Virginia Natural Gas Building sells for $8.9 million in Virginia Beach.
Armada Hoffler Properties has sold the Virginia Natural Gas Building in Virginia Beach to an undisclosed purchaser for $8.9 million or about $287 per square foot.
The 31,000-square-foot office building is still occupied by the gas company. According to Divaris Real Estate Inc., the real estate firm that brokered the sale, Armada Hoffler constructed the building as a build-to-suit for Virginia Natural Gas Inc. in 2010 for its headquarters operations.
The company was under a long-term lease at the time of sale and plans to stay in the building located at 544 S. Independence Blvd. in the Lakeview Corporate Park. Virginia Natural Gas serves more than 275,000 residential, commercial and industrial customers in Southeastern Virginia
Alex Divaris, vice president, and Jason Oliver, senior associate of Divaris Real Estate's Investment Sales Group, together with President Michael Divaris represented the seller, Armada Hoffler Properties. The sale reflects a capitalization rate of 6.25 percent.
Armada Hoffler Properties is a Virginia Beach-based real estate investment trust that develops, builds, owns and manages office, retail and multifamily properties throughout the Mid-Atlantic states.