Foreclosed bank-anchored Henrico office park sold for $15.7M

The four-story office building at 10561 Telegraph Road that houses Citizens Bank’s headquarters near Virginia Center Commons has been sold to Oklahoma-based Radix Equity. (Photos courtesy of CBRE | Richmond)

Left hanging at a foreclosure auction last year, a 16-acre office park near Virginia Center Commons mall has found a new owner.

Citizens Bank Office Park at 10561 Telegraph Road sold last week to Oklahoma-based Radix Equity for $15.7 million, according to county property records.

The seller was CWCapital Asset Management, a special servicer firm that handled the foreclosure of the two-building, 169,000-square-foot complex in August 2017.

The sale to Radix came via online auction through RealINSIGHT Marketplace and was held Oct. 24, said Will Bradley, who with his CBRE | Richmond colleagues Patrick Arangio and Jack Howard helped broker the deal.

Radix Equity is a real estate investment firm specializing in the acquisition of office, industrial and retail space – mainly throughout Oklahoma, according to its website.

This is the firm’s first buy into Richmond, Bradley said.

The transaction was recorded on Dec. 4, according to a deed filed with the county.

That sales price does not include a buyer’s premium to the auctioneer, nor the assumption of funding tenant improvements related to Citizens Bank’s lease renewal.

The two-story office building at 10571 Telegraph Road is part of a sale to Radix Equity worth $15.7 million. (CBRE | Richmond)

As its name implies, the park is anchored by Citizens Bank, a Pennsylvania-based financial firm that has hundreds of employees onsite. The complex consists of two buildings: a four-story, 120,000-square-foot structure and the two-story, 49,000-square-foot office at 10571 Telegraph Road.

Citizens Bank occupies all of the larger building with a lease that runs through 2031. Other major tenants of the complex include Bon Secours and The Pediatric Center. It is 89 percent leased.

A separate 3.3-acre plot at 10551 Telegraph Road also was part of the sale. The vacant land can accommodate a 50,000-square-foot office building.

The complex was built in 2001 and most recently was assessed by the county at a combined $19.1 million.

The property will be an income-generating investment for Radix, with the potential for additional revenue growth.

“The Citizen Bank tenancy provides for stable in-place cash flow with the ability for additional upside in the two-story 10571 Telegraph Road building,” Bradley said.

Radix could not be reached for comment Tuesday afternoon.

CBRE | Richmond will lease and manage the complex.

The two buildings at 10561 and 10571 Telegraph Road and adjacent 3.3-acre plot. (Google Maps)

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Ed Christina
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That whole area, including the mall, is a mystery to me, it seemed to be on the upswing and suddenly crashed.

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