An experienced real estate development firm has completed the first step of buying the former headquarters of bankrupt retail behemoth Circuit City.
DRCC Properties paid $2.75 million for the 58 acres of land on which the headquarters sits at Mayland Drive in Western Henrico. Richmond-based Pruitt Associates is behind the project. The deal closed on August 26.
The developer has so far not wanted to comment about its long-term plan for the office building, which is vacant. Circuit City filed for bankruptcy protection in 2008 and liquidated in 2009. The land and the office building were separately owned, and thus required separate negotiations. Step one was buying the land from the bankrupt estate.
With that step completed, Pruitt is negotiating with the lender that owns the building, and that purchase could close within a few months, according to a person close to the deal. Pruitt is no stranger to big projects in Richmond. The company’s website lists office projects including West Creek Business Park in Goochland and GlenForest Office Park in Henrico.
In other Circuit City news, Bloomberg is reporting that the bankrupt entity’s unsecured creditors may get up to 30 percent on claims of what they are owed.
Initially they were told not to expect more than 13.5 percent. Circuit City paid most of its secured claims, according to Bloomberg, by liquidating stores.
The final schedule will need to be approved at a Sept. 8 hearing.
Aaron Kremer is the BizSense editor. Please send news tips to [email protected].
An experienced real estate development firm has completed the first step of buying the former headquarters of bankrupt retail behemoth Circuit City.
DRCC Properties paid $2.75 million for the 58 acres of land on which the headquarters sits at Mayland Drive in Western Henrico. Richmond-based Pruitt Associates is behind the project. The deal closed on August 26.
The developer has so far not wanted to comment about its long-term plan for the office building, which is vacant. Circuit City filed for bankruptcy protection in 2008 and liquidated in 2009. The land and the office building were separately owned, and thus required separate negotiations. Step one was buying the land from the bankrupt estate.
With that step completed, Pruitt is negotiating with the lender that owns the building, and that purchase could close within a few months, according to a person close to the deal. Pruitt is no stranger to big projects in Richmond. The company’s website lists office projects including West Creek Business Park in Goochland and GlenForest Office Park in Henrico.
In other Circuit City news, Bloomberg is reporting that the bankrupt entity’s unsecured creditors may get up to 30 percent on claims of what they are owed.
Initially they were told not to expect more than 13.5 percent. Circuit City paid most of its secured claims, according to Bloomberg, by liquidating stores.
The final schedule will need to be approved at a Sept. 8 hearing.
Aaron Kremer is the BizSense editor. Please send news tips to [email protected].
This may be the first CRE deal in western Henrico since 2001 that wasn’t 120% overpriced. I’m glad someone local picked this up, this property was low hanging fruit.
My vote is for the 2004 acquisition of the Capital One buildings on West Broad for a whopping $32.57 per square foot, but your point is well-taken Kevin.