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Micron to invest $2.17B in Manassas expansion

Semiconductor company will invest up to $2.17 billion to expand its facility, creating an expected 340 jobs, Gov. Glenn Youngkin announced Monday.

will modernize the plant at 9600 Godwin Drive to produce dynamic random-access memory (DRAM) chips for automotive, , defense and industrial markets, according to a news release from the governor’s office. Based in Idaho, the company has operated in Manassas for 22 years, and as of Dec. 10, it had 1,230 employees in Manassas.

“As the only U.S.-based manufacturer of memory, Micron is uniquely positioned to bring state-of-the-present memory manufacturing to the U.S., strengthening the country’s technology and fostering advanced innovation,” Micron and CEO Sanjay Mehrotra said in a statement.

The company is set to receive up to $275 million in federal funding to expand its Manassas manufacturing facility, U.S. Sens. Mark Warner and Tim Kaine announced Dec. 10, and Micron will move its manufacturing of DRAM chips for automobiles from Taiwan to Virginia.

In terms of state incentives, the Virginia Partnership worked with the City of Manassas and the General Assembly’s Major Employment and Investment Project Approval Commission to secure the project. Micron will be eligible to receive an MEI Commission-approved special appropriation of up to $70 million, based on the more than $2.1 billion investment and 340 new jobs, subject to approval by the General Assembly.

According to the Richmond Times-Dispatch, the state repackaged a $70 million economic development incentive package awarded to Micron in 2018 to provide $46 million in unspent financial incentives for the expansion of the Manassas plant.

“Micron’s investments in domestic manufacturing capabilities, supported by the bipartisan CHIPS Act and the incentives offered by the Commonwealth of Virginia and the City of Manassas, will help drive economic growth and ensure that the U.S. remains at the forefront of technological advancements,” Mehrotra said in a statement.

VEDP will support Micron through the Virginia Talent Accelerator Program. Created by VEDP in collaboration with the Virginia Community College System, the program provides free customizable workforce recruitment and training services to qualified new and expanding companies.

“Micron  Technology’s historic $2.17 billion investment in Manassas reinforces Virginia’s position as a leader in advanced semiconductor manufacturing,” Youngkin said in a statement. “For more than two decades, Micron has demonstrated that Virginia’s skilled workforce, strategic location and pro-business climate create an ideal environment for innovation.”

With a presence in 18 countries, Micron has 11 manufacturing sites, 13 customer labs and 21 design center locations. The company has more than 50,000 employees.

The U.S. Department of Commerce awarded Micron up to $6.165 billion in direct funding to expand DRAM production in Idaho and New York, creating approximately 20,000 jobs and helping the U.S. grow its share of advanced memory manufacturing from less than 2% now to about 10% by 2035, according to the Biden administration.

Micron reported fiscal 2024 revenue of $25.11 billion, up from $15.54 billion in fiscal 2023.

U.S. Army awards RTX’s Raytheon $946M contract modification

The U.S. Army has awarded , a subsidiary of Arlington County Fortune 500 and contractor RTX, a modification worth about $946.47 million for production hardware, software and services related to the Patriot system, the U.S. announced Monday.

The , located at Redstone Arsenal in Alabama, will manage the contract and will award $463.76 million from the fiscal year 2025 Foreign Sales Fund from the Romanian government at the time of the award.

The work will be performed at the company’s Andover, Massachusetts, facility and should be completed by the end of 2029.

In October 2023, the U.S. Army awarded Raytheon a $156.2 million fixed-price incentive contract to provide spares, components and ground support equipment for the Patriot missile defense system to the Romanian government. In March of that year, Raytheon won a potential $1.2 billion foreign military sales contract from the U.S. Army to provide Switzerland with the Patriot.

are used for air defense in 19 countries including Germany and Ukraine.

In December, the Department of Defense announced the had awarded Raytheon a contract worth up to $903.9 million, if all options are exercised, to provide support for a sensor system.

With more than 185,000 employees globally, RTX reported $68.9 billion in sales in 2023. Raytheon is also based in Arlington.

Thalhimer subsidiary purchases Dabney Center for $75M

Thalhimer Realty Partners, a subsidiary, has purchased Dabney Center, a 56-acre park in , for $75.3 million, the company announced Monday.

The complex, which includes 14 buildings and encompasses more than 642,000 square feet, was purchased from Brandywine Realty Trust of Philadelphia. Atlantic Union Bank provided financing for the . Cushman & Wakefield | Thalhimer will lease and manage the .

“This is the center of everything that’s ,” said Evan Magrill, an executive vice with Cushman & Wakefield | Thalhimer. “It’s where interstate[s] 64 and 95 cross. It’s where our Downtown Expressway … starts. … It really is the central point of all of Richmond.”

Zoned for light and general industrial use, Dabney Center is 99% leased. One 3,350-square-foot space remains available for lease at the center. The ‘s 40 tenants, which include Fireside Hearth and Home, and Ferguson HVAC Supply, have a variety of facilities there such as a showroom, a distribution center and a bioanalytical lab.

 Thalhimer Realty Partners, which has its headquarters in Richmond, has a portfolio of commercial and multifamily assets throughout the Southeastern U.S. valued at more than $1 billion. It is also the sole principal developing Richmond’s $2.44 billion Diamond District, a mixed-use project being developed around CarMax Park, a new baseball stadium under construction for the Richmond Flying Squirrels.

Here’s NVAR’s prediction for 2025 NoVa housing market

The market will continue to strengthen in 2025, with moderate price increases and increased market activity, according to the Northern Virginia Association of Realtors’ 2025 regional housing market forecast, produced with ‘s Center for Regional Analysis.

Examining the past year, Terry Clower, director of the Center for Regional Analysis and Northern Virginia chair and professor in George Mason’s Schar School of Policy and Government, said during an NVAR panel on Dec. 17, “The story of 2024 is going to be the market acclimating itself back to a more normal, [with] longer-term interest rates that are in that 6% band.”

NVAR’s predictions for the new year align with the National Association of Realtors, which believes that the worst of the housing shortage is ending as are stabilizing and job additions are continuing.

In 2025, most local markets within Northern Virginia will have more moderate price gains than in 2024, closer to 3%, NVAR and GMU-CRA predict, although tight markets like single-family homes inside the Beltway will see higher price increase rates.

Sales activity will increase and the region’s inventory will improve modestly, according to the forecast. Most market segments will have more homes for sale as buyers looking to move up in their housing will re-enter the market.

Stable mortgage rates will support higher sales levels, and the market will acclimate to higher but more historically normal mortgage rates, according to the forecast.

Some yet-to-be-determined factors could affect the region, such as -elect Donald Trump and his incoming administration’s stated plans to cut the federal workforce and require federal workers to return to office full-time, but the timing and scale of changes weren’t yet clear at the time of the forecast’s release.

NVAR’s forecast includes predictions for the city of and the counties of Fairfax, Arlington, Prince William, Loudoun and Stafford.

In 2025, NVAR expects single-family home prices to rise 1.5% in Fairfax County. Single-family housing unit sales will increase 5.7% in 2025 compared with 2024, reversing the several-year trend of tightening inventories, according to the forecast.

Townhomes inventory will increase 6%. Strong demand for townhomes will likely continue into 2025, with the number of sales rising 2.9% and prices rising 3.9% compared with 2024.

The strong demand for townhomes is largely because in recent years, they’ve been relatively affordable compared with single-family homes.

As single-family homes become more expensive, and condo fees continue to rise, townhomes “become a sweet spot,” especially because they also often offer yards or outdoor spaces that condos don’t, NVAR’s 2024 president, Thai Hung Nguyen with Better Homes & Gardens Premier, said during the Dec. 17 panel.

Condo prices will increase 3.5% from 2024, slightly slowing from the price increases seen in recent years. Inventory will increase 3.6% from 2024 to 2025 as demand for condos starts waning, according to the forecast.

Arlington County

The county’s single-family inventory will increase 1.8% from 2024 to 2025, according to the forecast. Total single-family home sales will decrease 6.5% compared with 2024, which represents only a difference of 4 units a month in the Arlington market.

NVAR forecasts demand for single-family homes will push prices up 5.3% in 2025, despite a slight inventory buildup and a decline in sales.

Because of the lack of available single-family homes, strong demand for townhomes in the county will push prices up 8.7% from 2024. NVAR predicts inventory will increase 4.3%, which represents an average increase of 1 unit at month’s end.

Condos in Arlington saw strong price increases in 2024, but affordability issues and potentially higher maintenance fees will soften price increases to 1.6% in 2025, according to the forecast. Condo sales will effectively remain flat as demand slightly softens. Arlington will have a small increase in inventory, averaging about 3.6% from 2024.

Alexandria

The median price of single-family homes in Alexandria will jump 9.9% in 2025, due at least somewhat to return-to-office policies. NVAR predicts the number of sales will shrink more, with just 285 sales in 2025, down 4.7% from 2024.

Prices in the city’s townhome market will increase 3.9% from 2024. Inventory will increase year-over-year an average of 5.2% because of price increases for potential sellers and buyers acclimating to higher mortgage rates.

According to the forecast, Alexandria condo prices will rise 1.5% in 2025, with slightly higher inventory and flattening unit sales.

Prince William County

In 2025, Prince William County will remain an attractive market for single-family homes, according to NVAR, with prices rising 3.5% but remaining relatively affordable compared with other markets in the region. The tight inventory will effectively remain the same, and total sales will drop by 35 units — 1% — from 2024 to 2025.

Townhome prices will increase 4% as families continue to seek more affordable housing. “The key market factor is being outside the core, but still a reasonable commute — reasonable by Northern Virginia standards,” according to NVAR’s forecast. Year-over-year inventory will increase 5% on average, following several years of declining inventory.

The forecast predicts condo prices will increase 6.2%, and year-over-year sales and the average year-over-year month-end inventory will increase 6%.

Single-family home price increases will continue into 2025 in Loudoun County, with a 5.5% increase in 2025. Strong demand will push the number of sales up 4% from 2024 and will decrease month-end inventory by 1% on average, according to the forecast.

Townhome prices will rise 3.8% to a median of $710,936 due to strong demand. NVAR predicts inventory will drop 3%, with unit sales increasing 1% from 2024.

Loudoun condo prices, too, will rise, increasing 8.1% over 2025. Inventory will stay nearly flat while condo sales increase 2%, equating to about 20 more sales in 2025.

Single-family homes in the county will increase 4.5%, slowing modestly from the price gains of recent years. Home sales will rise 2.2% to 1,495 units in 2025, with a 2.5% increase in average month-end inventories, according to the forecast.

NVAR predicts Stafford townhome price increases will remain strong, increasing 3.5% in 2025, with unit sales increasing 1.9% and inventory rising 3.7%.

Condo prices will increase 3.9%, according to the forecast, but Stafford’s condo market is young, and only 89 units will sell in 2025.

In sum, “it’s going to be an improving market,” Clower said. “There’s going to be some modest increases in inventory overall. There will be, therefore, more sales, because whatever is on the market is going to sell — that dynamic hasn’t changed. …

“We will see some price escalation,” he said, but it will be constrained by mortgage rates and affordability issues.

Food City to pay $8.4M to settle opioids-related allegations

Abingdon-based , operator of the chain, has agreed to pay more than $8.4 million to the federal government to settle allegations under the False Claims Act (FCA) related to dispensing opioids and other controlled substances.

The U.S. announced the agreement with K-VA-T Food Stores Monday,

In a statement, K-VA-T Food Stores noted that “the allegations focused primarily on circumstances from more than a decade ago. K-VA-T has continually disputed the validity of these allegations, and the agreement clearly states there is no admission of liability by K-VA-T. This case is another example of the many cases nationwide brought against manufacturers, distributors and retailers of opioid products.”

In October 2020, the entity K-VA-T Litigation Partnership filed a FCA qui tam action, which allows individuals or entities to sue wrongdoers over fraud against federal programs, in the U.S. District Court for the Eastern District of Tennessee, alleging Food City dispensed controlled substances in Georgia, Kentucky, Tennessee and Virginia that were medically unnecessary.

From January 2011 to December 2018, 24 Food City pharmacies, the government alleged, dispensed opioids and other controlled substances that were medically unnecessary, lacked a legitimate medical purpose and/or were not dispensed “pursuant to valid prescriptions.” Food City also, the government stated, submitted claims for payment for these drugs to federal care programs like Medicare.

Baron & Budd, a Texas-based law firm, issued a press release Monday stating the whistleblower in the case is a former Food City employee who regularly reported his concerns to management.

The initial 2020 lawsuit notes that Food City No. 821 in Bristol, Virginia, at one time received enough opioids for 25 pills per year for each of the 13,231 men, women and children who lived within five miles of the pharmacy.

“When pharmacies fill prescriptions for opioids and other powerful controlled substances without regard to their legitimacy or medical necessity, it significantly contributes to the opioid epidemic, causing great harm to our citizens and communities,” said Francis M. Hamilton III, U.S. attorney for the Eastern District of Tennessee, in a news release.

Of the $8.48 million owed to the government, more than $4.2 million is restitution. K-VA-T Litigation Partnership will receive more than $1.5 million. Food City will also pay an additional $78,621 to the states of Virginia and Kentucky for claims paid to Food City by state Medicaid programs.

The resolution was coordinated by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for Eastern District of Tennessee, with assistance from the Department of Health and Human Services Office of Inspector General and the Criminal Investigative Service.

In July, the Justice Department announced a $409 million settlement with to settle the government’s allegations under the FCA and Controlled Substances Act for dispensing “at least hundreds of thousands” of unlawful prescriptions for controlled substances.

K-VA-T Food Stores operates 158 outlets throughout Southeast Kentucky, Southwest Virginia, East Tennessee, North Georgia and Alabama.

Northrop Grumman subsidiary scores $3.4B Navy contract

Northrop Grumman Systems, a subsidiary of and giant , has been awarded a $3.459 billion by the Navy to engineer and manufacture new nuclear , according to announcements from the and the Navy last week.

E-130J jets will take the place of the Navy’s current E-6B Mercury fleet for “take charge and move out” (TACAMO), a military mission to mobilize and maintain critical decision-making systems, including airborne communications, in the event of . The Mercury aircraft provides airborne command, control and communications between the National Command Authority and U.S. nuclear forces. Work began on Dec. 18, according to the Navy.

Under the contract, NGS will serve as prime contractor to integrate the TACAMO mission systems into up to six C-130J-30 air vehicles built by Lockheed Martin.

“Today is a tremendous day for the future of naval aviation’s contribution to our nation’s nuclear deterrence mission,” said Capt. Adam Scott, program manager for the Navy’s Airborne Strategic Command, Control and Communications Program Office. “With the selection of Northrop Grumman Systems as the prime contractor for the TACAMO recapitalization program, we are ready to move out with developing this critical asset. In carrying on the legacy of the E-6B Mercury, the E-130J will ensure our nation’s is always connected to its nuclear forces for decades to come.”

The U.S. Department of Defense announcement says that work will primarily be performed in Florida, Georgia, Texas, Oklahoma and Indiana, among other U.S. locations, and it is expected to be completed in December 2034. Collins Aerospace and Lockheed Martin will be designated subcontractors on the project.

 

Party City declares bankruptcy, closing 700 stores, including 18 in Va.

Party City filed for bankruptcy Saturday and said it would “commence a wind down of its and wholesale operations and sales at its approximately 700 stores nationwide,” including 18 stores in Virginia.

The company just came out of bankruptcy in September, after bringing on a new CEO, Barry Litwin, in August. Party City Holdco, the retail ‘s holding company, was able to cancel about $1 billion in debt through the restructuring, according to Saturday’s announcement.

Word of Party City’s plans to shutter all of its stores came out Friday, when Litwin told corporate employees that they would soon be down all of the retailer’s 700-some party supply stores across the country, and that Friday would be corporate staffers’ final day of employment, according to a CNN report.

That means 18 Party City stores in Virginia will close soon, after about 40 years in business. However, there is a silver lining for employees of two stores in the area that will remain open because they are independently owned by a franchisee.

Steve Fram, the owner of two stores on West Broad Street in Henrico County and Stonehenge Village in Chesterfield County, said Monday that his stores will remain open and are not involved in the corporate shutdown. His two stores are among 29 franchise Party City stores across the country that are run independently and the only two independent franchisees in Virginia, he said.

Nonetheless, Fram said he’s fielded lots of phone calls, texts and questions about his stores’ status from his 40 employees and customers. “Everyone’s asking questions, ‘What’s going on?'” he said. “I found out about this Thursday morning, [and] I still haven’t received any information from corporate.”

The primary change will be to the stores’ point-of-service system, which is run through the Party City company, and the 29 franchise stores are working together on an independent procurement group to items sold in their stores. “For the time being, we’ll be under the Party City name,” said Fram, who’s owned his stores for about 30 years.

CNN reported that some employees received letters that the company planned to close stores Feb. 28, 2025, at which point their staffs would be terminated. Employees will not receive severance pay, and their benefits will end as the company goes out of business, Litwin said in a video call with corporate employees Friday, according to CNN.

Litwin joined the New Jersey-headquartered company as president and CEO only four months ago, and Party City exited bankruptcy in September, having declared bankruptcy in January 2023 and canceling nearly $1 billion in debt. According to CNN, the company, which was founded in 1986, still had more than $800 million in debt late this year, which earnings couldn’t overcome.

“I am excited to join Party City at a pivotal time as we reposition the business for a stronger future,” Litwin said in a statement in August announcing his hiring. “Party City is a leader in party goods and , and I see many opportunities to strengthen our financial performance and build a leading end-to-end celebration experience for consumers. I look forward to working closely with our team members, the leadership team, and the board of directors to create value for all our stakeholders.”

Party City is the nation’s largest party supply store, but the combination of the pandemic, rising costs and a helium shortage all hurt its business, CNN reported.

There are 20 Party City stores in , the Richmond area, Hampton Roads, Lynchburg, Roanoke and .

Statewide home sales, inventories rose in November

The fall 2024 has outpaced the fall 2023 market across the commonwealth, according to statewide November sales data released Dec. 20 by .

“For two months in a row now, Virginia has seen double-digit growth in closed sales,” Ryan Price, the trade organization’s chief economist, stated in a news release.

In November, 7,853 homes sold across Virginia. That was 905 more sales than in the same month the previous year — a 13% increase.

Courtesy Virginia Realtors

Pending sales also remained above last year’s pace. Last month, Virginia had 6,863 pending sales, 905 more contracts than this time in 2023.

“This marks a strong ending to what has been an otherwise sluggish 2024 for the commonwealth,” Price stated.

The number of housing sales in November in Northern Virginia rose 10.8% from the same time the previous year, according to data released Dec. 10 from the Association of Realtors.

The Hampton Roads area saw 1,899 in November, up 12.37% from the 1,690 sales recorded in November 2023 but down from October’s 2,115 sales, according to the Information Network (REIN).

The Virginia market had 18,870 active listings at the end of November, a 12% increase from the same month last year. New listings in November totaled 9,031, up 10.3% over new listings recorded in November 2023.

“Growth in new listings has been consistently stronger than last year as more sellers are choosing to enter the market,” Virginia Realtors 2025 Lorraine Arora said in a statement. “While our inventory of listings has expanded, it’s important to remember we’re looking at an inventory that is still about 40% smaller than it was this time five years ago.”

The statewide median sales price in November was $415,000, up $30,000 from November 2023. About 76% of local markets in the commonwealth saw median price growth in November.

For the week ending Nov. 7, the weekly average 30-year fixed-rate mortgage was 6.79%, according to Freddie Mac data. The following week, the average 30-year fixed-rate mortgage was 6.78%. The average rate was 6.84% for the week ending Nov. 21, and for the week ending Nov. 28, the average 30-year rate was 6.81%.

As of Dec. 19, the weekly average for a 30-year fixed-rate mortgage was 6.72%, according to Freddie Mac data.

Homes are selling relatively quickly but are staying on the market a bit longer than last year, according to Virginia Realtors. Statewide, homes spent a median of 16 days on the market in November, up from the 13-day median reported in November 2023.

In the Northern Virginia, homes sold in a median of 11 days in November, while in the region, homes spent a median of 12 days on the market. Hampton Roads and the areas had 19-day medians.

Based in Glen Allen, Virginia Realtors represents about 36,000 Realtors and is the state’s largest trade association.

Martinsville real estate, building supply firm names new president

The Lester Group has appointed Dana Cowart , the -based building materials and development company announced Monday. Cowart started his new job Dec. 1.

Cowart brings to more than two decades of experience in the sector. Previously, Cowart was vice president of acquisitions, vice president of sales and marketing, and filled other roles at TAL Building Centers, a Washington-based building supply company. Additionally, Cowart managed a door operation at OrePac Building Supply, an Oregon-based wholesale building materials supplier, after beginning his career at Lanoga, which later was purchased by Pro Build, both building materials businesses.

Cowart has a degree in business administration and management from the University of Washington, according to his LinkedIn page.

“His visionary and proven expertise in the building materials industry are exactly what our company needs as we continue to grow and adapt in an ever-evolving marketplace,” Jay Dickens, CEO of The Lester Group, said of Cowart in a news release. Dickens was hired as the company’s president in 2018 and named CEO in 2020, holding both positions until Cowart’s hiring.

The Lester Group acquired Williamsburg-based Custom Builder Supply this summer.

In addition to real estate management and development, The Lester Group owns Fredericksburg-based Fortress Door Co. and more than 21,000 acres of forestland in Virginia in Franklin, Halifax, Henry and Pittsylvania counties, as well as Rockingham County in North Carolina.

GDIT wins $5.57B contract to upgrade military communications system

Falls Church-based , a business unit of Reston Fortune 100 General Dynamics, has won a $5.57 billion from the Mission Partner Capabilities Office, it announced Friday.

Awarded in November, the single-award, indefinite-delivery, indefinite-quantity contract has a five-year base period and a five-year option, according to GDIT’s announcement. The business unit will modernize and operate the Department of ‘s (MPE), which will “enable the and its trusted partners to securely communicate, collaborate and share information at multiple levels of classification in real time” during military missions.

“The complexity of global threats necessitates the urgency to create agile, secure and seamless information-sharing environments with our trusted partners,” GDIT Amy Gilliland said in a statement. “We look forward to implementing an integrated Mission Partner Environment that will serve as a blueprint for future efforts across the .”

Work will be performed in the Washington, D.C., area, as well as in Tampa, Florida; Hawaii and the United Kingdom, according to the DOD announcement, and work is expected to be completed by December 2035.

GDIT has more than three decades of experience in designing and operating MPE programs worldwide, including a network for the Army’s European and African outposts. The company employs about 30,000 employees in 30 countries, and reported $8.5 billion in revenue for 2023.