A collection of warehouses on the city’s Southside is set to meet the wrecking ball early next year after a newly assembled development firm laid claim to the property last month.
Hourigan Development, a commercial real estate development and consulting company led by CEO Mark Hourigan and President Joseph Marchetti III, announced Friday that it purchased 110 acres at 3021 Commerce Road for its future Deepwater Industrial Park.
The land, which the company purchased Nov. 30 for $8.5 million, will be cleared of the existing 17 warehouses to make way for up to 1.5 million square feet of high-bay warehouse space to be built-to-suit.
“When we first launched Hourigan Development, one of our areas of development included industrial development,” Hourigan said Friday. “This was a prime location and a great opportunity for our firm.”
Hourigan, who is also CEO of his namesake construction company, said the entire site will be razed during the first quarter of 2018.
The firm purchased the site from Alleghany Warehouse Co., which had been marketing it as a warehousing and distribution hub to various users.
CBRE | Richmond has been tasked with leasing the site to potential industrial users, while York, Pennsylvania-based Stewart Companies will oversee the construction and development of the site once a tenant is secured.
Hourigan said his firm has received several inquiries, despite the fact that the site has not been officially put on the market for lease.
The industrial deal marks the second acquisition by Hourigan Development, which launched a year ago. The company paid $13 million in April for the former Media General building at 333 E. Franklin St., where Virginia Workers’ Compensation Commission plans to occupy much of the building once renovations are complete.
Hourigan’s recent land grab adds to a growing demand for new and improved industrial space in the city’s Southside, fueled in part by increasing terminal traffic at the Port of Richmond.
Work is underway on California-based Panattoni Development Co.’s 1 million-square-foot spec warehouse facility on 62 acres at 4701 Commerce Road, near the Richmond-Chesterfield County line at the Bells Road exit off Interstate 95.
On Dec. 1, a nearly 90,000-square-foot building at 2320 Deepwater Terminal Road was snatched up for $2.1 million by Ashby’s Real Estate Investments LLC, according to city records.
With frontage along I-95 and rail abutting the opposite side of the property, Hourigan expressed confidence that the site will land a large user.
“Everything is in place,” Hourigan said. “This is an economic development opportunity for the city and the region.”