Office and retail space is set to make up the finishing touches on a Henrico development at Glenside Drive and Forest Avenue.
Reynolds Development Group, the original developer of Reynolds Crossing, submitted preliminary plans on Sept. 30 for a 42,000-square-foot medical office building on five acres at 7000 Forest Ave.
A stone’s throw away on a 2-acre parcel, the Wilton Cos. filed plans with Henrico County for a 15,000-square-foot retail development on Forest Avenue adjacent to its existing Wilton Square retail strip.
The two projects comprise the last remaining parcels in the 90-acre development.
Reynolds Development Group principal Sarge Reynolds said the plans for the medical office project have not been finalized but the proposed building will likely be two or three stories.
“We have a 21,000-square-foot user under (a letter of intent) and another 12,000-square-foot user under LOI,” Reynolds said, adding he wasn’t ready to specify who the proposed building’s tenants might be.
Reynolds said the medical office piece is expected to cost around $7 million. Financing is still being put in place. A general contractor and architect for the job have yet to be selected.
He said the proposed building would be the fourth medical office building in Reynolds Crossing, which is bound by Glenside Drive, West Broad Street, Forest Avenue, and I-64. The current healthcare tenants at Reynolds Crossing are MetLife, Bon Secours Richmond Health System, Virginia Urology, and the Virginia Cancer Institute.
Reynolds Development owns most of Reynolds Crossing through different LLCs the company uses to partner with investors. Walmart owns the land for its store at Reynolds Crossing at 6920 Forest Ave. and The Wilton Companies owns the Wilton Square retail strip at Reynolds Crossing where tenants include Chipotle and Starbucks.
Reynolds said plans call for breaking ground on the medical office building in 2017 with completion scheduled for July 2018. He said a medical office building is in the works because that is what is in demand.
“It seems to be who is interested,” Reynolds said of the medical industry. “The medical community seems to like the community a lot.”
With its new portion of Reynolds Crossing, the Wilton Cos. hopes to tap into the retail demand that the office users are driving.
Wilton CEO Rich Johnson confirmed the plans filed last week for the 2-acre site that fronts Forest Avenue, which the firm already owns. Johnson said leases are still being finalized for the property.
“We have several tenants in the advanced stages of negotiations,” Johnson said. “We’ve got about half of it lined up.”
Wilton bought the parcel from Reynolds Development in August for $1.4 million, according to a county record. Johnson said development is expected to cost $3 million-$3.5 million, a figure that includes the price of the land.
Johnson said Dave Smith of Freeman & Morgan Architects is the architect for the job and Mark Williams of Wilmark Engineering is the engineer. Chuck Ellsworth of The Wilton Companies is handling leasing for the property. A general contractor has yet to be selected.
“The demand for retail space in that area is strong and driven by the success of Reynolds Development’s success,” Johnson said.
Sarge Reynolds said developing the last of Reynolds Crossing, the former site of the headquarters campus of his family’s namesake Reynolds Metals, is a special moment for the company, but one Reynolds Development doesn’t plan to linger on for too long.
“It’s a big moment for us,” he said. “Our next goal is to do other developments around the central Virginia area.”