Virginia

Laramar Group Acquires 35,406 SF Medical Office Building in Sterling, Virginia

by John Nelson November 9, 2023

STERLING, VA. — The Laramar Group has acquired Sterling Medical Plaza, a 35,406-square-foot medical office building located at 46440 Benedict Drive in Sterling, a suburb of Washington, D.C. The investment firm purchased the two-story property via Laramar Medical Properties Fund I for an undisclosed price. The seller was also not disclosed. Built in 1986 and renovated in 2021, Sterling Medical Plaza was 85 percent leased at the time of sale to tenants including Loudoun Medical Group, INOVA Health and Concentra.

November 9, 2023

Development Loans Seniors Housing Southeast Virginia

Ziegler Arranges $52.5M Bond Financing for Seniors Housing Development in Winchester, Virginia

by John Nelson November 6, 2023

WINCHESTER, VA. — Ziegler has arranged $52.5 million in bond financing for Shenandoah Valley Westminster-Canterbury (SVWC), a senior housing development located in Winchester, approximately 70 miles west of the Washington, D.C. metro area. Constructed in 1982, the 87-acre property features 217 independent living units (164 apartments and 53 cottages), 48 assisted living units, 12 memory care units and 51 skilled nursing beds. Currently, an independent living villa apartment expansion project is underway at the development. Ziegler financed the first phase, which includes 48 new independent living villa apartments, in 2022. The second phase of the project is being financed with the new bonds and includes an additional 49 independent living villa apartments, for which SVWC issued two tranches of draw-down bank loans that were purchased by Atlantic Union Bank and Pinnacle Financial Partners. The two tranches include a $27.5 million, 10-year bank commitment period with an accreting swap that mitigates interest rate risk through the bank commitment period and a $25 million intermediate-term bond with a 30-month maturity to be repaid with entrance fees to the expansion.

November 6, 2023

Acquisitions Retail Southeast Virginia

Marcus & Millichap Arranges $4.4M Sale of Brickyard Shopping Center in Richlands, Virginia

by John Nelson November 1, 2023

RICHLANDS, VA. — Marcus & Millichap has brokered the $4.4 million sale of Brickyard Shopping Center, an 86,246-square-foot retail center located at 114 Kents Ridge Road in Richlands, a city in western Virginia. Zachary Taylor and Eric Abbott of Marcus & Millichap’s Atlanta office represented the seller, an unnamed developer, in the transaction. Dean Zang and David Crotts of the firm’s Washington, D.C., office procured the buyer, a private investor. Brian Hosey served as Marcus & Millichap’s broker of record in Virginia for the transaction. Built in 1989, Brickyard was 75 percent leased at the time of sale to its original anchor tenants, Food Lion and Big Lots. Food Lion is the sole national grocery store in Richlands, and there is only one other anchored shopping center in the area, according to Marcus & Millichap.

November 1, 2023

Acquisitions Industrial Southeast Virginia

IPA Brokers $19.9M Sale of Industrial Property in Woodbridge, Virginia

by John Nelson October 27, 2023

WOODBRIDGE, VA. — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has brokered the $19.9 million sale of a two-building industrial property located at 15111 and 15151 Farm Creek Drive in Woodbridge, about 26 miles south of Washington, D.C. Built in 1986 on an 8-acre site within Featherstone Industrial Park, the 139,818-square-foot property was fully leased at the time of sale to Bekins A1 Storage Inc., a privately held moving and storage company. Robert Filley and Chandler Pace of IPA represented the seller and procured the buyer. Both parties requested anonymity.

October 27, 2023

Acquisitions Industrial Southeast Virginia

Matan Acquires Two New Industrial Facilities in Richmond Totaling 321,000 SF

by John Nelson October 27, 2023

RICHMOND, VA. — Matan Cos. has purchased two recently delivered, high-bay industrial facilities within Deepwater Industrial Park in Richmond. Located 2.2 miles from the Richmond Marine Terminal, the assets total 321,000 square feet and feature 36-foot clear heights, 52- by 52-foot bay spacing and visibility from I-95. Hourigan, in collaboration with DSC Partners, delivered the facilities earlier this year. The third building within Deepwater Industrial Park is fully leased to Lowe’s Home Improvement. Matan has tapped Charlie Polk, Gareth Jones and Chris Avellana of JLL to lease the newly acquired assets. Sue Caras, Drake Grier and Evan Parker of JLL arranged acquisition financing through Mesa West Capital. The sales price and loan amount were not disclosed.

October 27, 2023

Acquisitions Leasing Activity Retail Southeast Virginia

VICI Acquires 38 Bowling Alleys from Bowlero in $432.9M Sale-Leaseback Deal

by John Nelson October 23, 2023

MECHANICSVILLE, VA. — VICI Properties Inc. has acquired 38 bowling alleys from Mechanicsville-based Bowlero Corp. in a sale-leaseback transaction for a total $432.9 million. Bowlero will now occupy the properties, which are located across 17 states, on a triple-net-lease basis. Initial annual rent for the lease will total $31.6 million. The deal also included an eight-year right of first offer (ROFO) term for VICI to purchase Bowlero’s real estate assets. J.P. Morgan acted as financial advisor to VICI in the transaction, and Hogan Lovells US LLP and Kramer Levin Naftalis & Frankel LLP provided legal counsel. VICI Properties Inc. is an experiential REIT that owns one of the largest portfolios of gaming, hospitality and entertainment destinations, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas. Bowlero is a publicly traded company that operates 325 bowling alleys across North America. Earlier this year, Bowlero acquired the Lucky Strike Entertainment LLC brand, which operated 14 locations across nine states. In 2019, the company purchased the Professional Bowlers Association.

October 23, 2023

Market Reports Multifamily Southeast Southeast Market Reports Virginia

Richmond’s Multifamily Growth Reflects the Local Economy’s Positive Trajectory

by John Nelson October 23, 2023

As Richmond continues to grow, its relative value points to prosperity in the market for years to come. Having grown our company in Richmond, we’ve witnessed the transformative momentum and tremendous change firsthand. Specifically, the diverse employment base has continued to expand through economic strength and migration trends, increasing not only population but also multifamily demand and asset performance. Strong economics support Richmond’s stability. Richmond’s diverse employment base empowers a resilient market with high-growth potential. The MSA is home to 11 Fortune 1000 companies and a robust private sector, encompassing hospitals, energy companies and financial services. The economy is stabilized by the presence of many institutions of higher learning, along with substantial medical and life sciences users. Numerous major corporations have announced or recently completed large expansions. These include CoStar’s new $460 million corporate campus (2,000 jobs) and The LEGO Group’s new $1 billion, 1.7-million-square-foot production facility (1,760 jobs). As Virginia’s state capital, Richmond has a large government presence, including the Richmond Federal Reserve Bank and the U.S. Fourth Circuit Court of Appeals. The city is also actively engaged in creating public-private partnerships — including the “Diamond District,” a 67.5-acre parcel redevelopment into a mixed-use entertainment district, and “City Center,” …

October 23, 2023

Industrial Market Reports Southeast Southeast Market Reports Virginia

Deal Velocity for Richmond’s Industrial Market Slows for First Time This Cycle

by John Nelson October 16, 2023

With rising interest rates from the Federal Reserve playing out across the capital markets, uncertainty has crept into all corners of commercial real estate, even in red-hot industrial markets like Richmond. For the first time this cycle, deal velocity has slowed for new acquisitions and leasing activity alike in the greater Richmond area. Borrowing costs have skyrocketed in the past 12 months, leading to an extended period of price discovery from both buyers and sellers, thus fewer investment sales. Richmond’s occupancy rate remained steady from first-quarter to second-quarter 2023 at 96 percent, according to research from Porter Realty. Occupancy ticked up 400 basis points for Class A space during that time frame — from 92 to 96 percent — and Class B stayed steady at 98 percent quarter-over-quarter. The second quarter saw more than 280,000 square feet of space returned to the market, though it had negligible impacts on occupancy rates. (Porter Realty tracks industrial facilities in the greater Richmond market sized 40,000 square feet and larger.) The bulk of new leases recently are executed by third-party logistics providers. Recent deals include Riverside Logistics taking 90,000 square feet in Henrico County, Bermuda Distribution & Trucking subleasing 48,000 square feet in …

October 16, 2023

Market Reports Office Southeast Southeast Market Reports Virginia

Richmond’s Office Market Is Stable and Active on the Leasing Front

by John Nelson October 9, 2023

In the second quarter of 2023, the Richmond office market posted more than 670,000 square feet of leasing volume, the highest total volume in more than four years. As transactions commence in future quarters, absorption will be impacted from occupancy shifts later in the year. Despite increased leasing activity, however, the market softened slightly as absorption has started to plateau. The second quarter represented the fourth consecutive quarter of negative net absorption as Richmond’s office market observed occupancy losses dipping to 21,489 square feet. Vacancy rates rose and settled at 12.6 percent, an 8-basis-point increase quarter-over-quarter. Pre-pandemic, overall asking rents saw stable upward rent growth. Since 2020, rental rates have continued to increase though at a leaner rate. Class A rents have flattened over the past 12 months, while Class B rents continued to rise. The Manchester and Scott’s Addition submarkets remain the hot spots for office development. Though there are currently no major office buildings underway at this time, most major office projects under construction in the last five years have either been build-to-suits or conversions. The only notable exception to this was The Current, a 70,000-square-foot spec office building that delivered in Manchester at the end of 2021. …

October 9, 2023

Development Mixed-Use Southeast Virginia

Arlington County Approves Site Plan for Bingham Center Mixed-Use Development in Northern Virginia

by John Nelson October 2, 2023

ARLINGTON, VA. — Arlington County has approved Donohoe Development and TCS Realty Associates’ site plan for Bingham Center, a mixed-use development planned at 3200 Wilson Blvd. in Arlington. The transit-oriented development will be situated one block from the Clarendon Metro station and comprise a 229-room boutique hotel, 290 apartments, including 15 affordable housing units, 16,000 square feet of street-level retail space and below-grade parking. Donohoe and TCS Realty are planning to deliver Bingham Center in 2025 and are aiming for LEED Gold certification, according to the project website.

October 2, 2023

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