VCU receives approval to purchase Altria Richmond research facility

Virginia Commonwealth University received state approval this week to buy Altria Group‘s 450,000-square-foot research building in downtown Richmond.

The Altria Center for Research and Technology, which opened in 2007, sits on more than four acres at 600 E. Leigh St. and is assessed for $275 million. Discussions between officials with VCU and Henrico County-based Fortune 500 tobacco manufacturer Altria and between VCU and state budget leaders were initially reported in October 2024.

The measure was included in the state budget bill, and, according to the Richmond Times-Dispatch, the state will provide $127 million toward the purchase. Gov. Glenn Youngkin sent his budget amendments and vetoes, which did not include changes to the proposed VCU acquisition, to the General Assembly on Monday.

VCU and Altria spokespeople declined to provide the expected purchase price or expected closing date of the potential sale.

“Modern research space is a priority for VCU, Richmond and the commonwealth,” VCU spokesperson Brian McNeill said in a statement. “It is also crucial to attracting top talent and biomedical and pharmaceutical companies to Virginia. The acquisition of this facility presents an unmatchable and timely opportunity to further Virginia’s leadership in medical innovation.”

VCU would use the building for lab space as well as space for its School of Pharmacy and School of Public Health, according to VCU spokesperson Brian McNeill. The school anticipates some renovations will be necessary but doesn’t have details at this time, he said.

“This facility would directly enhance VCU’s globally impactful research efforts,” McNeill said in a statement, “including the rapid discovery and delivery of VCU Massey Comprehensive Cancer Center’s life-saving treatments and trials; transformative pharmaceutical drug development and manufacturing; life-altering breakthroughs in liver, metabolic and chronic diseases; and VCU’s nationally recognized work in mental health and addiction.”

Constructing a new building the size of the research facility would likely cost more than $700 million and take at least a decade, Grant Heston, VCU’s vice president for enterprise marketing and communications, told Virginia Business in October.

As for Altria, spokesperson David Sutton said in a statement: “In the event of a sale, Altria plans to remain in the CRT building for several years,” while the company builds a new research facility elsewhere in Richmond, “likely on Philip Morris USA’s Manufacturing Center complex,” which is located near Instate 95 in South Richmond.

Because real estate owned by VCU would likely be tax exempt, the city’s coffers will likely take a hit.

“Within its roughly 62 square miles, a significant share of city land is owned by state government entities and is considered tax-exempt property,” Julian Walker, an interim city spokesperson, said in a statement. “The inability to collect taxes on such valuable properties dramatically limits the city’s capacity to generate revenue that is used to support the delivery of services to Richmond residents.”

The state budget also contains a provision exempting the VCU Health System Authority from paying the City of Richmond for backing out of a $325 million downtown development project “unless and until the General Assembly provides explicit authorization therefor.” According to VCU Health’s agreement with the city government, the health system was to pay about $56 million to make up for lost tax revenue.

Known as the Clay Street Project, VCU had planned to build a medical office tower and a multiuse project at the site of the city-owned Public Safety Building at 10th and Clay streets. In spring 2023, news broke that the university’s health system was planning to pay developers $72.9 million to back out of the project that had higher costs than the university anticipated.