Royall & Co.’s headquarters changed hands last week. Photos by Katie Demeria.
An out-of-town REIT that already owns a downtown office tower has added to its Richmond portfolio.
Massachusetts-based Select Income REIT purchased the 88,000-square-foot Parham Place office complex on East Parham Road for $12.75 million. The deal closed July 21 and comes two years after Select Income purchased MeadWestvaco’s 310,000-square-foot riverfront building for $143.6 million.
Parham Place consists of three buildings at 1910, 1920 and 1950 E. Parham Road. They serve as the headquarters for Royall & Co., a locally based firm that provides direct marketing services for enrollment, financial aid and alumni fundraising to colleges and universities.
“Our company owns buildings that are leased to a single tenant on a net-lease basis,” said David Blackman, Select Income’s president and COO. “We try to buy buildings where we think we can renew the tenant in place at least once.”
Royall & Co., which last year was acquired by The Advisory Board Co. for $850 million, leases 100 percent of the buildings on a 10-year lease, which began in November 2012, according to a flier released by Cushman & Wakefield | Thalhimer. Royall has two five-year renewal options.
The office complex is home to three buildings along Parham Road.
The seller was Jedd of South Carolina, which purchased the property in 2008 for $7.6 million, according to Henrico County records. Select Income has been working on the deal since June, which marked a relatively fast turnaround, Blackman said.
“This was owned by a seller who seemed to be ready to sell, and we didn’t have any due diligence challenges in working through the acquisition,” he said.
Thalhimer brokers Eric Robison, Evan Magrill and Basil Hallberg represented the seller in the deal.
Robison said the property has been on the market since around April.
“This is a highly attractive asset with a long-term lease to a very successful marketing company,” Robison said. “(Select Income) is a great buyer.”
The REIT will consider making adjustments to the property, depending on Royall & Co.’s needs once it gets to know the tenant, Blackman said, but no renovations are currently planned.
Select Income was founded in March of 2012 and has since purchased 116 properties in 35 states. The company, along with two other affiliates managed by Reit Management and Research LLC, own at least seven properties in the Richmond market.
Its affiliate Government Properties Income Trust owns 9960 Mayland Drive, occupied by the commonwealth of Virginia, and the Enterchange at Meadowville, which is occupied by the United States Army at 2101 Bermuda Hundred Drive in Chester.
Another sister company, Senior Housing Properties Trust, owns a medical office at 9900 Independence Parkway and an assisted living facility at 3000 Skipwith Road, both in Henrico County, along with another assisted living facility at 2800 Polo Parkway in Chesterfield County.
Blackman said Richmond is a good market, but Select Income tends to focus less on specific markets and more on the right properties.
“What attracted us to the market were the opportunities, but we think Richmond is a market that has good growth potential and good long-term employment prospects,” he said.
Royall & Co.’s headquarters changed hands last week. Photos by Katie Demeria.
An out-of-town REIT that already owns a downtown office tower has added to its Richmond portfolio.
Massachusetts-based Select Income REIT purchased the 88,000-square-foot Parham Place office complex on East Parham Road for $12.75 million. The deal closed July 21 and comes two years after Select Income purchased MeadWestvaco’s 310,000-square-foot riverfront building for $143.6 million.
Parham Place consists of three buildings at 1910, 1920 and 1950 E. Parham Road. They serve as the headquarters for Royall & Co., a locally based firm that provides direct marketing services for enrollment, financial aid and alumni fundraising to colleges and universities.
“Our company owns buildings that are leased to a single tenant on a net-lease basis,” said David Blackman, Select Income’s president and COO. “We try to buy buildings where we think we can renew the tenant in place at least once.”
Royall & Co., which last year was acquired by The Advisory Board Co. for $850 million, leases 100 percent of the buildings on a 10-year lease, which began in November 2012, according to a flier released by Cushman & Wakefield | Thalhimer. Royall has two five-year renewal options.
The office complex is home to three buildings along Parham Road.
The seller was Jedd of South Carolina, which purchased the property in 2008 for $7.6 million, according to Henrico County records. Select Income has been working on the deal since June, which marked a relatively fast turnaround, Blackman said.
“This was owned by a seller who seemed to be ready to sell, and we didn’t have any due diligence challenges in working through the acquisition,” he said.
Thalhimer brokers Eric Robison, Evan Magrill and Basil Hallberg represented the seller in the deal.
Robison said the property has been on the market since around April.
“This is a highly attractive asset with a long-term lease to a very successful marketing company,” Robison said. “(Select Income) is a great buyer.”
The REIT will consider making adjustments to the property, depending on Royall & Co.’s needs once it gets to know the tenant, Blackman said, but no renovations are currently planned.
Select Income was founded in March of 2012 and has since purchased 116 properties in 35 states. The company, along with two other affiliates managed by Reit Management and Research LLC, own at least seven properties in the Richmond market.
Its affiliate Government Properties Income Trust owns 9960 Mayland Drive, occupied by the commonwealth of Virginia, and the Enterchange at Meadowville, which is occupied by the United States Army at 2101 Bermuda Hundred Drive in Chester.
Another sister company, Senior Housing Properties Trust, owns a medical office at 9900 Independence Parkway and an assisted living facility at 3000 Skipwith Road, both in Henrico County, along with another assisted living facility at 2800 Polo Parkway in Chesterfield County.
Blackman said Richmond is a good market, but Select Income tends to focus less on specific markets and more on the right properties.
“What attracted us to the market were the opportunities, but we think Richmond is a market that has good growth potential and good long-term employment prospects,” he said.
The prior sale in 2008 of $7.6 million was for only two buildings. The third building (26,700 sq.ft) was added in 2012.
Also, the 2015 sale price was recorded as $12.75 million.