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byline: Paula C. Squires

Mike Early rejoins Marcus & Millichap as a director of National Retail Group

 

Mike Early has rejoined Marcus & Millichap as first vice president investments and a director of the National Retail Group. Early will be based in the firm’s Richmond and Norfolk offices.


“We are pleased to welcome Mike Early back to the firm,” Bryn Merrey, senior vice president and southeast division manager, said in a statement.  “Over the past 18 years he has completed investment asset sales across 13 states and the District of Columbia. His success and expertise in the retail property sector are a tremendous asset for our clients both in Virginia and throughout the nation.”


Early specializes in the brokerage, consultation and debt restructuring of investment properties throughout the mid-Atlantic region. He has handled the disposition of shopping centers, multi-family communities, office buildings, single-tenant, net-leased properties, mixed-use buildings as well as assets occupied by state and federal governments.

State’s business recruiting arm announces members of committee on international trade

Editor's note: The original photo posted with this story was not Hampton Dowling. Virginia Business has corrected the photo and regrets the error. 

The Virginia Economic Development Partnership (VEDP) Thursday announced the appointment of its new Committee on International Trade. It will be headed by Hampton Dowling of Potomac Falls, managing partner of The HCB Group LLC.

In the 2017 session the Virginia General Assembly mandated the establishment of the committee to advise VEDP’s board of directors on international trade and trade promotion.

The committee includes one ex-officio, voting member; a member of the board of commissioners of the Virginia Port Authority; two citizen members appointed by the governor; and five appointed by the General Assembly Joint Rules Committee. Each citizen appointee has experience or expertise in international trade or trade promotion.

The ex-officio member is Virginia Secretary of Agriculture and Forestry Basil Gooden.

Gov. Terry McAuliffe appointed Stuart S. Malawer of Great Falls, a professor of law and international trade at George Mason University; John N. Pullen of Richmond, chief growth officer, Luck Cos. and vice chairman of the board of commissioners of the Virginia Port Authority; and James Xu of Richmond, CEO, Avail Vapor LLC, and executive vice president, Evergreen Enterprises and Plow and Hearth.

The General Assembly appointed Dowling, Bob Feeser of Richmond, president, consumer packaging, WestRock; George Judd of Fredericksburg, principal, Cask Services LLC; H. Michael “Mike” Ligon of Richmond, vice president, corporate affairs, Universal Corp.; and Arthur “Art” W. Moye, Jr. of Norfolk, executive vice president, Virginia Maritime Association.

  “Helping the commonwealth’s existing businesses enter and succeed in the global marketplace is a strategy that promotes economic vitality, and the establishment of this advisory committee demonstrates Virginia’s commitment to international trade,” McAuliffe said in a statement.  “As we continue to build the new Virginia economy, increasing the commonwealth’s exports is an important part of our efforts to diversify and grow industries of the 21st century.”

The General Assembly created VDEP in 1995 to encourage, stimulate and support the development and expansion of the economy of the commonwealth.  The partnership focuses its efforts on business recruitment, expansion and international trade.

Virginia’s real estate industry generated $67 billion in economic activity in 2016

Virginia's real estate industry generated $67 billion in economic activity in 2016, the second-largest generator of direct economic activity in the state, according to a new report commissioned by an industry group.

Virginia Realtors, the state’s largest real estate trade group, released the report’s findings Wednesday. To focus on the industry’s overall economic impact, it looked at not only housing, but also transactions across several private sectors.

“Real estate touches every aspect of our lives from home to work to play… In broad terms we define the real estate sector as including housing, offices, retail and other commercial buildings, and industrial buildings, including manufacturing and warehouse structures,” the report said. It did not include institutional buildings, such as courthouses and fire stations, the impact of which would be included in public spending.

In a 2016 study for the Virginia Housing Policy Advisory Council, the George Mason University Center for Regional Analysis estimated that the housing component of the real estate industry directly and indirectly boosted economic activity in Virginia by almost $48 billion for 2015. The new research updates and expands  the previous analysis by including commercial and industrial real estate and
related activities.

Some of the findings:

The overall $67 billion in total economic activity in 2016 increased
gross state product by more than $36 billion and labor income by over $20 billion,

The industry supports more than 445,000 jobs across the commonwealth,

The economic activities boosted tax revenues for state and local
jurisdictions by more than $2.2 billion.

                According to Virginia Realtors, the industry trailed only federal government spending of $94.6 billion in 2016, in terms of economic impact. In the private sector, the health-care service industry came in No. 3 with a $43.5 million impact in 2016 with retailing ranked No. 4, with $36.5 billion.

Crisis communications

In his first public comments on how Charlottesville’s tourism agency responded after a violent rally there led to a fatality, Kurt Burkhart had this message for other convention and tourism bureaus: Plan ahead and be prepared.  

Burkhart, executive director of the Charlottesville Albemarle Convention & Visitors Bureau, said destination-marketing agencies “are on the front lines” when violent incidents occur because the public wants to know when and if a city is safe. 

That’s why it’s important to have a crisis communications plan.

Burkhart talked about crisis communications and what his agency learned from the events of Aug. 11-12, when a  “Unite the Right” rally was held in Charlottesville to protest the removal of a Robert E. Lee statue from a city park. He spoke during a panel discussion Tuesday at the VA1 Tourism Summit in Norfolk.

The panel was one of several on the closing day of the three-day conference, an annual event that drew 500 travel professionals from around the state to the Hilton Norfolk the Main. 

Dealing with crisis has been top of mind for Virginia’s travel industry since a 32-year-old counter protestor in Charlottesville, Heather Heyer, died after a man at the rally drove his car into a crowd, striking her.  Then on Oct. 1, a gunman staying at the Mandalay Bay casino and resort in Las Vegas killed 58 people and wounded nearly 500 others during a country music festival. 

In Charlottesville, Burkhart said his operation, a city agency, took its lead from the city, which was handling the preparations and advisories for the rally. In the days leading up to the event, social media was abuzz with posts about who was coming and what type of weapons they planned to bring, but “traditional media gave little credence to the event,” said Burkhart.

“We were monitoring this very carefully,” he added.  “As this was unfolding, the community was bracing for the worst.”

After the tragedy, the Virginia Tourism Corp., the state’s tourism agency, offered its support and assisted Charlottesville with messaging, Burkhart said.  “Rita McClenny [the CEO of the Virginia Tourism] called and said, ‘The state is behind you. Anything you need, let us know.’”

Burkhart added that his agency pulled radio, television and digital advertising for a week “out of respect for the fallen on that day. “  The convention and visitor’s bureau also kept a low profile on social media.  “It concentrated on telling the public that Charlottesville had had a difficult weekend, and that there would be some difficult days ahead.”

Some positive messages also started to come out, with Charlottesville saying that it was a city of love, not hate, in keeping with the state’s tourism slogan “Virginia is For Lovers.”

Another event that helped the city’s recovery was a concert held shortly after the rally that included some local talent, such as Dave Matthews, and other well-known performers who wanted to show their support for the city.

Burkhart said his agency is seeking and reviewing crisis communication plans from other convention and visitors bureaus around the country because it wants to beef up its plan. “We want a plan that goes beyond internal operations,” he said, adding it will adhere to best practices through the Destination Marketing Accreditation Program, a globally recognized program.

In terms of what he has learned from the Charlottesville tragedy, Burkhart listed these things: Consult with the Virginia Tourism Corp., stick to the facts and keep the agency’s stakeholders informed.

Another panelist, Jennifer Sigal, media relations manager for Visit Loudoun, said her agency has implemented a crisis communications plan.  “Luckily, we haven’t had to use it yet … But when you are in that hectic moment, you have something to turn to. A crisis can negatively impact tourism.’’

Sigal added that it’s important to have a single point of contact, a person who will respond to the media, to keep the messaging consistent. 

Mark Hubbard, a senior vice president at McGuireWoods Consulting in Richmond, also spoke to the group. Hubbard’s work focuses on crisis communications, which he described as involving “an event that’s unexpected, and the narrative is out of your control. It means you’re playing defense instead of offense. That’s difficult for the travel industry, which is usually on offense telling their stories of why people should come to their destinations.” 

Hubbard’s advice was to have a plan and to practice it before a crisis hits. “You have to plan ahead, have a crisis strategic plan and you have to put it to the test.”

Travel executive says travel is the front door to economic development

 

The U.S. travel industry is the country’s front door to economic development. More needs to be done to promote it and to encourage Americans to take their paid time off.

Those were the key themes shared by Roger Dow, the president and CEO of the U. S. Travel Association, to an industry crowd Monday at the VA1 Tourism Summit in Norfolk. The annual conference drew about 500 people from travel and related industries who are gathering for three days at Norfolk’s newest downtown hotel and conference center, Hilton Norfolk the Main.

The second day of the conference opened with music, pageantry, and a salute to the port city’s 100th-year anniversary as the world’s largest naval base.  Dow gave the keynote luncheon speech, noting that the travel industry provides 15 million American jobs and has a $2.1 trillion dollar impact on the nation’s economy.

The impact cuts across many sectors, including real estate, restaurant, agriculture, sports and retail enterprises. “Forty percent of all fine dining occasions in restaurants come because someone traveled there,” he noted.

“We need to do a better job of telling the story of how important we are,” Dow added, particularly at a time when international inbound travel to the U.S. is down by 2.8 percent. According to him, that translates into a loss of $7 billion for the economy and 40,000 jobs.

The head of the country’s largest travel advocacy group pointed out that the U. S. Travel Association works collaboratively with presidential administrations. “I’m trying to get the current administration to use this phrase: We’re closed to terrorists, but we’re open to business and everyone else.

Security is important,” he added. “Without security we have no travel. Just look what happened in Turkey and Egypt,” Dow said, referring to huge drops in travel in those countries following terrorism events.

Even with the drop in inbound international travel, however, the U.S. is doing better than it was during what Dow referred to as “the lost decade.” From 1995 to 2005, America lost 37 percent of its market share in international travel. While other countries were inviting visitors with major promotions, Dow said America made it difficult for people from some countries to get travel visas, and it didn’t invest enough in promotion.

Since then, the U.S. has boosted the number of visa waiver countries from 27 to 38. The program doesn’t waive the need for a visa, Dow explained. It provides a layered security program in cooperation with other countries that makes it easier for people to enter the U.S. for travel.

In addition, Dow’s group supports a program called Brand USA, a private, nonprofit destination marketing organization. “It levels the playing field,” because the program, which has has a $200 million marketing budget, helps states like Virginia that don’t have huge marketing budgets. “Not everyone has a mega budget like Las Vegas … So now you can be in the markets you want to be in, and you can say here’s what want we can offer in Virginia.”

The program spends money on promotions to attract international business and leisure travelers to all 50 states — not just the major gateway cities.

It’s one of the ways travel industry is fostering change, with “charting change” the theme of the conference.

Dow also told the audience about another new initiative. This one is designed to inspire more Americans to travel by taking their paid time off. In 2,000, research shows that Americans took an average of 20.2 days off a year. By 2016, that number had fallen to 16.2 days, or a loss of four days a year.   In Virginia, about 59 percent of employees were not taking all their paid time off, leaving 16 million unused days of vacation — or a potential of $209 billion in travel spending — on the table. “We were becoming a no vacation nation,” Dow said.

Companies need to recognize the importance of letting employees unplug and take vacation. In that vein, Dow told people to mark their calendars for a National Plan for Vacation Day that’s coming up on Jan. 30, 2018.  More than 500 organizations in all the states are banning together to sponsor the project.

Closer to home, the Virginia tourism industry is working with the Brand Center at Virginia Commonwealth University on a “Crush Fridays,” promotion. It’s designed to encourage employees to take all their vacation time off by taking off occasional Fridays for a long three-day weekend. 

During the conference, Norfolk did not waste an opportunity to promote itself to the tourism industry. Officials touted the city’s thriving arts scene and the upcoming 2018 Virginia International Tatoo, a musical event that will be held at Norfolk’s Scope arena in April 2018. It includes military bands, drill teams, and performers from the U.S. service branches and militaries around the world.

Keswick Hall & Golf Club to begin major renovation in January

 


Keswick Hall & Golf Club, a 600-acre luxury resort located just outside Charlottesville, announced that the property would begin a major renovation of its 48-room hotel in January. 

The project includes comprehensive reconstruction of the building’s interior and foundation as well as a floor-to-ceiling makeover of all hotel rooms and suites, public spaces, meeting facilities and food and beverage outlets. The goal of the improvements is to preserve the integrity of the structure and provide a more luxurious setting for guests.

During the renovation, the resort’s golf course, Full Cry at Keswick Golf Club, will remain open, as will the golf clubhouse with its Club Grill restaurant, spa, fitness center, driving range and members’ pool.
Also unaffected will be the property’s pavilion pool and tennis facilities. The hotel is scheduled to reopen in the spring of 2019.
 
Global design firm Hart Howerton, with headquarters in New York and San Francisco, will oversee the project. Hart Howerton has helped shape legacy clubs and resorts in places such as South Carolina’s Palmetto Bluff, Jupiter Island Club in Hobe Sound, Fla.; and The Island House in Nassau, The Bahamas.

“It’s truly an honor for us to be the guardian of such a beautiful building that now needs to be modernized to remain at the forefront of premier luxury resorts in the U.S.,” John Trevenen, Keswick Hall's general manager, said in a statement. “The hotel has long been the centerpiece of this incredible property, and we look forward to our members, guests and staff enjoying the results of the renovation for years to come.”
 
Set in the historic hunt and wine country of central Virginia, Keswick Hall & Golf Club is owned by Robert and Molly Hardie. It has received the Forbes Five-Star Award for luxury and service every year since 2015.

Newport News law firm renews lease for more than 27,000 square feet

Patten, Wornom, Hatten & Diamonstein has renewed its lease for 27,304 square feet of office space at 12350 Jefferson Ave. in Newport News.  Clark Baldwin with Harvey Lindsay Real Estate handled the lease negotiations for the law firm.

In other lease transactions for Norfolk-based Harvey Lindsay:


• Neighborcare Pharmacy of Virginia LLC renewed  a 20,771-square-foot lease for industrial space at 1320 Court St.  in Portsmouth. Charles Dickinson handled the lease negotiations.


• The Boathouse Live has leased 16,800 square feet of retail space at 11800 Merchants Walk in Newport News. Tammy Wallman and Bob Saunders handled the lease negotiations.


• Aramark Refreshment Services LLC renewed its lease for 12,000 square feet of industrial space at 4140 S. Military Highway in Chesapeake.  Dickinson handled the lease negotiations.


• City Electric Supply Co.renewed a 10,000-square-foot lease of industrial space at 4001 Holland Blvd. in Chesapeake. Chip Worley handled the lease negotiations.

Ikea to break ground on new Norfolk store on Nov. 17

 

Representatives from Swedish retailer Ikea will join Gov. Terry McAuliffe, Norfolk Mayor Kenneth Alexander and other local government and community officials on Friday, Nov. 17, at 9:30 a.m. for a groundbreaking ceremony for a new 338,000-square-foot store in Norfolk.

The store, to be located on 19 acres at the intersection of Interstate 64 and Northampton Blvd., expects to open in spring of 2019. It will employ about 250 people.

It will stock nearly 10,000 items. Ikea also plans to offer three model home interiors, 50 room settings, a supervised children’s area and a 450-seat restaurant serving Swedish specialties.

CoStar Group leases more space in Richmond


CoStar Group Inc. has leased an additional 33,192 square feet in downtown Richmond.

The Washington, D. C.-based commercial real estate research and data analytics company took another floor in the WestRock building at 501 S. 5th St. downtown. The company now leases the upper four floors in the nine-story building, which offers views of the James River.


CoStar moved a new operations and research center to Richmond. When it made the announcement about the project about a year ago, the firm said it expected to hire more than 700 people over the next couple of years. It already has hired about 600 and continues to expand its operations in Richmond.


Brian K. Berkey and Amy Broderick of Cushman and Wakefield | Thalhimer handled the lease negotiations on behalf of the tenant.

Richmond seeks developers for major downtown redevelopment project

Richmond is seeking proposals from developers to spur redevelopment of a 10-block area of downtown that includes the city’s aging Coliseum.

The city envisions an ambitious project that replaces the city’s 47-year-old coliseum and adds affordable housing and a convention center hotel with a minimum of 400 rooms.

Mayor Levar M. Stoney formally announced the city’s request for proposals (RFP) on Thursday.  The RFP comes months after a group of investors led by Dominion Energy CEO Tom Farrell called for replacing the Coliseum and redeveloping many of its surrounding properties, including the former 6th Street Marketplace and Blues Armory.

The RFP addresses the area generally bounded on the west by North Fifth Street, on the north by East Leigh Street, on the east by North 10th Street and on the south by East Marshall Street. However, the city indicated that it is open to receiving proposals that encompass a larger area.

The current area includes properties mostly owned by the city that have been identified as an economic opportunity in its master plan. The North of Broad/Downtown Neighborhood Redevelopment Project will include components aimed at revitalizing underutilized city assets and improving life for Richmond residents.

“The goals of this RFP are bold,” Stoney said in a statement. “To expand economic development and affordable housing opportunities; to generate revenue while achieving poverty mitigation through jobs and training; to provide historic preservation and community revitalization, to promote and support tourism, and to ensure sustainable development and investments in infrastructure.”

Respondents to the RFP would need to address:

*A replacement for the seven-acre, 179,810-square-foot Richmond Coliseum

The RFP says the existing building “no longer meets the needs of the community. Opened in 1971, it is aged and in poor condition. A rejuvenated or new coliseum, however, has the potential to create significant economic development in adjacent areas.”

The proposal must include the demolition and replacement, or rehabilitation, of the coliseum as an entertainment venue. The RFP says the new arena should be a multiuse facility with about 17,500 seats.  In 2011, a private consultant’s group estimated the cost of replacing the coliseum at $147 million.

The coliseum currently has $2.9 million of outstanding debt, and respondents would be required to outline a plan to draw down the debt as part of their proposal.

* Mixed-income and affordable housing

* Local job creation and local hiring with Minority Business Enterprises

* A 65,000-square-foot replacement of the Greater Richmond Transit Co. transfer station

* A convention center hotel, with a minimum of 400 rooms that’s close to the Greater Richmond Convention Center


* Historic preservation and adaptive reuse of the Blues Armory, which is listed on the National Register of Historic Places


Proposals would also need to address issues such as land use, density, walkability, connectivity and other elements common in New Urbanism environments.

Responses to the RFP are due in 90 days on Feb. 9. Developers would need to pay a $50,000 submission fee payable to the city of Richmond that would be returned if a project was not selected.

The city’s timetable sets April 24, as the day for preliminary negotiations to begin with respondents. By Sept. 30, it wants to have a final project ready to send to the city council for action. Pinpointing when such a large redevelopment project could open, though, is difficult.

“The city wants a solid proposal and a development strategy that is best for the city.  We are at the beginning of the process, so putting a timeline for opening is difficult without knowing what will proposed or how it would be phased,” Lee Downey, director of the city’s Department of Economic and Community Development said in an email.

Asked about the potential investment cost for the project, Downey said the city didn’t have a figure due to the project’s many components.  Proposals “must address how the project will be developed and financed,” Downey said. “Potential strategies for addressing the components could vary tremendously, thus affecting the final investment totals.”

Stoney said the city would not entertain proposals that require the city to use its existing tax revenue or debt capacity to fund the project.  The city also does not want to incur general obligation bonds to fund private components of a proposal, but is willing to consider proposals that incorporate tax increment financing or the creation of special service districts.

“We have too much to do for schools, housing, roads and other city priorities to leverage our limited borrowing capacity for this redevelopment,” Stoney said.

“This is a great opportunity for our city, and we want all of Richmond to benefit,” Stoney said. “By leveraging city-owned land, we can achieve transformational change. We look forward to receiving proposals that will continue our growth and serve the best interests of Richmond.”