It looks like Virginia Beach Town Center is going to get bigger. The city’s staff is moving forward with a development agreement for a new, Class A, 174,000-square-foot tower at the 17-block, mixed-use project that serves as the resort city’s downtown. What would be the project’s third tower would include an 850-space parking garage, 267-unit apartment building and 18,000 square feet of new retail space.
The tower would be funded through a public-private partnership, with developer Armada Hoffler investing $70.4 million, and the city paying $18 million for the parking garage, which it would for pay for through tax increment financing already in place at the center. An additional $1 million in bonds would be needed to pay for infrastructure. The Virginia Beach City Council has directed city staff to develop the agreement, which could come for a vote before the council and the city’s Development Authority in November.
Virginia Beach-based Armada Hoffler is the center’s original developer, and occupies space in one of the project’s two existing office towers. The anchor tenant of the new tower would be Clark Nexsen, an architectural design firm that would lease 80,000 square feet for its corporate headquarters in a building it would design. The firm, with nine offices in four states, would move 350 of its 550 U.S. employees into the tower from its current location in Norfolk.
The City of Virginia Beach also plans to lease one floor in the new tower for its Office of Economic Development, now located in the Armada Hoffler Tower at Town Center.
Hampton University College of Virginia Beach would expand its presence in Town Center by leasing an additional 25,000 square feet of space in the Hoffler Tower at 222 Central park Avenue so it can expand course offerings.
If the project is approved, construction would begin in February 2013 with completion expected by July 31, 2014, to meet a move-in date for Clark Nexsen.
Town Center of Virginia Beach is a $500 million, multiphase, mixed-use, private-public partnership between Virginia Beach and Armada Hoffler.
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