Richmond is thriving and the office market is following suit. The office market, like the broader Richmond region, benefits from Richmond’s diverse economy, high-quality of life at a reasonable cost of living and the steadily growing, highly educated workforce. These attributes make Richmond an attractive option for large employers evaluating cities for operations. Recent entrants to Richmond include CoStar Group, ICMA-RC and Owens & Minor. The CEO of CoStar pointed to Richmond’s educated workforce, affordability and excellent quality of life as the reasons Richmond recently beat out several other Southeast U.S. cities as the new home for the company’s global research headquarters. Growth from within Richmond is also driving the market with new developments of over $1 billion in the pipeline or currently under construction from two of Richmond’s largest employers: Virginia Commonwealth University Health System and Dominion Energy. Their developments in downtown Richmond are accompanied by a wide array of creative office developments in the formerly industrial Scott’s Addition micro-market located near the convergence of Interstates 64 and 95. The city of Richmond continues to be the recipient of most new office development with suburban development being limited and mainly healthcare centric, led by Bon Secours Health System and …
TYSONS, VA. — KPMG, one of the world’s Big Four accounting firms, has signed a lease to occupy up to seven floors of The Boro, an under construction 20-story office tower in Tysons. The Meridian Group and Rockefeller Group are co-developing the tower, with Skanska constructing the Gensler-designed building. KPMG plans to relocate approximately 1,830 employees from its current office at 1676 International Drive in Tysons to the new property in 2019. The move brings preleasing to more than 60 percent ahead of construction completion, with approximately 178,000 square feet remaining at the tower. Additional committed tenants include Hogan Lovells, a global law firm, TEGNA, Whole Foods Market and Kerasotes Showplace Theatres. Situated on 15 acres, the transit-oriented property will feature office, retail, restaurant and outdoor space. The LEED Gold-designed tower features nine- to 10-foot ceilings, efficient floorplans and a rooftop terrace. Rob Faktorow and Terry Reiley of CBRE represented the landlords, while Phil Leibow and Bill Craig of JLL represented KPMG in the lease.
While there has been a strong demand for investment properties in Richmond, there remains a limited availability of both freestanding facilities and portfolio deals. In recent investment activity, the Byrd Corporate Park in eastern Henrico County sold to a joint venture between Dreyfuss Investments and Wells Holding Group for $31.3 million after previously transferring in 2011 for $26.3 million. The 10-building flex complex spans 475,783 square feet and was 80 percent leased at the time for sale. The three-building Interport Business Center, also located in eastern Henrico, sold at the end of 2017 to MDH Partners, adding to its Richmond International Airport area holdings. Containing 620,296 square feet total, the complex sold for $29 million and is now fully leased. Leasing Buoys Occupancy Local expansion has remained strong, a trend consistent with the Richmond market, and regional and national companies with an existing presence in the area have also announced expansions. The metro area has also seen the introduction of new manufacturers with large industrial footprints, further evidencing the benefits of the area’s location and infrastructure. At the mid-year mark, the Richmond area’s industrial market has continued to strengthen, closing with an overall occupancy rate of 94 percent in the …
VIRGINIA BEACH, VA. — Besyata Investment Group and The Scharf Group have purchased Brookfield Apartment Homes, a multifamily property located at 1101 Craftsman Drive in Virginia Beach. Bonaventure Investment Group sold the property for $37.7 million. Constructed in the early 1970s, Brookfield comprises 44 two-story apartment buildings holding 352 units. The property includes two swimming pools, two community rooms and a tennis court. George Hankins and Victoria Pickett of CBRE|Hampton Roads teamed with William Roohan, Robert Dean III, Jonathan Greenberg, Yalda Ghamarian and Thomas Leachman of CBRE’s Multifamily Investment Properties team in Washington, D.C., to represent the seller in the transaction.
NEW YORK — Greystone has provided $74.5 million in Freddie Mac financing for a 16-property multifamily portfolio located across Virginia. New York-based The Lightstone Group, a privately held real estate company, is the borrower. Dan Sacks of Greystone’s New York office originated the separate loans for the various affordable housing and market-rate rental properties. Greystone provided a combination of both affordable and conventional market-rate Freddie Mac loans, each with 10-year terms. The 1,768-unit portfolio serves a cross-section of multifamily housing needs, including student housing, affordable housing and workforce housing. Located throughout the Interstate 81 corridor in Southern Virginia, the properties are located in or near Roanoke, Harrisonburg, Blacksburg and Virginia Beach.
ARLINGTON, VA. — HFF has arranged the sale of 672 Flats, a newly completed multifamily community located in Arlington’s Ballston submarket. The Chevy Chase Land Co. acquired the property from a joint venture between The Penrose Group and Clark Enterprises for $90 million. Walter Coker and Brian Crivella of HFF represented the seller in the deal. The buyer purchased the property free and clear of existing debt. Jamie Leachman, Chris Hew and Nicole Brickhouse of HFF’s debt placement team arranged a 12-year, fixed-rate acquisition loan through USAA Real Estate for the buyer. The six-story community features 173 apartment units, ranging from studio to two-bedroom loft- and flat-style floorplans, with open layouts, stainless steel appliances, custom cabinetry and pantries with built-in microwaves, fixed and movable kitchen islands, hardwood-style flooring and full-sized washers/dryers. Community amenities include a resident lounge with bar, game room with billiards, poker table shuffleboard, air hockey and gaming center; fitness room with cardio, free weights and boxing/kickboxing; cyber lounge/mail room with computer stations and coffee service; bike storage; and controlled-access garage parking.
RICHMOND, VA. — RLN Co. has purchased an industrial property located at 1500 Commerce Road in Richmond. Keck Realty sold the property to RLN for $2.1 million. The buyer plans to utilize a portion of the 184,270-square-foot facility, which is situated on 9.4 acres, as the new Rental Works headquarters while leasing out the remaining space. Rental Works is a tool rental service based in Virginia’s Henrico County. Isaac DeRegibus of Cushman & Wakefield | Thalhimer represented the seller in the deal.
MIDLOTHIAN, VA. — Berkadia has arranged $36 million in financing for Westchester Apartments, a garden-style multifamily property under construction in Midlothian, about 15 miles west of Richmond. Costa Canavos and Amy Gay of Berkadia’s Richmond office secured the loan through the Virginia Housing Development Authority. The 20-month, interest-only construction loan converts to an amortizing 30-year permanent loan. Located on Perimeter Drive, the property will feature 238 apartment units and offer access to Route 288 and Westchester Commons.
RESTON, VA. — Bridge Investment Group has acquired The Campus at Sunrise, a 255,000-square-foot office campus in Reston. The three-building property is situated on 12 acres, roughly 22 miles west of Washington, D.C. Bridge will renovate all three buildings, constructed between 1987 and 1990, with updated lobby areas, an enhanced tenant amenity center, flexible spec suites, communal outdoor areas and special events and entertainment for tenants. The Campus at Sunrise is situated within walking distance to the Wiehle-Reston East Metro station and a half-mile from the planned Reston Station mixed-use community, which will include 100,000 square feet of restaurants and retail, as well as residential units. The office campus was 85 percent leased at the time of sale. The name of the seller and sales price were not disclosed.
RICHMOND, VA. — Colliers International has arranged the $39.5 million sale of Axis 147, a 290-unit apartment community in Richmond. Will Matthews, Carter Wood, Jason Hetherington and Bruce Milam of Colliers International arranged the transaction on behalf of the seller, a joint venture between Lincoln Property Co. and Ritz Banc Group. Capital Square 1031 acquired the asset. Axis 147 features a pool, playground, pet play area, sundeck and private balconies or patios.