Riverfront condos?

The former Carustar site located at 111 Hull Street has a new owner. Listed by CB Richard Ellis, the 1.89-acre site could be developed with 80+ dwelling units, plus retail and office uses. The flood wall presents development challenges, most notably it would obstruct views for several floors. Because the RF-1 district limits building height to six stories, the maximum number of stories above the floodwall is three. The open space requirements limit the building envelope to 20,582 square feet, indicating 61,476 potential above the floodwall. The three stories below the floodwall presumably would be structured parking, and would no doubt be excessive. Development of this site also requires substantial demolition costs–45,161 square feet of industrial structures.

Of course all of this is speculative. Fountainhead is a juggernaut in the area, and probably has more creative plans for the site.

Goochland County flex building sells

December 2011 saw the sale of a 7,500 square foot flex building in Central Goochland County. Purchased as an investment, the in-place income suggests a cap rate of 10.15%, which is what other appraisal firms might report. Exceeding typical sales verification efforts, Lester, Barber, and Associates, Inc. learned that the purchaser attributed value to excess land which he will use for construction of an owner-occupied building, thus driving up the cap rate. For more information on industrial investment information, please go to our website or email us.

New residential subdivision, Henrico County

Dalton Park Land Development is moving forward with rezoning 35.8 acres located between I-295 and Innsbrook. Currently zoned R-3C, the company is shooting for a 180-unit townhome development.

Single-tenant NNN sales

CoStar just reported on a continued uptick in sales volume for single-tenant commercial properties in the US. Specifically, over the last 5 quarters, the highest recorded average quarterly sales volume (10,000 properties) has occurred. According to CoStar, retail accounts for approximately half of the volume. Strong ‘necessity based’ retailers–think Walgreens and Wells Fargo branches, are perceived as safe havens for investors in a turbulent market, many of whom are overseas. What’s happening in the Richmond MSA with respect to these investments?

SALES
Wendy’s, Chesterfield County, 7/11 sale, 7.37% cap rate
hhgregg, Chesterfield County, 6/11 sale, 7.73% cap rate

CURRENT LISTINGS
CVS, Richmond City, 8.52% cap rate
The Learning Experience, Henrico County, 8.5% cap rate
Childtime Learning Center, Chesterfield County, 8.0%
KFC ground lease, Henrico County, 6.0%
O’Charley’s, Henrico County, 7.5%

Email Lester, Barber, and Associates today for your NNN valuation needs.

Unusual office building sale

This is the sale of an office building in a highly-desirable residential setting. Such sales are rare, and require reliable verification. Please contact us for more information on this, and any other commercial real estate valuation concerns in the Richmond MSA.

Q2 Commercial Sales, Chesterfield County

Similar to the Q1 sales in Henrico, the Chesterfield County Assessor’s sales records indicate wild swings in the volume of closed commercial property sales.

Henrico County CRE data

I initially titled this post ‘Henrico County CRE trends’, but as you can see, there really isn’t one. Perhaps the most notable data is the Q1 2011 sales volume. Let’s hope it continues. These figures were compiled from the County Assessor’s sales file, excluding foreclosures.

 

Goodbye to bank, hello to Dollar General

Thalhimer announced the sale of 1.41 acres at the southeast corner of Jefferson Davis Highway and Ruffin Mill Road in the City of Richmond. The $275,000 sale price does not include demolition.

New CVS coming to east end

CVS purchased a 1.94-acre site at the southeast corner of Creighton Road and Laburnum Avenue for $1.2 million ($618,557 per acre) on 3/3/11.

Residential subdivision proposed, Henrico County

Godsey Properties proposes a 135-unit (max) subdivision 4201 Oakleys Lane in Henrico County, Virginia. The 60-acre site currently is zoned M-1; a townhome zoning is requested.