Burlage paid $5.2 million for the strip center at the corner of Parham and Staples Mill. Photos by Katie Demeria.
A Virginia Beach man is making a $10 million bet on Richmond real estate.
Verne Burlage of Virginia Beach-based Burlage Management recently purchased a two-story office building at 203 E. Cary St. for $5.2 million and a retail strip at 8800 Staples Mill Road for $5.7 million, marking his first holdings in the local market.
Burlage, who has been involved in real estate management since the late 1970s, said he has been eyeing the Richmond area for some time. He visits frequently, particularly to see his oldest daughter and her four sons, who live near Short Pump.
“I had money to invest – and I love Richmond, especially downtown Richmond – so I thought it was an ideal place to park it for about five to 10 years,” Burlage said. “I purchased (the two buildings) to hopefully make some money on them down the line.”
The Old Dominion University graduate closed on the Cary Street deal June 15, purchasing the 27,000-square-foot building at East Cary and South Third streets from Florida-based PBC-Cary LLC.
The office building houses VCU, among other tenants.
The next day he closed on his second purchase, snagging the 12,600-square-foot retail strip at Staples Mill and East Parham roads from another Virginia Beach entity, CDA Parham & Staples Mill LLC. The property, which sits on 1.6 acres, is fully leased and houses national tenants like Panera, Starbucks and T-Mobile.
“I don’t expect the demand in those two areas to go down anytime soon,” Burlage said.
Neither property had been actively listed for sale, but Burlage set his sights on them and approached the owners to discuss terms one-on-one. He said he did not use a broker on either deal.
The Cary Street property caught Burlage’s attention as he began to anticipate the future real estate moves of one of the building’s tenants, VCU.
“With the way VCU is expanding, I think it’s inevitable that that property is going to go up in value,” Burlage said.
The university has been reaching out past its Monroe Park campus recently. Last year it purchased a West Cary Street building a few blocks from Burlage’s property, and earlier this year it grabbed the old Hess gas station property at Belvidere and West Broad streets.
In addition to VCU, the 203 E. Cary St. building houses the Resource Workforce Center, Ballato Law Firm, Grogan and Associates law firm and Ammann & Whitney, an engineering consultant.
Burlage said he has no plans to redevelop the property or disrupt the current tenants, with only landscaping and exterior improvements in mind.
Most of Burlage’s real estate business is focused in Virginia Beach, where he does largely hotel and restaurant management. He has also ventured to the Outer Banks for some residential development.
With these two purchases under his belt, Burlage said he is going to take a break from buying further into Richmond.
“Things don’t always go as planned, but for now that’s the plan,” he said.
Burlage paid $5.2 million for the strip center at the corner of Parham and Staples Mill. Photos by Katie Demeria.
A Virginia Beach man is making a $10 million bet on Richmond real estate.
Verne Burlage of Virginia Beach-based Burlage Management recently purchased a two-story office building at 203 E. Cary St. for $5.2 million and a retail strip at 8800 Staples Mill Road for $5.7 million, marking his first holdings in the local market.
Burlage, who has been involved in real estate management since the late 1970s, said he has been eyeing the Richmond area for some time. He visits frequently, particularly to see his oldest daughter and her four sons, who live near Short Pump.
“I had money to invest – and I love Richmond, especially downtown Richmond – so I thought it was an ideal place to park it for about five to 10 years,” Burlage said. “I purchased (the two buildings) to hopefully make some money on them down the line.”
The Old Dominion University graduate closed on the Cary Street deal June 15, purchasing the 27,000-square-foot building at East Cary and South Third streets from Florida-based PBC-Cary LLC.
The office building houses VCU, among other tenants.
The next day he closed on his second purchase, snagging the 12,600-square-foot retail strip at Staples Mill and East Parham roads from another Virginia Beach entity, CDA Parham & Staples Mill LLC. The property, which sits on 1.6 acres, is fully leased and houses national tenants like Panera, Starbucks and T-Mobile.
“I don’t expect the demand in those two areas to go down anytime soon,” Burlage said.
Neither property had been actively listed for sale, but Burlage set his sights on them and approached the owners to discuss terms one-on-one. He said he did not use a broker on either deal.
The Cary Street property caught Burlage’s attention as he began to anticipate the future real estate moves of one of the building’s tenants, VCU.
“With the way VCU is expanding, I think it’s inevitable that that property is going to go up in value,” Burlage said.
The university has been reaching out past its Monroe Park campus recently. Last year it purchased a West Cary Street building a few blocks from Burlage’s property, and earlier this year it grabbed the old Hess gas station property at Belvidere and West Broad streets.
In addition to VCU, the 203 E. Cary St. building houses the Resource Workforce Center, Ballato Law Firm, Grogan and Associates law firm and Ammann & Whitney, an engineering consultant.
Burlage said he has no plans to redevelop the property or disrupt the current tenants, with only landscaping and exterior improvements in mind.
Most of Burlage’s real estate business is focused in Virginia Beach, where he does largely hotel and restaurant management. He has also ventured to the Outer Banks for some residential development.
With these two purchases under his belt, Burlage said he is going to take a break from buying further into Richmond.
“Things don’t always go as planned, but for now that’s the plan,” he said.
Burlage is correct in investing near VCU. There’s very little downside risk. The University is going to continue to grow. CAP investment rates near VCU are now at historic lows–as well as occupancy and rent rates at historic highs–but not relative to other state capital cities with prominent Universities. Richmond is a very strong investment play.