A local property management firm is looking to become a bigger player in the brokerage game.
Dodson Property Management last week acquired commercial brokerage Shockoe Company. The deal closed Nov. 1. Terms were not disclosed.
As part of the agreement, Shockoe will become a wholly owned subsidiary of Dodson, which will handle all day-to-day property management, leasing, sales and maintenance needs for Shockoe’s residential and commercial properties.
The two firms combined will oversee the management of more than 3,700 residential units and 1 million square feet of commercial space across Central Virginia, Hampton Roads, and North Carolina.
The combined firms’ brokerage operations will be under Dodson Commercial, which will leave its headquarters at 409 E. Main St. in favor of Shockoe Co.’s current space at 1315 E. Cary St.
A total of 18 Shockoe Co. employees will continue in their same roles with Dodson – adding to the firm’s count of 95 people. In addition, Dodson’s maintenance division, River Bend Property Services, will add three new employees from Shockoe.
Founded in 1986 and under the direction of co-founders Mark Merhige and Bill Elliott, Shockoe Co. has grown to a portfolio of more than 800,000 square feet of commercial space and 400 residential units across Virginia and North Carolina.
Dodson said he began talking to Merhige about a year ago before the two decided to execute a contract four months ago.
“Mark Merhige is a legend in the Richmond real estate industry; he and the Shockoe team are well-connected and respected in the local market,” Dodson said. “They have played an instrumental role in the rehabilitation of Shockoe Slip and other historic districts. I look forward to working alongside Mark and his team.”
Merhige will stay on full-time at Dodson as director of commercial brokerage and strategy, which will include overseeing project development.
“We have collaborated with Dodson for years and came to the conclusion that this was a good fit,” Merhige said.
While Elliott will be part-owner of Dodson Commercial and Dodson Property Management, Dodson said he will focus on his own real estate firm, Medalist Properties. Dodson will also manage Medalist’s portfolio.
The Shockoe brand will remain in place for the time being to fulfill legal and securities requirements of partnership agreements with publicly traded REITs. Dodson said the transition will not affect clients, owners, investors, tenants or partners of either company.
With its expanded base, Dodson’s company continues to pursue projects across the area – specifically in the city’s urban core.
The former Flood Zone/Have a Nice Day Café building at 11 S. 18th St. was acquired last week by a group consisting of Dodson, Ross Fischer and Rob Lanphear. The trio, through an LLC, paid $669,500.
He is also part of a partnership to redevelop 300 E. Grace St. that will become home to offices for Natasha Foreman’s Lucid Punk Apparel, a studio and tea bar for her Lucid Living yoga and health center, and three apartments on the upper floors.