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byline: Robyn Sidersky

D.C. sues bitcoin whale Michael Saylor for tax fraud

MicroStrategy Inc. founder Michael Saylor was sued in August by the city of Washington, D.C., which alleges that he defrauded the nation’s capital of more than $25 million in income taxes. The lawsuit argues that Saylor falsely claimed to reside in Virginia or Florida while instead living in a luxury Georgetown penthouse.

The civil suit, filed Aug. 22 by D.C. Attorney General Karl Racine in the District of Columbia Superior Court, also names MicroStrategy as a defendant.

MicroStrategy’s executive chairman, Saylor stepped down as CEO following the Tysons-based tech company’s August earnings report, which tallied a $1.98 billion impairment loss on its bitcoin holdings. Saylor is a major bitcoin influencer on Twitter, and MicroStrategy is the largest corporate holder of the cryptocurrency. 

According to the lawsuit, since 2005, Saylor has lived in “Trigate,” his 7,000-square-foot waterfront D.C. penthouse. In 2012, he bought a house in Miami Beach, got a Florida driver’s license and registered to vote there.

Around 2013, the suit alleges, Saylor asked MicroStrategy to begin using his Florida address on tax forms while MicroStrategy provided him with a security detail and transportation in D.C. and was aware of his residency there.

About a year later, according to the lawsuit, MicroStrategy’s then-chief financial officer grew concerned after finding that Saylor spent the majority of each year in D.C. Saylor agreed to reduce his salary to $1, but his compensation remained high because of fringe benefits, the lawsuit says. 

MicroStrategy continued to report Saylor’s Florida address on his W-2s from 2014 through 2021, and failed to withhold D.C. income taxes, the lawsuit says, adding, “This was no mere clerical error.”

Saylor and MicroStrategy deny the allegations.

“Although MicroStrategy is based in Virginia, Florida is where I live, vote and have reported for jury duty, and it is at the center of my personal and family life,” Saylor said in a statement.

Accusing D.C. of “overreach,” MicroStrategy called the case a “personal tax matter” involving Saylor.

Under the city’s new False Claims Act, Saylor, who has a reported net worth of $1.6 billion, could be found personally liable for more than $75 million in unpaid taxes and penalties.

The act encourages whistleblowers to report instances of city residents evading tax laws by misrepresenting where they live. In this case, whistleblowers filed an April 2021 lawsuit against Saylor alleging tax fraud.

A welcome respite

While the spring was red-hot for the residential real estate market, conditions are expected to cool off in the fall.

“The market is definitely stabilizing,” says Liz Moore, board president of Real Estate Information Network Inc., the multiple listing service (MLS) for the Hampton Roads region. “We had such a frenzied market during the pandemic.”

She cautions, though, that it’s hard to predict what will happen next because the market has been so crazy.

Earlier this year, housing inventory was so low, nearly every listing had multiple offers on it, creating an ultra-competitive market for buyers.

A steadier market, which is a good possibility for this fall, is good and bad for buyers. Rising interest rates are pulling some buyers out, and would-be first-time homebuyers could be affected more than other potential buyers. But that means a more balanced supply-and-demand equation.

“It was so competitive for the last two years that buyers didn’t have much of a chance in a multiple-offer situation,” Moore says. “Now that there’s not quite such an intense frenzy of competition, buyers don’t have to pay such wild prices.”

In July 2021, the median sales price for a home in the region was $300,000 — and a year later, the median cost rose about 7.5% to $322,500, according to REIN data. And that’s up from the median price of $275,000 from July 2020. Still, Moore is seeing some cooling on the higher end of the market, where homes listed for $750,000 or more are staying on the market longer than they had in recent years.

“I think there is good news on the horizon,” Moore says. “As the inventory inches up, that will be a welcome respite for these buyers.”



Dollar Tree names new C-suite execs after shakeup in June

After a C-suite shakeup this summer, Chesapeake-based Fortune 500 discount retailer Dollar Tree Inc. is filling spots on its leadership team. This week, the company named a new chief operating officer and chief development officer.

On Monday, Dollar Tree named Michael Creedon Jr. chief operating officer. Creedon had been with Advance Auto Parts since December 2013 and rose from president of Autopart International, a wholly-owned subsidiary of Advance, a role he held for four years, to president of the company’s north division, from 2017 to 2020, to president of U.S. stores from 2020 to 2021 and then executive vice president of U.S. stores.

“I am extremely pleased to announce that Mike Creedon will be joining the Dollar Tree team as our new chief operating officer. Mike’s impressive career in retail is rooted in a deep knowledge and understanding of his customers,” Dollar Tree President and CEO Mike Witynski said in a statement. “Mike will be instrumental in driving the execution of our strategy, and a key leader supporting our culture transformation in Dollar Tree, Family Dollar and Dollar Tree Canada stores.”

Before joining Advance Auto Parts, he was vice president and general manager of Sensormatic LLC’s North America sales and operations from 2010 to 2013. The company is the retail security division of Tyco International Inc. He earned his bachelor’s from Middlebury College and a finance certificate from the Chicago Graduate School of Business.

“I look forward to joining the Dollar Tree organization at this key stage in its transformation. We will be committed to improving the in-store experience for our shoppers, as Dollar Tree and Family Dollar are well-positioned to be a critical solve for the millions of households dealing with historic inflation,” Creedon said in a statement. “My team will be focused on improving operational processes and efficiencies to better support our store associates and field leaders, and the customers they serve. We will be focused on recruiting, training and retaining key retail associates and help them build their careers at Dollar Tree.”

On Wednesday, Dollar Tree named Pedro Voyer its new chief development officer. He previously served as the international general manager for Panera and chief operating officer of Caribou Coffee and Einstein’s Bagels, all brands owned by JAB Holding Co. Voyer also served as chief development officer for Burger King Corp.’s U.S. and Canadian portfolio, and he held leadership positions at YUM Brands, Tricon, PepsiCo International and Bain & Co. Consulting. Voyer has a degree in mechanical engineering from Universidad Simon Bolivar in Venezuela and an MSC/MBA from the Tokyo Institute of Technology/MIT.

“I am extremely pleased to announce that Pedro Voyer will be joining Dollar Tree as our new Chief Development Officer. With more than 25 years of leadership experience in the domestic and international multi-unit food and beverage industry, Pedro has a strong track record in profitable new unit growth, portfolio asset management and facility management,” Witynski said in a statement. “Pedro will lead our real estate teams to enable our long-term growth and provide customers with a shopping experience that wows them each time they visit our stores.”

Dollar Tree has more than 15,600 Dollar Tree and Family Dollar stores across the United States and Canada. In June, the Fortune 500 company parted ways with its chief operating officer, chief strategy officer, chief financial officer, chief information officer and chief legal officer. The move followed a proxy battle with activist investor group Mantle Ridge LP, which was settled in March after Dollar Tree named Richard Dreiling, former chairman and CEO of rival Dollar General, as the board’s executive chairman. Mantle Ridge CEO Paul Hilal became vice chair.

“I am eager to join the Dollar Tree team at such a pivotal time in the organization’s transformation. The Dollar Tree and Family Dollar brands have a unique opportunity for growth in what I consider to be one of the most attractive sectors in retail at this time,” Voyer said in a statement. “My teams will be committed to supporting the organization to drive sustainable new unit growth, improved store condition, productivity and profitability by enhancing the customers’ shopping experience in our stores.”

Other recent hires to Dollar Tree’s C-suite include Jeffrey A. Davis as chief financial officer in late August, and Bobby Aflatooni as chief information officer in late July.

“We continue to work aggressively in our efforts to build a world class retail leadership team that will enable us to accelerate the growth of the company. Pedro’s addition represents the sixth chief officer that has joined the company in less than five months. We are committed to delivering improved long-term operating performance for the benefit of all Dollar Tree stakeholders,” Witynski said.

In the second quarter, Dollar Tree increased sales 6.7% to $6.77 billion, up from $6.34 billion in the second quarter of 2021. It had a 14.2% increase to $2.12 billion from $1.86 billion in the prior year’s second quarter.

Virginia Realtors elect Winchester broker as prez

Virginia Realtors, the state’s largest trade association, has a new president and slate of officers for 2023.

Katrina M. Smith, of the Blue Ridge Association of Realtors, will lead the group for the next year. She is the broker and owner of RE/MAX Synergy in Winchester and has been a Realtor since 2005. She led the Blue Ridge Association of Realtors, served on its board and has won numerous awards from the group.

Statewide, she served as president-elect in 2022 after serving on the board of directors from 2019 to 2020. Additionally, she has chaired the professional development committee and the public policy committee. She was Virginia’s Realtor of the Year in 2019.

Tom Campbell of Warrenton will serve as president-elect; Lorraine Arora of Alexandria will serve as vice president, and Curt Reichstetter of Richmond will serve as treasurer. Denise Ramey of Charlottesville is the immediate past president.

Founded in 1920, Virginia Realtors represents 38,000 members in the state’s residential and commercial real estate business.

Titanium company investing $82.1M in Halifax County

Charlotte, North Carolina-based IperionX Ltd., a minerals company that produces titanium metal powder for use in manufacturing, announced plans to establish Virginia’s first titanium demonstration facility in Halifax County, an investment of $82.1 million expected to create 108 jobs, Gov. Glenn Youngkin announced Tuesday.

The three-year project will be in two phases: The first is a $12.5 million investment in construction and production-related machinery and tools, and the second is a $69.6 million expansion. The facility will also mark the nation’s first titanium powder producer using 100% recycled scrap metal.

“We are thrilled to welcome IperionX to the commonwealth,” Youngkin said in a statement. “The new Halifax County operation will represent the first titanium metal powder facility in the U.S. using 100% recycled titanium scrap as feedstock, putting Virginia on the map for providing a critical material that is essential for our advanced industries. We look forward to supporting this forward-thinking company that will develop a new supply chain of titanium right here in the commonwealth while creating high-quality jobs.”

IperionX will initially occupy a 50,000-square-foot building in the Southern Virginia Technology Park, leased at $8 per square foot for 10 years, and will double its size in coming years. Titanium is a lighter metal than steel but is just as strong, and it’s used in many products, including automotive, defense, aerospace, electric vehicles and 3D printing. The company, founded in 2017 and formerly known as Hyperion Metals Ltd., also offers a fully U.S.-sourced, low-carbon titanium supply that it bills as lowering carbon emissions of products that include its titanium powder.

IperionX plans to develop the Halifax facility as a showcase for the intersection of titanium powder production with additive manufacturing and other powder metallurgy applications.

“We are delighted to have chosen South Boston and Halifax County as the site for our inaugural titanium demonstration facility, which is a critical step in advancing IperionX’s ambition to re-shore an all-American source of titanium metal,” Anastasios “Taso” Arima, founder and CEO of IperionX, said in a statement. “We are highly appreciative of the support and welcome that we have received from our partners and stakeholders in Virginia and look forward to establishing IperionX as a leader in advanced manufacturing in our new home.”

Arima previously founded Piedmont Lithium, also based in North Carolina, which produces lithium hydroxide, a chemical used in electric vehicle and battery storage production.

For the IperionX deal, Virginia competed against North Carolina, South Carolina and West Virginia . The company is listed on the Australian stock exchange and has been publicly trading on Nasdaq since June.

The Virginia Economic Development Partnership worked with Halifax County, the Southern Virginia Regional Alliance, the Virginia Department of Environmental Quality and the Virginia Department of Energy to secure the project for Virginia.

Youngkin approved a $300,000 grant from the Commonwealth’s Opportunity Fund to assist Halifax County, and the Virginia Tobacco Region Revitalization Commission approved a grant for $573,000 from the Tobacco Region Opportunity Fund for the project.

The company is also eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development. Funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment program, at no cost to IperionX.

17th Street Lofts sells for $4.65M in Richmond

An apartment building in the city of Richmond has changed hands.

BP I LLC purchased the 17th Street Lofts, located at 329-333 Oliver Hill Way, from 333 Oliver Hill LLC for $4.65 million, One South Commercial reported.

The 20,300-square-foot space includes 24 units and was purchased as an investment.

Ryan Rilee and Tom Rosman of One South Commercial represented the seller in the transaction.

 

 

 

Norfolk industrial property sells for $7.3M

A 60,900-square-foot industrial property in Norfolk has been sold for $7.3 million, Colliers announced Sept. 20.

Miami-based Jewell Capital LLC acquired the Brookside Industrial building, 4840 Brookside Court, from Maryland-based Hemsman Properties. The property in Norfolk Industrial Park is leased to regional distribution hubs for NB Handy Co. and Transtar Industries.

Mark Williford, Will Bradley and Scott Adams, all of Colliers, represented the seller.

22 acres in Innsbrook to be developed into mixed-use

Newton, Massachusetts-based Northland has acquired 22 acres to build a mixed-use development at the “North End” of the Innsbrook area in Henrico County, from Raleigh-based Highwoods Properties.

The site is located on the north end of the Innsbrook Corporate Center, at the Intersection of Interstate 95, Nuckols Road and Lake Brook Drive. It already has 5.5 million square feet of office space, 3,400 apartment and residential units, seven hotels and 20 restaurants, according to a news release from Cushman & Wakefield | Thalhimer.

Jane DuFrane, senior vice president and Richmond market leader for Highwoods Properties, said that the northern area of Innsbrook does not have many food choices or amenities in easy walking distance so Highwoods sought a partner to develop retail. Highwoods is known for building office space , but knew this area needed to be a mixed-use community in order to help its customers retain and attract talent.

“We wanted to urbanize without increasing the traffic,” DuFrane said.

The site is zoned for up to 700 residential units (600 apartments, 100 condos), 55,000 square feet of retail and a 150-room hotel. Early-stage design and master planning efforts will begin this year, but the completion date has not been announced.

Highwoods Properties owns 12 acres adjacent to the site where it could develop 315,000 square feet of Class A office space as part of the 34-acre mixed-use development.

“The firm plans to introduce a diverse mix of retail options, including chef-curated restaurant concepts and amenity boutiques centered around activated open space, for both future multifamily residents and office tenants,”  Northland wrote in a news release announcing the acquisition.

“We’re thrilled to establish Northland’s entrance into the Richmond market with such a transformative, landmark project. Richmond, and especially the area’s numerous active suburbs, has long been a compelling target market for Northland given its consistently fervent population growth, institutional higher education ecosystem, and flourishing Fortune 500 job prospects,” Santo Dettore, associate vice president of development at Northland, said. “This site represents the next step of the Northland development platform, enabling us to leverage our extensive experience in mixed-use design and large-scale master planning to create a vibrant neighborhood for residents, employees, and visitors to the area.”

Sale negotiations were handled by Eric Robison of Cushman & Wakefield | Thalhimer’s Capital Markets Group, along with David Baird and Michael Denise of Cushman & Wakefield’s Baltimore land development team.

RapidFlight to add 119 jobs at Manassas HQ

RapidFlight LLC, a designer and manufacturer of unmanned aircraft will invest $5.5 million to establish operations in Manassas, creating 119 jobs over the next three years, Gov. Glenn Youngkin announced Friday.

RapidFlight is an integrated, end-to-end provider of airborne drones. Founded in 2021 by RapidFlight President Jay Gundlach, the company works for national security and private sector clients. RapidFlight uses technology such as additive manufacturing, advanced avionics and propulsion systems. Gundlach has penned three books on unmanned aircraft and is considered an expert in the field.

The company will establish a 25,000-square-foot facility at 9617 Center St., renovating the former Georator Corp. building. This space will house its headquarters, design and production operations. The facility is near Manassas Regional Airport, home to a strong customer base for RapidFlight, including a growing number of aerospace firms, defense contractors and government agencies, according to a news release from the Manassas Department of Economic Development.

The jobs RapidFlight is hiring for include positions for engineers, manufacturing technicians, program managers, administrative staff and others.

“Virginia is uniquely positioned to lead the unmanned systems industry, and RapidFlight is on the cutting edge of developments in this innovative technology sector. We look forward to supporting the company’s growth in the city of Manassas,” Youngkin said. “Since Day One, we’ve declared that Virginia is open for business, and businesses such as RapidFlight are a prime example of the success and growth that businesses can achieve in the commonwealth.”

The Virginia Economic Development Partnership worked with the city of Manassas to secure the project for Virginia and will support RapidFlight’s job creation through the Virginia Jobs Investment program.

“Virginia is an important state, providing unique access to decision makers, a world-class workforce, unmanned test infrastructure and an advanced materials industry,” Gundlach said. “Thanks to its central location on the East Coast, we can readily work face-to-face with our government customers while also leveraging Virginia’s unmanned systems’ infrastructure to conduct operations and test our systems, rapidly delivering new capabilities to our nation. There is something for everyone in Virginia, whether you love history, exploring nearby parks or attending a local concert or sporting event. It is a beautiful state to live, work and raise a family. RapidFlight is proud to be a Virginia company.”

It’s the second economic development announcement in recent months from an unmanned aircraft systems company growing its business in Virginia. In August, Virginia Beach-based DroneUp LLC announced it would add 655 jobs as part of a $27 million expansion that will include establishing a drone testing, training and research and development center at Richard Bland College.

Pangiam to add 200+ jobs at new Tysons HQ

Pangiam, a travel and security technology company, will invest $3.1 million to establish its global headquarters in Fairfax County’s Tysons area, creating 201 jobs over the next three years, Gov. Glenn Youngkin announced Thursday.

Pangiam provides facial recognition technology, cloud-based applications and data-driven identity solutions to customers including the Department of Homeland Security, the Air Force, Delta Airlines, United Airlines and Ronald Reagan Washington National Airport.

The company will expand an existing location it occupied at 7950 Jones Branch Drive by 20,000 square feet to create the new headquarters.

Pangiam was created in 2020 by Boca Raton, Florida-based private equity firm AE Industrial Partners LP through the acquisitions and combination of Alexandria-based software company Linkware LLC and Pangiam’s predecessor company, PRE LLC. In 2021, Pangiam acquired Georgia-based facial-recognition company Trueface. Also last year, Pangiam purchased veriScan, an integrated biometric facial recognition system for airports and airlines, from the Metropolitan Washington Airports Authority.

“When innovative companies like Pangiam establish their headquarters in the commonwealth, it strengthens our position as a leader in the technology sector and reinforces Northern Virginia’s reputation as an epicenter with the security industry,” Youngkin said. “Pangiam will benefit from Fairfax County’s proximity to its target customers and an outstanding tech workforce that makes this region one of the most desirable locations for IT businesses worldwide.”

The Virginia Economic Development Partnership worked with Fairfax County Economic Development Authority to secure the project for Virginia and will support Pangiam’s job creation through the Virginia Jobs Investment program.

“We chose Virginia as our headquarters for a variety of reasons. First, it’s home. Our leadership team is either from Virginia or built their careers and families here, so it was only right to build and try to contribute to the local community when we started Pangiam,” Pangiam’s Chief Investment Officer Tom Plofchan said. “Second, Northern Virginia has really become a hub for technology companies like ours. The proximity to the federal government provides a unique opportunity to access partners and resources for a critical part of our business. Finally, the human talent in Virginia is world-class. Our collaboration with Virginia’s universities has helped our team, just a handful of people with a vision less than three years ago, compete with some of the largest companies in the world for talent.”