With more than 700 residential units on the rise, a massive Chesterfield development is adding office space into the mix.
Riverstone Group, owned by Bill Goodwin’s CCA Industries, plans to begin work early next year on the first of six one-story medical office buildings at its CenterPointe development.
The company plans to put about $12 million into the office project named CenterPointe Station.
The complex will sit on about 7.5 acres just west of the upcoming Brandermill Parkway that will run through CenterPointe from Charter Colony Parkway to Powhite Parkway.
Chris Corrada, a principal at Riverstone, said each of the six 10,000-square-foot buildings will cater to small practices looking to expand into a new space near St. Francis Medical Center. The Bon Secours hospital is one of the centerpieces of the development.
“You see this product various places around the Richmond area, but rarely do you see it near a hospital,” Corrada said. “As opposed to a big office building like the ones right next to the hospital, this will be more of a neighborhood setting.”
Site development for the offices is finished, and Riverstone will begin construction on the first two buildings in February or March with or without leases in place, Corrada said.
If all goes according to plan, that pair of office buildings will be ready for occupancy in late 2015. The company is financing the project in cash.
Riverstone principal Jeff Galanti said the company plans to build the rest of the buildings a couple at a time after the first two are leased. The entire six-building project is expected to take three or four years.
Riverstone will look to lease space in blocks of 2,500 square feet up to an entire 10,000-square-foot building. Corrada said the properties would work well for dental, orthodontic and other smaller medical practices, but non-medical offices like insurance agencies, tutors and veterinarians could also be potential tenants.
The developer has yet to set final lease rates at CenterPointe Station, but Galanti said they would be similar to the market rate for nearby office space.
CenterPointe Station will be Riverstone’s first project newly built for rental. And it will mark the first leasable commercial project at the larger CenterPointe complex.
The 700-acre CenterPointe development is anchored by St. Francis Medical Center and has seen a run of development in recent years.
The Memory Center is building a $13 million assisted living facility near St. Francis. That development broke ground in July with a scheduled completion date in the first quarter of 2015.
Residential building has also taken off, and a pair of single-family home neighborhoods is currently under construction. Riverstone will be selling lots for a third community early next year. Those three neighborhoods have a combined 206 total lots.
“All of a sudden, there’s a lot of critical mass going on there,” Galanti said. “We’re getting to the point where the retail and the office projects are becoming viable.”
Goodwin, one of Richmond’s most well-known businessmen, bought the land for CenterPointe in the early 1990s from a team of developers who originally imagined it as a massive office park comparable to Innsbrook.
Riverstone hopes to eventually add retail development to CenterPointe that could include a grocery-anchored shopping center along Charter Colony Parkway and a regional mall near the Route 288 and Route 76 interchange.
Riverstone also has a site set aside for another small office development similar to CenterPointe Station immediately east of Tomahawk Creek Middle School along CenterPointe Parkway.
Charles Wentworth, a CBRE broker who previously marketed an apartment property at CenterPointe, said the park’s location near Route 288 and Powhite Parkway makes it ideal for families who may have one person working in Henrico County or Short Pump and another who needs to get to downtown Richmond or elsewhere in Chesterfield on a daily basis.
He also said Chesterfield County building fees make new construction difficult in the county, an obstacle CenterPointe was able to get around because its previous owners took care of zoning in the ‘80s before the per-door proffer charge existed.
“The story in Chesterfield County is pent-up demand. You haven’t had new development there in five to seven years, with minimal multifamily starts for one reason or another,” Wentworth said. “The proffers down there, with the zoning required for multifamily, has made new construction almost impossible.”
As residents begin moving into CenterPointe, Wentworth said more office, shopping and restaurant development may not be far behind.
“I think you’re going to see some additional retail down there and some additional office,” he said. “It’s a great little pocket with proximity to everything amenity-wise as well as Route 288, so I think you’re going to see a lot of activity down there.”