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byline: Katherine Schulte

Virginia is for HQs

When CoStar Group was searching for its new headquarters in 2022, Central Place Tower at 1201 Wilson Blvd. in Arlington County, with its impressive accompanying bird’s-eye views, captured the company’s attention. 

Located about a quarter mile from the Potomac River, the gleaming, 391-foot-tall Class A office building features floor-to-ceiling windows across its 31 stories, reflecting the sky, all topped off by a 12,000-square-foot observation deck providing a panoramic view of the area and D.C. landmarks like the Washington Monument. The deck’s three stories of windows and a terrace looked like it would make an ideal meeting place for a company flying in clients from places like Los Angeles, London and Singapore.

Outside the 560,000-square-foot building, a 16,000-square-foot outdoor plaza provides a place to take a break or eat lunch, and across the street stands the Rosslyn Metro station, where passengers can catch a train to either of the region’s two major airports.

“What really appealed to us was the opportunity to have a significant presence up in Rosslyn on a transportation hub … and something that’s a real iconic building [where] we could gather folks coming from around the world for meetings and the like,” explains CoStar founder and CEO Andy Florance.

CoStar, a global real estate data and analytics company best known for its Apartments.com and Homes.com brands, first contacted the Virginia Economic Development Partnership about potentially relocating its corporate headquarters to Virginia from Washington, D.C., in September 2022. During CoStar’s assessment of more than 25 sites in D.C., Arlington and Fairfax County, the company narrowed in on Central Place Tower.

But the building came with a challenge for CoStar: The observation deck, then called The View of DC, came with a county easement that kept it open to the public as a tourist attraction and events space. The View of DC recorded 32,188 visits in 2023, of which about 27,000 were from non-Arlington residents.

“For us,” Florance says, “when we’re trying to bring people in from around the world and having these meetings and partner meetings and staff and client training, having a special space to gather people was important, and having public access and secure, confidential meetings would be difficult or not feasible.”

That’s when Arlington rolled up their sleeves. To address the easement question, explains Arlington Economic Development Director Ryan Touhill, his team worked with the county’s planners, attorney’s office and board “to determine, ‘Could we unwind that?’ and that way, that could give CoStar full access to this prime, trophy office building, and then [the county could] use the funding that we would get from that to reinvest in the neighborhood.”

In February, CoStar announced it would relocate its corporate headquarters to Central Place Tower, purchasing the building for a reported $339 million with plans to invest $20 million in the move. The company is formulating its renovation plans for the building, including lobby and security improvements. 

Some CoStar employees are already working at Central Place Tower, and the company plans to have “a significant percentage of [its] team in the Washington metropolitan area” based there by May 2025, Florance says, with all corporate headquarters staff moving to the building by the end of 2025.

CoStar reached a deal to obtain sole use of the observation deck, paying Arlington County $13.95 million, funding the county manager proposed to be used toward the planned redevelopment of the nearby 3-acre Gateway Park, home to the annual Rosslyn Jazz Festival.

In July, the Arlington County Board approved a site plan amendment and a zoning ordinance amendment allowing CoStar private use of the observation deck and allocated the funds for the park’s redevelopment.

CoStar CEO Andy Florance, pictured at the construction site for the company’s Richmond campus expansion, cites Virginia’s strengths in higher education as well as proximity to major global airports as factors that convinced him to move his company’s headquarters from Washington, D.C., to Arlington. Photo courtesy CoStar Group

“This actually helped accelerate the redevelopment of that park space by nearly a decade, and so now we’ll have a truly world-class amenity in the heart of Rosslyn that will benefit those folks that come to work there every day,” Touhill says. “It’ll benefit the residents and any visitors that we bring to the park.”

Arlington’s negotiations with CoStar to reach an agreement on the observation deck is one example of the flexibility Virginia state and local officials demonstrate when attracting and retaining large economic development projects, including multiple major corporate headquarters relocations.

Lay of the land

Twenty-four Fortune 500 companies are headquartered in Virginia, not counting Amazon.com, which officially opened its East Coast headquarters, HQ2, in Arlington’s National Landing area in June 2023. Additionally, since 2020, huge companies like ASGN, Boeing, RTX and CoStar have announced headquarters moves to Virginia.

Winning Amazon’s HQ2 in 2018 was a coup for Virginia, which triumphed over nearly 240 competing bids from other cities and states.

HQ2 was “a real catalyst in some ways,” says VEDP President and CEO Jason El Koubi. “I think it sent a signal to the rest of the world that Virginia is America’s East Coast tech hub, that Virginia is sort of America’s corporate hometown, a place where you have a real density of corporate headquarters that are thriving.”

Along with state and local officials’ willingness to negotiate, Virginia has attracted corporations like Amazon because of its business-friendly environment, educated workforce, location and track record.

Although the state’s recent headquarters wins have garnered big headlines, it’s not a new phenomenon. In past decades, Virginia has been the corporate base for companies like ExxonMobil, AOL, Circuit City and A.H. Robins Co. And it’s currently home to international defense contracting giants like Northrop Grumman and General Dynamics.

The commonwealth historically has had success attracting major headquarters, says Todd Haymore, managing director of Hunton Andrew Kurth’s global economic development, commerce and government relations consultancy and a former Virginia secretary of commerce and trade.

“Look at the broad scope of time,” Haymore says. “It’s not just happening in the last couple of years; it’s happened across decades, and I think it’s fostered by the fact that we are recognized as that pro-business, pro-growth, pro-job creation state.”

For instance, Virginia is a right-to-work state, meaning employees cannot be required to join a union as a condition of employment.

Factors such as these, along with the state’s strong foundation in higher education and workforce training, have contributed to Virginia’s record six wins as CNBC’s Top State for Business in the cable business news network’s annual rankings for 2024, 2021, 2019, 2011, 2009 and 2007. 

Also aiding the state’s business-friendly reputation is its stable regulatory environment.

“Companies generally look at Virginia and say, ‘OK, doesn’t matter who’s in the governor’s mansion, doesn’t matter who’s controlling the General Assembly, it’s still going to be pro-business.’ That means a lot,” Haymore says.

CoStar worked with local and state officials, including multiple gubernatorial administrations, on bringing its campuses to Virginia and expanding its footprint in Richmond.

“Virginia generally is very supportive in their economic development efforts to help make it easy for companies like ours to make the sort of massive investments necessary to move your location into the state. They’ve been very supportive. They have gone the extra mile,” Florance says.

The state’s fiscally responsible as well, El Koubi points out. In November 2023, Fitch Ratings affirmed the Virginia government’s AAA long-term issuer default rating, the highest rating Fitch issues. In September, S&P Global Ratings affirmed the commonwealth’s AAA long-term rating on its general obligation debt outstanding, though its appropriation-backed debt received an AA+ rating. Virginia first received an AAA rating from S&P Global in 1962.

Additionally, the commonwealth has maintained a corporate income tax rate of 6% since 1972. “From a tax and regulatory standpoint, Virginia is a very reasonable, predictable, stable operating environment for businesses,” El Koubi says.

That steady corporate tax rate can reduce costs for businesses relocating from other states, providing a competitive advantage for Virginia. For example, neighbors Maryland and Washington, D.C., have an 8.25% corporate income tax rate.

When companies select his county for their headquarters, “it’s a vote of confidence in Arlington and Virginia’s business environment,” says Arlington Economic Development Director Ryan Touhill, “and like-minded companies take note of that.” Photo by Shannon Ayres

Sweetening the pot

Along with Fairfax County’s location, a factor in Hilton’s decision to relocate its headquarters there in 2009 from Beverly Hills, California, was that the move would significantly reduce operating costs, according to the Fortune 500 global hotelier.

“Northern Virginia places Hilton strategically in a central location near our nation’s capital, where we’ve had the benefit of operating in a stable business climate and have simultaneously reduced our operating costs,” Hilton’s senior vice president and global head of talent, Christine Maginnis, said in a statement to Virginia Business.

Similarly, while not always related to company costs, incentive packages offered by Virginia and its localities also help secure large economic development projects like headquarters relocations and major corporate campuses.

For example, CoStar’s Richmond campus, which predates its headquarters move to Arlington by nearly a decade, demonstrates the state’s success in tailoring benefits for companies.

In 2016, CoStar announced it would build a research and technology center in Richmond. Five years later, the company announced a $460.5 million expansion of its Richmond presence into its Corporate Innovation Campus, housing sales, marketing, software development and various other functions. CoStar expects to create 1,984 jobs and have 1 million square feet of office space in the expanded riverfront campus, which is expected to be completed in 2026.

As part of the benefit package for CoStar’s Richmond expansion, the state legislature approved a $15 million grant fund reimbursing the company for public infrastructure improvements, including commuter access and parking and pedestrian access. If, however, CoStar does not reach at least 90% of its pledged job creation and capital investment by Dec. 31, 2028, the company will have to repay an amount proportional to any missed targets. 

For CoStar’s Arlington headquarters relocation, Gov. Glenn Youngkin approved $3.5 million for a Virginia Economic Development Incentive Grant (a performance-based cash grant), and a $1.25 million grant for Arlington County from the Commonwealth’s Opportunity Fund, a cash grant awarded to local governments on behalf of a company to offset or reimburse certain project-related costs.

Nevertheless, economic incentives are generally just one of several factors that companies consider when locating headquarters or other major assets in Virginia, not the deciding factor.

For instance, when Boeing announced it would relocate its headquarters from Chicago to Arlington in May 2022, the Fortune 100 aerospace and defense contractor did not receive discretionary state incentives. Nor did Fortune 100 defense contractor RTX, at the time branded as Raytheon Technologies, which announced in June 2022 that it would move its headquarters from Massachusetts to Arlington.

Planning ahead

Access to an educated labor force is another important component of a company’s considerations when locating a headquarters, and another place where Virginia is strong.

“I would say that one of the key things that attracted us to Virginia is the higher education system — Virginia Tech, VCU, James Madison, just a whole range of great educational institutions [that] gave us the confidence that we would have the workforce we’d need,” says CoStar’s Florance.

Amazon’s decision to build HQ2, its East Coast headquarters, in Arlington was a “catalyst” for other companies, says Virginia Economic Development Partnership President and CEO Jason El Koubi. “It sent a signal to the rest of the world … that Virginia is sort of America’s corporate hometown.” Photo by Matthew R.O. Brown

In U.S. News & World Report’s education rankings for states, Virginia ranks No. 10 in education overall, No. 9 in pre-K-12 education and No. 20 for higher education.

In Arlington, 78% of the county population holds a bachelor’s or higher degree, according to the 2023 U.S. Census Bureau American Community Survey one-year estimate.

Additionally, Virginia is ripe to target businesses seeking tech talent. Part of the state’s successful bid to land Amazon HQ2, Virginia’s Tech Talent Investment Program aims to produce 31,000 in-demand computer science and related graduates in the next two decades. The program is 2 1/2 years ahead of schedule, according to El Koubi.

It also showed Virginia’s commitment to a long-term strategy, says Chris Lloyd, director of infrastructure and economic development with McGuireWoods Consulting: “I think that that showed that Virginia wasn’t just in it for the short term, but that we were going to build this 20-year pipeline of tech talent and obviously everything else associated with that. … Instead of thinking short term, we thought long term, and leading companies are recognizing that.”

The tech talent program has fueled large state investments in higher education infrastructure, such as Virginia Tech’s $1 billion Innovation Campus in Alexandria, which enrolled its first class in 2020 in temporary space. The campus’ first academic building is set to open in spring 2025. Meanwhile, George Mason University is building its $178 million Fuse at Mason Square, which will have 345,000 square feet for research and development labs, corporate innovation centers and related facilities. 

“Almost every business operation now is in part sort of a tech operation, where, corporate headquarters included, … they need tech talent as part of their overall talent needs, and so we’re really doubling down on that and investing in our talent pipeline and solidifying that as one of Virginia’s differentiators,” El Koubi says.

When ASGN moved its headquarters from Calabasas, California, to Henrico County, announcing in 2020 that it would invest $12.4 million on the move, the decision was partly because the Fortune 1000 IT company already had a major subsidiary, Apex Systems, headquartered in Henrico, but ASGN President and CEO Ted Hanson also cited the state’s talent pipeline.

“Virginia’s strong pipeline of information technology talent for both the commercial and government sectors make it an ideal place for us to have our headquarters and continue to grow,” Hanson said in a statement at the time.

Boeing was also attracted to Virginia in part because of its talent pool, according to a statement then-CEO Dave Calhoun made during its announced relocation from Chicago: “The region makes strategic sense for our global headquarters given its proximity to our customers and stakeholders, and its access to world-class engineering and technical talent.”

Boeing had previously made a $50 million, multiyear commitment to Virginia Tech’s Innovation Campus.

It’s “pretty extraordinary for a company to pick up its headquarters and move to another state,” says VEDP President and CEO Jason El Koubi, noting Virginia’s wins in attracting multiple large corporate headquarters from companies like Boeing, RTX and CoStar in recent years. Photo by Matthew R.O. Brown

Location, location, location

Outside of tech talent, corporate headquarters need a large professional services core, and the Northern Virginia and Richmond regions offer that, says Lloyd. If you’re going to be establishing a headquarters, he says, “you need to have large law firms and large accounting firms and large ad firms and all the cluster around you.”

Virginia’s central Eastern Seaboard location gives it another boost in headquarters location decisions. “Virginia offers corporate headquarters companies proximity to key economic hubs around the East Coast [and] critical consumer markets,” El Koubi says.

Plus, Northern Virginia features two major airports, with Washington Dulles International Airport offering nonstop flights to 59 international destinations. And the statewide Port of Virginia system, which processed 3.5 million 20-foot equivalent units in fiscal 2024, provides convenient shipping and rail access. 

“In Northern Virginia, the airports are a critical factor for a global company [that has] people coming in from around the country and around the world,” says Florance. The headquarters building in Rosslyn was particularly appealing because of its location on the Metro line between Ronald Reagan Washington National Airport and the Dulles airport, he says.

RTX’s 2022 announcement of its headquarters move to Arlington cited the Washington, D.C., region “as a convenient travel hub for the company’s global customers and employees.” And in 2009, Hilton President and CEO Christopher Nassetta touted the commonwealth’s “central location from which to operate a global organization.”

Additionally, Northern Virginia’s proximity to the nation’s capital and the Pentagon makes the region attractive for headquarters, particularly for federal contractors.

“It’s appealing to be headquartered in the D.C. area, not just from a talent access perspective or business climate perspective in Virginia, but because [companies] have close proximity to the federal government from a lobbying and government affairs standpoint,” says Michael Hartnett, JLL’s research lead for the mid-Atlantic region.

Virginia’s competitive advantages for landing corporate headquarters also have grown through the wealth of companies that have previously relocated to the commonwealth.

“Part of what makes Virginia a very business-friendly state and a very strong ecosystem for headquarters,” El Koubi explains, “is the fact that you have a very high density of corporate headquarters in Virginia. … These headquarters companies like to cluster to some extent, in part because of the talent but also because of some of the things that a corporate headquarters needs, including connectivity to the rest of the country and the rest of the world.”

On the local level, Arlington also is profiting from its record of attracting companies like Amazon, Boeing, RTX and CoStar.

“When these companies select us,” Touhill says, “it’s a vote of confidence in Arlington and Virginia’s business environment, and like-minded companies take note of that.” 

Breeden promotes five property management employees

Rachael Blanchard

The Breeden Co. has promoted five employees in its property management division, the Virginia Beach-based real estate company announced Thursday.

The five employees are Rachel Blanchard, Lisa Capps, Sheena Obermark, Tiffany Rote and Samantha Schuman.

Blanchard, who was previously a project manager, has been appointed director of training and implementation. In May, a Breeden social media post referred to Blanchard as the company’s AppFolio project manager. In her new role, Blanchard will lead development and execution of training programs for the company’s property management teams.

Lisa Capps
Lisa Capps

Capps has been promoted from delinquency and collections compliance manager to director of collections and regulatory compliance. She’ll be responsible for overseeing collections and ensuring compliance with regulatory requirements.

Obermark, who previously served as operations manager, has been named director of operations, managing the property management division’s overall operations and focusing on increasing efficiency.

Breeden promoted Rote from operational training manager to director of commercial operations, a role in which she will oversee the company’s commercial property portfolio.

Sheena Obermark

Schuman has been promoted from administrative assistant to operations manager. She will oversee day-to-day operations of Breeden’s property management portfolio.

“We are thrilled to recognize the hard work and dedication of these outstanding individuals,” Bonnie Moore, Breeden’s president of property management, said in a statement. “Their promotions are a testament to their exceptional contributions and our confidence in their ability to lead our property management division to new heights.”

 

Tiffany Rote

 

 

 

 

 

Samantha Schuman

Fed’s Fifth District economy grows modestly

Map courtesy Federal Reserve Board

Economic activity in the Federal Reserve’s Fifth District (a multistate region including Virginia, North Carolina, South Carolina, West Virginia and Maryland) grew modestly from early September, according to the latest edition of the Fed’s Beige Book, released Wednesday.

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 October release is an update from the Fed’s Sept. 4 report.

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

Employment in the Fifth District increased slightly in the most recent reporting period. Although many businesses reported improvements in the labor pool and moderate wage growth, some firms reported continued challenges finding specific types of workers; they increased wages more and used outside help to attract those workers.

One example is a charter bus company that reported better driver availability but said it had to “dramatically” increase wages to attract skilled mechanics. A lighting manufacturer said it raised hourly wages by $2 for production workers.

Additionally, Hurricane Helene’s effects led to a spike in initial unemployment insurance claims in North Carolina in the first week of October.

Price growth in the region continued to ease slightly in recent weeks, according to the Fed. Prices grew at a “modest to moderate rate” year-over-year. The prices that manufacturing firms received grew modestly compared to the previous year, while service providers saw moderate annual price growth. Some consumer-facing businesses said they believed customers wouldn’t accept further price increases.

Manufacturing activity ranged from flat to slightly up for some producers. Some producers reported an increase in orders — a fuse panel manufacturer, for example, reported a backlog going into 2025 because of large recent orders. Nevertheless, some respondents reported delays on new orders because of uncertainty, like a textile manufacturer that reported it expected tepid demand as customers were being cautious ahead of elections.

Fifth District ports reported a slight increase in containerized cargo volumes while they allowed for additional trucking traffic to offload ships in advance of the anticipated International Longshoreman’s Association worker strike on Sept. 30. The strike lasted three days and was suspended until Jan. 15, 2025. The 45,000 union workers involved included 6,000 workers at Fifth District ports.

Port respondents said the three-day strike had little impact on operations because of its brevity. They also expected the resulting wage increases to affect future container rates.

Trucking demand remained flat, and companies expected it to stay muted going into winter. Trucking firms reported that profitability was down because freight spot rates fell.

Consumer spending in the region picked up modestly over the most recent reporting period. Retailers reported an increase in sales and shopper traffic. Some respondents said that revenues were up despite flat transaction volumes because prices were higher.

Hotel and tourism contacts said business travel increased, but leisure travel slowed. One hotel representative attributed the slowdown partly to the active hurricane season. Respondents in western North Carolina were still assessing Hurricane Helene’s damage and impacts, but most said they expected to feel the storm’s impacts for several months.

Fifth District residential real estate had a slight downtick in recent weeks, which many real estate agents attributed to a typical fall slowdown and the hold for rate cuts.

A Virginia agent said housing inventory was rising, particularly with fixer-uppers and less-than-ideal homes coming on the market. According to Virginia Realtors data, in September, Virginia had 19,764 active listings and 11,378 new listings, both year-over-year increases.

Contacts across the Fifth District also mentioned lawsuits and continued uncertainty related to the National Association of Realtors policy changes.

Commercial real estate activity leveled off in the past month, according to the Fed. Although vacancy continued to grow in lower-grade markets, vacancies decreased in prime A spaces. A residential and metal buildings construction company in Virginia said it had fewer potential customers and that clients were having more difficulty affording the company’s work.

Also, Hurricane Helene caused severe destruction of commercial and residential properties in western North Carolina and Virginia, but the extent of the damage isn’t yet clear, the Fed said.

Financial institutions saw a modest increase in loan demand, driven mainly by interest rate cuts. Commercial real estate and first mortgage refinancings were the main drivers of the increased demand. Deposit levels remained stable. Loan delinquency rates remained stable, although lenders reported a continued modest decline in borrowers’ credit quality.

Nonfinancial service providers continued to report little change in demand to the Fed, and their revenues remained stable. One law firm said they anticipated a modest increase in merger, acquisition and real estate deals because of decreasing interest rates. Some contacts reported they thought economic activity was constrained because clients were hesitant to make new investments or business decisions until uncertainty about the presidential election and international conflicts was resolved.

SEC, Hampton managing partner of BFM Fund settle charges

The Securities and Exchange Commission settled charges in early October against a Hampton-based managing partner of The BFM Fund and a limited liability company for allegedly breaching their fiduciary duties and misleading investors.

Himalaya Rao-Potlapally of Hampton is a managing partner of Portland, Oregon-based BFM Fund, a seed-stage private venture capital fund focused on founders who are Black, Indigenous and people of color. It was founded in September 2020 as the Black Founders Matter Fund I.

“Traditional venture capital … [is] a pretty small, closed system,” Rao-Potlapally told Virginia Business in May. “It’s really difficult for different types of founders to be able to access capital when there’s not a broader understanding of different lived experiences that then shape how different people articulate problems, think about solutions, all of that.”

Rao-Potlapally is the sole member and manager of LDP Partners, an unregistered investment adviser organized in May 2021 in Oregon but with its primary place of business in Hampton. Since July 2022, LDP Partners has managed one client, BFM Fund I, according to the SEC.

The SEC’s Oct. 7 order alleged that LDP Partners and Rao-Potlapally willfully violated anti-fraud provisions of the Investment Advisers Act of 1940. It issued cease-and-desist orders and censures to LDP Partners and Rao-Potlapally and ordered Rao-Potlapally to pay a $10,000 civil penalty. The company and Rao-Potlapally agreed to the cease-and-desist orders and sanctions without admitting or denying the SEC’s findings.

As of August, the BFM Fund had sold about $4.6 million worth of securities to 53 investors in multiple states, according to the SEC order.

The BFM Fund is one of seven venture capital fund managers that the Virginia Innovation Partnership Corp. is partnering with to invest $100 million in 100 Virginia-based startups. Gov. Glenn Youngkin announced the partnership, Virginia Invests, in May.

In its order, the SEC alleged LDP Partners and Rao-Potlapally breached their fiduciary duties to the BFM Fund and misled the fund’s investors in three ways:

First, in March 2023, according to the SEC order, LDP Partners and Rao-Potlapally, without notifying all BFM Fund investors, allegedly transferred $600,000 in cash out of the BFM Fund bank account to three different non-BFM bank accounts, including a personal checking account Rao-Potlapally shared with her spouse.

The investment adviser and Rao-Potlapally initiated the transfers after telling the BFM Fund’s advisory committee about concerns that the BFM Fund’s bank account would not be fully protected by the Federal Deposit Insurance Corp., according to the SEC order. In April 2023, a representative from the bank told LDP Partners and Rao-Potlapally that the funds could be returned to the BFM bank account and be fully protected by FDIC insurance, according to the SEC. In August and September 2023, LDP Partners and Rao-Potlapally returned the money, according to the SEC order.

Second, the SEC alleged that in July 2023, LDP Partners and Rao-Potlapally misled BFM Fund investors by providing a financial statement that misrepresented the $600,000 as still in the fund’s control. In November 2023, they distributed a financial statement disclosing the March 2023 transfers.

Third, the SEC alleged, LDP Partners took approximately $55,000 total in improper advance management fees from the BFM Fund in February 2023 and September 2023.

LDP Partners and Rao-Potlapally received approval from BFM Fund advisory committee members to take the fees in advance rather than on a monthly basis, but the fund’s controlling documents did not allow that and the advisory committee wasn’t authorized to allow advance fees, the SEC stated in its order.

Rao-Potlapally could not be reached for comment.

Va. pending home sales, prices rose in September

Pending home sales in Virginia rose in September — increasing almost 14% from September 2023 — suggesting more buyers are entering the market, according to Virginia Realtors data released Tuesday.

Last month, 8,065 homes sold in Virginia, a less than 1% increase from September 2023. Although closed sales remained relatively flat year-over-year, pending sales rose, as 8,119 homes went under contract in September, up 978 pending sales from last year — a 13.9% jump.

“This is the largest increase in pending sales Virginia’s housing market has had in more than three years and was likely driven by last month’s drop in mortgage rates,” Virginia Realtors Chief Economist Ryan Price said in a statement. “When rates dropped to near 6%, more buyers decided to get off the sidelines.”

For the week ending Sept. 5, the weekly average 30-year fixed-rate mortgage was 6.35%, according to Freddie Mac data. The following week, the average 30-year fixed-rate mortgage was 6.2%. For the week ending Sept. 19, the average rate was 6.09%, and the weekly average rate for the week ending Sept. 26 was 6.08%.

In October, though, mortgage rates have risen again, according to Freddie Mac data. For the week ending Thursday, the weekly average 30-year fixed-rate mortgage was 6.54%, up 0.1 percentage points from the previous week. The four-week average for a 30-year fixed-rate mortgage was 6.36%.

The statewide median sales price also rose year-over-year in September. Last month, it stood at $419,200, up more than $39,000 — an increase of 10.3% — from September 2023. That’s the largest dollar increase in the statewide median sales price since spring 2022, according to Virginia Realtors.

Homes spent a median of 14 days on the market last month, up from the 10-day median reported in September 2023.

The Virginia market had 19,764 active listings last month, up by about 3,100 listings from the same month last year, representing an 18.9% increase. There were 11,378 new listings in September, up 772 listings, or 7.3%, from September 2023.

“Supply conditions remain tight in Virginia but are improving,” Tom Campbell with Fathom Realty, Virginia Realtors’ 2024 president, said in a statement. “Active listings have outpaced 2023 levels every month so far this year.”

The month’s supply of inventory (MSI) — a measure of how many months there would be homes on the market if no new inventory were added — stood at 2.3, up from September 2023’s MSI of 2.1.

Based in Glen Allen, Virginia Realtors represents about 36,000 Realtors and is the state’s largest trade association.

Va. agricultural damage from Helene totals $159.3M

Hurricane Helene’s agricultural damage in Virginia totals more than $159.3 million, according to Virginia Cooperative Extension agents’ research.

Hurricane Helene made landfall on the Gulf Coast in Florida as a Category 4 storm late on Sept. 26 and tore through the Southeast into Sept. 27, causing catastrophic flooding in parts of Georgia, North and South Carolina, Virginia and Tennessee even as it weakened. The storm’s death toll totals more than 220 across six states.

The extension agents worked across 21 localities — 20 counties and the city of Radford — to complete the agricultural damage assessment, and the Virginia Department of Forestry provided information on timber losses, according to a Tuesday news release from Virginia Tech.

According to the report, 3,672 Virginia farms suffered losses from hurricane damage.

Of the 21 localities, Grayson County had the biggest losses, amounting to $61 million — 38% of the statewide damage. Wythe, Smyth, Washington and Carroll counties were the next four localities with the most economic losses from the hurricane, with respective damages of approximately $22.7 million, $18.4 million, $12.9 million and $12.1 million.

“Farming is a critical contributor to the rural economies where these losses occurred,” Dan Goerlich, the extension’s associate director for economy, community and food, said in a statement. “It is our hope that this assessment will help guide resources for recovery to these farms and communities that are so vital to Virginia’s economic prosperity.”

Virginia vegetable and crop damage totaled an estimated $38.1 million. Of those, the heaviest losses came from timber ($25.9 million), hay ($3.3 million) and pumpkins ($2.3 million).

Livestock, aquaculture and apiary losses amount to $1.5 million, with beef cattle producers losing $1.2 million. Trout producers’ losses came to about $130,700, and damages to dairy cow farmers were about $15,250.

Facilities, land and infrastructure losses totaled $119.6 million, with damage to fencing, structures and land comprising the largest losses. Damage to fencing totaled $54.3 million, and structure damage accounted for an estimated $27.8 million. Land damage and debris removal represented an estimated $25.5 million.

Established in 1914, Virginia Cooperative Extension is a partnership between Virginia Tech and Virginia State University. It operates out of 107 offices, 11 agricultural research and extension centers and six 4-H centers.

Extension agents have set up 10 centers around the region for collecting and distributing supplies for recovery efforts. They’re also hosting hay donation days on Saturdays throughout November. The extension, Virginia Cattlemen’s Association, Virginia Farm Bureau, Virginia Agribusiness Council and Farm Credit of the Virginias have partnered to form the Southwest Virginia Agricultural Relief Program, which connects farmers with volunteers and hay, feed, fencing and other donations.

Atlantic Union to buy Maryland’s Sandy Spring Bank for $1.6B

Atlantic Union Bank is expanding further into Northern Virginia and Maryland with the $1.6 billion purchase of Maryland’s Sandy Spring Bank, an acquisition announced Monday.

The two banks’ parent companies, Atlantic Union Bankshares and Sandy Spring Bancorp, have entered into a merger agreement that would create a combined bank with $39.2 billion in assets as of Sept. 30, they said in a news release.

Based in Olney, Maryland, Sandy Spring had $14.4 billion in assets, $11.7 billion in total deposits and $11.5 billion in total loans as of Sept. 30, and it has 53 branch offices in Maryland and Northern Virginia. Upon completion of the deal, Richmond-based Atlantic Union will have total deposits of $32 billion and gross loans of $29.8 billion, according to Monday’s statement.

Sandy Spring also has two wealth management subsidiaries, Rembert Pendleton Jackson and West Financial Services, that will be part of the acquisition, and will approximately double Atlantic Union’s wealth management business, increasing its assets under management by more than $6.5 billion.

“At our 2018 investor day, I noted that part of our long-term vision was to complete the ‘Golden Crescent’ from Baltimore through Washington, D.C., and Richmond to Hampton Roads, and recreate a banking franchise that had not existed since the 1990s,” John C. Asbury, Atlantic Union’s president and CEO, said in a statement. “With today’s announcement of our partnership with Sandy Spring, Atlantic Union will create a preeminent regional bank, with Virginia as its linchpin, that spans the lower mid-Atlantic into the Southeast and that is committed to the communities it serves.”

By deposit market share in the state as of June 30, Sandy Spring Bank is the largest regional bank in Maryland and the seventh largest in the state overall. By deposit market share in Virginia as of June 30, Atlantic Union Bank is Virginia’s largest regional bank and its fifth largest bank overall.

Under the terms of the merger agreement, each outstanding share of Sandy Spring common stock will be converted into the right to receive 0.9 shares of Atlantic Union common stock, a value of about $34.93 per Sandy Spring common share, based on Atlantic Union’s closing stock price on Oct. 18.

Both banks’ boards have approved the agreement, and the banks expect to complete the transaction by the end of the third quarter of 2025, they said in a statement.

Monday’s announcement follows Atlantic Union’s acquisition of Danville’s American National Bank and Trust, which was completed in April. The $507 million deal was announced in July 2023.

Atlantic Union has 129 branches throughout Virginia and in parts of North Carolina and Maryland, according to Monday’s announcement.

In terms of potential consolidation of Virginia branches, Asbury said during a virtual press conference: “Where we see overlap, we have identified potentially five locations in Northern Virginia that would be candidates for consolidation simply because of their very close proximity,” but said it would be premature to provide details on those locations.

Additionally, he said, “We would anticipate retaining 100% of all branch personnel. The branch network in the area is large enough to absorb them.”

Branches wouldn’t close until after systems are converted post-merger, which would likely be the first quarter of 2026, said Bill Cimino, senior vice president and director of investor relations for Atlantic Union.

The bank is also planning to open three branches — one in Baltimore, one in Prince George’s County, Maryland, and one in Prince William County — but does not yet have specifics as it needs to assess location options, Asbury said.

“Our partnership with Atlantic Union is the right long-term decision for our shareholders, clients and employees. This combination will deliver enhanced scale, diversity in the market, and capabilities for our clients, and it will provide greater opportunities for our employees to grow within a larger organization,” Daniel J. Schrider, Sandy Spring’s chair, president and CEO, said in a statement. “Sandy Spring Bank and Atlantic Union Bank share a people-first approach to doing business and serving our communities, and together we will add even greater value to the individuals, families and businesses we serve across our expanded footprint.”

Schrider and two other Sandy Spring board members will join Atlantic Union’s board upon closing of the transaction.

Dairy products manufacturer to expand in Augusta

Shamrock Farms, an Arizona-based dairy products manufacturer, will invest $59 million to expand its Augusta County manufacturing operation, Gov. Glenn Youngkin announced Tuesday.

Shamrock Farms expects to create 28 jobs through the expansion, which will add 81,000 square feet to the manufacturer’s 250,000-square-foot facility in Mill Place Commerce Park.

The company opened its Augusta facility in 2014, and the facility focuses on producing extended shelf-life dairy products, serving East Coast markets. In the expansion project, the company will reconfigure space to allow for a new production line and will add incremental cold storage.

“Shamrock Farms’ decade of growth and investment in Augusta County is a powerful endorsement of Virginia’s business climate,” Youngkin said in a statement. “By enhancing their production capabilities here, Shamrock is helping to ensure that high-quality, locally produced dairy products continue to reach markets across the East Coast.”

Established in 1922 in Phoenix, Shamrock Farms is a family-owned business with about 6,000 employees and two milk manufacturing plants. Its products are available across the U.S. and sold in 135,000 retail grocery and quick-serve restaurants.

“We are deeply grateful for the dedication and support from our associates and partners in Virginia — they have been instrumental in fueling remarkable growth for Shamrock Farms and allowed us to innovate in both products and processing,” Kent McClelland, chairman and CEO of Shamrock Foods, said in a statement.

Shamrock Farms previously expanded its Augusta facility with a $40 million investment in 2017 that created more than 70 jobs.

“During this decade of expansion, Shamrock has added nearly 170 jobs in Virginia, and we remain committed to long-term economic growth and investment in this community for years to come,” McClelland said in a statement. 

Because of the expansion, the company will buy an additional $32.87 million worth of milk — about 16.55 million pounds — from Virginia dairy cooperatives over the next four years, according to a news release.

The Virginia Economic Development Partnership and the Virginia Department of Agriculture and Consumer Services worked with Augusta County to secure the project. Youngkin approved a $600,000 Virginia Investment Performance Grant, a performance-based grant for existing Virginia manufacturers or research and development service providers supporting manufacturing for projects generating at least $25 million in capital investment. Youngkin also approved a $300,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund to assist Augusta County with the project.

Shamrock Farms will also participate in VEDP’s Virginia Jobs Investment Program, which provides services related to recruitment and training and cash grant reimbursements for associated human resources costs after a company has had new employees on the payroll for at least 90 days.

Va. casinos report $56.56M in September revenue

Gaming revenues for Virginia’s three casinos totaled $56.56 million in September, according to data the Virginia Lottery released Tuesday.

Last month, the Bristol Casino: Future Home of Hard Rock reported about $14.09 million in adjusted gaming revenues (wagers minus winnings), of which about $11.68 million came from its 905 slots and about $2.4 million from its 29 table games. The Virginia Lottery Board approved HR Bristol’s casino license in April 2022, and the Bristol casino’s temporary facility opened in July 2022, making it the first operating casino in Virginia. The permanent casino resort’s opening is scheduled for Nov. 14.

After the lottery board approved its license in November 2022, Rivers Casino Portsmouth opened as Virginia’s first permanent casino in January 2023. In September, the casino generated more than $17.85 million from its 1,419 slots and over $6.35 million from its 85 table games, for a total AGR of $24.2 million.

The temporary Caesars Virginia casino in Danville, which received its casino license in April 2023 and opened in May 2023, reported $18.25 million in AGR last month. Approximately $13.49 million of that came from its 826 slots, and more than $4.76 million came from its 36 table games. The $750 million permanent facility is set to open late this year.

September’s casino gaming revenues were a 10% decrease from the $63.1 million reported for August.

Virginia law assesses a graduated tax on a casino’s adjusted gaming revenue. For the month of September, taxes from casino AGRs totaled about $11.39 million.

Under Virginia law, 6% of a casino operator’s AGR goes to its host locality until the operator passes $200 million in AGR for the year, at which point the host locality’s tax rate rises to 7%. If an operator passes $400 million in AGR in the calendar year, that rises to 8%.

For September, Portsmouth received 7% of the Rivers Casino Portsmouth’s AGR, getting more than $1.69 million. Danville received 6% of the Caesars Virginia casino’s adjusted gaming revenue, amounting to roughly $1.09 million. For the Bristol casino, 6% of its adjusted gaming revenue — $845,470 last month — goes to the Regional Improvement Commission, which the General Assembly established to distribute Bristol casino tax funds throughout Southwest Virginia.

The Problem Gambling Treatment and Support Fund receives 0.8% of total taxes — about $91,136 last month. The Family and Children’s Trust Fund, which funds family violence prevention and treatment programs, receives 0.2% of the monthly total, which was approximately $22,784 in September.

Also on Tuesday, the team behind the delayed Norfolk casino — which has had a change in ownership and in name — announced it would hold a groundbreaking ceremony for the casino on Oct. 30. The Pamunkey Indian Tribe remains a partner, but Boyd Gaming replaced Tennessee investor Jon Yarbrough. The entities have scrapped the name HeadWaters Resort & Casino and referred to it as the Norfolk Casino Resort in Tuesday’s announcement.

In Central Virginia, Petersburg will hold a casino referendum on this fall’s ballots, asking voters to approve the proposed $1.4 billion Live! Casino & Hotel Virginia project.

Hard Rock Bristol to open permanent facility Nov. 14

The Hard Rock Hotel & Casino Bristol will open its approximately $515 million permanent facility on Nov. 14, with country music star Blake Shelton making an appearance at the ceremony, its development team announced Wednesday.

The temporary Bristol Casino: Future Home of Hard Rock opened July 8, 2022, making it Virginia’s first operating casino. Since then, two other casinos in Danville and Portsmouth have opened.

The development team — a joint venture between Hard Rock, Par Ventures President Clyde Stacy and The United Co. Chairman Jim McGlothlin — previously pushed back the opening of the permanent casino, which had been expected in July, to an unspecified time in “late fall,” in favor of opening the full casino resort.

The casino, located at 500 Gate City Highway, will open at noon on Nov. 14 with a grand opening ceremony that will include a concert by “The Voice” coach Shelton at the Hard Rock Live entertainment venue.

McGlothlin and Stacy said in a joint statement: “The opening of Hard Rock Hotel & Casino Bristol is such a pivotal milestone for the city of Bristol and our entire Tri-Cities region across Southwest Virginia and Northeast Tennessee. This project has created new jobs and generated additional tax revenue, serving as an economic engine and bringing hope to our community.”

The permanent, 620,000-square-foot casino resort will have almost 1,500 slots, more than 50 table games, a 303-room hotel, a 2,000-seat indoor entertainment venue and dining venues, including a Hard Rock Cafe, Council Oak Steaks & Seafood and YouYu Asian Dining, as well as a Hard Rock coffee and pastry shop brand, Constant Grind, and Marketplace, an area housing Fish & Chicken Co., Brick’d Italian Kitchen and Street Tacos.

“We are thrilled to open Hard Rock Hotel & Casino Bristol,” Jon Lucas, Hard Rock International’s chief operating officer, said in a statement. “Hard Rock’s rich history fits perfectly with Bristol’s distinction as the ‘Birthplace of Country Music.’ … With this property, Bristol — and the entire region — have a new major entertainment destination.”

The Bristol Hard Rock currently has 791 employees and expects to hire about 1,400 employees in all for the full resort. Hard Rock doesn’t have a set timeline for its hiring goal but expects to reach the 1,400-employee total “in the months ahead,” according to a spokesperson.

The 30,000-square-foot temporary facility in the former Bristol Mall has about 900 slots, 29 table games and a sportsbook. It also has a restaurant, Mr. Lucky’s, and a sports bar that will close when the permanent casino opens.

In its first year of operation, the temporary casino made $157 million in net gaming revenues. The casino hosted visitors from across the nation during its first six months of operation, Allie Evangelista, president of the Hard Rock Hotel & Casino Bristol, told Virginia Business earlier this year.

Since its opening, the temporary Bristol Casino has had more than 3 million visitors, paid more than $66 million in gaming taxes to the state, donated more than $960,000 to support local nonprofits and paid more than $260 million in jackpots, according to a news release.

TN Ward and BurWil Construction form the construction team for the Hard Rock Hotel & Casino Bristol.

The extended timeline follows a 2024-26 budget amendment directing the Virginia Lottery to renew, before June 30, temporary casino operators’ authorizations to conduct gaming for an additional six months beyond the previously codified two-year limit, provided certain conditions are met.

The conditions in the amendment are that:

  • A portion of the temporary gaming facility will be incorporated as part of the permanent facility;
  • the preferred casino operator has met the $300 million minimum capital investment;
  • and the Virginia Lottery “determined that the preferred casino gaming operator has made a good faith effort to comply with the approved construction schedule.”