based Virginia Diodes to expand, invest $2.5M

Virginia Diodes Inc. (VDI) will invest $2.5 million to expand its operations in Charlottesville, adding an estimated 24 jobs, Gov. Glenn Youngkin announced Thursday.

VDI was founded in Charlottesville in 1996 as a spinoff from the University of Virginia and in 2004 established its headquarters at the city’s Ix Art Park complex.  The company manufactures test and measurement equipment for millimeter-wave and terahertz (THz) applications like 6G wireless communications, automotive radar and weather sensing, as well as science applications including radio astronomy and fusion research and is part of the semiconductor industry supply chain.

VDI has customers in more 40 countries and employs more than 120 engineers, technicians and administrative staff at two locations. As part of its expansion, the company added its second location, on 5th Street SW, about 18 months ago, giving it a total of about 30,000 square feet of manufacturing space.

“Virginia Diodes’ long-term success in the city of Charlottesville demonstrates the extensive and expansive opportunities for growth in advanced manufacturing in the commonwealth,” Youngkin said in a statement. “VDI is a great example of the private sector partnering with our world-class universities like the University of Virginia to produce a winning formula that enables a startup to grow into a global enterprise.”

VDI Chief Operating Officer Gerhard Schoenthal told Virginia Business that the company plans to add the jobs announced Thursday during the next year. Roles include electrical engineers and electronics technicians.

The Virginia Economic Development Partnership worked with Charlottesville to secure the project for Virginia and will support Virginia Diodes’ job creation through the Virginia Jobs Investment Program, which provides consulting services and funding to companies creating jobs to support employee recruitment and training.

“VDI continues to work hard to expand millimeter-wave and terahertz technology for applications like 6G communications, automotive radar, weather sensing and radio astronomy,” VDI CEO and founder Thomas W. Crowe said in a statement. “We have been manufacturing and packaging electronic components and creating systems from those components in Charlottesville for nearly 27 years. We are proud to invest in Central Virginia’s workforce and very excited about the assistance we receive from the Virginia Jobs Investment Program. VDI relies on highly skilled engineers and technicians to produce its leading-edge terahertz products, and Charlottesville has proven to be an ideal location to recruit and maintain excellent technical staff.”

Parsons acquires Md. federal contractor for $200M

Centreville-based Fortune 1000 defense contractor Parsons has acquired Maryland-based contractor Sealing Technologies in a deal valued at $200 million.

Parsons announced the deal Wednesday. The acquisition expands Parsons’ customer bases across the Department of Defense’s intelligence community and enhances its capabilities in defense cyber operations, integrated mission-solutions powered by artificial intelligence and machine learning, edge computing, critical infrastructure protection and secret data management.

SealingTech has nearly 150 employees, 70% of whom hold security clearances. Those employees will become part of Parsons’ defense and intelligence business unit, with capabilities being leveraged across its federal solutions and critical infrastructure segments, customers and projects, according to a Parsons news release.

“The addition of SealingTech is a natural extension of our growth strategy, adding critical, mission-ready solutions for our Department of Defense and intelligence community customers,” Carey Smith, Parsons’ chair, president and CEO, said in a statement. “SealingTech’s defensive cyber capabilities complement our leading offensive cyber capabilities and increase our share in the full-spectrum cyber operations market, which is expected to receive more government funding because of accelerating and evolving cyber threats. Their mission-focused approach and passion for delivering impactful solutions for our nation’s most pressing security challenges aligns seamlessly with Parsons’ business and culture.”

SealingTech was founded in 2012 and focuses on protecting and defending customers’ networks and systems through research, products, engineering and integration services for the Internet of Things, edge combat operations, AI and ML and cloud industries. The company  is a prime contractor on more than 90% of its federal contracts.

“This partnership is the perfect next step in the future of our two companies,” SealingTech CEO Edward Sealing said in a statement. “There is complete alignment with our culture and values, and we share a common passion for supporting our nation’s most pressing security challenges while promoting a people-first culture. I believe the combination of our capabilities will be a force multiplier for our warfighters and accelerate our business growth and expand our customer base. I am excited about our future together and to become part of the Parsons team.”

Parsons will pay $175 million cash at closing for SealingTech, with an additional $25 million payable in the first quarter of 2025 if certain revenue targets are met during 2024. Parsons estimates SealingTech will generate $110 million of revenue in 2024. SealingTech will remain a wholly owned subsidiary of Parsons and no significant moves to the Centerville headquarters are expected.

The transaction follows Parsons’ acquisition in March of New Jersey-based software company IPKeys Power Partners for $43 million and aligns with its strategy of purchasing companies with revenue growth and adjusted earnings before interest, taxes, depreciation and amortization margins exceeding 10%.

Dominion, Dulles solar project to power 37,000 Va. homes

A massive solar project that will soon begin to take shape at Washington Dulles International Airport will not only have the ability to power 37,000 Virginia homes, but will also send a message to travelers about the power of clean energy, officials said Tuesday during a ceremonial groundbreaking for the 835-acre Dulles Solar and Storage project.

A partnership between Richmond-based Fortune 500 utility Dominion Energy and the Metropolitan Washington Airports Authority, the project is expected to begin construction later this year, aiming for completion in late 2026.

“Millions of travelers flying in and out of Dulles every year will see this powerful symbol of the clean energy transition,” said Dominion Energy President, Chair and CEO Bob Blue, who gathered with state, federal and local officials Tuesday in a parking lot at the airport to throw a ceremonial shovel of dirt to mark the public groundbreaking.

Several years in the making, the Dulles Solar and Storage project is expected to generate 100 megawatts of solar energy and will store up to 50 megawatts of power. According to Dominion, it will be the largest renewable energy project developed at a U.S. airport. Instead of paying an annual lease, Dominion will develop two solar carports, one megawatt in capacity each, to help power airport facilities; it will also provide 18 electric transit buses, 50 electric fleet vehicles and electric vehicle charging stations for Dulles operations.

The project comes in addition to others that Dominion has in the pipeline, including a 2.6-gigawatt, $9.8 billion wind farm 27 miles off the Virginia Beach coast as well as supporting development of small nuclear reactors as the company reaches toward a state mandate to produce all of its power for Virginia customers from renewable sources by 2045. During the last decade, Dominion has built the second largest utility solar fleet in the country, with solar energy providing power for 400,000 of the company’s customers and businesses, Blue said, adding that “over the next decade, projects like this one will develop enough solar for 2 million more.”

MWAA President and CEO Jack Potter noted that the 200,000-panel solar farm that will cover the 835 acres southwest of the Dulles airport will be similar in size to Arlington County’s 875-acre Ronald Reagan Washington National Airport. Reagan, which officials have said is the busiest airport in the country, has been the source of legislative wrangling as some members of Congress sought to add more long-haul flights there. The move has been opposed by several Virginia and Maryland lawmakers, including U.S. Sen. Mark Warner, who took the opportunity Tuesday during remarks to also take a swipe at that idea. About 40% of flights at Reagan are delayed for about an average of 60 minutes, he said, adding “Congress shouldn’t be micromanaging the region’s airports” and noting the billions of dollars that have been invested in extending Metro’s Silver Line, including a stop at Dulles that opened in November, a move expected to drive billions of dollars in investment in Fairfax and Loudoun counties.

“You think about adding more flights there for certain members of Congress’ individual convenience, you turn a challenge for the traveling public for the neighborhoods around National from a challenge to a disaster,” Warner said.

The Dulles project, which is expected to generate 300 construction jobs and $200 million in economic activity for the state, has also faced pushback from environmental groups, including the Piedmont Environmental Council, Loudoun Wildlife Conservancy and Northern Virginia Conservation Trust. In a 2021 letter, the groups said they support solar at the Dulles site but argued for an alternative option that included placing solar panels on already developed environments, including above airport rooftops, parking garages and airport parking areas.

It also comes as some Virginia counties have faced resistance to solar development, including Fauquier County, which earlier this month denied a proposed the proposed Sowego Solar farm. In May, Energix Renewables withdrew plans to build a solar farm in Franklin County after residents complained a proposed 20 megawatt farm on 92 acres would impact property values, amid other concerns. In Halifax County, residents have asked elected officials to place limits on solar developments.

But Loudoun County Board of Supervisors Chair Phyllis Randall on Tuesday applauded Dominion’s project, citing climate change and devastating wildfires that ripped through Maui as well as Tropical Storm Hilary, the first storm to hit Southern California in 84 years.

“For Dominion Energy to step up and do solar, to do wind, to do small nuclear reactors, to partner with Dulles airport speaks to the fact that everybody now knows that we are not making land-use decisions for today,” Randall said. “We’re making these decisions for our children, for our children’s children and even for their children. We have no options, but to have sustainable energy in place right now.”

Va. hotel revenues up, rooms sold still lower than 2019

Virginia’s hotel industry is continuing its recovery from the COVID-19 pandemic, but revenue increases are being driven by high room rates, rather than more travelers.

That’s according to a report released Friday by Old Dominion University’s Dragas Center for Economic Analysis and Policy. According to the center’s analysis of data from STR Inc., a division of CoStar Group Inc. that provides market data on the U.S. hospitality industry, hotel revenues in the commonwealth this year were 12.3% higher from January through July, compared with pre-pandemic business during the same period in 2019.

Hotel rooms sold were about 1.3% lower than compared with the same period in 2019. The average daily rate (ADR) for hotel rooms was $130, a 13.7% increase from 2019. Revenue per available room (RevPAR) was $81, up 10.46% from the same period in 2019.

Northern Virginia continues to be the drag on the state’s hotel industry, according to ODU. The region accounted for 43% of hotel revenue generated in the state in 2019; it remains 3.6% lower through July 2023 when compared to the same period of 2019. The state’s two other largest markets, Hampton Roads and Richmond, have “more than fully recovered,” ODU said in its report.

Rooms sold through July decreased 11% in Northern Virginia, by 9% in the Roanoke market and by 3.5% in the Virginia portion of the Bristol/Kingsport, Tennessee, market, compared with pre-pandemic data.

Eric Terry, president of the Virginia Restaurant, Lodging and Travel Association, told Virginia Business that business travel, a major source of bookings in the Northern Virginia market, shows sign that it is continuing to pick up along with federal government travel.

“I still think it’ll take even longer to fully recover, but it’s doing pretty well,” Terry said.

In Hampton Roads, Virginia Beach saw the largest revenue increase at 31.2% through July compared to 2019. That was followed by Chesapeake/Suffolk at 27.9% and Norfolk/Portsmouth at 27.7%. Williamsburg had the slowest revenue growth at 13.2%.

When comparing year-to-date data from 2023 to the same time period of 2022, however, the picture appears more rosy. According to ODU’s report, hotel revenue increased 12.1% across the state and rooms sold saw a 3.8% increase. Northern Virginia saw a 23.8% percent increase in hotel revenue in 2023 over the same period of 2022; rooms sold increased by 8.9%. Bristol, Virginia, saw the second largest revenue increase for that period at 10.6%, and rooms sold rose to 3.3%.

Terry said Virginia’s hotels are seeing a “softening” as the leisure market balances back toward a more “normal” pattern after the pandemic ground travel to a halt. Economic conditions, including people relying more on their credit cards after spending through federal stimulus money, are also a factor.

Midlothian shopping center under new management

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

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

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

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

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