Commercial real estate roundup, 4/18/11
- April 18, 2011
NEWPORT NEWS — Campus Properties II LLC purchased a four-acre site at Interstate Professional Center off I-64 at the Oyster Point interchange. The company plans to build a two-story, 25,000-square-foot building that will be used for adult education. The project will complete phase two of what is the Peninsula’s newest office condominium development. Already up is a 33,000-square-foot office, which has drawn several tenants, although 21,500 square feet remains available. Divaris Real Estate represented the seller, Interstate Professional Center LLC, in the transaction.
VIRGINIA BEACH — The oceanfront will be getting a new health food store. 3701 Pacific Avenue Associates LLC purchased a 10,000-square-foot retail and office building from Brasco Bay Corp. for $1.5 million as an investment and plans to open a health food store. Cushman & Wakefield | Thalhimer handled sale negotiations.
VIRGINIA BEACH — LifeNet Health, the largest organ and tissue bank in the U.S., plans to build a 42,000-square-foot facility adjacent to its corporate headquarters at 1864 Concert Drive. The area is part of the growing Princess Anne Commons biomedical corridor. The company currently employs 422 people in Virginia Beach. The Virginia Beach Economic Development Authority approved a $340,000 grant to assist LifeNet with the capital investment.
WILLIAMSBURG —D&R Hotels II LLC bought a 122-unit Travelodge Inn & Suites on Bypass Road for $1 million. The company plans to improve the three-acre property and to continue its operation as a Travelodge. Cushman & Wakefield | Thalhimer handled sale negotiations.
RICHMOND — Riverside on the James, one of downtown’s signature buildings, has a new owner. American Real Estate Partners, a real estate investment company based in Herndon, bought nearly 263,000 square feet of the office tower and retail space portions of the building, a 15-story office tower with views of the James River. The company did not disclose the purchase price, but said the buy represented its first investment in the Richmond market.
HENRICO COUNTY — The state of Virginia’s Department of General Services renewed a 46,389- square-foot lease on Cox Road in the Innsbrook Corporate Center. Highwoods Properties handled lease negotiations.
HENRICO COUNTY — Willis of Virginia Inc. leased 19,167 square feet in the North Shore Commons I building in the Innsbrook Corporate Center. Cushman & Wakefield | Thalhimer represented the tenant in the transaction.
LYNCHBURG — The city is getting a new Hyundai automotive dealership. Chief Investments LLC bought less than an acre on Breezewood Drive for $400,000 for the construction of a dealership. Cushman & Wakefield | Thalhimer handled sale negotiations.
LOUDOUN COUNTY — Comstock Partners breaks ground Wednesday, April 20, for its Loudoun Station project. A ceremony will be held at 10 a.m. on Loudoun Station Drive, adjacent to the building site, east of Home Depot. The project will include 357 apartments and 70,000 square feet of retail. It’s located on the Metro’s anticipated Silver Line extension to Washington Dulles International Airport.
FAIRFAX COUNTY — First Potomac Realty Trust purchased One Fair Oaks, a 12-story, 214,214 square-foot office building for $60.2 million, or nearly $281 per square foot, according to CoStar Group. The building is fully occupied by defense contract CACI Enterprise Solutions whose lease remains in effect through 2016. First Potomac, an office and industrial real estate investment trust based in Bethesda, paid cash and assumed a $52 million first mortgage loan that is due in June 2012.
IN THE HEADLINES —SLOW BUT STEADY RECOVERY FOR U.S. OFFICE MARKET
Jones Lang LaSalle reports that the U.S. office market recorded its fourth consecutive quarter of occupancy gains with 4.5 million square feet of space absorbed in the first quarter of 2011. Leading the recovery were markets with active energy and high-tech sectors including Boston, Houston, Seattle and the Silicon Valley. Another bright spot: office-use employment has more than tripled in recent months and is growing at an annual rate of just more than 3 percent.