A Pennsylvania-based firm has scooped up a chunk of office space near the Richmond-Chesterfield county line as a massive mixed-use development takes off nearby.
Hamilton Real Estate Fund in December made its first push into the Richmond market, buying the Cloverleaf Office Park off Midlothian Turnpike for $2.1 million. The deal for the 68,000-square-foot, six-building office center closed Dec. 26, according to Chesterfield County records.
The company, a private equity firm that invests in both debt and real estate in the Mid-Atlantic region, paid cash for the purchase. SunTrust, which in 2012 took over the building in a deed in lieu of foreclosure, was the seller.
“We’re excited about the low cost basis, and it provides us with an opportunity to make improvements and reposition the property,” Hamilton Real Estate Fund partner Mike Locraft said. He would not provide any more details on the firm’s plans for the property.
The property’s space is about 70 percent leased and rents for about $13.75 per square foot. Several nonprofits and state agencies are tenants, including the Virginia State Police, the Office of Drinking Water, and a Women, Infants and Children clinic.
Located at 300 Turner Road, the Cloverleaf Office Park is less than a mile west of the up-and-coming Stonebridge development at the site of the former Cloverleaf Mall. That proximity was one of the draws of the office park, according to the brokers who worked the deal.
“This whole area is kind of coming into its own,” said Jason Guillot, a Cushman & Wakefield | Thalhimer broker who assisted colleagues Eric Robison and Catharine Spangler in representing the property’s seller. “There’s a lot of positive momentum here, and we’re just down the street.”
The mixed-use development has a Kroger Marketplace and about 36,000 square feet of retail space. Its tenants include Qdoba, Subway, Sweet Frog, Sleepy’s Mattress and an ABC store. Space is renting at more than $30 per square foot.
Stonebridge also has a Krispy Kreme that is under construction, a 600-unit apartment complex in the works and a planned second phase that will bring 150,000 square feet of commercial development.
Hamilton’s acquisition is the latest in a truckload of out-of-town money to find its way into the Richmond market through commercial real estate.
REITs and other real estate investment firms from out of the area fueled hundreds of millions of dollars in deals throughout 2013.
Guillot and Thalhimer’s James Stikeleather will continue to handle leasing at the Cloverleaf property.