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byline: Courtney Mabeus-Brown

Tight housing markets continue in NoVa, Hampton Roads

Home sales in Northern Virginia in June were up 3.6% from the previous month, but still down 16% compared with the same period a year ago, according to a report from the Northern Virginia Association of Realtors released Wednesday.

“Many factors” are pointing to the region’s market normalizing when comparing it to five-year trends, the report says.

“Homes continue to sell quickly, making sellers happy, and supply was up slightly compared to last month, which gave buyers a few more choices,” NVAR Board Member Casey Sutherland, a principal with Alexandria-based Rosemont Real Estate LLC, said in a statement. “The housing market is more rational than from the past few years, but many potential sellers remain sidelined, holding on to their better mortgage rates.”

The average home spent 13 days on the market in June, up 8.3% compared with June 2022 and consistent with May 2023. That’s getting closer to the five-year average for June at 15 days on the market. This is another sign that the market is moving back to more of a balanced state for buyers, NVAR says, though with sales still the below the 5-year average, the market remains competitive.

Inventory is also trending backward to the five-year average. The supply of inventory in June was 1.1 months, down 1.5% from June 2022, but close to the five-year June average of 1.2 months. That’s an increase over May 2023, when supply was 0.98 months of inventory.

Home prices continued to increase from June 2022 but leveled off from May 2023. The median sold price for a home in June 2023 was $717,999, up 4.9% from June 2022 and up 0.4% compared with May 2023.

“Our market has traditionally had less supply and stronger demand compared to many other housing markets, largely due to our healthy job market,” NVAR CEO Ryan McLaughlin said in a statement. “We expect demand will remain strong, favoring sellers but with a larger dose of normal that will give buyers a little more say.”

NVAR in June released a mid-year update to its NVAR Region 2023 Residential Real Estate Market Forecast. The forecast noted that a continued lack of housing inventory, soft demand creating a sellers’ market and favorable economic conditions tinged by mounting risks from inflation and other factors will lead to tighter inventories, sales declines and stable prices through the remainder of the year in the Northern Virginia market.

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 NVAR:

  • The number of closed sales in June 2023 was 1,887 units.
  • The sold volume in June 2023 totaled more than $1.5 billion, a 12.8% decrease compared to June 2022 and up 6% compared to May 2023.
  • The average sales price in June 2023 was $813,101, an increase of 3% from June 2022 and an increase of 1.5% from May of 2023.
  • The number of active listings in June 2023 was 1,567, down 32.2% from June 2022 and below the five-year June average of 2,244 active listings.
  • The total number of pending sales in June 2023 was 1,522, a 25.9% decrease compared to June 2022.

HAMPTON ROADS

While homes are still selling quickly in Northern Virginia, median sales prices (MSP) in Hampton Roads set a record for the second straight month in June, according to the Real Estate Information Network.

In June, the MSP for homes across Hampton Roads reached $345,000, up from May’s MSP of $335,000. 

June also saw increases in active listings and settled sales from the previous month, but active listings and settled sales are down significantly compared to June 2022.

“Seasonally, the month-over-month increases were expected, but they’re still important,” REIN Board of Directors President Jon McAchran, principal broker and co-founder of Virginia Beach-based AtCoastal Realty, said in a statement. “However, when we compare active listings and settled sales to last year, we’re still well below 2022 numbers, and inventory continues to be lower than where we need it to be for a healthy, balanced market.” 

The months’ supply of inventory (MSI) for June was 1.47, a month-over-month increase of 1.37 in May, and year-over-year from 1.33 in June 2022.

“The MSI is up mainly due to slowing sales, which in itself is being impacted by a lack of inventory, causing price increases,” McAchran said.

REIN is the multiple listing service in Hampton Roads, with coverage from Williamsburg to Virginia Beach and extending to the North Carolina boarder. It includes more than 9,000 members and licensees, including brokers, agents, appraisers and other real estate professionals. 

According to June data from REIN:

  • Active residential listings for June were 3,366, a 4.6% increase from 3,217 in May, but down 18.1% year-over-year from 4,114 in June 2022. 
  • Pending sales stood at 2,517. That’s down 11.8% from 2,856 in May and down 15.5% from 3,074 year-over-year. 
  • Settled sales during the month were 2,667. That’s a 6.6% increase from May, but down 19.7% from 3,320 in June 2022. 
  • Median days on market for residential listings was 11, the same as in May and an increase from nine days in June 2022.
  • Residential new construction sales were 257, up from 252 in May and down from 292 from June 2022. 

Cloud, cyber company to establish HQ in Loudoun

Fortreum LLC, a cloud-computing and cybersecurity firm, is establishing its headquarters in Loudoun County and creating 53 jobs, Gov. Glenn Youngkin announced Thursday.

The company, launched in 2021, provides cybersecurity and cloud support with an emphasis on regulatory compliance and technical validations, for businesses operating in the public and private sectors. Fortreum expects to invest $125,000 in the headquarters, Youngkin said in his announcement.

Currently, the company uses co-working space in Ashburn in One Loudoun.

“Fortreum’s decision to establish its headquarters in Loudoun County demonstrates the competitive advantage that Virginia offers tech companies advancing this sector in the 21st century,” Youngkin said in a statement. “The commonwealth is a national leader in cybersecurity, and Fortreum’s role in securing and protecting data contributes to the industry’s continued growth.”

The company launched in July 2021, according to a post on its website. The Virginia Economic Development Partnership worked with Loudoun County to secure the project for Virginia and will support Fortreum’s job creation through the Virginia Jobs Investment Program (VJIP), which provides consulting services and funding to companies adding jobs in the state to support employee recruitment and training activities.

“Having been long-time Virginia residents, Loudoun County was our first choice because of the strong technology ecosystem and a diverse cybersecurity workforce within the Northern Virginia technology hub, as well as the collaborative relationship we’ve enjoyed with the state, county and respective universities,” Fortreum CEO James Leach, who also co-founded the company, said in a statement. “As we look to expand significantly, we determined this area provided the best opportunity for exponential business growth.”

Richmond riverfront amphitheater gets green light

Construction could begin this summer on a $30 million, 7,500-person amphitheater overlooking the James River. On June 12, Richmond City Council approved a 20-year performance grant that gives Red Light Ventures LLC the green light to build its proposed amphitheater on four acres of land it will rent from NewMarket Corp. behind the American Civil War Museum at the historic Tredegar Iron Works.

With plans to host up to 35 major acts annually, Red Light Ventures says the amphitheater could be open in time for the 2025 outdoor concert season. The project was initially pitched in summer 2022 by Charlottesville-based music industry executive Coran Capshaw, founder of Red Light Management, through which he has managed the careers of Dave Matthews Band and hundreds of other major music performers. Concerts at the amphitheater will be arranged via Starr Hill Presents, Capshaw’s Charlottesville-based concert promotion company. Capshaw also developed and operates Charlottesville’s Ting Pavilion and co-partnered with concert promoter Live Nation on Ascend Amphitheater in Nashville, Tennessee.

The performance grant is based on incremental new real estate and admissions taxes on the venue to offset the project’s cost. The performance grant is capped at $37 million, Richmond Economic Development Director Leonard Sledge has said, adding that financial models estimate that grant’s total at $26.4 million.

As part of the deal, the development team will stage a benefit concert during the amphitheater’s first year in operation, with proceeds to be donated to a nonprofit that will address community needs. The amphitheater will also be available to the city and nonprofit groups for civic events.

The new venue fulfills goals laid out in Richmond’s growth plan about developing tourism attractions to elevate the city’s image and to “continue to delight existing and future residents, employers and visitors,” Sledge adds.

Grant Lyman, Southeast region president for Live Nation, a partner in the project, says the new amphitheater will fill a void for touring artists between Washington, D.C., and the Carolinas, and puts Richmond on the radar of more performing acts.

“The fan and artist’s experience here in Richmond will be world-class, bringing fans downtown to the riverfront with a background that showcases the city’s urban growth,” Lyman says. “Richmond can often be overlooked by big-name artists who are looking for a venue that’s large enough to meet the demand of their fan base, as well as capable of supporting their production needs.”  

Biomass company to expand in Wythe County

Musser Biomass and Wood Products will invest $7.5 million to expand operations in Wythe County and add 10 jobs, Gov. Glenn Youngkin announced Wednesday afternoon.

The company, a division of Musser Lumber Co., will more than double production of dried hardwood chips and sawdust that the company supplies to composite decking manufacturers, plastic extrusion companies, and barbecue and heating wood pellet companies. It will also increase the purchase of leftover hardwoods from regional sawmills, creating a new market for the byproduct.

“Virginia’s forestry industry adds more than $23 billion to the commonwealth’s economy and employs over 108,000 Virginians, making it our third largest private sector industry,” Youngkin said in a statement. “Supporting companies like Musser Biomass and Wood Products helps to keep this industry strong and also spurs economic development in our rural communities.”

Musser Lumber was established in 1968 by Mike Musser. The company specializes in drying, surfacing and planing hardwood lumber for flooring and paneling, and it sources lumber from dozens of sawmills. In 2020,  the Mussers established Musser Biomass and Wood Products, enabling the company to purchase sawdust and wood chips from its mill supply base and grow its sales.

“We continue to execute our long-term plans to make Musser Biomass and Wood Products the top source for hardwood fiber solutions in the biomass industry. From heating and barbecue pellets, composite decking and other biomass markets, we are truly redefining the dry wood fiber market,” Musser Biomass and Wood Products President Ed Musser, who is the son of Mike Musser, said in a statement. “We are very appreciative of the support we have received from both our local administrators and the governor.”

The Virginia Department of Agriculture and Consumer Services worked with Wythe County and its Joint Industrial Development Authority to secure the project for the state. Youngkin approved a $75,000 grant for the expansion from the Governor’s Agriculture and Forestry Industries Development (AFID) Fund, which Wythe County will match.

A 2020 AFID award to the company funded the purchase of a high-efficiency wood residual drying system. The units use lower temperatures and higher airflow to process more than 80,000 tons of wood fiber annually, and use 30% less energy and produce less dust and volatile organic compound pollution. A second AFID award in 2022 allowed the purchase of an additional dryer, Ed Musser told Virginia Business.

After protests, CACI prevails on $5.7B Air Force IT contract

After rounds of protest from other bidders, Reston-based CACI International Inc. announced Tuesday that it will transform the Air Force’s IT service delivery for more than 800,000 airmen and Space Force guardians under a $5.7 billion contract.

Enterprise Information Technology as a Service (EITaaS) Wave 1, an Air Force initiative, includes transforming the Air Force’s and Space Force’s IT services from an in-house, base-centric model to an advanced enterprise service delivery model.

CACI initially was awarded the contract on Aug. 30, 2022,  but the contract award was protested by Arlington County-based Accenture Federal Services and two Reston-based companies, Peraton and Science Applications International Corp., all of which alleged, among other complaints, unfair advantage based on CACI’s employment of three former government officials, according to the Government Accountability Office. After taking corrective action, the service again picked CACI for the contract. Peraton filed another protest, which was denied by GAO in April.

According to the Air Force, CACI will lead a team of small business contractors that will complete the work, which will include enhanced an IT management system, IT storefront, enterprise help desk, local field services and life cycle support for end-user devices. The Air Force has said that the transformation will free up airmen to shift their focus from daily IT operations to warfighting needs. A test of Wave 1 services at eight installations worldwide resulted in faster login times and better functioning devices.

“We are honored to serve the Air Force and deliver on the department’s vision for a modern IT infrastructure,” John Mengucci, CACI President and CEO, said in a statement. “With more than 60 years of experience supporting DoD (Department of Defense) enterprise missions, CACI is well-equipped to securely standardize a wide range of users, IT configurations and global environments while consistently introducing new innovations to benefit both the Air Force and Space Force on the EITaaS program.”

On June 21, CACI announced that it had received the Naval Information Warfare Systems Command’s Spectral contract, which has a $1.2 billion ceiling over seven years. Under that contract, CACI will develop and deploy the Navy’s next-generation shipboard signals intelligence, electric warfare and information operations weapons systems.

CACI employs more than 22,000 people. It generated $6.2 billion in 2022 revenues and reported $1.7 billion in revenues for the quarter ending March 31.

LewisGale receives Level 2 trauma center status

Salem-based LewisGale Medical Center has been designated as a Level 2 trauma center by the Virginia Department of Health, the hospital system announced Wednesday.

The designation makes LewisGale the eighth Level 2 center in the state and the first in the region, according to the state health department.

One level below the top Level 1 designation, Level 2 trauma centers include “24-hour immediate coverage by general surgeons, as well as coverage by the specialties of orthopedic surgery, neurosurgery, anesthesiology, emergency medicine, radiology and critical care,” according to the Falls Church-based American Trauma Society. However, it may need to transfer a patient to a Level 1 center to address more complex cases. Specialty requirements may be fulfilled by on call staff.

In a news release, LewisGale Medical Center said it pursued the status in response to the area’s need for enhanced comprehensive emergency health care service, adding that it benefits local and outlying areas and serves as a backup center for rural and community hospitals. Its sister facility, Blacksburg-based LewisGale Hospital Montgomery, is a Level 3 trauma center (lower on the scale than Level II) and has maintained the accreditation for 31 years.

“Recovery is greatly increased when a severely injured patient receives care at a designated trauma center within the first hour of injury,” Dr. Jaromir Kohout, trauma medical director at LewisGale Medical Center, said in a statement. “Achieving this Level 2 trauma center status is another example of how we are always striving to serve the residents of Southwest Virginia.”

The hospital’s trauma program is staffed 24 hours a day by board-certified trauma surgeons, neurosurgeons, orthopedic surgeons, critical care physicians and trauma-trained nurses.

LewisGale Medical Center and HCA Virginia invested more than $7 million over the past decade to become eligible to apply for the Level 2 Trauma designation, according to spokesperson Chris Finley. That includes building two new trauma bays in the emergency department, a rooftop helipad with direct access to the emergency department and operating rooms which speed the delivery of lifesaving care to the most critically ill patients when minutes matter most.”

“Earning these designations is a reflection of the tremendous dedication that our physicians, nurses, and healthcare staff have shown as we developed the trauma program,” Alan Fabian, LewisGale Medical Center CEO, said in a statement. “Their efforts are already resulting in more lives being saved, and we are proud to provide our community with quality trauma care in both the Roanoke and New River valleys.”

Owned by Tennessee-based HCA Healthcare and part of the larger HCA Virginia Health System, LewisGale Medical Center is one of four hospitals in the LewisGale Regional Health System, which also includes LewisGale hospitals in Allegheny and Montgomery counties and the town of Pulaski.

EY taps seven Va. biz leaders as mid-Atlantic entrepreneurs of year

Seven Virginia business leaders have been named winners of Ernst & Young LLP’s Mid-Atlantic Entrepreneur of the Year Award for 2023. 

The winners, named Friday by the Big Four multinational professional services company, include:

  • Aptive Resources | Rachele Cooper, founder and CEO, Alexandria
  • Cuisine Solutions Inc. | Felipe Hasselmann, CEO and president, Sterling
  • Foster Fuels Inc. | Watt Foster Jr., CEO and president, Brookneal
  • Groundworks | Matt Malone, founder and CEO, Virginia Beach
  • Joyebells | Joye B. Moore, founder and CEO, Richmond
  • ShiftMed | Todd Walrath, founder and CEO, McLean
  • Stori | Bin Chen, founder and CEO, Arlington County

Altogether, EY presented Mid-Atlantic Enterpreneur of the Year Awards to 11 entrepreneurs from Virginia, Washington, D.C., and Maryland. Awards were based on demonstration of building long-term value through entrepreneurial spirit, purpose, growth and impact, as well as other attributes. Finalists for the Mid-Atlantic awards were announced in May. 

“Every year, we are completely blown away by the accomplishments of our Entrepreneur Of The Year Regional Award winners, and 2023 is no different,” AJ Jordan, EY Americas Entrepreneur Of The Year program director, said in a statement. “They are change-makers and champions of business and community, and we are so proud to be honoring them. We can’t wait to see how these leaders will continue to improve lives and disrupt industries.”

Presented since 1986, EY’s entrepreneur awards have recognized more than 11,000 U.S. executives. Regional winners will be considered by national judges for the U.S. Entrepreneur of the Year Awards, and that winner will compete for the World Entrepreneur of the Year Award in June 2024. 

Aptive Resources, a government services firm that provides mission support for programs across the government, is led by Cooper, a Navy veteran and aerospace engineer. The company was ranked No. 565 on Inc. 5000’s list of the nation’s fastest growing privately held companies last year. 

Cuisine Solutions, a sous vide manufacturing business based in Sterling, sent truckloads of food to Ukraine last year. The company’s clients include Starbucks Coffee Co., United Airlines Inc., McLean-based Hilton Worldwide Holdings Inc. and Costco Wholesale Corp. 

“On behalf of our thousands of employees worldwide at Cuisine Solutions, I am honored to be acknowledged as the CEO of one of the most entrepreneurial companies in the region by the Ernst & Young team,” Hasselmann said in a statement provided to Virginia Business. “At our company, it has always been a team effort and outcome, and I am incredibly thankful for the passion and dedication I witness every day. My focus, as with all my colleagues, is to continue to transform the culinary marketplace and expand our role as the global leader in sous vide food manufacturing. The future is incredibly bright for our company, as well as the art and science of sous vide.”

Foster Fuels, established in 1921, provides residential, commercial, agricultural, transport and emergency fuel services. Based in Campbell County, the company has more than 200 employees and has responded to major disasters including Hurricane Katrina, the 2010 Haiti earthquake, the 2021 Texas ice storm and Hurricane Ian, according to the company. It also provides support to Fortune 500 companies. 

“It’s with great pride that the entire Foster Fuels team celebrates President and CEO Watt Foster’s 2023 EY Mid-Atlantic Entrepreneur of the Year award,” Cameron Anctil, the company’s vice president of marketing, said. “As a third-generation owner of Foster Fuels, Watt Foster carries on a strong legacy of entrepreneurial leadership with forward-thinking focus on innovation.” 

Virginia Beach-based Groundworks is a foundation services and water management solutions provider comprised of 21 brands and with offices across the country. Founded by Malone in 2016, it made the 2020 Inc. 5000 list of the nation’s fastest-growing privately owned companies. This year, it has expanded to five new markets and now employs more than 4,000 workers. 

“This honor is the result of a team effort and should be shared by the entire company,” Malone said in a statement. “Great companies are built by great people, and I’m proud to serve the men and women who have dedicated themselves to the Groundworks mission.”

Moore founded Joyebells in 2019 after a layoff. She’s a sixth-generation sweet potato pie baker, and spent 30 years baking pies to give as gifts during the holidays, according to a 2021 profile in Southern Living magazine. She started off selling pies in Richmond; Food Lion, Sam’s Club and QVC now carry her pies and the company projected $10.4 million revenue in 2022, according to the Richmond-Times Dispatch.

ShiftMed is a mobile app that gives nurses and health care providers the ability to schedule shifts with more than 1,500 partners across the country. The software company, founded by Walrath in 2019, landed at No. 1,713 on the 2022 Inc. 5000 list. The company announced in February that it had raised $200 million to expand its footprint.

“Being named one of EY’s Entrepreneur of the Year Award winners is one of my proudest moments of my career. This award is meaningful to me as it recognizes the collective efforts, dedication and impact of my entrepreneurship journey to improving the future of healthcare,” Walrath told Virginia Business. “It is an honor to stand alongside many prominent business leaders in Virginia who have made remarkable contributions to their respective fields. This prestigious recognition serves as a reminder of the power of perseverance, innovation and the unwavering belief in the transformative potential of entrepreneurship.”

Stori is a financial tech company co-founded by CEO Chen in 2018 that us seeking to her the underbanked population in Latin America. In 2022, the company announced it had a $150 million financing round, bringing its value up to $1.2 billion.

 

Intelsat-SES merger talks called off

Merger talks between McLean-based satellite operator Intelsat and Luxembourg-based competitor SES S.A. have been called off, SES said in a post on its website Thursday. The merger was anticipated to have created a $10 billion global business.

SES confirmed March 29 that the companies had “engaged in discussions” about combining, but said at the time, “There can be no certainty that a transaction would materialize.”

CNBC reported Thursday that Intelsat ended the talks because of differences over the two companies’ business priorities, according to a person familiar with the situation, but Intelsat declined to comment on the record, telling the news outlet that the company regularly engages in “strategic conversations with potential partners” but doesn’t disclose the “content or outcome of those discussions.”

Intelsat named several new executives last year, including CEO David Wajsgras, after the company announced in February 2022 that it had emerged from its financial restructuring nearly two years after filing for Chapter 11 bankruptcy.

Both SES and Intelsat are competing in a high-pressure environment, with Elon Musk’s Starlink satellite internet business, part of SpaceX, having gained more than 1.5 million subscribers in less than three years.

SAIC receives $1.3B Treasury contract

Reston-based Fortune 500 contractor Science Applications International Corp. (SAIC) will provide the U.S. Department of the Treasury with a range of cloud and professional services under a seven-year, $1.3 billion contract, the company announced Thursday.

Dubbed “T-Cloud,” SAIC will deliver a shared-service cloud infrastructure model providing enterprise-wise efficiencies in access, contracting and security, SAIC said in a news release. The company will also provide business operations, technical, security, network, service desk, subject matter support and transition services.

“T-Cloud will enable the treasury department to rapidly and securely adopt a modern, flexible and cost-effective approach to utilizing and consuming data in the cloud,” Bob Genter, president of SAIC’s defense and civilian sector, said in a statement. “SAIC is honored to be the treasury department’s cloud services digital transformation partner.”

SAIC employs about 24,000 people and reported $7.7  billion in fiscal 2023 revenue. The company announced in May that SAIC CEO Nazzic S. Keene will retire in October. She will be replaced by former Microsoft Corp. executive Toni Townes-Whitley.

RTX’s Raytheon lands $1.15B missiles contract

Arlington County-based Raytheon, a business unit of newly rebranded aerospace and defense contractor RTX, will produce Advanced Medium Range Air-to-Air Missiles for the U.S. Air Force and Navy as well as foreign militaries under a $1.15 billion contract announced by the Pentagon Tuesday.

The contract includes missiles, the AMRAAM telemetry system, spares and other production engineering support. Work will be performed in Tucson, Arizona, and is expected to be complete by Jan. 31, 2027.

About 39% of the contract value includes unclassified sales to Bahrain, Belgium, Bulgaria, Canada, Finland, Hungary, Italy, Japan, Netherlands, Norway, Qatar, Saudi Arabia, Singapore, South Korea, Spain, Switzerland, Ukraine and the United Kingdom.

According to Raytheon, this is the largest AMRAAM missile contract to date and the fifth production lot of the advanced missiles developed under the “form, fit, function refresh” (F3R) initiative, which updates the missile’s hardware and allows for Agile software upgrades.

“We recognize AMRAAM is the most advanced, combat-proven missile, and we owe it to the warfighters to ensure they have the technology they need when they need it,” Paul Ferraro, president of air power for Raytheon, said in a statement. “Be it air-to-air or surface-to-air, AMRAAM continues its proud legacy with greater power and precision than ever before with this contract.”

Under the F3R program, engineers used model-based systems engineering initiatives and other digital technologies to upgrade multiple circuit cards and other hardware in the guidance section of the missile and to re-host legacy software in the AIM-120 D-3 and AIM-120 C-8 AMRAAMs.

News of the contract comes on the heels of Raytheon Technologies’ announcement that it is rebranding as RTX as it consolidates its business units from four to three: aerospace and defense technology supplier Collins Aerospace, headquartered in Charlotte, North Carolina; aerospace manufacturer Pratt & Whitney, headquartered in East Hartford, Connecticut; and Raytheon.

RTX employs more than 180,000 people globally and is headquartered in Arlington.