A year after its first local office renovation project, a Richmond real estate firm is turning over another downtown building.
A group headed by Capital Square Management bought a four-story office building last month at 13 S. 13th St. in Shockoe Slip. Capital Square plans to renovate the property and bring in an anchor tenant, a yet unnamed financial firm from Innsbrook, within about a year.
Yogi Singh, Capital Square’s vice president of acquisitions, said the allure of working in Shockoe Slip was a major factor in landing the anchor tenant.
“People want to be able to walk around, go to yoga, go to bars and experience a neighborhood instead of sitting in a sterile environment,” he said.
Singh said he expects the firm to lease two floors of the 23,000-square-foot office building.
Capital Square, along with unnamed investors, paid $1.45 million for the building in deal that closed May 29, according to city records. Singh said renovations on the building will cost somewhere in the seven-figure range, but Capital Square has yet to finalize a budget for the project.
Mark Merhige of The Shockoe Company handled lease negotiations on behalf of the 13th Street building’s lead tenant. With an anchor in its pocket, Capital Square will look to fill the rest of the space with one to three more tenants. Singh said space will go for between $19 and $21 per square foot.
Work will begin later this month and should take about a year to complete. Chris Fultz of Fultz Architects will design the renovations and Graybeale Construction is the general contractor.
The property is known as the Powers-Taylor Building. It was built in 1890, city records show, and originally housed a cigar factory. Most recently it served as the headquarters for the Virginia Department of Labor and Industry. Capital Square and its investors bought the property from the state.
Capital Square Management is the development and property management wing of Capital Square Holdings, an Innsbrook-based company that has built an eclectic $100 million portfolio of properties around the nation that it divides and sells to investors through the 1031 exchange structure.
The company’s 13th Street venture will be similar to an apartment-to-office conversion it carried out at the former These Four Walls building on at the corner of 14th and Cary streets. Law firm Kaplan Voekler Cunningham & Frank anchors that building. Its co-tenants include social media strategy company Feedback and investment firm Canal Capital Management.
Singh said the 13th Street building will make for a somewhat easier conversion because that building was most recently an office.
“At 14th Street we started with 15 apartments and what had been active retail space,” he said. “Here we’re not really changing the use… we’re not cutting out 15 bathrooms.”