A Tobacco Row building. (By Michael Schwartz)
A deal appears to be in the works for a major Shockoe Bottom development.
The River Lofts at Tobacco Row are under contract to acquired, according to a letter distributed Friday to residents.
The memo, signed by River Lofts General Manager Catina Flynn, notifies residents of inspections being conducted on their apartments this week.
“Forest City has entered a contract for the potential sale of The River Lofts at Tobacco Row and during this process we will need access to your apartment,” the letter stated.
Cleveland-based developer Forest City put its Tobacco Row holdings on the market this year. The offering includes 700 apartment units and 12 townhouses at the River Lofts, as well as the 137,000-square-foot Edgeworth office building.
“The potential sale of the community will not impact your lifestyle and in the event the transition occurs we will ensure that you receive ample notification prior to the closing with details of the new ownership. We are in the beginning stages of the process and do not have any additional details as this time however if you have any questions please do not hesitate to contact the Management Team,” the letter stated.
Andy Boyer, a CBRE broker representing the seller, told BizSense in May that he expected the complex to fetch about $120 million.
Boyer and Forest City spokesman Jeff Linton declined to comment on the sale.
Several firms based out of Edgeworth, including HKS Architects and Sophisticated Soirees, said they have not received any notification of a pending sale at that building.
Colliers International broker Bruce Milam said that Edgeworth could be sold locally as a single entity but that he doubted the building’s representatives would break the building off of the Tobacco Row package.
With building representatives looking for a nine-figure price, area brokers said a REIT is the likely suitor.
“It’s going to be a REIT of some sort that would have the power to go in and spend $120 million,” Milam said. “You’ve got old buildings that will require some heavy reserves in any price that you offer, because things happen to old buildings.”
Blake Poore of Joyner Commercial agreed, adding that private investors are also in the market for high-dollar apartment developments.
“You’re seeing the bigger REITs out shopping for that stuff right now,” he said. “You’re also seeing a lot of wealthier families trying to rebuild some wealth that was lost during the recession.”
Forest City has thinned its Richmond area portfolio as of late. The company last month sold a shopping center across from Tobacco Row for $6.6 million.
In June, the firm announced a deal to sell half of its stake in Short Pump Town Center. And last September, Forest City unloaded the White Oak Village shopping center in Eastern Henrico for $68 million.
Linton said in an interview in June that Forest City is committed to its ownership of Short Pump Town Center and has no immediate plans to sell its 570,000-square foot Richmond Office Park located at 1802 Bayberry Court.
A Tobacco Row building. (By Michael Schwartz)
A deal appears to be in the works for a major Shockoe Bottom development.
The River Lofts at Tobacco Row are under contract to acquired, according to a letter distributed Friday to residents.
The memo, signed by River Lofts General Manager Catina Flynn, notifies residents of inspections being conducted on their apartments this week.
“Forest City has entered a contract for the potential sale of The River Lofts at Tobacco Row and during this process we will need access to your apartment,” the letter stated.
Cleveland-based developer Forest City put its Tobacco Row holdings on the market this year. The offering includes 700 apartment units and 12 townhouses at the River Lofts, as well as the 137,000-square-foot Edgeworth office building.
“The potential sale of the community will not impact your lifestyle and in the event the transition occurs we will ensure that you receive ample notification prior to the closing with details of the new ownership. We are in the beginning stages of the process and do not have any additional details as this time however if you have any questions please do not hesitate to contact the Management Team,” the letter stated.
Andy Boyer, a CBRE broker representing the seller, told BizSense in May that he expected the complex to fetch about $120 million.
Boyer and Forest City spokesman Jeff Linton declined to comment on the sale.
Several firms based out of Edgeworth, including HKS Architects and Sophisticated Soirees, said they have not received any notification of a pending sale at that building.
Colliers International broker Bruce Milam said that Edgeworth could be sold locally as a single entity but that he doubted the building’s representatives would break the building off of the Tobacco Row package.
With building representatives looking for a nine-figure price, area brokers said a REIT is the likely suitor.
“It’s going to be a REIT of some sort that would have the power to go in and spend $120 million,” Milam said. “You’ve got old buildings that will require some heavy reserves in any price that you offer, because things happen to old buildings.”
Blake Poore of Joyner Commercial agreed, adding that private investors are also in the market for high-dollar apartment developments.
“You’re seeing the bigger REITs out shopping for that stuff right now,” he said. “You’re also seeing a lot of wealthier families trying to rebuild some wealth that was lost during the recession.”
Forest City has thinned its Richmond area portfolio as of late. The company last month sold a shopping center across from Tobacco Row for $6.6 million.
In June, the firm announced a deal to sell half of its stake in Short Pump Town Center. And last September, Forest City unloaded the White Oak Village shopping center in Eastern Henrico for $68 million.
Linton said in an interview in June that Forest City is committed to its ownership of Short Pump Town Center and has no immediate plans to sell its 570,000-square foot Richmond Office Park located at 1802 Bayberry Court.