Advertisement

Header Utility Menu

  • Subscribe
  • Advertise
  • Contact Us
  • Events

LinkedIn Facebook Twitter Instagram Get Our App

  • Login

Virginia Business

Mobile Menu

  • Issues
  • Industries
    • Banking/Finances
    • Law
    • Real Estate
    • Economic Development
    • Education
    • Energy/Green
    • Federal Contracting
    • Government
    • Healthcare
    • Hotels/Tourism
    • Insurance
    • Ports/Trade
    • Small Business
    • Startups
    • Technology
    • Transportation
  • Regions
    • Central Virginia
    • Eastern Virginia
    • Northern Virginia
    • Roanoke/New River Valley
    • Shenandoah Valley
    • Southern Virginia
    • Southwest Virginia
  • Reports
    • Best Places to Work
    • Business Person of the Year
    • CEO Pay
    • COVID-19
    • Generous Virginians Project
    • Legal Elite
    • Most Influential Virginians
    • Maritime Guide
    • Site Locator
    • The Big Book
    • Virginia CFO Awards
  • Company News
    • For the Record
    • People
  • Opinion
  • Lists
  • Awards/Events
    • 2022 Virginia Business Political Roundtable
    • Women in Leadership
    • Diversity Leadership Series
    • Virginia 500
    • Legal Elite
    • CFO Awards
    • Big Book of Lists
    • 100 People To Meet
    • Best Places To Work
  • Virginia 500
    • Read The Issue
    • Power Up Virginia 500
    • Buy an award plaque
    • Suggest execs for 2023

Advertisement

Header Primary Menu

  • Issues
    • February 2023
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • Issues Archive
  • Industries
    • Banking/Finances
    • Law
    • Real Estate
    • Economic Development
    • Education
    • Energy/Green
    • Federal Contracting
    • Government
    • Healthcare
    • Hotels/Tourism
    • Insurance
    • Ports/Trade
    • Small Business
    • Startups
    • Technology
    • Transportation
  • Regions
    • Central Virginia
    • Eastern Virginia
    • Northern Virginia
    • Roanoke/New River Valley
    • Shenandoah Valley
    • Southern Virginia
    • Southwest Virginia
  • Reports
    • Best Places to Work
    • Business Person of the Year
    • CEO Pay
    • COVID-19
    • Generous Virginians Project
    • Legal Elite
    • Most Influential Virginians
    • Maritime Guide
    • Site Locator
    • The Big Book
    • Virginia CFO Awards
  • Company News
    • For the Record
    • People
  • Opinion
  • Lists
  • Awards/Events
    • 2022 Virginia Business Political Roundtable
    • Women in Leadership
    • Diversity Leadership Series
    • Virginia 500
    • Legal Elite
    • CFO Awards
    • Big Book of Lists
    • 100 People To Meet
    • Best Places To Work
  • Virginia 500
    • Read The Issue
    • Power Up Virginia 500
    • Buy an award plaque
    • Suggest execs for 2023

Home News Regions Central Virginia Appraised value of James Center in downtown Richmond drops below amount of its CMBS debt

Appraised value of James Center in downtown Richmond drops below amount of its CMBS debt

Published January 14, 2015 by Paula C. Squires

The appraised value of the James Center office complex in downtown Richmond has fallen below the total of its commercial mortgage backed securities (CMBS) debt, according to Trepp LLC, a real estate analytics company.

Trepp, based out of New York, reported in an email newsletter today that the appraised value of the 22-story, 975,000-square-foot complex at 901, 1021 and 1051 East Cary Street came in at $136 million in September, down from a $192.5 million appraisal done in 2005 and below the $150 million in securitized CMBS debt still owed on the building.

According to Trepp documents, the James Center debt is structured in two pieces, for $100 million and $50 million. The $100 million loan was transferred to a special servicer, CW Capital Asset Management, in June while the $50 million piece went to another special servicer, LNR Partners I, in August.

The reason given in Trepp’s documents is “imminent default due to major tenant leaving the premises upon lease expiration on 8/31/15.”

The major tenant is the law firm of McGuire Woods. It’s moving to Gateway Plaza next year, a high-rise currently under construction across the street from the James Center. With the move, the law firm is downsizing a bit to 205,000 square feet compared to the 250,000 square feet it leases at James Center One, about 24 percent of the center’s gross leasable space.

Also leaving One James Center for Gateway Plaza is CCA Industries, a company with several resort properties in its portfolio. It signed a 25,000-square-foot lease for the building’s top floor.

Other major tenants at the James Center are Wells Fargo with 144,815 square feet.  Its lease expires in February 2020, and Davenport and Co., with a 79,836-square-foot lease that ends in January 2022.

According to Trepp, the Class A property had an occupancy of 88.6 percent in June.

“There’s no reason to hit the panic button yet, but there’s still cause for concern,” said Sean Barrie, a research analyst for Trepp. “If they can fill the vacancies, that would be a huge step. Once you lose a large tenant, if you can’t fill the space, if can drop the financials for a while.”

Overall, though, the fact that the appraisal is just a little below the current balance “isn’t as bad at it could be,” Barrie added. Plus, the current appraisal of the James Center complex comes nearly 10 years since another appraisal, done shortly after a renovation.


JEMB Realty Corp. in New York, the building's owner, selected Jll as the leasing agent for the office space at the James Center last February. A spokeswoman for JLL said the firm could not comment in terms of how leasing efforts are going.

The buildings are owned and operated by James Center Property LLC, an affiliate of JEMB Realty. Tenant amenities include a fitness center and a 50,000-square-foot retail atrium that connects to the Omni Hotel.
The center is well known in the business district for its annual display of thousands of lights on reindeers and a large holiday tree during the holiday season.

Related Stories

Wheeler Real Estate Investment Trust buys Richmond shopping center for $18.5 million

Virginia Business logo

Apple Hospitality in Richmond acquires three new hotels

Virginia Business logo

Chester shopping center sells for $4.04M

Food Lion is anchor tenant at Centralia Crossing strip mall.

Trending

Making strides

It’s back!

After the crisis

Fort Monroe development moving forward

Danville lacks housing options for workforce

Sponsored Stories

Working at Pinnacle Financial Partners

What Logistics issues will have the biggest impact on you in 2023?

In the New Year, Aim for Better Cybersecurity

4 innovative ways to create capacity

WHERE IS THE SUPPLY CHAIN WHEN YOU NEED IT?

P.A.I.N.T. Your Financial Mountain

5 Benefits of Treasury Management Services from Atlantic Union Bank

Blazing trails in the digital landscape

Advertisement

Advertisement

Trending

Making strides

It’s back!

After the crisis

Fort Monroe development moving forward

Danville lacks housing options for workforce

Sponsored Stories

Working at Pinnacle Financial Partners

What Logistics issues will have the biggest impact on you in 2023?

In the New Year, Aim for Better Cybersecurity

4 innovative ways to create capacity

WHERE IS THE SUPPLY CHAIN WHEN YOU NEED IT?

P.A.I.N.T. Your Financial Mountain

5 Benefits of Treasury Management Services from Atlantic Union Bank

Blazing trails in the digital landscape

Get Virginia Business directly on your tablet or in your mailbox!

Subscribe to Virginia Business

Advertisement

Advertisement

Footer Primary Menu

  • virginiabusiness.com
  • Subscribe
  • Advertise
  • About Us
  • Contact Us

Footer Secondary Menu

  • Industries
  • Regions
  • Reports
  • Company News
  • Events

Sign Up For Our Newsletter

Sign Up

LinkedIn Facebook Twitter Instagram Get Our App

Privacy Policy Cookie Policy

Footer Utility Menu

Copyright © 2023 Virginia Business. All rights reserved.

Site Maintained by TechArk