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byline: Robert Powell, III

Optima Health to take majority stake in Virginia Premier

Virginia Beach-based Optima Health Plan will become the majority owner of Richmond-based Virginia Premier, a nonprofit managed-care organization.

Virginia Premier was founded in 1995 by VCU Health System. The Richmond-based health system will retain a 20% ownership stake in Virginia Premier. Together, Optima and Virginia Premier will serve nearly 800,000 members. Optima is a subsidiary of Norfolk-based Sentara Healthcare.

“As provider-led health plans, Optima Health and Virginia Premier share similar cultures, values and a commitment to delivering innovative services that meet the unique needs of the populations we serve,” Dennis A. Matheis, president of Optima Health and executive vice president of Sentara Healthcare, said in a statement. “Together, we will be better positioned to increase access to quality care, achieve greater efficiencies and develop new services to improve our members’ overall experience.”

Optima and Virginia Premier are two of the state’s original Medicaid managed care organizations. Company officials said Virginia Premier and Optima will continue to operate as separate entities, retaining their names and brands. Virginia Premier will maintain an operations center in Richmond and a presence in other areas in the state.

Apartment buildings open at The Boro in Tysons

Two new apartment buildings in The Boro, a 15-acre mixed-use development in Tysons, are ready for tenants.

The Rise and Bolden buildings offer more than 500 apartments.

Both apartment communities sit atop a Whole Foods Market and are within walking distance of the Greensboro Metro station, Tysons Galleria and Tysons Corner Center.

The Bolden building has 133 residences, while the Rise building features more than 400 apartments.

Amenities include a fitness center, yoga studio, a pool with sun deck and lounging areas, a club room with entertainment, kitchens and a private dining area; an indoor bike room and fix-it station, a “bark park” and pet spa, and a 24-hour concierge.

The buildings also feature an elevated “sky park” with an outdoor theater, bar area, grilling stations, bocce court, fire pits and lounge areas.

Another residential site at The Boro, Verse, is expected open to later this fall. The 25-story tower will have 140 one-, two- and three-bedroom condominiums.

The Boro is being developed by The Meridian Group, based in Bethesda, Maryland, and Kettler, which is based in McLean.

InnerWill Leadership Institute names new directors

The Richmond-based InnerWill Leadership Institute has named three new members to its board of directors: Greg McCann, Jack Mitchell and Dr. Katy Wilder Schaaf.

The institute is a nonprofit organization committed to transforming individuals, organizations and families through values-based leadership, founded by Luck Companies President and CEO Charlie Luck IV. 

McCann is the principal of McCann & Associates, a Florida-based consulting firm. He works as a consultant, coach, presenter, author and professor to develop leaders in family enterprises.

Mitchell is chairman of Mitchell Stores, a three-generation family business headquartered in Connecticut that operates men’s and women’s specialty clothing stores in Connecticut, New York, California, Washington and Oregon.

Schaaf is a licensed clinical psychologist in Richmond who works alongside her family to support the vision and values of E. Ritter & Company, a fifth-generation telecommunications business founded in 1886 in Arkansas. She also is director of the Family Business Forum at Virginia Commonwealth University.

Construction industry confidence index slips

U.S. construction industry leaders’ confidence about sales, profits and staffing levelsfell slightly in July 2019, according to a national survey.

Nonetheless, respondents to the Construction Confidence Index (CCI) remain optimistic about the near-term prospects for nonresidential projects.

The survey by the trade association Associated Builders and Contractors found that, for a third consecutive month, contractor confidence declined:

  • The CCI for sales expectations decreased from 65.3 in July to 64.8 to August.
  • The CCI for profit margin expectations fell from 61.3 to 60.
  • The CCI for staffing levels fell from 64.6 to 63.3.

However, more than 60% of respondents expect sales to increase in next six months, while more than 56% expect staffing levels to increase, and 52% expect profit margins to expand. 

Readings above 50 indicate growth, while readings below 50 are unfavorable.

“Contractor confidence is behaving as expected during the latter stages of a construction spending cycle,” ABC chief economist Anirban Basu said in a statement. “While the average American nonresidential contractor remains busy, according to ABC’s latest Construction Backlog Indicator, the July CCI data suggests an oncoming inflection point in trends. And based on available construction spending data, some softening in the pace of growth has already begun.”

Nonetheless, Basu said, “the near-term remains bright.”

“While the greatest challenge for many contractors remains completing work under contract given significant skills shortages, contractors collectively expect to continue to expand staffing levels in the context of increasing sales,” he said. “Perhaps most impressively, despite rapidly growing compensation costs, the average contractor expects that profit margins will continue to rise over the next six months, consistent with a substantial appetite for construction services for the balance of the current year and into 2020.”

Former Kmart building in Salem sells for $3.66 million

A former Kmart store in Salem has been sold for $3.66 million.

Virginia Beach-based Divaris Real Estate said that the 86,000-square-foot building at 1355 West Main St. was bought in August by The Keith Corp., a Charlotte, North Carolina-based commercial real estate firm.

The seller was Sears Holdings, the Hoffman Estates, Illinois-based parent company of the Sears and Kmart retail chains.

The store was one of 78 Kmart stores and 26 Sears stores that Sears Holdings announced it was closing in 2017.

Sam McCoy, Brett McNamee and Ali McCrickard of Divaris represented Sears Holdings in the deal.

In other Divaris transactions during August:

  • Bapa Nova LLC bought the 13,130-square-foot former PNC Bank branch at 107 Free Court in Sterling from PNC Bank NA for $1.28 million. Joe Farina and Amit Grover of Divaris represented the seller.
  • L&TJ Enterprises purchased a 10,535-square-foot medical office building at 2020 South Independence Blvd. in Virginia Beach from Davidson Physician Associates for $1.7 million. Jason Oliver of Divaris represented the seller.
  • Halloween City leased 36,470 square feet of retail space in Parkridge Center at 11096 Bulloch Drive in Manassas. Joe Farina and Cassandra Maloney of Divaris represented the landlord.
  • PetSmart renewed its lease for 21,600 square feet at 4421 Virginia Beach Blvd. in Virginia Beach. Gerald Divaris of Divaris represented the landlord.

Credit union, real estate firm form mortgage company

Langley Federal Credit Union and Garrett Realty Partners have formed a joint venture called Garrett Mortgage.

The partners, both of which are based in Newport News, said the joint venture’s goal is to provide homebuyers a seamless process in buying and financing a home.

Langley offers a variety of mortgage products, including fixed rate, variable rate and FHA loan options. Founded in 1936, the credit union is one of the 100 largest in the U.S., with more than 260,000 members and assets of nearly $3 billion. Langley has 20 offices in Hampton Roads.

Its joint venture partner, Garrett Realty Partners, has operated in Hampton Roads for 35 years. It has three locations and 120 agents.

The joint venture announcement comes less than two months after Virginia Credit Union announced it was buying Joyner Fine Properties, a 46-year-old real estate firm. Financial terms of the deal were not disclosed.

HHHunt promotes Ann Kelly to CFO

The real estate development and management company HHHunt has promoted Ann Kelly to chief financial officer.

She previously was senior vice president of finance and risk management.

In her new role, which took effect Friday, Kelly will serve on HHHunt’s executive committee.
 
Based in the company’s Richmond office, she will oversee the company’s corporate finance and accounting functions across all business lines.

Kelly is a graduate of Virginia Tech where she earned a bachelor’s degree in history and economics.

Virginia jobless rate dips to 2.8% in August

Virginia’s unemployment rate dipped one-tenth of a percentage point in August to 2.8%, the state announced Friday.

During the month, the commonwealth’s labor force expanded for the 14th consecutive month to set a new record high of 4.4 million.

The July jobless rate was 2.9%. The rate recorded in August 2018 also was 2.8%.

The unemployment rate is stated in seasonally adjusted figures, meaning they account for seasonal fluctuations in the workforce.

Virginia’s unemployment rate continues to be below the national rate, which was unchanged in August at 3.7%.

The commonwealth has the lowest jobless rate among Southeastern states and ranks as third best among states east of the Mississippi River.

Virginia also tied Colorado and Utah as having the sixth-lowest unemployment rate in the nation in August.

During the month, Virginia’s private sector recorded an over-the-year gain of 35,500 jobs, while employment in the public sector increased by 1,200 jobs.

Compared to a year ago, eight of the 11 major industry divisions in the commonwealth experienced employment gains, while the other three saw losses.

The largest job gain during August occurred in the leisure and hospitality area, with an increase of 1,100 jobs to total employment of 418,600.

The largest loss during the month took place in the trade and transportation section, down 1,100 jobs to 651,300.

Tysons company Tegna completes $740 million deal for 11 TV stations

Tysons-based Tegna Inc. has completed its $740 million cash acquisition of 11 television stations from Texas-based Nexstar Media Group.

Tegna said the deal adds complementary markets to its existing network affiliates, including four stations in election battleground states.

The 11 stations were among 19 divested by Nexstar for a total of $1.32 billion to meet federal antitrust requirements as it acquires Chicago-based Tribune Media for $7.2 billion.

The Tribune Media deal will make Nexstar the largest TV station company in the U.S., with 197 stations in 115 markets.

In addition to the 11 stations sold to Tegna, Nexstar sold eight stations formerly owned by Tribune Media — including WTVR in Richmond and WTKR and WGNT in Norfolk — to E.W. Scripps Co. for $580 million this week.

Tegna’s new stations include:

WTIC/WCCT — FOX/CW affiliates in Hartford-New Haven, Connecticut
WPMT — FOX affiliate in Harrisburg-Lancaster-Lebanon-York, Pennsylvania
WATN/WLMT — ABC/CW affiliates in Memphis, Tennessee
WNEP — ABC affiliate in Wilkes Barre-Scranton, Pennsylvania
WOI/KCWI — ABC/CW affiliates in Des Moines-Ames, Iowa
WZDX — FOX affiliate in Huntsville-Decatur-Florence, Alabama
WQAD — ABC affiliate in Davenport, Iowa and Rock Island-Moline, Illinois
KFSM — CBS affiliate in Ft. Smith-Fayetteville-Springdale-Rogers, Arkansas

Tegna now owns or operates 62 television stations in 51 markets.

Lab expansion expected to create 200 jobs in Henrico

Pharmaceutical Product Development LLC (PPD) expects to create 200 jobs in expanding its bioanalytical lab in Henrico County.

The governor’s office said the $63.7 million expansion began earlier this year.

Wilmington, North Carolina-based PPD provides drug development, laboratory and lifecycle management services. The company has more than 22,000 employees working in 46 countries.

Dr. Christopher Fikry, PPD’s executive vice president, said in statement that it employs more than 1,000 people at its Henrico operations in the county’s Westwood/Dabney area. PPD’s existing facility there covers more than 250,000 square feet.

The company’s customers include pharmaceutical, biotechnology, medical device, academic and government organizations.

Gov. Ralph Northam approved a $675,000 grant from the Commonwealth’s Opportunity Fund to support Henrico County with the expansion project.

Northam also approved a $450,000 performance-based grant from the Virginia Investment Performance (VIP) program, an incentive that encourages capital investment by existing Virginia companies.

PPD also is eligible to receive sales and use tax exemptions on equipment and consumables used directly and exclusively in research and development, as well as a Major Business Facilities job tax credit for new, full-time jobs created.