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byline: Paula C. Squires

The Handcraft Building in Scott’s Addition is GRACRE’s Project of the Year

A former dry-cleaning facility that was redeveloped into a multi-use space credited with setting a new rent ceiling in one of Richmond’s hottest development areas won top honors as Project of the Year during GRACRE’S awards event on Tuesday.

More than 260 people turned out for the 17th annual awards presentation sponsored by the Greater Richmond Association for Commercial Real Estate, which recognizes the top commercial real estate projects in the Richmond region.

The top award went to The Handcraft Cleaners Building at 1501 Roseneath Road in Scotts Addition. Originally built in 1940 for Binswanger Glass as its headquarters and production facility, the 97,000-square-foot vacant building was purchased in 1983 by its current owners, Jay, Keith and Jeff Nichols. In 2016, the family decided to re-develop the structure as a multi-tenant office, retail, and manufacturing space.

Today, tenants include Vasen Brewery, Farhenheit Group, Randstad, Hazen & Sawyer, Blueswipe, Fergusson Enterprises, 510 Architects, Smithers and Co. and Stella’s Market.

According to GRACRE, the venture has set a new market rent in Scott’s Addition of $22 per square feet as well as creating a new standard for Class A office space.

Other projects that won top awards included a deal with Owens & Minor to lease nearly 90,000-square feet of vacant space at Riverfront Plaza in downtown Richmond for a new client engagement center.  The center, expected to create 300 new jobs and retain 200 that might have left the region, was named Transaction of the Year for 2017.  According to GRACRE, Owens & Minor considered 60 other cities before deciding to put the project in Richmond. Trib Sutton, Matt Anderson and David Wilkins of CBRE|Richmond were recognized for being the brokers on the deal.

The award for Industrial Project of the Year was the $20 million Amazon Sortation Distribution Center in Ashland. In this deal, known as “Project Lightning, developer Devon USA built a 328,000-square-foot building and got a certificate of occupancy to meet Amazon’s timeline in less than six months.  

Altogether, GRACRE recognized 23 projects and transactions during its ceremony at the County Club of Virginia. Here’s a list of the other winners with locations determined by zip codes: 

Best office: Envera Health, Richmond
Best large-scale retail: West Broad Marketplace, Richmond
Best small-scale retail: Studio Two Three, Richmond
Best health and wellness: Bon Secours Sarah Garland Jones Center for Healthy Living, Richmond
Best multi-family: Gallery Midtown Clubhouse, Richmond 
Best adaptive reuse project: The Eclipse (Phase One), Richmond 
Best mixed-use/infill: 2028 West Cary St., Richmond
Best historic renovation: 3540 Floyd Ellwood Thompson, Richmond
Community Impact Award: Goochland Cares, Goochland County
Cultural Impact Award: Science Museum of Virginia renovations and expansion, Richmond
Institutional Impact: Sargent Reynolds Community College Georgiadis Hall Renovation, Richmond


Award-winning transactions
Best office sale: Villa Park Data Center, Richmond
Best industrial sale: Deepwater Industrial Park, Richmond
Best industrial lease: TemperPack Technologies, Richmond
Best retail sale: Bermuda Square Shopping Center, Chester
Best retail lease: Sun Fuel/Martin’s Fuel stations, Richmond, Chesterfield County
Best retail lease revitalization: Dumbarton Square revitalization and Staples Mill Shopping Center, Henrico County
Best medical lease: Tuckahoe Orthopaedic at GreenGate, Richmond
Best multi-family sale: Wellesley Terrace Apartments, Richmond
Best land sale: Sheltering Arms at West Creek, Goochland County

Cushman & Wakefield | Thalhimer gets Colonial Williamsburg assignment

The Colonial Williamsburg Foundation has selected Cushman & Wakefield | Thalhimer as the exclusive leasing and commercial real estate services company for its real estate holdings in and around the Merchants Square district.

Colonial Williamsburg’s Historic Area and Art Museums and the campus of the College of William and Mary flank the area, located in downtown Williamsburg. Encompassing 10 city blocks, the mixed-use center includes 225,000-square-feet of retail, restaurant, entertainment, residential and specialty space and more than 30,000-square-feet of office space.

“Merchants Square has been a critical component of the overall Colonial Williamsburg guest experience, and its success is vital to the foundation’s mission,” Jeff Duncan, Colonial Williamsburg vice president of real estate, said in a statement.

Thalhimer said it would work with the foundation to create a five-year strategic master plan that enhances the economic value of its real estate holdings. “Our goal is to maximize the return of their real estate holdings in support of their mission,” Lee Warfield, Thalhimer’s CEO, said in a statement.

Thalhimer’s Dawn F. Griggs and Drew Haynie are leading the assignment. The partnership includes the launch of a new Williamsburg satellite leasing office for Thalhimer’s team in Merchants Square.

MCR buys Glen Allen SpringHill Suites by Marriott for $10 million

 

MCR, the seventh-largest hotel owner-operator in the U. S., said that it has acquired the SpringHill Suites by Marriott Richmond North Glen Allen for $10.85 million. The 136-unit property in Henrico County is located at the intersection of I-295 and I-95.

“We are pleased to make this investment in the Richmond area, a region MCR has successfully invested in previously,” Tyler Morse, CEO and managing partner of MCR, said in a statement. “Given the variety of demand generators and the continued investment from major corporations, we believe the property is positioned to generate positive returns for our investors.”

The hotel is located within 5-minute drives of regional distribution centers for Amazon, FedEx, and Supervalu, as well as regional offices for Capital One, Oracle, Lowe’s, Markel Corp. and Bank of America.

Situated at 9701 Brook Road, the property offers an indoor pool, fitness center, Wi-Fi, 300 square feet of meeting space and a 24-hour business center.

MCR said it has invested in and developed 102 hotel properties with more than 12,000 rooms in 26 states. MCR’s hotels are operated under 11 brands. The firm has offices in New York and Dallas.

CBRE|Hampton Roads to lease Summit Pointe, a new mixed-use development in Chesapeake

 

 

Summit Pointe Realty LLC announced Wednesday that it has selected CBRE|Hampton Roads to lease the office and retail components of Summit Pointe, a new public/private $300 million mixed-use development in the Greenbrier area of Chesapeake.

According to Summit, CBRE will provide development consultation and leasing services for Class A office space and retail and restaurant space. Summit Pointe is currently zoned for 1 million square feet of office space and 500,000 square feet of retail space.

The announcement of CBRE's selection follows the recent announcement of the selection of Drucker and Falk in Newport News for the residential apartment leasing and management of Summit Pointe.

Summit Pointe includes the world headquarters expansion of Dollar Tree Inc., a Fortune 500 discount retailer. The company’s new high-rise office tower is currently under construction with completion expected this summer. The 510,000-square-foot building will be the tallest office tower in Chesapeake, with visibility from Interstate 64. An adjacent parking deck with free public parking will have about 1,500 spaces. 

Adjacent to Dollar Tree's building will be restaurants and stores that Summit said would be unique to the area. “Summit Pointe will provide high-quality and new-to-market retail experiences for both coastal Virginia residents and Dollar Tree employees,” Chris Read, director of retail services for CBRE, said in a statement.

The Class A office space will have about 150,000 square feet and will complement Dollar Tree's headquarters. “The vision is to create a one-of-a-kind experience for Dollar Tree's employees as well as for the community at large,” Perry Frazer, managing director, CBRE, said in a statement. “Summit Pointe will attract residents, office tenants, and retailers because of its central location in the region and its convenient access to the interstate system.”

When the urban lifestyle community was announced in February, Chesapeake Mayor Rick West referred to it as “the beginning of a new downtown in Greenbrier for Chesapeake.”

 



 

 

JE Dunn Construction will manage $52 million hospital expansion project at Fort Eustis

JE Dunn Construction has been awarded a $52 million hospital addition and utility plant replacement project at the Joint Base Langley-Eustis Air Force Base at Fort Eustis, which is adjacent to Hampton and Newport News.

The expansion includes a two-story, 50,544-square-foot hospital addition to the existing facility and an 11,634-square-foot replacement of the hospital’s utility plant. Departments housed in the project include mental health, physical medicine, education/training and information management. The new utility plant will serve the addition and the existing hospital. After the new plant is completed and functional, the existing plant will be demolished.


According to JE Dunn, which announced the project, the expansion is a part of the national medical Multiple Award Task Order Contract (MATOC) program with the U.S. Army Corps of Engineers in the Little Rock District.


Partnered with Hoefer Wysocki Architecture, Dunn said it has designed and constructed more than $750 million in health-care facilities at more than 10 military bases across the nation in support of the  government’s modernization program over the past eight years.The federal government program allows the team to compete for the design and construction of health-care facilities across the country at active military bases against a select pool of qualified teams.

“This is an incredible time for JE Dunn and its federal health-care work,” Chris Grant, a senior project manager for JE Dunn, said in a statement. “Our ability to expand into the East with the USACE Norfolk District opens the door to a new federal geography. We are excited to take this on with our long-time partners, Hoefer Wysocki Architecture.”

The contract includes outfitting the building with furnishings and equipment. The project will be designed to achieve LEED silver certification. JE Dunn said design and construction will take 39 months.

Joint Base Langley-Eustis is home to the 633rd Medical Group, which serves 40,000 active-duty members, their families and retirees. Joint Base Langley-Eustis Air Combat Command is the primary force provider of combat airpower to America’s war fighting commands. Established in 1916, Langley AFB is the oldest continuously active air force base in the U.S. 

The consultant team includes JE Dunn, Hoefer Wysocki Architecture, ME Group, Henderson Engineers, Mitchell Planning, Walker and Moore, Hurt and Proffitt, Bob D. Campbell and Company, EDI, Protection Engineering Consultants as well as local trade partners, Watson Electrical and Warwick Plumbing and Heating.

J.E. Dunn is the 11th largest domestic general building contractor in the country with offices in 20 locations.

Riverside breaks ground on new rehabilitation hospital in York County

Riverside Health System, in partnership with Select Medical, broke ground Tuesday on the new $25 million Riverside Rehabilitation Hospital in York County.


Located on Josephs Drive in York County off Route 17, the 50-bed, 52,000-square-foot hospital is expected to open in summer 2019.The hospital is relocating from Newport News.

“By moving here to York County we’re going to be more centrally located for patients and families in York County, Newport News, Hampton, Gloucester, Smithfield, Isle of Wight and Williamsburg/James City County,” Bill Downey, President and CEO, Riverside Health System, said in a statement.  “With this facility we will have a major facility – nursing home or hospital – in every major city and county of the Virginia Peninsula, Middle Peninsula, Eastern Shore and Northern Neck.”

The hospital, building on its legacy from its current Newport News location, will remain the only freestanding rehabilitation hospital in the entire Hampton Roads region, which it has served since1986.

More than 200 Riverside team members will be employed on the new campus, serving an expected 800 patients or more per year.

The addition of the Riverside Rehabilitation Hospital marks the fourth health system facility to open in York County. Riverside currently operates three primary care practices in York County, including MD Express Yorktown, Patriot Primary Care and the recently opened Kiln Creek Primary Care, as well as Home Health & Hospice services.

“What we really celebrate today is what this facility will mean to the future of York County and our surrounding neighbors,” Jeffrey Wassmer of the York County Board of Supervisors said in a statement. “It brings a facility that will bring hope back into people’s lives. It brings a facility where challenges will be overcome.”

The Riverside Rehabilitation Hospital specializes in working with patients who have suffered from a brain injury, stroke, spinal cord injury, neurological disorder, amputation, orthopedic condition and cancer.


Brasfield & Gorrie will serve as the general contractor of the project, with additional support from companies like York County-based C.A. Barrs Contractor Inc. who is performing site work on the property.

Appian announces a headquarters expansion to Tysons that will add 600 jobs

Appian, a fast-growing vendor of business process management software, announced Tuesday it will move into the former Gannett Co. headquarters building at Tysons in a headquarters expansion that will retain 600 existing jobs in Virginia and create 600 new jobs over the next five years.


During an announcement with Gov. Ralph Northam and the Fairfax County Economic Development Authority at the new building, Appian revealed plans to invest $28.4 million in what will be its first corporate campus, integrating all of its offices and people under one roof.  Building owner Tamares Group and representatives of CBRE also joined the governor for the event. Tamares recently completed a multimillion dollar redesign of the building while CBRE served as the broker representing Tamares in the transaction.


Appian CEO Matt Calkins said in an interview with Virginia Business that it has signed a long-term lease for 200,000 square feet at Valo Park, a two-building complex at 7950 Jones Branch Drive in McLean. Appian will be the anchor tenant on the top floors of the Southern Building, and it also will have rights to space on the top floors of the Northern Building for future expansion.

“There are some great things about Reston, but we’ve been split between two and three buildings in the town center, and that’s a bit of a disadvantage. Our lease is running out … and so we had to find a new home,” Calkins said.

The CEO added that he was attracted to Tysons because of its central location, public transit and amenities that he said will give his company and employees a “real campus. There’s tennis courts, basketball, a cafeteria, a field, a lake, a running path. We just had slices of buildings in Reston Town Center.  This will be the first building that we will feel like is our building, and it will bring us together. ‘’ Appian plans to move to the new location in the second quarter of 2019.


Designed by architect Kohn Pedersen Fox, Valo Park comprises 785,000 square feet of trophy office space and tenant amenities including conference facilities, a 20,000-square-foot fitness facility and a 300-seat auditorium. Tenants also have access to a newly renovated lobby restaurant and coffee bar and a full-service eatery. Additionally Valo Park’s 16-acre campus includes gardens, outdoor picnic areas and art installations.


“Appian’s major headquarters expansion and the overall impact of 1,200 valuable jobs is an important win for Northern Virginia, the commonwealth, and our booming IT sector,” Secretary of Commerce and Trade Brian Ball said in a statement.  “We are proud this innovative tech leader will remain on Virginia’s headquarters roster, and we thank Appian for its significant investment and corporate partnership.”


Appian’s expansion follows one of the most successful IPOs of 2017. The company debuted on the NASDAQ on May 25, 2017, with a $75 million filing. It sold 6.25 million shares at $12 each, with the shares closing 25 percent higher by the end of the market’s close at just over $15 a share. Today Appian’s stock is selling for $26.44, and it has been as high as $43.26.  

The company currently employs 1,000 people, including 600 who work in Northern Virginia. It plans to add 600 more jobs in Virginia to meet what Calkins said is a growing demand for the company’s software development platform. 

Founded in 1999 in a Northern Virginia apartment, Appian designs a platform that enables other companies to customize and create their own individual software programs. “We’re selling something that companies everywhere are scrambling to buy,” Calkins said. “We’re seeing a lot of growth just doing what we do … Appian is the world’s easiest way to make sophisticated, unique software.” 
The company’s customers include companies such as Sprint, Cigna, Barclays, Edward Jones and several federal agencies. 

Virginia competed against Atlanta and Raleigh for Appian’s expansion. According to Calkins, the incentive bids from these cities were higher than Virginia’s. “The bids were substantially more than what Virginia put forward. However, I didn’t want to go anywhere. I’m flattered by the outreach, but I wanted to stay in Virginia.”

The Virginia Economic Development Partnership worked with Fairfax’s Economic Development Authority to secure the project for Virginia. Gov. Northam approved a $4 million grant from the Commonwealth’s Opportunity Fund to assist the county with the project. Funding and services to support the company's employee training activities will be provided through the Virginia Jobs Investment Program.

Fairfax County also plans to accelerate $4 million in infrastructure improvements for a road project near Tysons that Calkins said would benefit all tenants in addition to Appian.

ACA International will invest $52 million for Virginia Beach data center

​Assured Communications Advisors International (ACA International), an international telecommunications consultancy firm headquartered in Vint Hill, announced plans Tuesday  to invest $52 million in Virginia Beach to open a 130,000-square-foot data center.


ACA International said it is is purchasing a 10.2-acre site in Corporate Landing Business Park from the Virginia Beach Development Authority for $2.04 million. The company will build a 130,000-square-foot facility that will house its new corporate headquarter offices and a tier III data center providing neutral co-location services.


It also would serve as the cable landing station for future subsea telecommunications cables. ACA International said the probject would create 30 jobs with average annual salaries of $59,000. Completion is anticipated in the fourth quarter of 2019.


“Virginia Beach is the new center for coastal continental edge, ultra-high speed global telecommunications on the East Coast with new connectivity options being developed connecting Europe, Africa, and LATAM,” Joel Ogren, president and CEO for ACA International, said in a statement.


Since 2015, ACA International has been involved in multiple undersea network projects and international telecom strategies and feasibility studies. It serves clients in the U.S., Europe, Australia, Latin America, Middle East and Asia. The company provides strategy, project planning, development and oversight of broadband, satellite, sub-sea cables, wireless/mobility and smart city planning.


“Virginia Beach has captured the world's attention with the fastest subsea data cables installed by Microsoft, Facebook and Telxius,” Virginia Beach Economic Development Director Warren D. Harris, said in a statement. “Businesses in Virginia Beach can reach customers in Europe, Africa, the Middle East and South America more quickly and efficiently than from anywhere else in the world. Additional cables are being planned and will be announced later this year that will provide even more incentives to establish data centers in Virginia Beach.”


The Virginia Beach Development Authority has awarded ACA International an Economic Development Investment Program grant in the amount of $500,000 based on the company's total capital investment of $52 million.


Corporate Landing is a 325-acre publicly developed business park owned by the Virginia Beach Development Authority.

Louisa County industrial property sells for $2.4 million

 

RGE LLC has purchased a 20-acre, 108,000-square-foot industrial property in Louisa County from MELCP LLC for $2.4 million as an investment.

According to the Charlottesvile office of Cushman & Wakefield | Thalhimer, which brokered the sale, the property is located at 675 Industrial Way. 

John Pritzlaff and Jenny Stoner of Cushman & Wakefield | Thalhimer handled the sale negotiations on behalf of the seller.

Lidl buys 219,978-square-foot property in Virginia Beach for $5.9 million


Lidl U.S. LLC, a Germany based discount grocer, has purchased a 219,978-square-foot building on five acres in Virginia Beach for $4.9 million from Haygood Medical Associate LP. The property is located at 1020 Independence Blvd.

Lidl opened its first stores in the U.S. in June 2017, including sites in Hampton and Virginia Beach.  The company also has opened stores in Richmond. It has announced plans to open about 150 stores in America by the end of this year.

Ned Williams of Norfolk-based Harvey Lindsay Commercial Real Estate handled the transaction providing dual agency representation.

In other transactions for Harvey Lindsay in Hampton Roads:
  
New Beech Grove Baptist has purchased 45,300 square feet on 4.5 acres located at 361 Beechmont Drive in Newport News from Calvary Chapel Newport News. The property sold for $3 million. Bob Saunders represented the seller in the transaction.


Obici Ventures LLC has purchased 25,380 square feet on four acres located at 1001 Obici Industrial Boulevard from CMLT 2008 – LS1 Obici Industrial. Andy Stein represented the buyer.