South Falls East will be constructed south of the flood wall and next to the Southern States silo. (Michael Schwartz)
With work already underway on a first-phase 14-story tower, two prolific local developers are readying another nearby Manchester site for a similar project.
Fountainhead Real Estate Development and WVS Cos. this month paid about $3 million for nearly 4 acres at 3 Manchester Road, where they plan to build a seven-story mixed-use building, dubbed South Falls East.
Fountainhead’s Tom Papa confirmed the deal.
The group put the site, which consists of four contiguous parcels, under contract about a year ago. Combined, they most recently were assessed by the city for about $1.8 million.
The whole site consists of four parcels. Click to enlarge. (Google Maps)
They now control some of the most developable property along south Richmond’s riverfront, with plans to add additional density to one of the city’s fastest-growing neighborhoods.
“This is some of the most beautiful property in the city,” Papa said. “You’re not going to find sites like this anymore, so we have to be mindful of how we develop it … all while keeping in mind the highest and best use for the property, and at the moment, it’s dense residential and commercial development.”
Papa said the new development is an extension of its original South Falls project, which was announced nearly three years ago and is beginning to take shape on a 3.74-acre, quasi-island former paper mill site at 111 Hull St. west of the Mayo Bridge. It eventually will house a 14-story, 255-unit apartment tower and a six-story, 135,000-square-foot office building.
South Falls East will cost around $50 million to develop, and will include five stories with a total of 233 apartments that will sit above a two-story podium to be used as amenity space for future residents, along with commercial space.
Tom Papa
Richard Souter
Construction on the eastern site is scheduled to begin around the first quarter of 2020, Papa said. The other South Falls tower will be nearing completion across the street.
Richmond-based Walter Parks Architects is designing South Falls East, while KBS Inc. is the general contractor.
Opportunity Zone boost
Combined, Papa said the two South Falls phases represent up to $200 million in investment.
To help finance part of that amount for the eastern phase, the group is using the Opportunity Zone program as a funding mechanism.
Opportunity Zones enable real estate developers to pool together funds from investors as an alternative way to complement traditional financing.
A six-story, 135,000-square-foot office building will anchor the original South Falls development.
There are about 212 Opportunity Zones in Virginia, according to the Virginia Department of Housing and Community Development.
While the program was created to help economically depressed areas, the Virginia zones chosen include several increasingly popular neighborhoods across Richmond such as Manchester, Church Hill, Scott’s Addition and Jackson Ward, as well as some that are beginning to grab the attention of developers such as Blackwell, Clopton and Maury.
Papa said they are securing unnamed investors through an Opportunity Zone fund for the project. He wouldn’t disclose how much the group was raising for the project.
The seller of the Manchester Road property was an estate tied to local produce wholesaler V.F. Lanesa Inc., which is based in Manchester at 317 Hull St.
Papa said the development group has the option to purchase Lanesa’s neighboring 13,100-square-foot office building and warehouse at 317 Hull St., along with a vacant 0.68-acre parcel the estate owns at 100 Hull St. But he emphasized there are no immediate plans to either purchase or develop them.
A 14-story residential tower is also in the works for the first phase of South Falls. (BizSense file photo)
Apartment development is sizzling across metro Richmond, and nowhere is that more evident in the city than in Manchester.
The two South Falls projects will be joined by The Current, a planned $68 million, two-building office, retail and residential project on a 2-acre surface lot at 400 Hull St. that will include 215 apartments. That project, from Lynx Ventures, also is looking to utilize an Opportunity Zone fund.
Meanwhile, construction crews continue to plug away at the latest phase of City View Landing, a $25 million addition with 161 apartments and 13,300 square feet of ground-level commercial space.
The stretch of Hull Street between East Sixth and Brander streets alone will boast over 850 apartments either under construction or planned for the corridor.
“It a hotbed of development,” Papa said. “The more desirable the neighborhood becomes, the more investment will follow.”
South Falls East will be constructed south of the flood wall and next to the Southern States silo. (Michael Schwartz)
With work already underway on a first-phase 14-story tower, two prolific local developers are readying another nearby Manchester site for a similar project.
Fountainhead Real Estate Development and WVS Cos. this month paid about $3 million for nearly 4 acres at 3 Manchester Road, where they plan to build a seven-story mixed-use building, dubbed South Falls East.
Fountainhead’s Tom Papa confirmed the deal.
The group put the site, which consists of four contiguous parcels, under contract about a year ago. Combined, they most recently were assessed by the city for about $1.8 million.
The whole site consists of four parcels. Click to enlarge. (Google Maps)
They now control some of the most developable property along south Richmond’s riverfront, with plans to add additional density to one of the city’s fastest-growing neighborhoods.
“This is some of the most beautiful property in the city,” Papa said. “You’re not going to find sites like this anymore, so we have to be mindful of how we develop it … all while keeping in mind the highest and best use for the property, and at the moment, it’s dense residential and commercial development.”
Papa said the new development is an extension of its original South Falls project, which was announced nearly three years ago and is beginning to take shape on a 3.74-acre, quasi-island former paper mill site at 111 Hull St. west of the Mayo Bridge. It eventually will house a 14-story, 255-unit apartment tower and a six-story, 135,000-square-foot office building.
South Falls East will cost around $50 million to develop, and will include five stories with a total of 233 apartments that will sit above a two-story podium to be used as amenity space for future residents, along with commercial space.
Tom Papa
Richard Souter
Construction on the eastern site is scheduled to begin around the first quarter of 2020, Papa said. The other South Falls tower will be nearing completion across the street.
Richmond-based Walter Parks Architects is designing South Falls East, while KBS Inc. is the general contractor.
Opportunity Zone boost
Combined, Papa said the two South Falls phases represent up to $200 million in investment.
To help finance part of that amount for the eastern phase, the group is using the Opportunity Zone program as a funding mechanism.
Opportunity Zones enable real estate developers to pool together funds from investors as an alternative way to complement traditional financing.
A six-story, 135,000-square-foot office building will anchor the original South Falls development.
There are about 212 Opportunity Zones in Virginia, according to the Virginia Department of Housing and Community Development.
While the program was created to help economically depressed areas, the Virginia zones chosen include several increasingly popular neighborhoods across Richmond such as Manchester, Church Hill, Scott’s Addition and Jackson Ward, as well as some that are beginning to grab the attention of developers such as Blackwell, Clopton and Maury.
Papa said they are securing unnamed investors through an Opportunity Zone fund for the project. He wouldn’t disclose how much the group was raising for the project.
The seller of the Manchester Road property was an estate tied to local produce wholesaler V.F. Lanesa Inc., which is based in Manchester at 317 Hull St.
Papa said the development group has the option to purchase Lanesa’s neighboring 13,100-square-foot office building and warehouse at 317 Hull St., along with a vacant 0.68-acre parcel the estate owns at 100 Hull St. But he emphasized there are no immediate plans to either purchase or develop them.
A 14-story residential tower is also in the works for the first phase of South Falls. (BizSense file photo)
Apartment development is sizzling across metro Richmond, and nowhere is that more evident in the city than in Manchester.
The two South Falls projects will be joined by The Current, a planned $68 million, two-building office, retail and residential project on a 2-acre surface lot at 400 Hull St. that will include 215 apartments. That project, from Lynx Ventures, also is looking to utilize an Opportunity Zone fund.
Meanwhile, construction crews continue to plug away at the latest phase of City View Landing, a $25 million addition with 161 apartments and 13,300 square feet of ground-level commercial space.
The stretch of Hull Street between East Sixth and Brander streets alone will boast over 850 apartments either under construction or planned for the corridor.
“It a hotbed of development,” Papa said. “The more desirable the neighborhood becomes, the more investment will follow.”
Manchester is the next Brooklyn.
That’s definitely better than being Richmond’s Staten Island (which it was).
They might want to consider a skyway walk over Hull Street/14th Street. The development is great but I dare anyone to try and cross Hull Street near the floodwall/park!! And is DOM going to move the substation like they did on S. Meadow Street?
Isn’t it time for a full service supermarket to locate in Manchester?
They don’t necessarily need a Kroger or Publix (but they better get in while there is still enough land left). Even an Aldi, Lidl, Trader Joe’s, etc. would do for now.
Aldi and Lidl are done building and not doing well. the market can’t support Kroger or Publix but David start a petition and I’ll sign it 2nd to encourage Trader Joe’s to open.
I live near Forest Hill Park and would welcome just about any grocery store to the Manchester area. Here’s the link to get us a Trader Joe’s https://www.traderjoes.com/contact-us/location-request
Not doing well? I’m curious to see some data on that. Everything I am reading on the national level says they are even putting a dent in Wal-Marts grocery business. Personally, I do like them for basic (and some specialty) items.
Clarify (and I love Lidl) that stores are doing okay but In the sense that they are not going gangbuster as they underestimated how competitive the market is. LIcil has slowed opening stores but still own hundreds of lots. https://www.cnn.com/2019/05/20/business/lidl-aldi-grocery-stores-walmart-kroger/index.html
That makes more sense. I could see that they aren’t doing as well as what they originally thought, but I didn’t think they were doing “badly”. Personally, after having lived in rural areas where the only thing available was food lion and a distant Wal-mart I thought they were kind of missing an opportunity by only going for the hyper competitive suburban market. I also see a missed opportunity in areas like Manchester where it is just not ready for a 100,000 sq ft. grocery, but is definitely ready for more than a corner market.
David, a quick google search will bring up pages of articles from industry publications to local mid-west news outlets referencing the pull back in the aggressive expansion they had planned I know through a person working in the grocer analytics industry that Lidl is reporting their stores are too large for the American market and are pulling back to readjust. Which makes me believe the articles aren’t just fake news. I also on a personal level feel they have missed the American consumers tendencies. This isn’t São Paulo Brazil where grocery stores are massive warehouses, 3 floors high and moving… Read more »
Actually when I have gone back to get an item from the center a week or two later because I realize I did need it they are often sold out so someone is buying them. Also, if they are not buying that type of stuff I guess Walmart may go out of business and Kroger may have to close their Marketplace stores. Seems to be like the trend is actually going towards stores with combined goods.