First Capital decides to stop renting

First Capital Bank has become the proud owner of its Innsbrook corporate headquarters after leasing space there for five years.

In a $3.5 million deal that closed in early April, Henrico-based First Capital and its holding company, First Capital Bancorp, purchased the two-story, 24,000-square-foot building from Atack Properties.

Atack had been the bank’s landlord since it moved into the space about five years ago.

Bob Watts, president and chief executive of First Capital Bank, said the move to go from tenant to owner was brought on by the bank’s recent growth.

[private]“We were kind of busting at the seams,” Watts said.

The $536 million bank has eight branches and offices in Richmond and the surrounding areas. About 50 of its 85 employees occupy the Innsbrook office.

First Capital will move seven employees to the building from outlying offices, Watts said. Taking over the whole building will also leave space for planned growth.

The company has largely weathered the recession, remaining profitable throughout. The holding company reported profit of $351,755 for the first quarter 2010, up from $102,178 a year earlier, according to its annual report filed with the Securities and Exchange Commission.

Watts said the timing was also right for the big purchase because, “It’s definitely a buyer’s market.”

The building, according to Bob Atack, president of Atack Properties, was built in the early 1980s as one of the first buildings in the Innsbrook development.

Watts said First Capital will do some renovations to the building. Ultimately, the first floor will house its operations and administration staff. The second floor will be occupied by executives.

First Capital Bank opened for business in 1998. First Capital Bancorp was created as a one-bank holding company in 2006.[/private]

Michael Schwartz covers banking for BizSense. Please send news tips to Michael (at) richmondbizsense.com.

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