While it considers its options for redeveloping the Southern States silos in Manchester, Hourigan Development recently got another project on the Southside underway.
Last month the company broke ground on Deepwater Industrial Park at 3021 Commerce Road adjacent to Interstate 95.
Hourigan bought the 110-acre parcel in 2017 and knocked down 17 old warehouses that totaled about 2.4 million square feet.
In their place will rise a multi-phase project totaling around 1.2 million square feet of warehouse space. The first phase will be a 560,000-square-foot warehouse that for now is being built on spec.
CEO Mark Hourigan, who also heads up his namesake construction company, said while the spec warehouse hasn’t yet signed on any tenants, it has received interest. The site is nearly pad-ready, and Hourigan said they’re trying to get ahead of any potential demand.
“The thing we have learned is, the time from when (users) start looking to when they want to be occupied in the building is about six months,” Hourigan said. “You need to be underway to be in serious contention for any users that are coming to the market.”
Colliers International’s Rob Dirom and Joe Marchetti are marketing the space.
Hourigan said they’re hoping to have the project going vertical by the end of 2021, but that supply chain issues for steel have delayed the project. Typically, after placing an order for steel for a project like this, Hourigan said it would take around 18 weeks for it to arrive.
“(That time) has lengthened to about 40 weeks. Material shortages and labor shortages are definitely things we’re tracking very closely,” Hourigan said.
“We’ll get slabs in and concrete walls rolling so that as we finish that stuff off, the steel will come in, the roof will go on, and we’ll wrap the building up very quickly.”
Hourigan’s aiming to have the first phase completed by the second quarter of 2022.
Hourigan said he expects the demand for industrial space to continue to grow, driven in part by Richmond’s geography.
“Richmond’s very well positioned with the Hampton Roads port and the Richmond port,” Hourigan said. “And if you look at the population you can serve in one day’s trucking time from Richmond, we’re in a very desirable location.”
Deepwater Industrial Park is the second major project Hourigan is taking on south of the river.
Earlier this month the firm got approval from the City Council to begin redeveloping the Southern States silos at 2-4 Manchester Road. The company is still mulling its options for the site, but it now has the entitlements necessary to build a commercial, residential or mixed-use project that could reach over 20 stories.