Another chunk of Richmond’s hottest neighborhood has caught the eye of local developers.
Three aging office buildings in Scott’s Addition were acquired last week by a group that has plans to gut and redevelop one of the properties in the near-term and potentially bring new construction to the remaining two sites over time.
The group, led by Yogi Singh, formerly of local real estate investment firm Capital Square 1031, paid around $2.5 million for 3122, 3113 and 3015 W. Marshall St., a cluster of two-story office buildings built in the 60s and 70s. The deals closed Sept. 1 and included adjacent parking lots. They also bought 3115 Clay St., but immediately sold it to another party, Singh said.
The remaining three properties total nearly 40,000 square feet and Singh said they’ll focus initially on the largest of the bunch – the 16,000-square-foot building at the corner of West Marshall Street and High Point Avenue.
Singh said they plan to convert the two story shell into modern office space with suites ranging from 1,500 square feet up to 8,000.
“We have over the last couple months noticed a void in modern, efficient office space in Scott’s Addition,” Singh said.
“We aim to take the same program and theme (from the projects in the Slip) and fill a void in the market,” he said.
The fate of the two remaining buildings, which total 13,000 square feet and 8,000 square feet, respectively, will be decided over the coming months.
“Office is certainly on the table but we also think a mixed-use concept is a potential, just given the fact that we would have such frontage on Marshall and potentially on Summit if we can acquire other parcels.”
Singh recently left Capital Square to run a development firm that will operate within his family’s engineering, construction and investment office, HS Engineering and Construction. His father, Harki Singh, is an engineer and his mother, Viju Singh, is a retired Altria executive who is also an investor in the venture.
Singh said there are additional investors in the project but he would not identify them.
Singh’s group was represented in its purchase by One South Commercial’s Tom Rosman. Nathan Shor of S.L. Nusbaum represented the sellers, who were descendants of local real estate exec JF Batte.
Singh said work will begin on the first building once the final group of existing tenants has moved out. He said they are in negotiations to complete that process.
Amrit Singh of Fultz & Singh Architects did the design work for 3122 W. Marshall St.
Union Bank & Trust is providing financing and loan officer Randolph Trow is working the deal.
Broker Birck Turnbull from Cushman & Wakefield | Thalhimer will handle leasing of the office space.
Other projects in the works in Scott’s Addition include Spy Rock Real Estate Group’s redevelopment of the former Symbol Mattress Co. facility at 1814 Highpoint Ave.; the ongoing redevelopment of the HandCraft Cleaner’s building at 1501 Roseneath Road; and Louis Salomonsky and David White’s 6-story twin towers planned for the 2.5-acre site at 1400 Roseneath Road.
“The momentum in the neighborhood is certainly something we’ve watched with enthusiasm,” Singh said.