Real Estate Quarterly: The Art of The Deal
Corporate location revives Gordonsville's downtown

by Donna C. Gregory
Virginia Business
December 2005

THE DEAL: The creation of a corporate campus for PBM Products. The renovation of six historic structures and construction of a new building revitalized downtown Gordonsville. The multimillion dollar investment by PBM, a manufacturer and distributor of private-label infant formula and other pharmaceutical products, attracted other investors. By the late 1990s the Main Street of this old railroad town was dotted with empty, neglected buildings. Then Paul B. Manning, president and CEO of PBM Products, decided to make Gordonsville the home for his new business, sparking downtown's rebirth. He discovered the town, located in the foothills of the Blue Ridge Mountains near Charlottesville, while visiting friends in the area.

KEY PLAYERS: Manning, Gordonsville's mayor and town council, local development consultant Bruce Gupton, his wife, Jacqueline, and son, Garrick.

HOW THE DEAL UNFOLDED: Gord-onsville's town leaders struggled for years to revive their ailing downtown. With a dwindling tax base, they hoped private investors would take notice of Gordonsville's potential with its convenient location off Interstate 64 - two hours southwest of Washington, D.C. - and its historic antebellum homes and hotels. Manning had moved to the area in 1996 and was looking for a home for his newest venture, PBM Products. He purchased the Linney House on Main Street for $99,000 - a price that would be hard to find in a metropolitan area - and restored the circa 1842, two-story home as PBM's headquarters.

As the private consumer products company grew from three to 100 employees, Manning purchased several more buildings, all north of the railroad tracks that slice through the center of downtown. He converted each one into offices for PBM's employees, taking care to preserve the properties' historic integrity.

For instance, the company's marketing department is housed in what used to be the former Old Oaken Bucket Hotel. Town leaders were thrilled. "Without what he did, the other things wouldn't have happened," says Gordonsville Mayor Bob Coiner.

About the same time, local development consultant Bruce Gupton and his family began buying properties south of the railroad tracks, which they renovated and leased to small retailers. That side of town now includes a French restaurant, art galleries, gift shops and other specialty shops. "We both simultaneously had the same vision," says Gupton. "We met early on, and I think we both have this vision of a working town that is creating jobs and is a nice place to live."

Town leaders worked with Manning and the Gupton family, helping them realize their mutual dream of a downtown revival. "In a small community, they are diligent about what they want done, but they're also interested in accommodating," says Manning. "It's provided a great partnership between our company and the community."

ECONOMIC SIGNIFICANCE: Property values along Main Street have tripled over the last decade, and vacant properties are harder to find. "I've slowed down, because other people are buying and fixing up their properties," says Manning. "Residential is now developing too, because Main Street is redeveloped." Manning recently purchased Gordon House, a small assisted-living facility on Main Street that had fallen into disrepair and was financially troubled. He plans to renovate and expand the facility, adding 15 rooms and building 12 cottages and 23 apartments for independent living. "[The project] means the facility can stay open…that most of the people employed there can still live here in town, because they still have jobs," says Marilyn Stinke, general manager of the Village at Gordon House. The project is just one example of how Manning has played a significant role in the town's comeback, says Coiner. "His work has contributed to our overall tax base, because it's made the town more viable. They [Manning and Gupton] just really saved the town."