Cushman & Wakefield | Thalhimer has named Lindsay Mujacic portfolio manager in Richmond.
Mujacic joins the firm’s commercial property services. She has more than nine years of experience working in the management field and will be handling a mixed portfolio of office, retail and industrial product types.
Prior to joining Thalhimer, Lindsay worked for Brookfield Office Properties in Washington, D.C.
Victory Lane Auto Sales and Accessories is relocating from Colonial Heights to Richmond, according to Divaris Real Estate.
The auto retailer is moving to Oxbridge Square Shopping Center on Hull Street Road. Divaris’ Cheryle Toy, Sara Goodall and Read Goode represented the landlord in the lease negotiations.
Victory Lane Auto joins Starbucks, YouFit, Shoney’s, Subway and Great Clips in Oxbridge Square. The company has sold pre-owned automobiles, unique and rare collectibles and specialized sports cars for 20 years.
The transaction was among 31 deals Divaris logged in June in the Hampton Roads, Richmond, Charlotte, N.C., and Washington, D.C. markets. The deals totaled $9.9 million and 99,157 square feet of sold, leased and renewed commercial property.
Divaris Real Estate is based in Virginia Beach with offices in Virginia, North Carolina, California and Washington, D.C.
Conn’s HomePlus is expanding into Hampton Roads. Cushman & Wakefield | Thalhimer announced it helped the Texas-based chain in their site selection and lease negotiations.
The consumer goods retailer, which has a store in Richmond, will lease 40,500 square feet at Riverpointe Shopping Center in Hampton. It’s also leasing 37,500 square feet at Princess Anne Plaza and North Plaza Trail in Virginia Beach, as well as 44,386 square feet in Alexander’s in Portsmouth.
The company also plans to open a second Richmond-area location on Midlothian Turnpike in Chesterfield County. It’s current Richmond store is on Nine Mile Road. The new stores should open by early 2019.
Connie Jordan Nielsen of Cushman & Wakefield | Thalhimer represented Conn’s Home Plus in their site selection
Ryan Miller has been appointed by Newmark Knight Frank (NKF) to serve as executive vice president and market leader of its Washington, D.C., Virginia and Maryland offices.
Miller was previously managing director, global workplace solutions for CBRE.
Miller was recognized by Bisnow in 2007 as “top 35 under 35” and in 2014 by Real Estate Forum magazine as a top “50 under 40” professional in commercial real estate.
He holds a bachelor of science degree in human resources management from Indiana University and completed an executive education program focused on corporate finance/accounting, corporate strategy M&A and marketing at Harvard Business School.
One of downtown Richmond’s tallest skyscrapers has been sold for $39.25 million.
CBRE|Richmond announced the sale Monday of the 20-story First National Apartments, located at 823 E. Main St. GHA Barnaby Associates LLC bought the property from Rushmark FNB LLC.
The building was built in 1913 as a bank and converted to apartments in 2012 by Falls Church-based Rushmark Properties. The property features 154, Class A residential units. Amenities include an attached parking garage, fitness center and pet-friendly units. According to First National’s website, apartments range from $1,200 for a one-bedroom, one bath unit to $2,210 for a two-bedroom, 2-bath unit.
Charles Wentworth and Peyton Cox of CBRE|Richmond, and Robert Dean, Jonathan Greenberg, Yalda Ghamarian, and Tom Leachman of the CBRE Washington, DC Multifamily Investment Properties Team, represented the seller.
Jennifer Boykin is no stranger to breaking the glass ceiling. As a child, she was the first girl in her hometown, St. Louis, to play Little League Baseball. In July last year, she became the first female president of Newport News Shipbuilding, the sole builder of the Navy’s nuclear aircraft carriers and one of only two providers of Navy nuclear submarines.
Boykin, 54, doesn’t point to any specific gender barriers on her way to leading Virginia’s largest industrial employer. Nonetheless, she is focused on making sure “the least empowered person in the room feels comfortable stating their view and opinion” and attracting more women and minorities to careers in math and science.
She joined Newport News Shipbuilding as an engineer more than three decades ago, rising through the ranks in engineering and management positions. She now oversees a workforce that totals more than 22,600 employees, including hundreds of students being trained at the company’s Apprentice School.
“It’s a really exciting time,” to be in the shipbuilding business, she says. “Manufacturing across the world is going through this industrial revolution, which digital shipbuilding is a part of. To be able to go through that sort of business change when you’re building something so cool like an aircraft carrier or a submarine, it just doesn’t get any better.”
Boykin also is running Newport News Shipbuilding at a time when the Navy is considering expanding its fleet to 355 ships and shortening the time between the construction of new aircraft carriers. Both moves would mean more work for the shipyard.
“The two-ship plan brings the two carriers closer together,” so the workers that complete one aircraft carrier are able to start working on the next one in three to four years, as opposed to five. “It’s good for the business, and most importantly, it’s good for the Navy because it allows you to make sure the workforce is learning and becomes more efficient. There’s a cost reduction for the Navy.”
Outside of work, Boykin relaxes by reading or listening to audio books. Lately, she’s been “obsessed” with listening to the musical “Hamilton.” She also loves playing with her adopted dog, Max, a roughly 6-year-old mixed-breed.
Boykin and her husband, Blake, have been married for almost 30 years. They met as classmates at the U.S. Merchant Marine Academy. Her daughter, Caroline, and son-in-law, Zachary, also work at Newport News Shipbuilding.
A few months shy of her first-year anniversary as president, Boykin sat down with Virginia Business at her office in Newport News to discuss her career, the importance of leveraging people and technology and the identity of Hampton Roads. Answers have been edited for length and clarity.
Virginia Business: You started working [at the shipyard] in 1987. How did you wind up here, and what was your first job here? Jennifer Boykin: Actually, I interviewed with the shipyard when I was in college and did not get invited back for a second interview. My first year out of school, I worked in Northern Virginia for David Taylor Naval Research and Development Center [now the Carderock Division of the Naval Surface Warfare Center]. I worked with a man who had patents on propeller designs, and I was his data keeper. … I was dating my husband at the time — he was in the Army at Fort Eustis. One year later, I reapplied to the shipyard because we were dating [long distance]. I was accepted in the nuclear engineering division [as an engineer]. That’s where I started, and I’ve been here ever since. So, I tell people … “At first if you don’t succeed, don’t give up.”
VB:[You’ve said in the past that] two of your priorities at the shipyard are leveraging people and technology. What are the biggest opportunities and challenges in those areas? Boykin: Like so many other businesses, we are at the beginning stages of a digital transformation. What does that mean for shipbuilding?
The gist of it is that we’re going to move from having our production teams building ships from drawings that unroll and lay out on the table, to using their [computer] tablets with a three-dimensional picture that I can rotate around on my tablet. [I would] have work instructions on my tablet, training videos and then, eventually, a little pop-up window where I can contact the designer and engineer, even showing them what I’m looking at to get technical help through my tablet. Then [I would be] able to complete my job, say that I’m finished and log in how many hours it took, etc., right there on my tablet.
We aren’t at that stage yet, but that is the transition that we have planned and begun. We have work teams now using the tablets … to do project management. Think about building a house, and the general contractor is trying to coordinate the work between the Sheetrock guy and the electrician and the plumber. We do the same thing on ships.
VB:What forces shaped you into the leader and person you are today? Boykin: We’re all shaped early on. I’m the middle child of five kids. I do tell people that when you come from a large family, you have the benefit of becoming better at receiving constructive criticisms because you’re born into it.
Both of my parents were very strong advocates of all of us doing well in school. My father was an engineer with McDonnell-Douglas. My mother was a stay-at-home mom when we were young and then went back to school later in life and started her own business. She never stopped educating herself or working hard.
I grew up in a naturally integrated community. There’s no question in my mind that shaped me as well. My elementary, [middle and high schools] were predominantly African-American. We all grew up playing Little League together. We were in the jazz band together. All of the activities I did as a young person were integrated because our community was. … Then, certainly, my time at the [United States Merchant Marine Academy] shaped me in a way that those experiences tend to.
VB: What did you want to be when you were a little girl? Boykin: I wanted be an engineer because my dad was. I was very much a tomboy when I was young. I was the middle of five so I had an older brother and a younger brother. I was one of those kids that if my dad was going to do something with those two, I was determined to be in the middle of it.
I was the first girl in St. Louis to play Little League Baseball and other sports. But, I actually wanted to be an engineer before I really knew what that was. I knew that, and I heard from all the teachers along the way, [that because] I was good at math and science, “You should be an engineer.” So, I never really got off that track.
VB:There’s been talk of expanding the Navy to a 355-ship fleet. How likely is that to happen? How are you preparing for this potential ramp-up? Boykin: The likeliness [of that happening is] a better question for the Navy to answer. What I can tell you is what we’re doing. We have invested over a billion dollars in the shipyard, in facilities, over the last five years, and we have a planned investment of over another billion dollars, like a billion and a half, over the next five years.
We are investing in the plant so that we can build for Virginia-class [submarines] at two per year… and also get prepared for the Columbia-class submarine.
Those investments are really making our shipbuilding production line more capable, and that’s how we’re preparing for the buildup. The other thing that the Navy is talking about, to get to 355, is looking at the maintenance [work they do.]
We work with the Navy, and we have two submarines in the yard right now that we’re doing overhauls on. So, we are working with the Navy. We have also invested in the part of the shipyard that does fleet support for submarines. So, what we’re talking to [the Navy about is if] the naval shipyards become full or overcapacity, based on their size and based on how much work they can do, we’re prepared to do more submarine maintenance here in the [Newport News shipyard].
VB: But from a workforce standpoint? Boykin: From a workforce standpoint we’re hiring over 400 people a month right now. We started hiring at that rate late last year, and we’ll be hiring over 400 a month until this summer. Then the hiring will level off to cover attrition, and so we’ll get somewhere around 25,000 and will sustain at 25,000.
VB: You’re a big advocate of Science, Technology, Engineering and Math (STEM), which doesn’t draw as many women. What are you doing at the shipyard to get more women in the field? Boykin: It’s not only more women, more people in general. If you look at the statistics nationally, STEM fields are very underrepresented by both women and minorities. We have a very active career pathways organization, which basically, through volunteers, [works] in the school systems — elementary, middle and high school level.
We started a program in particular for young girls a few years ago called GEMS. It stands for Girls with Engineering Minds in Shipbuilding. That’s a program targeting middle-school girls. We’ve gone from one school to two, with kind of a plan to grow that. It’s intended to give them the confidence that they need to not drop out of math and science classes in the middle-school ages.
The program is [held] twice a month. They kind of do an experiment. We have [female employees in STEM fields] that come. The volunteers are mentors to the girls, so they’ll learn about different math and sciences in their classroom. … The girls [keep journals]. They write themselves a letter at the beginning of the year, and then they journal after each experiment. Then, at the end of the year they write [another] letter, and kind of graduate from GEMS. They submit the letters, and we read the letters, and we recognize a few students who have really grown the most in terms of building their self-confidence. Quite often, [the letter at the beginning of the year] sounds like, “Math is for boys,” or “I’m not good at math, I’m not good at science, and I don’t think I want to do this.” Then you see the growth at the end of the year. “This is for me. I’m sticking to this.”
Now, we are growing the program so that [the employees] become mentors to the younger girls as they go through that. That program, working with the city of Newport News and Old Dominion University, has grown into what we’re calling Project Vision. Project Vision is an idea that [emerged] from a lot of the career pathways and GEMS work. We’re building, with the city of Newport News, a new office building at the East End of Newport News, which is in one of the more underrepresented areas. Our employees will be on the second, third and fourth floors. It’s going to be a lot of the people who are doing the digital shipbuilding work — engineers, planners, some IT people.
The first floor, though, is going to be a community center that the city of Newport News will own. Old Dominion University is going to operate that, and we’re working together, and we already have a couple of large IT company partners that want to work this with us. The exact [plan for] how we are going to use this space and what it’s going to become hasn’t really been defined, but the idea is that it will be used for both workforce development and STEM outreach.
Part of the challenge that schools described to us is for the younger kids to have laboratory time. What we would provide is volunteers and time and even some of the tools and some of the software. Companies will provide some of that as well. The idea is for these students in the East End of Newport News, in their own neighborhood, to be able to come to this community center and really learn some basic software programming, computer programming types of skills to level their playing field. So that, as they grow through life, they don’t find themselves at a disadvantage, which is really again why there is such a disparity in the number of women and minorities in the STEM fields.
VB: I wanted to talk about … the glass ceiling, since you’re the first woman to lead the shipyard. What have been the biggest barriers you have faced as a woman, and how did you overcome those barriers? Boykin: The only real barrier, I would say, was when I started at the shipyard, we still weren’t allowing women into the radiological controls program for some roles in the shipyard. That was a barrier.
Fairly early on, the leadership team here — that was in charge at Newport News Shipbuilding — recognized that and did away with that restriction. While there are always biases, I can’t say that I faced any particular barrier here. We have a very active inclusion and diversity program. We have a long way to go, but we are really determined to create a work environment where, as we say, the least empowered person in the room feels comfortable stating their view and opinion.
I think the biggest opportunity we have and the challenge we have and the responsibility as leaders, is to make sure we give people opportunities to develop, to be seen, to be recognized and to grow. Those opportunities are given to all employees so that everyone has a fair chance at making sure they have equal opportunity for job promotions and for new jobs as they come along.
VB: This is going to be for our July issue. You will have been in your position for a year. What has the experience been like so far? Has it been what you thought it would be? Boykin: I’m not sure exactly what I thought it would be. … I’m very excited still with the opportunity we have with a two-ship carrier buy to really change the business to be a digital shipbuilding business. I was excited before I came in, and I continue to be excited about that opportunity.
… [I also have been] honored by the opportunity to do things in our factory that really put the basic needs of our shipbuilders in the front as a priority. We are spending time and money solving basic employee needs like trying to alleviate the parking challenges, creating more [meeting and eating spaces throughout the yard and upgrading restroom facilities].
Those investments in our people were some of the things — we started this talking about how my priority was people and technology — these were at the front of the people priority for me.
VB: Did you ever have a mentor? Boykin: Many mentors, including Matt Mulherin, who’s my predecessor [as president of Newport News Shipbuilding], and Mike Petters, who is my current boss [at Huntington Ingalls Industries, the parent company]. I have probably learned more from the people I was fortunate enough to lead. I would move into a new division, or a new part of the business, and there were people that understood that part of the business, and that’s who I learned from. Senior leaders have mentored me in the art of leadership. They — the workforce — have taught me shipbuilding.
Among Virginia craft breweries, Starr Hill is practically ancient.
Established in 1999 as a small brewpub and music hall in Charlottesville, the craft brewery, now Virginia’s largest and second-oldest, has quite a different history than its younger competitors.
The number of breweries in Virginia has soared from 44 to almost 250 after landmark state legislation in 2012 allowed them to sell beer to be consumed on site. By that time, Starr Hill had years earlier moved to a large production facility in Crozet. Brands like Grateful Pale Ale and Northern Lights IPA became staples on grocery shelves in Virginia and the mid-Atlantic.
By 2014, fledgling breweries were seeing double-digit sales growth, but Starr Hill’s numbers had slowed to 2 to 3 percent a year. “That gives you a little bit of wariness,” says Robbie O’Cain, Starr Hill’s brewmaster. “But I think Starr Hill is uniquely positioned. We’ve always understood that markets are cyclical, and while everyone’s spending a bunch of money and saying that growth is infinite, we are able to see underlying trends.”
Starr Hill continues to evolve. It’s increasing on-site consumption in its remodeled tasting room and revamping its branding. Starr Hill also is focusing on its high-growth markets — right at home in Virginia. “That’s where we have the most distribution and where our brand truly resonates,” says O’Cain.
To test new products, Starr Hill opened its Pilot Brewery & Side Stage in a former stable in Roanoke last fall. “The real success story comes when we look at our Roanoke business in general,” says O’Cain. “Not just the retail spot but the grocery business … We’re on fire because we’re now kind of a Roanoke brand.”
Other craft breweries today might envy Starr Hill’s slow but steady trajectory as they cope with the industry’s growing pains. At least nine Virginia breweries have closed this year, and a national brewery closed its state-of-the-art Virginia Beach facility.
Nonetheless, Virginia brewers believe there’s plenty of room to grow in their home state. Many also are finding that innovation is key to survival in a fast-changing marketplace.
‘It’s a scary time’
The 2012 Virginia law caused a dramatic shift in the craft-beer industry. In addition to the nearly 250 breweries operating in the commonwealth today, another 35 are in the pipeline.
Nationally, craft beer sales soared in the first part of this decade, but the growth is easing. In 2013 and 2014, for example, the volume of craft beer sold in the U.S. grew more than 17 percent each year, according to the Denver-based Brewers Association. By 2017, annual growth had slowed to 5 percent.
“We continue to see [the number of] breweries increasing rapidly in recent years. At the same time, we’ve been seeing production growth slow a little bit,” says Bart Watson, the Brewers Association’s chief economist, who adds that current craft-beer growth is not alarming. “The industry is not in its infancy, so double-digit growth rates aren’t realistic.”
Brett Vassey, head of the Virginia Craft Brewers Guild and the Virginia Manufacturers Association, says Virginia’s craft beers are on track with national trends. Despite the recent surge in breweries, Virginia ranks 18th among the 50 states in the number of breweries per capita, according to the Brewers Association. “Folks are always asking whether the bubble has burst, but the reality is that craft beer is still growing,” says Vassey. “Any industry in manufacturing would kill for that kind of continued growth.”
Yet competition for space in restaurants and on store shelves has intensified in Virginia. “It’s a scary time. I wouldn’t want to be entering the industry right now,” says Patrick Murtaugh, co-founder and brewmaster at Richmond-based Hardywood Park Craft Brewery, which opened in 2011. “I think in the last six-and-a-half years we’ve been able to create a name for ourselves and … a reputation of good quality beer, so hopefully that will help us get a little bit of a head start.”
The rapid growth of Virginia’s craft brewery industry has been a boon to the state, driving more than $10 billion in economic activity each year. The rapid pace of change, however, means breweries must frequently re-evaluate their business models.
Port City Brewing Co. in Alexandria, which also opened in 2011, had sales increases of 30 percent for several years. The company has won several national awards, including designation as “Small Brewery of the Year” at the prestigious Great American Beer Festival in 2015.
“When a company is growing that fast, it really has required us to kind of step back every three to fourth months and re-evaluate how we do things: everything from operations to sales, to ordering ingredients and even logistics and beer storage,” says Bill Butcher, the brewery’s owner and president.
Hayes Humphreys, chief operating officer at Devils Backbone, Virginia’s largest craft brewery before its 2016 sale to Anheuser-Busch, agrees that breweries must keep track of many moving pieces to succeed. “It’s not enough to make good beer,” he says.
Devils Backbone saw traffic dipping at its Nelson County taproom around 2014 amid increased competition. In response, the brewery added a distillery, campsites and on-site lodging to improve foot traffic. “You’ve got to check all the boxes, whereas a couple of years ago, there was more leeway to learn as you go and make some mistakes along the way,” Humphreys says.
The Green Flash closing
Virginia’s craft brewers had a front row seat to the troubles of a national brand.
As part of a wave of West Coast brewers setting up East Coast locations, San Diego-based Green Flash Brewing Co. opened a 58,000-square-foot Virginia Beach brewery and taproom in late 2016. Industry observers were surprised when the Virginia Beach site was shuttered in March after only 16 months of operation. A lender later foreclosed on the company, which was sold to new investors.
“Overexpansion can lead to real trouble,” says the Brewers Association’s Watson. “Green Flash was the smallest brewery that was in all 50 states. Breweries need to find a geographic footprint that matches with their brand and [the production] size they can support.”
Shortly after Green Flash closed its East Coast site, Bend, Ore.-based Deschutes Brewery announced it may change its timeline for establishing a brewery in Roanoke. Deschutes had expected to open in Roanoke by 2021. Plans originally called for the company to invest $85 million and create 108 jobs. Company CEO Michael LaLonde told Virginia Business it is committed to coming to Roanoke but may need to adjust its schedule because of a changing business environment. In a demonstration of its commitment to the city, Deschutes has purchased the land for the Roanoke brewery.
Another West Coast brewery with a Virginia presence, Stone Brewing, says its national expansion has gone well. California-based Stone set up shop in Richmond in 2016, a move that allowed it to expand distribution across the country. Its 214,000-square-foot building includes a 250-barrel brewhouse and taproom in Richmond’s East End.
The company says nationwide sales have been growing for the past five years, and Virginia has been its second most popular market for off-site sales. “We’re pretty proud of how we’ve developed our business there,” says CEO Dominic Engels.
Meanwhile, Green Flash’s departure is expected to bring another out-of-state brewer to Virginia. Atlanta-based New Realm Brewing Co. quickly stepped in with plans to reopen the Virginia Beach facility.
New Realm, which operates a brewery and restaurant in its hometown, decided to buy the Green Flash site after running out of brewing capacity. The Virginia Beach operation, which will include a brewery and restaurant, will allow the company to expand distribution to Hampton Roads, and other parts of Virginia as the market demands.
“We believe that the situations are very different,” New Realm said of Green Flash. “We are a local, Southeastern brewer with a very tight geographic footprint. We only sell our beers in states where we brew and are an active and productive part of the community.”
Virginia’s homegrown breweries don’t have national aspirations. Instead, they are targeting Virginia and surrounding states.
Hardywood, for example, is focused on the Southeast. The company sells beer in Virginia and in Washington, D.C., and recently expanded to Atlanta and Raleigh, N.C. “Our focus has always been to be a distributing brewery, to be a strong regional player,” says Hardywood’s Murtaugh. “We want to really focus on our home markets.”
Last year Hardywood opened a small brewery in Charlottesville where it tests new recipes. Earlier this year, the company began operating a 60,000-square-foot brewery and production facility in Goochland County after running out of capacity in Richmond.
Untapped potential Industry experts say that, while Virginia’s brewery scene is becoming more crowded, there is plenty of untapped potential for growth, by innovating, opening new locations and capturing more market share.
As evidence of their confidence in Virginia, many are opening taprooms across the state to test new brews and attract customers.
Three Notch’d, a Charlottesville-based brewery that opened in 2013, has been a pioneer in this approach. The brewery, which has taprooms in Harrisonburg and Richmond, plans to open a brewpub in downtown Roanoke by this fall, and it is exploring a potential location in Hampton Roads.
“It’s a neat model because it allows members of the public to come in and try your beer and meet your people and understand what Three Notch’d is all about,” says Scott Roth, the brewery’s founder and president.
The brewery also has seen major growth in its hometown. In September, the brewery moved its main production facility from a 10,000-barrel operation on Grady Avenue to a restaurant and production facility at the IX Art Park downtown with triple the capacity. The new location, which features a full menu, has boosted beer sales.
Three Notch’d distributes beer only in Virginia, and production is soaring. Last year the brewery produced 10,000 barrels. This year it’s on track to produce 17,000 to 18,000 barrels.
Innovation also is key to driving growth. Dave McCormack, president of Waukeshaw Development Inc. in Petersburg, wants his three breweries to stand out. He entered the industry in 2016 with Trapezium Brewing Co. in Petersburg, the city’s first craft brewery.
Now he is opening a second location for Trapezium in Amherst County later this year. This location, which will be known as Camp Trapezium, will have a “wild-beer program,” using ingredients grown on the 100-acre property.
While Trapezium brands include unique beer styles such as its Lucky 75 Lemon Honey Ginger Ale and Lucky 47 White Ale, McCormack’s Beale’s Brewery in Bedford focuses on more traditional types of beer, such as lager and hefeweizen. The idea is to make the brewery attractive to customers who don’t usually drink craft beer. “We wanted to create a whole new brand around this idea of approachability and fun,” he says.
Attracting non-craft beer drinkers, in fact, is an industry initiative, says Vassey of the Virginia Craft Brewers Guild. About 87 percent of the beer sold in the U.S. is not craft beer. The guild is trying to take some of that market share by hosting events at the Virginia State Fair and NASCAR races.
Even owners who have closed Virginia breweries still see growth potential in the commonwealth. Randy Barnette opened Ornery Beer Co., Woodbridge’s first brewery in 2015, but he soon was followed by four competitors. By the time he closed his business, one of the other breweries already had ceased operation.
But Barnette believes his Ornery brand is viable, and he’s still brewing the beer at a Lorton-area brewery. He says the Woodbridge site didn’t work because he rented too much space in a retail area.
Barnette now plans to open a small brewpub in Fairfax City while setting up a production facility in a more affordable industrial area in the Bristow area.
“Our plan now is to have a main production facility that is pretty much the hub, and we’ll have multiple brewpubs in each location that will each have its own pilot brewery,” he says.
Benefits to Virginia
Virginia craft breweries are known for more than their beer. They can be major economic catalysts. “They become a destination,” says Bettina Ring, Virginia’s secretary of agriculture and forestry. “In addition to sparking redevelopment in several areas, they have become an important driver of tourism dollars.”
The breweries’ growth also has boosted related businesses. Port City, for example, uses bottles made in Toano; its six-packs are printed and produced in Staunton; and all of the wheat used for its popular Optimal Wit beer comes from a farm on the Eastern Shore.
“People want to know where their ingredients are coming from,” says Ring. “They want to be able to support and think about their consumer dollar and where they’re spending. So they’re really demanding local beer, and they’re really demanding local food, which is exciting to see.”
Many breweries have received state grants from the Governor’s Agriculture and Forestry Industries Development Fund. In return, 30 percent of their ingredients must come from Virginia farms, including ginger, hops, malting barley, fruit honey and herbs.
Hardywood, which has received $250,000 from the fund, used more than 30,000 pounds of Virginia agricultural products last year.
The industry also has sparked an interest in growing hops, a key beer ingredient. A hops processing facility is located in Loudoun County, and another is planned for Albemarle County.
Some breweries use “wet,” unprocessed hops produced by one of 90 growers in the Old Dominion Hops Cooperative. The Albemarle facility will give farmers the opportunity to process hops as dry pellets, creating a longer shelf life.
“We’ll have a place to harvest and then turn them from fresh cones into pellets,” says Randy Green, chairman of the cooperative.
In sum, the growth outlook for Virginia’s craft breweries is good, but competition will continue to intensify.
“It isn’t going to get easier to get into the grocery stores. It’s going to get harder,” says O’Cain of Starr Hill. “But Virginia beer is doing well. Virginia beer is growing in Virginia, which is important. Craft is moving toward a nearly state-specific kind of distribution footprint, and I think it’s healthy.”
IMS Gear, a German-based manufacturer of automotive equipment, announced Thursday plans to invest $1.05 million to upgrade its equipment in Virginia Beach.
The company’s 115 employees will be retrained to operate the new CNC cutting machinery with support from the Virginia Jobs Investment Program, which provides funding and consulting for employee training. IMS is eligible to receive $500 for training per job, or up to $57,500.
“IMS chose to stay and expand in Virginia Beach due to our location close to shipping routes, quality of life, and our established, solid workforce here,” Guenter Weissenseel, president of IMS Gear Virginia, said in a statement.
S.L. Nusbaum Realty Co. has been tapped as the listing representative for two Norfolk medical office buildings and one build-to-suit opportunity.
Chris Devine and Chris Zarpas will provide owner representation services for 171-A and 171-B Kempsville Road, which are $22.50 and $22 per square foot, respectively. 171-A has 5,500 square feet of space available, while 171-B has 8,500 square feet for lease. An adjacent build-to-suit opportunity offers an additional 20,000 square foot facility.
The property includes onsite parking and a central location directly on the Tide light rail line with immediate access to Interstates 64 and 264.
The Colonial Williamsburg Foundation said Wednesday that a restructuring plan implemented last year is working.
The restructuring, announced a year ago, included eliminating 71 jobs and outsourcing 262 positions.
“I said this time last year that we intended to restructure the Foundation one time, and one time only,” Mitchell Reiss, Colonial Williamsburg Foundation’s president and CEO, said in an address to employees. “I am very happy today to say, again, that there are no plans for layoffs or reductions in force.”
Reiss stressed, however, that the organization’s biggest challenge is paying down its debt, which is due soon. The foundation is working to refinance the terms of the debt so that it is less of a burden. The foundation’s debt stood at $317 million in June 2017. Joseph Straw, Colonial Williamsburg’s public relations manager, said the debt is still more than $300 million but did not reveal the specific amount.
“The Board’s goal, and ours, is to operate Colonial Williamsburg’s commercial businesses profitably – our hotels, restaurants, golf and the spa – so that revenue from these sources can pay their operating expenses and our debt to the lenders,” Reiss said in his presentation.
Colonial Williamsburg also wants to continue increasing its endowment and use it only to support history and educational programming. The goal is to only withdraw 5 percent annually from its endowment. The foundation has made strides—withdrawing 8 percent from its endowment last year, down from more than 12 percent in 2014.
Other foundation accomplishments include setting a fundraising record last year while increasing attendance during the past two years and in the first quarter this year. Wedding and conference bookings also have increased.
Reiss also said the foundation added a 401(k) benefit option for employees, as well as a 529 tuition savings plan.
“Colonial Williamsburg is still a work in progress. For an organization this complex – culturally, financially, and otherwise – there isn’t an easy fix. But we’re starting to make it work,” Reiss said.
The foundation also released its 2017 economic impact report. In 2017, Colonial Williamsburg accounted for nearly half a billion dollars in economic output and approximately 6,900 jobs in Virginia. The organization employed 2,000 people last year, with a total payroll of $75 million, plus $22 million in employee benefits.
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