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Park Sterling shuts down Patterson Ave. branch following merger

Michael Schwartz March 28, 2017 1

Park Sterling shut down its branch at 5601 Patterson Ave.

Park Sterling shut down its branch at 5601 Patterson Ave.

A branch property along a stretch of Patterson Avenue that in recent years has become a mini-bankers’ row is up for grabs.

Park Sterling Bank on March 7 shut down its branch at 5601 Patterson Ave., leaving the 3,100-square-foot former gift shop on the market for lease.

CEO Jim Cherry said in an email that Park Sterling closed the branch in favor of consolidating operations into the bank’s location two miles west, at the corner of Three Chopt Road and Patterson Avenue. It picked up that site as part of its 2016 acquisition of First Capital Bank.

“With the acquisition of First Capital, we got a branch at Patterson and Three Chopt less than two miles away that is bigger, has a drive-through and much better ingress and egress, so we simply consolidated our smaller branch into the larger, more practical and equally convenient branch,” Cherry said.

Park Sterling opened the 5601 Patterson Ave. location in summer 2015 as its first standalone retail branch in the Richmond market. It renovated the space from its previous incarnation as Kelley’s Gift Shop, about six months prior to the bank acquiring First Capital and taking over its eight branches in the market.

The Patterson Avenue property put Park Sterling in the thick of a mini financial district that began taking shape two years ago, after Chesapeake Bank, Bank of Lancaster and Park Sterling opened in close succession a few doors down from one another, in close range to Xenith Bank and BB&T branches.

Park Sterling still has competition to the west at its Patterson and Three Chopt location, with TowneBank and Union Bank & Trust across the street in the Village Shopping Center.

The shuttered branch is listed by local broker David Andrews of the Shopping Center Group. Andrews is part of the ownership group that also includes owners of the neighboring Yellow Umbrella.

The bank’s signage since has come down, and Andrews said Park Sterling bought its way out of its lease, which will conclude at the end of March.

Andrews said the asking price for rent is $6,250 per month.

He said a few restaurants, other financial institutions and professional services tenants have perused the space. The site’s 3,100 square feet includes finished basement space that had been used as offices.

“We’re looking for the right, clean fit, given its very visible corner with the big pylon sign.”

Park Sterling controlled about $478.4 million in local deposits as of June 2016, according to the most recent FDIC figures.

About $55 million in deposits was held in the 5601 Patterson Ave. branch, while $31 million was held at the Three Chopt and Patterson location.

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One Comment »

  1. Bert Hapablap March 28, 2017 at 9:39 am - Reply

    I expect more bank consolidation is coming through mergers and branch closing. The need for brick and mortar is diminishing just as it is with retail.

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