Commercial real estate roundup, 4/25/11
- April 25, 2011
CHARLOTTESVILLE —Starting next month, the Barracks Road Shopping Center will undergo a renovation to update its façade. Rockville-based owner Federal Investment Realty Trust says the project will be done in two phases, staring with the main building. It will get a new canopy roof and façade. In 2012, the fountain court also will be redone to create an open-air gathering place. Barracks Road, a 486,000-square-foot center, includes national retailers, two regional grocers and many local stores. New tenants that will be opening soon include Peter Chang’s China Grill and Pink Palm, a Lilly Pulitzer shop.
RICHMOND — A 475,000-square-foot, ten-building industrial complex near Richmond International Airport has sold for $26 million. AF Byrd Center VA LLC, a joint venture between the Miami-based Adler Real Estate Fund and Tri Gate Capital in Dallas, bought the Byrd Center, which has an occupancy rate of 90 percent. The property has more than 100 tenants, many of them small- to mid-size companies such as international freight forwarders that want a location near the airport. Eric B. Robison of Cushman & Wakefield | Thalhimer’s Investment Brokerage Group handled sale negotiations on behalf of the buyer. The seller was Medalist Properties 2 LLC and WRE-Byrd LLC.
RICHMOND — Citybiz Real Estate reported that Apple REIT Eight, based in Richmond, has received default notices on four hotel loans. One of the hotels is located in Virginia, the TownePlace Suites and Courtyard in Suffolk. According to Citybiz, Apple REIT Eight is negotiating with special servicers, so that the terms of the loans could possibly be renegotiated. The REIT also has entered into a loan agreement with Bank of America for a revolving credit facility of $20 million.
HAMPTON —A subsidiary of Preferred Apartments Communities Inc. of Atlanta has agreed to buy the Oxford Trail Apartments for $23.5 million. The deal with Oxford Trail JV LLC is expected to close by April 29. The complex of 204 apartments and 20 two-story townhomes is located on about 16 acres. It was built in 2006.
CHESAPEAKE — The Hampton Roads office of CB Richard Ellis has been selected as the exclusive leasing agent for several office properties in the region, including Crossways Office Park at Greenbrier. Perry Frazer, senior vice president, and Matt Wilbricht, vice president, will head up leasing for the 220,051-square-foot, Class A building, which offers visibility from Interstate 64 and parking.
VIRGINIA BEACH — Commercial Real Estate Services reported leases totaling more than 40,000 square feet for the first quarter. One of the largest deals was a 9,600 square-foot deal for a Petco pet-supply store at Red Mill Commons.
FAIRFAX COUNTY — Calkain Cos. , a national real estate investment brokerage firm in Reston, reports a $13.8 million sale that it describes as one of the largest net-lease retail transactions in the area in years. Jeff Bogart represented the buyer and seller on a cobranded Walgreens and PNC Bank ground lease in Fairfax. The buyer was an undisclosed local investor. According to Calkain, the sale price represented a 5.9 percent capitalization rate.
WASHINGTON, D.C. — Law firms continue to lease space in the nation’s capital. Rothwell, Figg, Ernst & Manbeck PC signed a 10-year lease for 42,181 square feet in an office building on 14th St. NW. The intellectual property law group plans to occupy the seventh and eighth floors of an 11-story, 260,779-square-foot property. Cassidy Turley represented Rothwell, Figg, and Cassidy Turley and Transwestern represented the landlord, Deka Immobile Investment GmbH.
LEESBURG — A new restaurant is coming to The Village at Leesburg. Firebirds Wood Fired Grill, a chain with 17 locations across the country, plans to begin construction soon on a 5,826 square-foot restaurant at the mixed-used project near the intersection of state Route 7 and Crosstail Boulevard.
IN THE HEADLINES
BEST BUY TO REDUCE “BIG BOX” SQUARE FOOTAGE IN RETAIL STORES — The nation’s No. 1 electronics retailer said during its 2011 Investor and Analyst Day that it plans a 10 percent reduction in retail store square footage during the next three to five years. The move would bring an annual savings of $70 to $80 million at a time when the company wants to grow its online business and add more mobile units. It plans to open 150 standalone Best Buy Mobile Stores in 2012 and says the company could have 600 to 800 units of these stores within five years. Typically, its big box stores range in size from 20,000 to 45,000 square feet. According to Best Buy, 99 percent of its brick-and-mortar stores are profitable.