MicroStrategy Inc. bought $414.4 million worth of bitcoin — about 7,002 units — from Oct. 1 to Nov. 29, the Tysons-based business software company reported to the U.S. Securities and Exchange Commission on Monday.
The company now holds about 121,044 bitcoins, for which it paid $3.57 billion total. The average purchase price of each bitcoin was about $29,534. As of 3:33 p.m. Wednesday, bitcoins were selling for $56,900 per unit, putting MicroStrategy’s total holdings at a value of about $6.89 billion.
Bitcoin reached a high of $69,000 in early November. Last week, bitcoin hit a low of $53,549 per unit, but its price climbed back above $58,000 Monday. When MicroStrategy reported holdings of 114,042 bitcoins on Oct. 28, the coins were selling for $65,875.50 each.
From Oct. 1 to Nov. 29, MicroStrategy raised $414.4 million from the sale of 571,000 shares through its open market sale agreement with Jefferies Group LLC. As of 4:01 p.m., shares were trading for $705.47.
MicroStrategy announced its first bitcoin purchase in August 2020, saying it had converted $250 million from its cash holdings to more than 21,000 bitcoins, making it one of the first public companies to convert its cash treasury reserves into cryptocurrency as a store of value. The strategy is a move that MicroStrategy CEO Michael Saylor believes will protect the company’s money from inflation, and one that some traditional finance experts caution against.
As of Oct. 28, MicroStrategy employed 2,057 people, 787 of whom were in the United States. The company offers cloud-based business data analytics software.
Located at 4905-4995 Nine Mile Road, the 117,773-square-foot super-regional shopping center is shadow anchored by a Walmart Supercenter and was 97% occupied at the time of sale. Its tenants include Conn’s Inc., Planet Fitness, Hibbett Sports, Virginia ABC, T-Mobile USA Inc. and Dunkin’ Donuts.
The center sits on the site of the former Eastgate Mall, which was constructed in 1967. The 31-acre site was redeveloped in 2017.
EASTGATE TOWN LLC, owned by Washington, D.C.-based investor Nelson Ayala, bought the property from Eastgate Town Center LLC, owned by Richmond-based real estate investor Mark Harris.
Bethesda, Maryland-based property and asset management company The Premier Cos. Inc. assisted the buyer and will manage the property. Mark Williford, a vice president with Colliers, and Will Bradley, Collier executive vice president, represented the seller.
Henrico County-based Altria Group Inc. and former subsidiary New York-based Philip Morris International Inc. can no longer sell the IQOStobacco heating device in the U.S. after the Biden administration’s 60-day administrative review process concluded Monday.
On Sept. 29, the U.S. International Trade Commission determined that the IQOS device violated two of rival R.J. Reynolds Tobacco Co.’s patents, following its investigation in response to R.J. Reynolds’ submitted complaint. The ITC decision ruled that Altria and Philip Morris International would be prohibited from importing the heating articles and components, and it issued a cease and desist. The Biden administration did not change this decision after its review.
“While this decision will cause near-term disruption, we continue to see a large opportunity for IQOS and other FDA authorized smoke-free products in the U.S. over the coming years,” Philip Morris said in a statement.
The ITC began its investigation on May 15, 2020, after R.J. Reynolds, a subsidiary of British American Tobacco PLC, filed a complaint.
Altria and Philip Morris Internationalbegan selling IQOS devices in the U.S. in October 2019 out of a mall storefront in Atlanta, laterexpanding its offerings into the Richmond and Charlotte, North Carolina, markets. Philip Morris International, which Altria spun off in 2008, introduced IQOS overseas in 2014, where it gained about 8 million users by 2019.
“We’ve been focused on our contingency plans surrounding sales and distribution and have been in communication with PMI on their domestic manufacturing plans,” Altria spokesperson David Sutton said in a statement. “We’re communicating with IQOS consumers regarding removal of IQOS and HeatSticks from the market, why this is occurring and that we’re working on contingency plans to make these products available again at retail.”
The device heats tobacco without burning it, and the U.S. Food and Drug Administration had allowed Philip Morris to market an early version as a “modified risk” product.
R.J. Reynolds has filed two claims with the U.S. Patent and Trademark Office over the IQOS system. The agency is expected to rule on the claims in 2022.
Financial details of the transaction were not disclosed.
The Blakeway acquisition is the firm’s second in six months, following its June purchase of Chesapeake-based Horton & Dodd PC.
“Blakeway is a natural fit, the final ‘puzzle piece’ of our growth strategy in the Hampton Roads market,” KBJW Chief Strategy Officer Jeff Hudson said in a statement. “As we developed our plan, we began looking at companies in the area that have proven success and will complement the work we’re already doing in the market.”
Founded in 2005, Blakeway provides planning, surveying, environmental, engineering, construction management and permitting services.
“For 16 years, Blakeway Corp. has been a product of hard work, vision and a team effort from dedicated staff,” Blakeway Corp. owner Valerie Blevins said in a statement. “In searching for the perfect fit for a Blakeway acquisition, KBJW provided not only a proven track record for success but also a commitment to the values that Blakeway highly regards.”
KBJW will merge its three Virginia locations into one office in the Greenbrier area in Chesapeake.
Founded in 1990, KBJW provides services including land planning, site design, landscape architecture, geotechnical engineering, environmental engineering, drainfield design, wetland delineation and land surveying. The company operates in Virginia, West Virginia, Ohio, Kentucky and Wisconsin.
Fairfax-based product lifecycle management company 3Pillar Global Inc. announced two promotions Tuesday: David Sawatzky to chief operating officer and Jamie Whitacre to chief people officer.
Sawatzky was previously the company’s chief delivery officer. Whitacre served as the senior vice president of talent.
“Dave and Jamie are both exceptional leaders,” 3Pillar CEO David DeWolf said in a statement. “Each one embodies our values and excels at empowering great people, which is precisely what we need right now. Their appointments will equip 3Pillar to continue to keep up our current pace of growth.”
Part of Sawatzky’s role as chief delivery officer included expanding 3Pillar offerings like innovation consulting and machine learning. He previously led a team of 2,000 people as the vice president of SaaS and client success for IBM’s Cognitive Solutions unit.
“I am excited for this next step at 3Pillar,” he said in a statement. “This past year, we have seen 3Pillar lead the way in digital innovation, and I am thrilled to help scale the team to create world class products for our expanding set of clients.”
Jamie Whitacre is the chief people officer of 3Pillar Global.
Whitacre has worked with 3Pillar for 12 years, most recently working with its global talent and employer branding teams to retain talent and build its corporate culture. She earned degrees from James Madison University and Capella University.
“I’m thrilled to continue my journey at 3Pillar as we expand our global presence and scale our culture,” Whitacre said in a statement. “Our next phase of growth is critical in helping us attain our vision of becoming the employer of choice in digital product development services.”
Founded in 2006, 3Pillar develops digital business software products like web and mobile apps and SaaS platforms for its clients, including CARFAX, Fortune and PBS. After a string of acquisitions beginning December 2020, it now has more than 2,000 employees across six countries. The company made the Inc. 5000, the list of the fastest-growing privately held companies in the U.S., in 2021 for the ninth time.
Launched in cooperation with the Virginia Bar Association in 2000, Virginia Business’ Legal Elite polls lawyers licensed to practice in Virginia each year, asking them to identify which of their peers are the top attorneys across 20 categories of legal specialties.
In compiling this year’s Legal Elite, Virginia Business contacted more than 14,000 attorneys and more than 50 law firms, directing them to a balloting website, which was available only during the annual voting period.
This year’s Legal Elite categories include a total of 1,271 lawyers, 23.3% of the 5,453 attorneys who were nominated by their peers this year. Attorneys cast 1,612 ballots, making 27,340 separate votes across all 20 legal specialty categories.
Virginia Business also profiles a representative from each legal category.
Three firms are well-represented in this list of 22-year honorees. The group includes four lawyers from Willcox & Savage PC in Norfolk: Allan G. Donn, William M. Furr, Thomas G. Johnson Jr. and Conrad M. Shumadine. McCandlish Lillard PC in Fairfax has two lawyers on the long-term list: R. Peyton Mahaffey, who becomes chairman of the firm’s board on Jan. 1, and Ralph M. Tener. Williams Mullen also has three long-term honorees: William D. Bayliss and Calvin W. “Woody” Fowler Jr., who are based in Richmond, and Thomas R. Frantz, the firm’s chairman emeritus, in Virginia Beach.
In it to win it: The 20 lawyers who have made the list every year since 2000
Click on category to see complete list and profile.
Even as the seemingly never-ending COVID-19 pandemic continues to accelerate hybrid and virtual work, one thing doesn’t change — your need to build social capital.
Whether you’re Zooming or returning to in-person events, this third annual list of Virginians to meet in 2022 will introduce you to a variety of innovative, impactful businesspeople and trendsetters whom we think are worthy of your valuable networking time.
They range from The New York Times political columnist Jamelle Bouie, who has a side gig reviewing morning cereals for fun, to the Washington Football Team’s Will Misselbrook, who’s rebranding the NFL franchise for the 21st century, to Loudoun Hunger Relief President and CEO Jennifer Montgomery, who’s feeding hundreds of hungry families in the nation’s wealthiest county.
And just as a reminder, “I saw you in Virginia Business!” is always a great conversation opener.
Commuters are on board with Hampton RoadsTransit‘s plans to extend The Tide, its 7.4-mile light rail system, according to recent public discussions about proposed new routes.
This fall, HRT held one virtual discussion and three pop-up sessions at transit stations in Norfolk to gather public input about expanding the light rail to Sentara Leigh Hospital and Military Circle Mall, both in Norfolk. A light rail stop at Military Circle would tie in with Norfolk’s plans to transform the struggling mall into a mixed-use community of hotels, parks, offices and residences. The 2.2-mile extension would take light rail from Newtown Road, crossing under interstates 264 and 64. Modifications would also be made to the Newtown Road station.
“The response has been very positive,” says Sam Sink, HRT’s director of transit development.
Extending The Tide to Military Circle would enhance transportation options in one of Norfolk’s most flood-resistant areas. “We view that corridor as high ground in Norfolk,” notes Jared Chalk, the city’s economic development director. “It’s 13 feet above sea level and much more resilient than other parts of the city.”
Chalk believes light rail service between downtown Norfolk and Military Circle will increase ridership on The Tide. “It’s a compelling way to get between these two nodes, as well as an opportunity to extend what was a very short segment and maximize its value.”
However, commuters said during the public meetings that they were disappointed that plans do not include taking The Tide to Naval Station Norfolk.
“We always wanted to see it extended that far,” Sink says, “but the level of ridership didn’t support it. It wasn’t necessarily the bang for the buck we would like to see.” Instead, HRT plans to launch a bus rapid transit (BRT) line connecting the eastern end of The Tide with Naval Station Norfolk. The bus route would have prepay stations, dedicated traffic lanes and fewer stops than other HRT buses.
“We think we will serve that need effectively with the BRT,” Sink says, adding that a timeline for adding the rapid route has not been established. Once the final survey results are tallied and shared with HRT stakeholders, the agency will begin environmental assessments in early 2022.
“These projects take a long time,” Sink notes. “We might be looking at six or seven years before we break ground on light rail to Military Circle.”
A flurry of recent industrial investment in the Shenandoah Valley has regional economic development officials eager to make new sites shovel-ready as companies put a premium on locations that will enable them to stand up operations as fast as possible.
Fast-casual restaurant chain Cava’s September announcement that it will build a $30 million, 57,000-square-foot processing and packaging facility in the Mill Place Commerce Park in Verona snatched up the last remaining site in the Shenandoah Valley with a Tier 4 classification — sites ready for construction to take place in 12 to 18 months or sooner, with infrastructure improvements in place or doable within that timeframe — as designated bythe Virginia Economic Development Partnership’s Virginia Business Ready Sites Tier program.
This and other recent developments have regional officials racing to bring new sites to market that will meet businesses’ needs to begin construction quickly, says Jay Langston, executive director of the Shenandoah Valley Partnership.
“The speed-to-market component of our businesses — regardless of sector — has increased beyond anything that we have seen before,” Langston says. “They need it now. So having sites that remove the risk and time delay is paramount to being competitive.”
In March, the state’s GO Virginia economic development initiative awarded the region $821,000 for improvements to six industrial sites totaling 1,112 acres in Augusta, Frederick, Rockingham, Shenandoah and Warren counties. Work is expected to be completed in the next few months and includes environmental, wetlands and geotechnical surveys to raise the sites’ tier categorizations.
One area where officials see promise for future development is the land surrounding the Shenandoah Valley Regional Airport in Weyers Cave. A 500-acre site near the airport is part of the site enhancement project. Complementing that site, the airport received a $100,000 GO Virginia grant in September to fund utility design and engineering at its Aviation Technology Park. The regional airport commission plans to build two 14,000-square-foot hangars in the park.
Airport Executive Director Greg Campbell says this could be the start of more aviation-related development in this part of the region, adding, “There is so much technological evolution in aviation now.”
Richmond real estate developer Andrew Basham’s company, Spy Rock Real Estate, owns so many properties within Scott’s Addition that local business owners jokingly refer to the neighborhood as “Andrew’s Addition.”
As the area has become Richmond’s hottest neighborhood — literally and figuratively —Basham and his business partners at Spy Rock appear to have been prophetic, foreseeing breweries, apartment complexes and restaurants in an area that was largely a desolate industrial district barely a decade ago.
Trevor Dickerson, Sandi Cano and Andrew Basham. Photo by Shandell Taylor
But some of the investors who bought into Basham’s vision saw him less as Nostradamus and more as Captain Obvious.
During a pitch to a potential investor in 2013, Basham rolled out an aerial map, showing the industrial neighborhood. It was chock-full of buildings eligible for historic preservation tax credits, nestled just north of the Fan and the Museum District, surrounded by interstates and equidistant between downtown and the West End.
The investor “was baffled. He said, ‘I don’t understand why this neighborhood hasn’t been developed yet,’” Basham recalls. “He was right. It’s in the middle of everything.”
‘Greater Scott’s Addition’
Development in the neighborhood, which still has enough of an industrial feel that it contains two strip clubs, is contagious.
The historic core of Scott’s Addition runs north of Broad Street to the train tracks, and west of Arthur Ashe Boulevard until you hit Interstate 195. The term “mixed use” may be an understatement in a neighborhood with apartments, produce distributors, breweries, makerspaces, a fencing club and a boutique bowling alley. It also is home to Movieland at Boulevard Square, one of only two first-run movie theaters in the city.
The explosive growth within this small quadrant has inspired speculation as to how nearby industrial neighborhoods can catch the wave.
Many of the city government’s most ambitious plans revolve around “Greater Scott’s Addition,” which would expand the neighborhood northeast to encompass the area across Hermitage Road all the way to the interstate.
The Richmond 300, an urban planning guide for what city leaders hope Richmond looks like by its 300th birthday in 2037, envisions the area between Arthur Ashe Boulevard and Hermitage Road transforming into an urban playground, with parks, bike paths, mixed-income housing, and entertainment and sports complexes.
Situated between Arthur Ashe Boulevard and Hermitage Road, the Richmond Flying Squirrels’ home baseball stadium, The Diamond, is slated to be torn down in the next four years. City officials are planning a new stadium that the Squirrels will share with Virginia Commonwealth University’s baseball team near the old stadium site that the Squirrels say needs to be ballgame-ready by 2025.
The city has dubbed the 67-acre site encompassing the current baseball field as “the Diamond District,” and city officials have said they plan to release requests for development proposals for the district by the end of 2021.
VCU has been buying up properties on the other side of Hermitage Road from the Diamond District, with plans to build a 40-acre Athletic Village that will include indoor and outdoor tennis courts accessible to the public as part of a major sports practice facility.
In July, Richmond City Council approved a massive rezoning of the area to favor higher density and mixed-use development, the first step toward realizing the Richmond 300 dream for the area.
While plans for Greater Scott’s Addition are dramatic, development in the historic core of the neighborhood has not slowed down. Apartment complexes are constantly under construction, including a 2.28-acre, 350-unit complex with 16,000 square feet of retail space being built by Greystar and Capital Square. The $32.4 million project encompasses an entire city block and is expected to open in late 2022. Brambly Park winery opened in June 2020, adding two acres of green space and an event venue with the neighborhood’s first winery.
Staying on top of the new developments in Scott’s Addition requires setting Google alerts and keeping a sharp eye on the city’s construction permits.
“I can’t even keep track of it,” jokes Trevor Dickerson, president of the Scott’s Addition Boulevard Association.
‘Like 1945 around here’
Scott’s Addition’s history is part of its charm, but some of its historic remnants aren’t so charming.
The historic core of the neighborhood is where visionaries saw potential and started snatching up real estate in the early 2010s.
Part of the allure was that buildings within the core had historic tax credits. The neighborhood was listed as a historic district on the National Register of Historic Places in 2005, in recognition of its pivotal role as a thriving industrial district and railroad hub for much of the 20th century.
The historic tax credit “was a huge boon,” Basham says. “It de-risked financially some of the investments that were being made in the neighborhood.”
The area has proven there is a ravenous appetite for converting early-20th to mid-20th century industrial buildings into hip restaurants or breweries, but it has also proven that 1930s infrastructure doesn’t always gel with modern city life.
Two-lane, one-way streets were ideal for delivery trucks making multiple stops when the neighborhood was primarily industrial, but now these create speeding hazards. Sidewalks, old-growth trees, streetlights and corner trash cans that are the norm in neighborhoods like Church Hill or Carytown are sparse in Scott’s Addition.
The neighborhood’s needs are so acute that the Scott’s Addition Boulevard Association voted “no opposition” to an early proposal to build a casino on the Movieland site, while all the surrounding neighborhoods opposed the location.
That “no opposition” vote was made in part because of promises from the proposed casino operator to invest in area infrastructure, Dickerson said. “They were kind of this hero waiting in the wings,” Dickerson says, allowing that the association was “skeptical of that.”
Richmond voters ultimately rejected a proposed South Side casino in a November referendum, but it illustrates just how badly Scott’s Addition business owners want improvements.
“How did this neighborhood get this far for so many years without basic sidewalks or basic lighting?” asks Sandi Cano, the owner of Turn Cardio Jam Studio. “Basic infrastructure belongs here. Why does it still look like 1945 around here in certain parts? That’s what blows my mind.”
Cano has reason to be upset.
In October, Natalie opened Ruff Canine Club, a grassy dog park bar, in the Scott’s Addition area, fulfilling a local demand for green space. Photo by Caroline Martin
She’s one of the early converts, having opened her gym in the Scott’s Addition neighborhood back in 2015.
She’s been a longtime advocate for greater investment in the neighborhood’s infrastructure, but last year the traffic pattern nearly killed her. Two days before Christmas 2020, Cano was sitting at the stoplight at the intersection of Roseneath Road and Clay Street when a driver traveling more than 60 miles per hour rear-ended her car. The collision propelled her vehicle into the intersection, where she was struck head-on by a pickup truck. Her car was totaled, she suffered a traumatic brain injury and was out of work for months.
“This road has no stop signs,” she says, pointing east on Clay Street, where cars along the two-lane road pick up speed between Arthur Ashe and Roseneath. “That’s why he went so, so fast.”
Dickerson says T-bone accidents are common throughout the neighborhood, with cars trying to cross east-west thoroughfares and pulling in front of oncoming traffic.
The city has tried to alleviate traffic within the neighborhood through Greater Richmond Transit Co.’s Pulse bus route, which runs a 7.6-mile stretch from Rocketts Landing to Willow Lawn, but the young professionals filling Scott’s Addition apartments aren’t big bus riders.
“A lot of people use it, but it’s not solving all our problems,” Dickerson says. “A lot of folks still rely on cars in this town.”
Dickerson and other business owners have tackled some of the infrastructure issues themselves. They are working with developers to get a multiuse path built along old rail lines that could one day connect to bike paths on the other side of Arthur Ashe Boulevard. And they bought trash cans from the city to minimize litter, but they’re now in a dispute with the city over who collects the trash.
But even the most active civic association doesn’t have the resources to build a sidewalk grid or change traffic patterns. The state denied funding for an $8.5 million proposal to convert West Clay Street into a two-way street, which would slow traffic down.
“Long term — if the city doesn’t make the improvements to transportation and safety infrastructure, and the basic things a neighborhood needs like sidewalks, lights and trees, that will ultimately be problematic,” Basham says.
Need for green
As the neighborhood enters its latest phase of redevelopment, the need for green space is evident.
The civic association has created two small and unofficial “pocket parks” with benches, grass, picnic tables and pervious pavers. The Richmond 300 plan calls for a major urban park in the coming decade, stretching from behind the Science Museum of Virginia all the way north to the current site of The Diamond.
But until that happens, the concrete jungle vibe of Scott’s Addition is particularly evident on hot summer days.
A 2017 study on the city’s temperature found that places like The Diamond or the patio at Scott’s Addition bowling alley River City Roll could be as much as 16 degrees hotter than other parts of the city during the hottest part of the day, and many parts of Scott’s Addition stayed at elevated temperatures well into the evening.
“It’s the hottest neighborhood in Richmond — literally,” Dickerson says.
The heat is both an environmental problem and a marketing problem. The neighborhood’s developers target an extremely dog-friendly demographic.
Most of the neighborhood’s residents are young people without children or empty-nest retirees — two groups that love their dogs. But a lack of shade or grass and an abundance of hard, dark surfaces has dogs hopping from paw-to-paw as they pad along on sweltering sidewalks in July and August.
That’s why Natalie Moore opted to open Ruff Canine Club, the city’s first dog park bar, in the industrial area just north of Scott’s Addition’s historic core in October. The club is on Ellen Road, next to biotech firm Grenova Inc. and across the street from Siewers Lumber & Millwork.
In an area where dogs can be seen wearing doggy shoes to protect their pads from the pavement on a warm day, Ruff Canine Club has nearly an acre of grass for dog romping, along with drinks, food and Wi-Fi.
“I wanted to be in an area that had a lot of apartments and not a lot of green space,” Moore says. “This was definitely the most ideal spot.”
As more and more entrepreneurs like Moore are drawn to Scott’s Addition and its surrounding areas, commercial and residential rents are on the rise, and some of the original business owners are wondering whether they can afford to continue living and working in the city’s hottest neighborhood.
“Scott’s Addition is probably one of the most desirable commercial areas in Richmond right now,” Basham says. “When you create that environment, rents go up. It’s a victim of its own success in that sense.”
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