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byline: Kate Andrews

Amazon and Metro team up for $125M affordable housing plan

Amazon.com Inc. and Metro announced Wednesday a plan to build more than 1,000 affordable housing units near Metro stations in the Washington, D.C., area over the next five years, with the e-tail giant committing $125 million in below-market capital.

The program is part of Amazon’s $2 billion Housing Equity Fund, which aims to build and preserve more than 20,000 affordable homes in regions where it has significant presences. In the Washington region, Amazon has partnered with the Washington Metropolitan Area Transit Authority, which manages Metrorail and Metrobus service, to create affordable housing in Maryland, Northern Virginia and Washington, D.C. close to Metro stations, easing commuting times and expenses for moderate to low-income residents.

The below-market capital will be available only to developers that have joint development agreements with Metro, and $25 million of the $125 million total will be exclusively available to minority-led developers on Metro’s joint development sites. Developers must apply for funding.

In January, Amazon announced its first Housing Equity Fund commitment in Arlington, where it is building its East Coast HQ2 headquarters, to give $381.9 million in below-market loans and grants to the Washington Housing Conservancy, which purchased the 16-acre Crystal House site in Arlington. Ultimately the deal will produce about 1,300 affordable units for the next 99 years, according to WHC.

Amazon has taken similar tacks in Washington state’s Puget Sound region and Nashville, Tennessee, for its Housing Equity Fund project, partnering with their public transit agencies in the round of investments announced Wednesday.

“Transit-oriented development has a proud legacy at Metro, and with this investment from Amazon we can continue to help the region tackle the challenges of housing affordability, congestion, and sustainability,” Metro General Manager and CEO Paul J. Wiedefeld said in a statement. “Having a philanthropic partner in this effort, along with the support of the public and private sectors, puts the region on the best path possible to meeting our shared housing, transit, equity, and economic prosperity goals.”

According to the Metropolitan Washington Council of Governments, there’s an estimated need for 320,000 new housing units through the region by 2030, and the council recommended that at least 75% be near job centers or high-capacity transit, as well as 75% be affordable for low- and middle-income households.

“Amazon is committed to creating and preserving inclusive housing developments so moderate- to low-income families can thrive and benefit from the goodness our region has to offer,” Catherine Buell, ‎Amazon’s head of community development, said in a statement. “Housing and transit are the first- and second-largest expenses for most households in America, and Amazon’s funding will expedite affordable housing near transit, reducing costs for both while supporting families with long-term financial stability.”

 

Calif. drone company moves headquarters to Arlington

AeroVironment Inc., a producer of drones and robotics systems, announced Tuesday it has relocated its corporate headquarters from Simi Valley, California, to Arlington.

“The greater Washington, D.C., area is where many of our key customers are located, and expanding our presence in the region will further our access to decision makers, influencers and talent,” AeroVironment President and CEO Wahid Nawabi said in a statement. “Our recent acquisition of Progeny Systems ISG and our new Artificial Intelligence Innovation Center expand our footprint near the Beltway and build on our momentum as we continue to grow our portfolio and global scope.”

In February, AeroVironment acquired Manassas-based Progeny Systems Corp.’s Intelligent Systems Group (ISG) for $30 million in cash. Although at the time of the acquisition, the company said it would operate the ISG facility in Manassas as its Artificial Intelligence Innovation Center, the new headquarters is on South 18th Street in Arlington’s Crystal City area, near the Reagan Washington National Airport.

Va. children’s hospitals get kudos in national rankings

Eight children’s hospitals in Virginia received recognition Tuesday in the U.S. News & World Report annual rankings of the top pediatric facilities in the nation, regions and states.

First in the state and seventh in the mid-Atlantic region is the University of Virginia Children’s Hospital, which was ranked nationally in five pediatric specialities: neonatology, pediatric cardiology and heart surgery, diabetes, orthopedics and urology.

“Earning these honors takes tremendous dedication by our team of exceptionally skilled and compassionate providers,” said Dr. James Nataro, chairman of the Department of Pediatrics at UVA Children’s. “I am proud every day to work alongside this team and witness the compassionate, excellent care they provide to our young patients and their families.”

Second in the state is the Children’s Hospital of Richmond at VCU, which reached 10th place in the region. It is nationally ranked in four specialties, including urology, pulmonology, nephrology and cancer.

“When families need medical care for their kids, they want nothing less than the best — and that’s exactly what they find at CHoR,” CEO Elias Neujahr said in a statement. “Our community and our nation faced many challenges over the past year, but this recognition underscores that through it all, these teams never paused in caring, researching, growing and giving their all to make sure the health of our kids comes first.”

Inova Children’s Hospital in Falls Church is ranked third in Virginia and 13th in the mid-Atlantic region, and it is nationally ranked for its neonatology program.

The other regionally recognized (but unranked) pediatric hospitals include: Carilion Clinic Children’s Hospital in Roanoke, Children’s Hospital of The King’s Daughters in Norfolk, the Children’s Hospital of Richmond at VCU’s Brook Road campus, the Commonwealth Center for Children and Adolescents in Staunton and the Cumberland Hospital for Children and Adolescents in New Kent County.

U.S. News & World Report ranks children’s hospitals based on how they score on 10 specialties; for the 2021-22 rankings, 118 hospitals submitted medical data, and 89 were ranked in one or more specialty.

For more information about the rankings, visit this site.

Richmond City Council approves casino referendum, which heads next to voters

Richmond City Council on Monday voted 8-1 for a casino referendum to appear on the city’s Nov. 2 ballot. If passed by city voters, the proposed $600 million ONE Casino + Resort would be the only casino under Black ownership in the country.

Urban One Inc., which owns and operates 55 radio stations and the TV One cable network, has partnered with Peninsula Pacific Entertainment, owner of Colonial Downs Group and the Rosie’s Gaming Emporium franchise. The casino is proposed to be built on 100 acres owned by Altria Group Inc. on the city’s South Side, near Interstate 95, an economically deprived section of the city.

The project includes a sportsbook, 250 hotel rooms, a 3,000-seat theater, 100,000 square feet of gaming space, and 12 bars and restaurants. Last month, a city-appointed advisory panel recommended the casino plan after narrowing the field from six proposals received in January. Urban One has said it would create 1,300 permanent jobs that would pay a minimum wage of $15 per hour, as well as an $25 million upfront payment to the city and a $5.7 billion economic impact over the casino’s first 10 years.

“All we are voting on tonight is to … support the democratic process,” said Councilor Andreas Addison, one of two councilors who served on the advisory panel that examined the plans.

City Councilor Michael Jones, who represents the district next to the one where the casino is proposed, said he was voting “yes” because he too believed the city’s voters should have their voices heard. “Let the citizens of Richmond decide.”

Reva Trammell, who represents the casino site’s district, said she’s heard widespread support from constituents and added that the area needs significant infrastructure and economic improvement. “We need this. We need this.”

City Council heard from several public speakers, some in support and some against the casino. Unlike an earlier casino proposal by The Cordish Cos. in the Scott’s Addition neighborhood, which received significant backlash from neighbors who voiced concerns about traffic and crime, the Urban One plan was more favorable to some of its neighbors.

The one “no” vote was by Councilor Katherine Jordan, who represents the district where Cordish would have built its casino project. The newly elected councilor said earlier this spring that she would oppose that plan, and on Monday said she was “torn” about whether to support the ONE Casino proposal after hearing from many Richmonders on both sides.

During the virtual meeting vote, an angry Trammell called out Jordan, saying that the two had discussed their plans earlier in the process and that Trammell had agreed to vote against the Cordish proposal if it had reached City Council, while adding that Jordan did not keep her word to support Trammell’s vote. “I expected you to keep your word to me,” Trammell said. Jordan did not respond.

Another councilor, Ann Lambert, said she would likely have voted against a casino plan if it were in her district, but she concluded by supporting the plan Monday despite reservations. “Fifteen-hundred jobs is a game changer,” she said, although Urban One said in a statement later that it will create 1,300 jobs.

Mark Hourigan, CEO of Hourigan Construction, called the casino “a terrific catalyst to the South Side,” but also “represents an amazing opportunity for the city — the entire city, not just the South Side.” Other supporters included Virginia Union University President Hakim Lucas and Richmond Region Tourism President and CEO Jack Berry.

However, Suzanne Keller, an epidemiologist and city resident, spoke in opposition, noting that the presence of a casino could cause or intensify gambling problems, especially among vulnerable minority groups. “The house always wins. I think this is morally wrong.”

Others questioned whether a Richmond casino would be quite the economic bonanza for the city argued by supporters since four other Virginia cities are already building resorts approved last year.

In a statement issued immediately after the vote, Urban One CEO Alfred Liggins said, “ONE is extremely grateful and proud that Richmond City Council has voted to move forward with a first-class casino and resort in Richmond’s South Side. This project will be funded entirely with private investment and will generate millions of dollars in critically needed new tax revenue that can be used for schools, affordable housing, workforce development, infrastructure and other city priorities.

“This will be a transformational project for the city, attracting additional tourism revenue that will lift up all of Richmond and improve the quality of life for those who call this city home. At the same time, ONE will create 1,300 well-paying jobs with profit-sharing for employees and pathways to successful careers. We will also be true community partners, investing with nonprofits and worthwhile causes across the city.”

Although Mayor Levar Stoney did not have a vote on the matter Monday, he has spoken in favor of the project. Earlier this month, a $20,000 campaign contribution to the mayor’s re-election campaign last October by a group called the Black Opportunity Council came to light.

Greg Cummings, one of the casino’s 50 investors, is listed by the State Corporation Commission as one of the council’s directors, and others connected to the casino project — which had not yet been announced or recommended in October — also contributed to Stoney’s campaign, according to campaign finance reports.

“ONE Casino + Resort is a $562.5 million project that will create 1,300 well-paying jobs with benefits in South Richmond, and every Richmond resident will benefit from the new revenue created by the project,” Stoney said in a statement Monday. “City Council’s vote tonight paves the way for every voting Richmond resident to have their voice heard on this important project.”

The city will now submit the preferred operator and site to the Virginia Lottery Board for pre-certification, the mayor’s office said, and petition the Richmond Circuit Court to hold the Nov. 2 referendum.

Richmond is the last of five Virginia cities voting on whether to allow a commercial casino, after the Virginia General Assembly voted in 2020 to allow five economically challenged cities across Virginia to have one casino per locality if approved by local voters. Bristol, Danville, Norfolk and Portsmouth all passed casino referendums last November by large margins.

Henrico-based medical office sells for $32.5M

Brookfields Commons, a Henrico County medical office property, has sold for $32.5 million, Cushman & Wakefield | Thalhimer announced last week.

Nashville-based Montecito Medical acquired the 90,598-square-foot Class A property on June 11 from an entity managed by Stanley Shield Partnership, which was represented by Thalhimer’s Capital Markets Group. The sale was completed by Eric Robison and Catharine Spangler of Cushman & Wakefield | Thalhimer’s Capital Markets Group, along with Birck Turnbull also in Thalhimer’s Richmond Office.

The property at 6600 W. Broad St. was formerly the headquarters for the Virginia Department of Transportation. Brookfield Commons underwent a full renovation in 2019 and is currently leased to four tenants, including an ear, nose and throat surgery center, a pulmonary practice, a full-service imaging center and a women’s health care practice.

$11.7M RRHA redevelopment contract awarded to Breeden

Breeden Construction has been awarded a $11.7 million contract to redevelop several Richmond Redevelopment and Housing Authority neighborhoods, with construction starting in late June.

The Richmond-based general contractor will perform work on Afton Avenue Apartments, Bainbridge Apartments and Fulton Apartments, with Michaels Development and RRHA as developers. The renovation project includes 123 apartment units, Breeden announced. The total project — which will include the Stovall and Randolph communities in phase two — has a $36 million budget, according to Michaels.

Phase one of Portsmouth affordable housing project completed

Breeden Construction announced last week that it has completed the $12.5 million phase one of an affordable housing project in Portsmouth ahead of schedule. Work began on Lexington Place in January 2020.

Located off Frederick Boulevard, Lexington Place now has 72 residences, a new clubhouse and 1.4 acres of green space. Breeden was chosen as general contractor for the project by developers Pennrose and the Portsmouth Redevelopment and Housing Authority.

The construction project meets EarthCraft and VHDA standards.

 

Hampton Roads sees small increase in active home listings

The Hampton Roads area saw growth in new home listings, pending sales and settled sales in May 2021 compared to May 2020, the Real Estate Information Network Inc. reported in its monthly update on the region.

All new listings (listed three days or less) were up 24.74% year-over-year in May, and settled sales saw a 33.57% increase, with 3,378 homes sold in May 2021, compared with 2,529 residences sold last May. Pending residential contracts rose as well, up 26.14% to 3,682 homes from 2,919 homes in May 2020.

There was a small increase in active listings compared to earlier this year, although the buyers’ market remains very tight. According to REIN, there were 3,834 active listings last month compared to 3,780 in April and 3,552 homes in March. By comparison, there were 6,348 homes for sale in May 2020.

The median sales price also went up to $290,000, an 8.61% increase from last year and up 1.75% from April. Construction remains relatively slow due to the rising cost of lumber and other materials, and newly constructed residences saw only a .97% increase year over year.

“I believe this trend will stay the course through the summer and into the fall,” REIN Board President Harry Cross said in a statement. “But my crystal ball rolled off my office desk and shattered about 20 years ago. With low inventory and multiple offers pushing the median sales price higher and higher, agents are working double time for their clients right now. This is definitely not the time to think you can brave the real estate market on your own. What a fantastic time to be a seller though! Just a few weeks ago, the weekly REIN Report advertised a median days on market of eight days. Eight days, can you believe that?”

Graphic courtesy REIN

McLean shopping center purchased for $32.1M

Federal Realty Investment Trust has purchased an 80% interest in Chesterbrook Shopping Center in McLean for $32.1 million, after managing the property for almost 20 years.

The Bethesda, Maryland-based REIT made the acquisition on April 30, which it announced last week. The nearly 90,000-square-foot shopping center at 6244 Old Dominion Drive is 83% occupied and anchored by Safeway, Walgreens and Starbucks.

KLNB, a Northern Virginia commercial real estate brokerage firm, represented the seller, Chesterbrook One LLC. The shopping center was owned by the same family since the early 1980s, according to KLNB.

Two Henrico County buildings sell for $12.35M

Two commercial buildings in Henrico County were sold to Maryland-based Feldman Bergin Properties, Colliers International announced last week. According to county property records, Deep Run Business Centre I and II sold for $12.35 million.

The 88,118-square-foot, two-building portfolio at 3955-3991 Deep Rock Road is 100% occupied with such tenants as Capel Rugs, Phoenix Fitness, Next Day Cabinets and AT&T. The seller is The Premier Cos., based in Bethesda, Maryland, represented by Colliers Executive Vice President Will Bradley and Vice President Mark Williford.