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byline: Robyn Sidersky

REIN elects new board

The Real Estate Information Network has a new board of directors and executive committee, the multiple listing service for the Hampton Roads region announced Wednesday.

The 2024 board includes:

  • Gary Lundholm, president
  • Barbara Wolcott, vice president
  • Barry Nachman, treasurer
  • Kimberly Plourde, secretary
  • Lee Cross, director
  • Amy Doll, director
  • Dorcas Helfant-Browning, director
  • Cavelle Mollineaux, director
  • Jon McAchran, past president.

REIN has about 8,000 licensed members and 9,263 total members. It serves an area that stretches from Williamsburg and Gloucester down to Moyock, Edenton and Elizabeth City, North Carolina. Members of its executive committee (president, vice president, secretary and treasurer) serve one-year terms on the committee, and the board of directors, all either principals or managing brokers of a stockholder-member firm, each serve two-year terms. They are elected by REIN broker-stockholders.

Suffolk industrial property sells for $7.5M

An industrial warehouse building in Suffolk has a new owner.

American Industrial purchased the 256,800-square-foot industrial warehouse building on 11.6 acres from Nansemond Cold Storage for $7.5 million, according to a Dec. 29, 2023, Cushman & Wakefield | Thalhimer news release.

American Industrial will upgrade and improve the property, which is located at 115 Dill Road, to meet demand for mid-sized distribution space starting at 36,000 square feet.

William C. Throne, of Cushman & Wakefield | Thalhimer, handled sale negotiations on behalf of the seller.

Breeden Construction completes Newport News apts.

Richmond-based Breeden Construction has finished work on the Lift & Rise on Jefferson, a community with 81 townhomes and garden-style apartments in Newport News.

The $18.5 million project, done for the Newport News Redevelopment & Housing Authority and Pennrose, a Philadelphia-based developer, started in June 2021 with cleanup and preparation of land on Jefferson Avenue and 28th Street, and then three buildings were constructed. Breeden Construction was the general manager.

The development has a community room, commercial space, an on-site management office, a fitness center and rooftop terrace, along with the 81 apartments. It will have both affordable and market-rate apartments and is part of the greater Marshall-Ridley Neighborhood Transformation Plan.

“Being involved in this neighborhood transformation plan has been a privilege,” Brian Revere, president of Breeden Construction, said in a statement. “This project has been beyond a mere construction endeavor; it has enabled us to forge meaningful relationships and open doors to new prospects within the community. The positive impact has been far-reaching and beneficial for all parties involved.”

FAA probes Boeing’s possible role in 737 Max 9 cabin blowout

Nearly a week after a four-foot wall panel blew out of a Boeing plane cabin midair, exposing Alaska Airlines passengers to open air at 16,000 feet, the Federal Aviation Administration formally notified the Arlington County-based aerospace giant Wednesday that it will investigate the company’s potential role in the incident and whether it failed to ensure its products were in safe operating condition.

The FAA investigation — separate from the National Transportation Safety Board’s probe into the Alaska Airlines flight’s emergency landing Friday in Portland, Oregon — will focus on whether Boeing is at fault for the panel flying off the plane.

In a letter written Wednesday and made public Thursday, FAA Director for Integrated Certificate Management Division John Piccola informed Boeing Commercial Airplanes Vice President Carole Murray that the agency is conducting an investigation into the Alaska Airlines cabin panel blowout. “After the incident, the FAA was notified of additional discrepancies on other Boeing 737-9 airplanes,” he wrote. “Boeing may have failed to ensure its completed products conformed to its approved design and were in a condition for safe operation in accordance with quality system inspection and test procedures.”

Piccola adds that Boeing can respond within 10 business days of receipt of the letter. The letter does not go into additional detail about the problems spotted on other aircraft.

Last Friday, the Boeing Model 737 Max 9 jet had just taken off from Portland, Oregon, when the 63-pound panel was ripped away; it was used to plug up a space for an unused door near the back of the aircraft, and the panel was later found in a Portland teacher’s backyard, according to the NTSB. Although passengers were reportedly terrified, no one was injured, and the plane was able to make an emergency landing. The FAA, meanwhile, ordered a temporary grounding of dozens of Boeing 737 Max 9 jets so they could be examined for similar problems.

Dave Calhoun, Boeing’s CEO and president, said in a statement Thursday that the company “will cooperate fully and transparently with the FAA and the NTSB on their investigations.” Calhoun, when speaking during a town hall meeting at a Boeing factory in Renton, Washington, earlier this week, showed emotion when discussing the incident. He said, “We’re going to approach this, No. 1, acknowledging our mistake. We’re going to approach it with 100% and complete transparency every step of the way.” 

The latest incident is just one in a series of problems that have plagued Boeing over the past few years. In April 2023, Boeing had to pause delivery of some of its 737 Max jets after some of their parts were installed incorrectly, and in January 2023, delivery of its 787 Dreamliner aircraft was halted over documentation problems. In December 2023, Boeing delivered its first Dreamliner to a Chinese airline since November 2019, but China grounded all 737 Max jets back in March 2019 after two fatal crashes of the jet in about five months. Although other countries followed suit in banning the plane, the U.S. lifted its ban in 2020, as did other countries, except for China.

As of 4 p.m. Thursday, Boeing’s stock had fallen 2.27% since start of trading to $222.66 a share. Spirit AeroSystems Holdings, which was responsible for installing the panel that blew off, saw its stock fall nearly 6% to $27.60 a share. Alaska Air Group, however, mostly recovered after a dip earlier in the trading day, finishing the day at $36.99 a share, only .19% down from the start of trading.

Boeing is one of the world’s largest defense contractors and employs more than 140,000 people globally. In 2022, the company moved its headquarters from Chicago to Arlington County, where about 400 Boeing employees are based. 

Virginia Credit Union, Member One announce merger

Chesterfield County-based Virginia Credit Union and Roanoke-based Member One Federal Credit Union announced plans to merge Thursday, a deal that would create the state’s third largest credit union, with a combined $6.7 billion in assets and 500,000 members.

VACU is currently the fourth largest Virginia-based credit union, with $5.18 billion in assets, according to the National Credit Union Administration, behind Newport News-based Langley Federal’s $5.29 billion in assets. With the addition of Member One’s $1.64 billion in assets, VACU will have a stronger hold on third place. The state’s two largest credit unions are Navy Federal Credit Union, with $168 billion, and Pentagon Federal Credit Union, with $35 billion in assets.

Under the agreement, Chris Shockley, president and CEO of Virginia Credit Union, would remain president and CEO of the combined organization. Frank Carter, president and CEO of Member One, would remain an executive until he retires. The combined credit union would employ about 1,100 people at about 37 branches. The credit unions said in Thursday’s announcement that no one would lose their job, and no branch locations would close in the merger.

Both boards of directors voted in favor of the merger, and after federal regulatory approval and an affirmative vote by Member One’s members, the credit unions anticipate the merger will be finalized around the middle of this year, with system integrations extending into 2025.

Shockley

After the merger is complete, Virginia Credit Union would not change its name, but Member One would become Member One, a division of Virginia Credit Union, or something similar.

“This partnership represents the heart of the credit union industry’s cooperative mindset,”  Shockley said in a statement. “Fundamentally, credit unions came into existence when people saw an opportunity to band together and pool their financial resources in order to provide access to financial products and services to people who needed them.”

Virginia Credit Union has 320,000 members and Member One has about 150,000 members.

“When I first sat down with Chris and we started to share our visions for our respective credit unions, everything about partnering together felt right,” Carter said in a statement. “From the onset, both of our boards of directors have focused on ensuring that together we’d continue to provide the best member, employee and community value.”

HII names two legislative affairs execs

Newport News-based Huntington Ingalls Industries has promoted Peter Courtney to corporate vice president of legislative affairs and hired Betsy Bina Benedict as director of legislative affairs.

Courtney was previously HII’s director of legislative affairs and takes the place of Carolyn Apostolou, who retired in December 2023. He will work from the Arlington County office and report to Stewart Holmes, HII’s executive vice president of government and customer relations. Benedict will report to Courtney.

Courtney will be responsible for the development of HII’s lobbying strategy and implementation of lobbying activity, with a general focus on U.S. Senate members, staff and committees of jurisdiction. In addition to shaping legislative proposals, he will also be responsible for ensuring compliance with all Federal Election Commission and other legal and regulatory disclosure requirements regarding lobbying.

Before joining HII, he served 24 years in the U.S. Navy, most recently serving as deputy director of the Appropriations Matters office in the office of the Assistant Secretary of the Navy. He graduated from the U.S. Naval Academy in 1990 and has a bachelor’s degree in political science, a master’s degree in national security affairs from the Naval War College and an MBA from the Darden School of Business at the University of Virginia.

Benedict previously served in a variety of legislative and policy positions in Congress, including 13 years with the House Appropriations Committee. She was most recently clerk for the House Appropriations Subcommittee on Military Construction, Veterans Affairs and Related Agencies. She graduated from the University of Nebraska-Lincoln and has a master’s degree in national security studies from the Army War College and a master’s degree in government from Johns Hopkins University.

Huntington Ingalls Industries is the nation’s largest military shipbuilder. The Fortune 500 company employs more than 44,000 workers and is Virginia’s largest industrial employer. Its Newport News Shipbuilding division is the United States’ only manufacturer of nuclear-powered aircraft carriers.

ODU promotes engineering dean to VP of research

Kenneth J. Fridley has been promoted to vice president for research, Old Dominion University announced Monday. He has been in the position on an interim basis since August 2023 while also serving as dean of ODU’s Batten College of Engineering and Technology.

Fridley, who began his new role Wednesday, will continue as interim dean until a permanent engineering dean is named. He joined ODU in July 2022. Before coming to Norfolk, Fridley served in several roles at the University of Alabama. Most recently, he spent eight years as senior associate dean for administration at Alabama’s College of Engineering. He was also interim dean of the Honors College for a year and head of the Department of Civil, Construction and Environmental Engineering for 12 years.

Fridley has expertise in engineered wood construction, performance and hazard mitigation. He has published 65 peer-reviewed journal papers and co-authored a wood engineering design textbook. Additionally, he has been responsible for more than $14.4 million in sponsored research, supported by a variety of federal, state and industry sources. Much of his research has directly impacted the civil engineering profession, resulting in changes in national design specifications, standards and codes, according to a news release from ODU.

Chemical producer plans $193M Suffolk expansion

Wilmington, Delaware-based Solenis, a producer of specialty chemicals for water-intensive industries, plans to invest $193 million to expand its Suffolk facility, creating 34 jobs, Gov. Glenn Youngkin announced Thursday.

Solenis plans to build an 80,000-square-foot production facility, packaging facility, a tank farm and add a new rail spur to accommodate the production of polyvinylamine polymer products, which are used in paper and cardboard manufacturing. The new facility will help the company grow its existing polymer product line and add capacity to the existing supplier, according to a news release.

Solenis operates nine plants at the Suffolk site, which manufactures products for the wastewater treatment, pulp and paper and other industries, a spokeswoman for the company told Virginia Business. The main facility is 45 acres large and about 100 employees work there. Solenis also has a plant in Courtland that manufactures products primarily for the pulp and paper industry. It has about 70 employees.

Solenis plans to break ground on the new plant in Suffolk in August and anticipates full production in the second half of 2026. The 34 jobs will be a mix of technical and operational roles and hiring will be ongoing throughout the project so that training can be done in advance of the opening.

“This investment is part of our ongoing commitment to provide value for customers while helping them advance their sustainability initiatives,” John Panichella, CEO of Solenis, said in a statement. “As demand rises for sustainable manufacturing operations, this new facility not only ensures we have capacity to supply the paper packaging market, it will also help us diversify into other applications that can drive additional growth.”

Virginia competed with Texas and Georgia for the project.

Owned by Platinum Equity, Solenis has 71 manufacturing facilities around the world and employs more than 15,400 workers across 130 countries. It produces water treatment chemistries, process aids, functional additives, cleaners, disinfectants, and monitoring and control systems.

“Solenis is a global leader in the specialty chemical industry with a 40-year history in the City of Suffolk, and this major investment and expansion demonstrates that manufacturing is thriving in the commonwealth of Virginia,” Youngkin said in a statement. “Hampton Roads has the skilled workforce, business climate and logistics advantages, including our world-class port, to enable Solenis to add significant capacity to supply the international paper manufacturing market.”

The Virginia Economic Development Partnership worked with Suffolk and the Virginia Department of Rail and Public Transportation to secure the project for Virginia. Youngkin approved a $275,000 grant from the Commonwealth’s Opportunity Fund to assist the city with the project. Solenis is also eligible to receive Port of Virginia tax credits and benefits from the Rail Industrial Access program.

 

 

Former Gentry Locke managing partner dies

G. Michael “Mike” Pace Jr., managing partner of Roanoke’s Gentry Locke law firm for several years and a former Virginia Bar Association president, died Jan. 8 after a long illness. He was 66.

Pace, a Salem native, spent nearly his whole career at the Roanoke law firm, starting as a summer associate in 1983 and returning as an associate after graduating from Washington and Lee University’s law school in 1984. He made partner about six years later. In 1999, at age 41, he became the firm’s second managing partner, remaining in the role until 2012. He later served as Roanoke College’s first general counsel and served on the board of trustees for his alma mater, Hampden-Sydney College.

“Mike loved the firm and it really showed in everything that he did,” Monica Monday, chair of Gentry Locke’s executive board and also a former managing partner at the firm, said of Pace. “He took the firm through a really interesting time in the development of the firm. … He was very critical in helping the firm develop a commercial practice, which was the area he practiced in.”

Pace was also heavily involved in his home region. He led the Roanoke Bar Association, the Roanoke Regional Partnership and the Roanoke Regional Chamber of Commerce, among other civic organizations.

“Mike was super-driven to help the Roanoke Valley develop into a greater business region than anybody I’ve probably known,” Brett Marston, Gentry Locke’s managing partner, told Virginia Business.

Pace served as president of the Virginia Bar Association in 2008. He created the Rule of Law Project of the VBA, a nationally and internationally recognized legal education program that resulted in him receiving the VBA’s highest honor, the Gerald L. Baliles Distinguished Service Award, in 2013.

He is survived by his wife of 39 years, Nancy, and two daughters.

Ferguson acquires 3 companies

U.K. plumbing and heating products distributor Ferguson plc has agreed to acquire two North American companies and closed on a third acquisition, the company announced Tuesday. Ferguson plc is the parent company of Newport News-based plumbing, HVAC and industrial product distributor Ferguson Enterprises.

Ferguson has agreed to acquire Toronto-based Yorkwest Plumbing Supply, a distributor of plumbing, municipal, hydronics, institutional, HVAC and industrial products in the Toronto area. Yorkwest’s business operations will be integrated into Ferguson’s subsidiary in Canada. Yorkwest was founded in 1990.

The other acquisition is Pennsylvania-based Grove Supply, a plumbing and HVAC distributor that serves the residential trade, builder and remodel markets with locations across Pennsylvania and New Jersey. Grove Supply opened in 1948 and has 17 locations.

Ferguson closed a deal to acquire Austin, Texas-based Harway Appliances, a distributor of high-end kitchen appliances for homeowners, custom builders and designers, on Monday. It strengthens the company’s presence in Austin and grows its delivery and installation capabilities. The Yorkwest and Grove Supply acquisitions are expected to close in the next 90 days.

“As we acquire new businesses, we place tremendous value on the expertise of the talented associates and the customer relationships they bring to the business,” Ferguson CEO Kevin Murphy said in a statement. “Our strategy remains twofold: prioritizing organic growth and consolidating fragmented markets through acquisitions that align well with our culture and values.”

The purchase amounts of the acquisitions were not disclosed, but Ferguson said the acquisitions have aggregate annualized revenues of approximately $220 million.

Ferguson has 35,000 employees — all but 3,000 in the United States, with the rest in Canada. It has 11 national distribution centers, three market distribution centers and 1,750 branches.