A massive chunk of Shockoe Bottom real estate is on the market.
Cleveland-based developer Forest City is looking to unload Tobacco Row, a portfolio of properties that includes five renovated apartment buildings with more than 700 units, a 137,000-square-foot office building and a row of 12 townhouses.
The company developed Tobacco Row in phases over the past 15 years. The project encompasses six blocks from 21st Street to Pear Street, running along Cary Street.
“It’s a project that we’re very proud of,” said Jeff Linton, a spokesman for Forest City. “That said, it’s a hot time for apartments right now, so if you’re going to look at selling, now is the time to do it.”
This is the second big Richmond sale that Forest City has tried to close in less than a year. In September, it sold its Shops at White Oak Village for $68 million. Forest City also owns 570,000 square feet at Richmond Office Park and Short Pump Town Center.
Andy Boyer, a broker with CBRE in Northern Virginia hired by Forest City to represent the property, said the firm expects to get about $120 million for the properties.
Boyer said the buildings could be sold as a bundle or separately.
“It would be a little more difficult to sell the apartments separately because they all share parking on the waterfront, but it could be done,” Boyer said.
The Tobacco Row properties include:
- 171 apartments at American Cigar
- 158 apartments at Consolidated Carolina
- 259 apartments at Cameron Kinney
- 131 apartments at Lucky Strike
- 137,000 square feet of office at the Edgeworth Building
- 12 townhouses at Cutters Ridge
The average rent in the apartments runs from about $1,000 to $1,400. The townhouses rent for about $2,200, and the space at Edgeworth is $21 per square foot. The portfolio is more than 90 percent leased, according to a flier from CBRE.
In addition to Boyer, CBRE brokers Dan Johnson, Jonathan Greenberg, Charles Wentworth and Scott Adams are working the deal.
Forest City’s intention to sell the buildings was first reported by Virginia Business.
Should the properties sell in a single transaction, it would be the biggest real estate deal in the Richmond area since Excel Trust bought much of West Broad Village for $161 million.
Linton, from Forest City, said proceeds of the sales would go to pay down debt and invest in new development.