TGM Realty Investors redeveloping a retail building for new office tenant in Newport News
- December 8, 2011
A building that used to house a Value City department store in the Newport Plaza development of Newport News is getting a new look and a new tenant.
TGM Realty Investors LC in Richmond, the development and investment subsidiary of Cushman & Wakefield| Thalhimer, acquired the 90,582-square-foot building at 836 J. Clyde Morris Boulevard as part of a long-term, ground lease transaction and plans to redevelop it into a mixed-use project. TGM is leasing the underlying land from Newport Square Partners LP, a Delaware-based partnership that owns the shopping center.
“They didn’t want to subdivide the property, so we acquired the building and agreed to a ground lease,” said Mark Slusher, TGM’s vice president.
Most of the space — 63,000 square feet — will be taken by an undisclosed anchor office tenant that is new to the Hampton Roads market. “The reconfiguration of the building will be significant — more than $3 million” for the office tenant, said Dawn Griggs, a broker with Cushman & Wakefield | Thalhimer in Newport News, who did the deal. The building will be ready by June 2012.
The remaining 28,000 square feet could be adapted for institutional, retail, office and flex users. Newport Plaza is located just off Interstate 64, with direct visibility. “We have a lot of active interest in the space from a number of prospects,” Slusher said.
MGT Construction will serve as general contractor for the project.