On the heels of two acquisitions along the fringes of Scott’s Addition, a local development firm is taking its buying spree into Henrico.
Thalhimer Realty Partners, the investment and development arm of Cushman & Wakefield | Thalhimer, this week purchased the Southern States’ headquarters building at 6606 W. Broad St. for about $14.7 million.
The deal includes the eight-story, 206,000-square-foot office building, along with its surrounding 11.8-acre parcel.
Jason Guillot, a principal with TRP, said the building will be renamed Brookfield Place.
Southern States was the seller and will remain the building’s anchor tenant with a long-term lease.
The agricultural supply co-op plans to renovate the third, sixth and seventh floors in the coming years to modernize its offices – eventually shaving about 46,000 square feet from its existing 150,000-square-foot presence that spans the first six floors of the building.
“Southern States will be giving back the first and second floors once they are finished with the renovations of the third floor in early 2019,” Guillot said in an email.
He said the move would provide TRP with about 50,000 square feet of contiguous space to lease, potentially making it one of the larger blocks of available office space between downtown and Innsbrook along Interstate 64.
Guillot said TRP is hoping to build on the momentum of the nearby Reynolds Crossing and the potential growth of the neighboring 47-acre Genworth campus.
“Long term, we believe the Brookfield campus has a tremendous amount of potential,” he said. “With the China Oceanwide acquisition of Genworth, we are hopeful that the campus may be re-envisioned to include retail and multifamily to complement the existing office space in a mixed-use park setting.”
With a location along the GRTC bus line and county plans to further expand bus service to Short Pump along West Broad Street, Guillot said rezoning the entire vicinity to urban mixed-use would be ideal for the area’s continued redevelopment.
TRP is planning upgrades to the Southern States building and campus. That includes improved landscaping, tree trimming and repaving the parking lot, Guillot said. He added the team would redesign the front entry patio with a new ADA compliant ramp and plans to add an onsite cafe and conference rooms to the building.
Guillot would not disclose an estimated cost for the investment.
Investment in office space at the I-64 and Glenside Drive/West Broad Street exit has gained steam recently.
Development firm Stanley Shield is giving the Brookfield Commons office building at 6600 W. Broad St. a complete gut job to convert the nearly 95,000-square-foot building into medical office space.
Work also is underway on a new standalone one-story, 7,000-square-foot medical office building on the property at the corner of Dickens Road and West Broad Street.
Meanwhile, Altria is exploring options to expand its headquarters at 6601 W. Broad St. in Reynolds Crossing.
The Southern States deal, which closed Sept. 11, is TRP’s third acquisition in recent months. It follows the purchase of a small office building at 3407 W. Broad St. for $1.2 million in July and the former Pet Dairy facility at 1501-1507 Robin Hood Road in June for $5.5 million.
Guillot and fellow TRP principal Drew Wiltshire will oversee improvements in the Southern States building.
Thalhimer brokers Evan Magrill and Baker Lynn will hanlde leasing on the property.
Other tenants include Virginia Urology, Wiley Wilson, Keener Communications, Comfort Zone Camp, Circle Safety and Caring Voice.