Olympia Development Corp. buys back Verizon building for $12.4 million
- June 27, 2011
Olympia Development Corp. has purchased a building for $12.4 million that it sold 18 years ago for more than $15 million. “These are strange times,” President Cecil Cutchins told Virginia Business, “but the location of this building is excellent.”
The Virginia Beach-based company got the opportunity to buy back the 136,000-square-foot, six-story office building that until recently served as a Verizon regional headquarters when the private investor who purchased it in 1992 decided to sell. The seven-acre site on Cleveland Street is located off just Interstate 264 at the Newtown Road intersection. The building was developed as a single-tenant project for Verizon. However, the telecommunications company began to downsize three years ago, and now the office has three other professional service tenants. Verizon plans to totally vacant the building soon, which will open the door for more lease transactions, Cutchins said.
“While the office market is currently soft, the demand for premier space is not,” added Cutchins. “We intend to spend a signficiant amount to renovate ... ”
Overall, Cutchins said the building’s exterior has held up well, “but the common areas and air conditioning require upgrading.” When the renovation is complete, the company expects the building to have an environment simillar to another Class A project it owns and operates, the Convergence Center on Bonney Road in Virginia Beach. Altogether, Olympia owns and operates a portfolio of more than a million square feet in Hampton Roads.