There soon could be a new addition to the city’s downtown riverfront skyline.
Real estate research giant CoStar Group is under contract to purchase about 4 acres of undeveloped land at 600 Tredegar St., upon which it plans to build an office building, according to multiple sources familiar with the deal.
The building would rise adjacent to the WestRock building, where Washington, D.C.-based CoStar planted its local operations a few years ago, leasing the top three floors totaling 130,000 square feet. It has since grown to about 1,000 employees in Richmond.
It’s unclear what the planned office building’s height and size will be. CoStar spokespeople declined to comment for this story. Sources say the company already has put out an RFP for design and development of the building.
The site along Tredegar Street, just across from Brown’s Island, is owned by Foundry Park II LLC, an entity tied to NewMarket Corp., whose headquarters at 330 S. 4th St. overlooks the land. The property most recently was assessed by the city at $17 million. NewMarket could not be reached for comment.
CoStar’s desire for the riverfront property is a change of course from earlier this year, when it announced its intentions to fill a 400,000-square-foot office tower within the ill-fated Navy Hill development.
That announcement was made as the Navy Hill proposal was nearing collapse, as its developers were attempting to overcome the scrutiny from the opposition and city council.
Some members of the development group from Navy Hill now are trying to salvage part of the project that includes an office tower, but CoStar is not involved with that new initiative.