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

Best Places to Work in Virginia

Hamburger Menu Hamburger Menu

byline: Paula C. Squires

CBRE|Hampton Roads selected to lease Suburban Capital retail portfolio

 

 

CBRE|Hampton Roads has been selected as the exclusive leasing agent for a 635,852-square-foot retail portfolio owned by Suburban Capital.

 

The portfolio includes nine properties in Chesapeake, Norfolk, Virginia Beach and Elizabeth City, N.C.

 

The properties are anchored by tenants including Harris Teeter, Target, and Super Walmart. Other national and regional tenants include Starbucks, Party City, Dollar Tree, Mattress Firm, Massage Lux and Navy Federal Credit Union.

 

Natalie Hucke and Kevin O'Keefe of CBRE | Hampton Roads will oversee the leasing of the properties on behalf of the landlord. Suburban Capital is a private commercial real esate company based in Virginia Beach. 

 

The Heironimus building in downtown Roanoke is on the market

 

 The Heironimus building in downtown Roanoke is on the market.

 

Cushman & Wakefield | Thalhimer said Monday that it will serve as the exclusive sales representative for the 80,000-square-foot building, one of the last and largest remaining significant redevelopment opportunities in Roanoke’s downtown historic district.  

 

“We are extremely excited to take this unique opportunity to the market and believe that it will be very attractive to both the local and statewide adaptive reuse and tax credit development community. The building is located in the heart of downtown Roanoke along the city’s innovation corridor and is positioned for the next wave of mixed use development,” Thalhimer’s John K. Nielsen said in a statement.

 

The five-story, brick, steel and concrete building at 401 S. Jefferson St. was constructed in 1915. The property sits on the southwest corner of Church and Jefferson and is within walking distance of the area’s main core of office space, restaurants and boutique retail establishments.

It’s also close to several of the area’s major employers as well as the Virginia Tech Carilion School of Medicine and Research Institute, the Jefferson College of Health Sciences and Radford University graduate programs.

 

Blue Bell announces new ice cream distribution facilities in Richmond and Suffolk

Blue Bell ice cream is returning to metropolitan Richmond.  The Brenham, Texas-based company said Thursday that it would come back to Richmond and surrounding cities in 2019, following the construction of two 14,000-square-foot distribution facilities in Ashland and Suffolk.


“We can’t thank our customers enough for their patience while we work to get back to Richmond and the surrounding areas,” Wayne Hugo, vice president of sales and marketing for Blue Bell, said in a statement. 


The company closed its distribution centers in Richmond and Suffolk in spring 2015 as part of the company’s response to a listeria outbreak linked to its plant in Brenham. According to published news reports, 10 people became sick, three died, and the company recalled 8 million gallons of ice cream during the outbreak.


A company spokesman said that, since then, Blue Bell has made necessary enhancements to its operations including equipment, employee training, policies and procedures. As a final assurance, it also implemented a test and hold procedure where ice cream is tested and held at a production facility before it is shipped to distribution centers.

Jenny Van Dorf, public relations manager for Blue Bell Advertising Associates, said in an emailed statement to Virginia Business that the company began returning to its markets in August 2015, gradually returning to 10 of the 12 markets it suspended.  “In these markets, facilities were in place and maintained while our operations were suspended, and we needed only to build inventory and staff for the facilities to reopen. To return to Richmond and Suffolk, we will need to build distribution facilities.”

The distribution center in Ashland, expected to be completed in early 2019, will include cold storage space with loading docks, fleet parking and administrative offices. It will serve cities within a 70-mile radius. Blue Bell plans to hire 20 to 30 full-time employees to operate the facility and distribute its products.


The property in Suffolk, located in the Northgate Commerce Park, will follow the same model and also expects to hire up to 30 people. Blue Bell’s return to Suffolk, where it previously had a small distribution facility, comes with support from the Suffolk Economic Development Authority. According to Blue Bell, the authority’s board voted Wednesday to provide the company with a $100,000 economic development investment program (EDIP) grant for the capital investment and job creation.


“We are especially grateful for the assistance from the Suffolk Economic Development Authority and the grant we have been provided,” Hugo said.
“Currently you can purchase Blue Bell in a small section of western Virginia,” he said in a statement. “With distribution locations in Ashland and Suffolk, Blue Bell will be able to expand our sales area to include the eastern portion of Virginia.”


Currently Blue Bell is available in parts of 22 states and produces a line-up of ice cream products, including sherbet and frozen snacks.

New commerce and trade secretary highlights goals of Northam administration

 

 

 

What does a speaker tell a group of economic developers?  How important economic development is, of course.  That theme was constant in remarks from Esther Lee, Virginia’s new secretary of commerce and trade, during a keynote address Thursday to the Virginia Economic Developers Association (VEDA). 

 

About 220 people attended a luncheon at the Westin Hotel in Henrico County, site of a three-day conference sponsored by the VEDA.

 

In one of her first major public appearances since being appointed by Gov. Ralph Northam in January, Lee — formerly the vice chair of the Fairfax County Economic Development Authority and a senior policy adviser to the U.S. secretary of commerce under President Barack Obama — highlighted some of the goals of the new administration.

 

One of the governor’s top priorities is “to return Virginia to the spot it once held as best place in the country to do business,” Lee said. “That means attracting new businesses to the commonwealth, helping new businesses get off the ground and helping existing businesses grow.”

 

In the past three months, Northam’s administration has announced 35 economic development projects, representing $440 million in capital investment and nearly 22,000 jobs created or saved. “That’s $40 million more than Gov. McAuliffe had at this same point in his term,” Lee noted.

 

Despite this “impressive” list of early successes, she said, Virginia still has a ways to go to reclaim its top ranking. That’s why Northam has restructured some of the building blocks of economic development, creating, for instance, the position of chief workforce development adviser and elevating it to the cabinet level, Lee said.  Filling that position is Megan Healy.

 

Connecting Virginia workers with the skills employers need is another top goal along with building economic opportunities in rural Virginia. “We want to build a Virginia in which people can stay in the communities they love, where they have roots and connections, without sacrificing their goals and their opportunities. “

 

Northam’s team has hired Cass Rasnick to serve as a deputy secretary of commerce and trade for rural economic development. Northam does not have a secretary of technology in his administration, Lee said, preferring to put the agencies formerly in that secretariat under the oversight of the secretaries of administration and commerce and trade.

 

 

That means that the state’s Center for Innovative Technology in Fairfax County is part of Lee’s team. The CIT plays an important role, she added, in helping Virginia support entrepreneurs and startups. “In the last 30 years, nearly all net new jobs in the U.S. were created by startups,” she said, noting that Virginia needs to develop this sector of the economy. 

 

Lee praised GO Virginia, a new organization providing state funds for regional growth and economical diversification projects, as “ a big step in the right direction.” So far the GO Virginia Board, on which she sits, has funded projects in three primary categories: workforce, infrastructure and commercialization.

 

Another goal is making a difference on broadband. “We’ve all heard about the digital divide. It’s very real here in Virginia,” she said, “Hundreds of thousands of homes and businesses still don’t have access to reliable, high-quality internet connections. This is unacceptable in 2018. “

 

Lee said it is time for public and private stakeholders to agree on a set of broadband goals for the state, with Virginia creating a clear set of metrics to evaluate access, upload and download speeds. 

 

A good example of the type of collaboration that leads to progress can be found in Southern Virginia, Lee told the audience. The Virginia Tobacco Commission, Mid-Atlantic Broadband and Microsoft worked together on a project that utilizes unused portions of television broadcast spectrum to provide high-quality wireless broadband. The group was able to connect about 1,000 households last year.

 

Lee also stressed Virginia’s strong economic development assets.  The state is home to 23 Fortune 500 companies. It also has the Port of Virginia, one of the busiest and deepest ports on the East Coast, and more than 70 percent of the world’s internet traffic flows through the commonwealth. “Did you know that every car in the world has a memory chip produced in Virginia,” she asked?

 

 The  Washington, D.C., metro area also produces more digital tech-related degrees and certificates than any other region in the U.S., including Silicon Valley, she said.

 

 “With all these assets, it’s no wonder that Virginia is a finalist in the hunt for Amazon’s new headquarters. If we win, it will bring hundreds of millions of dollars in new state tax revenues, which will help all regions of Virginia. We’ve spent a lot of time with the Amazon team, and I know they have been impressed at the monumental effort that Virginia has put forward during this process. “

 

At times, she added, “it has felt like a beauty pageant.”  In fact, this week the governor made a cameo appearance in the new season of “The Bachelorette” being  filmed in Richmond, because “he thought it would help us ‘get the rose” from Amazon,” Lee joked.  The episode will run on July 2.  

 

 

 

 

Kroger hiring 420 employees in mid-Atlantic Division

Kroger is hiring to fill about 420 jobs in its stores in the mid-Atlantic Division.

The grocer said the jobs include hourly and management positions in122 stores of the division, which includes Virginia, West Virginia, North Carolina and Ashland, KY; Marietta, Belpre and Proctorville, Ohio; and Kingsport and Johnson City, Tenn.

Interested applicants should apply at jobs.kroger.com. Throughout the country, Kroger is hiring to fill an estimated 11,000 jobs in its supermarket divisions.

“Over the last decade, Kroger has added 100,000 new jobs in communities across America,” Allison McGee, corporate affairs manager of the Mid-Atlantic Division, said in a statement.  “In addition to fueling the economy, many of our jobs are an opportunity for associates to grow and advance their careers.”

The mid-Atlantic Division, with a headquarters in Roanoke,  also includes 119 pharmacies and 93 fuel centers in addition to the 122 stores.

Hotel occupancy and revenue expected to rise in Virginia this year

 

Hotel occupancy and revenue are expected to rise in Virginia this year, according to a report from Marcus & Millichap. The Hospitality Research 2018 Investment Forecast for Washington D.C./ Central Atlantic credits reduced supply-side pressure in Virginia, combined with multiple corporate expansions and relocations, for its upbeat expectations for the industry. 

The national commercial real estate brokerage firm predicts that  the District of Columbia, Virginia and Maryland will each see the addition of 2,000 new rooms in their hotel pipeline.

Although Washington, D.C., regularly attracts the most number of hotel transactions of all Central Atlantic metros, most of these deals do not actually involve properties located in the District. In 2017, the forecast noted that twice as many hotels were traded in the suburbs of Northern Virginia than in the nation’s capital. Institutional investors primarily targeted these assets, which consist almost entirely of upscale or luxury establishments.

In other markets, including Baltimore, Richmond and Hampton Roads, most sales involve lower-priced, limited-service properties.  In this group of markets, buyers who seek assets in the $1 million to $10 million range tend to look toward the tourism destinations within Hampton Roads, closer to the coast. The forecast said that last year multiple trades were completed in Virginia Beach and in Williamsburg, a college town.

The forecast’s regional highlights:
Richmond hotels are well positioned for 2018. Minimal construction at just 0.9 percent of inventory relieves supply-side pressure during a time when the area is becoming a more popular destination for those who travel to enjoy fine cuisine, craft beer and nature.


Norfolk-Virginia Beach reported a 270-basis-point jump in occupancy and 9.3 percent increase in RevPAR (revenue per available room)  last year. A consistent trend of increased visitor spending will lead to continued positive metrics for 2018.


Tourism in Baltimore is on the upside as more than 25 million visitors come to the city each year, spending a collective $5.6 billion. An effort by tourism organizations has also increased the number of citywide conventions that will be held in the metro going forward.

2018 region forecast: 

Supply up 1.8 percent: The number of rooms under construction in the region increases from last year to 7,320. D.C., Virginia and Maryland will each receive more than 2,000 rooms.

Occupancy up 10 basis points:  A higher rate of supply growth this year will keep occupancy from advancing beyond a value of 65.2 percent.

ADR up 2.2 percent: ADR (average daily revenue) will improve to $125.55, less than it did last year, as new supply reduces the number of high occupancy nights essential for driving strong rate growth.  As ADR advances, RevPAR will increase for the eighth straight year to $84.94.  Last year RevPAR rose by 3.3 percent.

Investment: Private investors looking to cross into the hospitality market may find opportunities in the Richmond area. Accounting for differences in room number and building age, entry costs in the city are lower than in other Virginia markets for similar asset types. Buyers interested in holding properties for longer periods will observe lower cap rates in the Williamsburg area.

‘Topping out’ party celebrates milestone in development of The Boro


The Meridian Group and Rockefeller Group celebrated a major milestone Monday for The Boro, a new, mixed-use development in Tysons that will offer 4.2 million square feet of office, retail, residential and entertainment space.

The developers held a “topping out” party for Boro Tower, a 437,000-square-foot, 20-story office tower that’s about halfway through construction.

“To see Boro Tower at its full height, within the larger context of The Boro, is to see the future of work, living and lifestyle in Tysons,” Daniel Moore, president and CEO of Rockefeller Group, said in a statement. 

Meridian, based in Bethesda, Md., and Rockefeller Group, known for its development of the Rockefeller Center in New York, are co-developing the building, which offers panoramic views from the Blue Ridge Mountains to downtown Washington, D.C.

Skanska, which is building Boro Tower and a ShowPlace ICON theater, hosted the topping-out party, attended by more than 400 people, to recognize those helping to design and construct the buildings.

“We’re more than halfway done completing this phase, and we wanted to thank all of those who have played an important role in our success so far,” said Jason Phillips, senior vice president of the Meridian Group, who is overseeing construction of The Boro.

At full build-out, The Boro development plans to offer more than 1,500 residential units as well as 1.9 million square feet of office, 350,000 square feet of retail, 250,000 square feet of hotel space and the theater.

The first phase of the project, scheduled to be completed in October, will include:

•      Boro Tower, an office building that already has attracted tenants, including Tegna, a media company that has preleased 46,200 square feet for its new headquarters; and Hogan Lovells, an international law firm has preleased 44,520 square feet.

•      ShowPlace ICON Theatre, which will open a new cinema with 14 screens and upscale dining options.

•      Boro Park, which will provide a performance stage, an interactive water feature, outdoor seating and a 1,100-square-foot retail kiosk.

•      A five-level, 1,200-space, below-grade parking garage that spans the entire block.

Located on a 15-acre site within walking distance of the Greensboro Metro station, The Boro also has attracted a Whole Foods Market, which plans a 69,000-square-foot location there.

Zayo acquires data center in McLean

 


 

Zayo Group Holdings Inc. has acquired a data center in McLean. The price was not disclosed.

The Boulder, Colo.-based company said the acquisition, which includes tenants, data center systems and long-term leases, was driven by strong demand in the Washington, D.C., area for low-latency colocation, interconnection and access to fiber infrastructure.

The 62,000-square-foot facility is Zayo’s second data-center acquisition in Northern Virginia. It’s located at 1764 Old Meadow Lane. Zayo plans to upgrade the critical power at the site to 3 megawatts (MW) and to make other enhancements.

The data center will tether directly to Zayo’s data center in Ashburn, and to Zayo’s network point of presence on M Street in Washington.

“Northern Virginia is one of the most important data-center markets in the world, with a diverse base of service providers, enterprises, and government agencies all contributing to strong demand,” T.J.  Karklins, senior vice president of Zaco’s Colo business segment, said in a statement.  “This acquisition provides an important second Northern Virginia location for our client solutions and creates a strong data-center option for firms located downtown and in the heart of the Beltway.”

 

Meridian Group recapitalizes Boro Station with joint venture partner


The Meridian Group said Monday that it has secured a joint venture partner for the recapitalization of Boro Station, selling a majority interest in the three-building complex in Tysons to MetLife Investment Management.

Meridian will retain a minority interest in Boro Station (formerly known as Greensboro Station) and continue day-to day management of the property. 

Globestreet.com reported that MetLife and Mubadala Investment had closed on the transaction, with a 95 percent stake in Boro Station for $244 million. It reported that the Meridian Group kept a 5 percent stake. 

Boro Station comprises three recently renovated office towers of about 630,000 square feet and a 1,602-car parking garage. It’s located steps away from the Greensboro Metro Station.

The offices serve as the gateway to The Boro, Meridian’s new development that’s currently under construction and will offer 4.2 million square feet of office, retail, entertainment and an open park space on 15 acres. 

“Boro Station represents an outstanding opportunity for MetLife Investment Management to participate in the activity and the buzz that comes with the Boro District,” Gary Block, partner and chief investment officer of the Bethesda, Md.-based Meridian Group, said in a statement.

Meridian acquired Boro Station from Science Applications International Corp. (SAIC) in 2013 for a reported $85 million. Since then, the company says it has invested more than $60 million on renovating and repositioning the development.

Renovations have included replacement of mechanical systems, renovating common areas, upgrading the lobbies, improving the fitness center and re-orienting the property towards the new Metro station. Additions included a new conference center, a two-story café and a Starbucks.

Office flex building sells in Norfolk for $3.9 million

 

 

A 57,734-square-foot office/flex building on Eltham Ave in Norfolk Commerce Park has sold for $3.9 million dollars to Eltham Holdings LLC.

 

According to CBRE|Hampton Roads, which brokered the sale, the seller was SCP-G Eltham LLC. The building is occupied by third-party tenants with three suites available.

 

 CBRE has been retained for the management and leasing of the building.  Scott Adams and Perry Frazer of CBRE|Hampton Roads arranged the sale on behalf of the seller.