A local private-equity firm has found a buyer for the former Circuit City building in Henrico, marking a successful seven-year flip of the previously vacant corporate headquarters.
Deep Run III, the 355,000-square-foot office building at 9954 Mayland Drive, was purchased last week by Massachusetts-based RMR Group for $56 million, according to county records.
The seller was Markel | Eagle Partners, which listed the site last fall after purchasing it out of foreclosure in 2011 for $12.4 million and spending around $19 million to renovate and fill it with tenants such as McKesson, Travelers Insurance and Essex Bank.
Markel | Eagle principals Ricky Core and J.B. Gurley said they could not comment on the buyer, but said interest in the property came from both in and outside of Richmond.
“We repositioned a vacant Class-B office into what we believe is the premier Class-A office building in the suburban Richmond market,” Core said. “And we feel that was evident from the level of interest of both local and national investors.”
The property, which sits on 18 acres, most recently was assessed by the county for about $42 million.
RMR Group owns and operates nearly 50 hotel, office, senior living, industrial and retail properties across Virginia, including 12 properties across metro Richmond.
Its local holdings include the 311,000-square-foot riverfront office building at 501 S. Fifth St. in downtown Richmond that houses CoStar and WestRock; the 154-room Courtyard Marriott at 3950 Westerre Parkway in Henrico; and the nearby Perimeter Center, a 174,000-square-foot office building at 9960 Mayland Drive.
RMR could not be reached for comment Tuesday evening.
Deep Run III formerly was part of Circuit City’s three-building corporate campus. The neighboring Deep Run I and Deep Run II buildings and surrounding surface parking lots were sold to different buyers through the years after the retailer was put into a bankruptcy, which continues today in federal bankruptcy court in Richmond.
Markel | Eagle purchased Deep Run III a year later and carried out a plan to construct a 250,000-square-foot parking garage, fitness center, 7,500-square-foot cafeteria, 4,000-square-foot conference room and new lobby areas.
“The market cooperated and we were able to put together a very attractive product,” Gurley said, adding that the building is 96 percent occupied.
Richmond BizSense Editor Michael Schwartz contributed to this report.