The Westwood corridor in Henrico County continues to attract attention from investors, with a local residential real estate firm picking up some land in the area for its first foray into commercial real estate.
The Cava Cos. purchased 2321, 2323 and 2405 Westwood Ave. for $1.77 million in late June.
Sitting right across from Topgolf, the parcels include an acre of land and two buildings totaling 22,500 square feet.
“I’m bullish on the corridor. I just think it’s located in a great spot,” Cava Cos. principal Frank Cava said.
The company specializes in acquiring and renovating single-family homes, then relisting them for sale. The majority of the homes it puts back on the market are below $300,000.
Cava said his firm’s previously done some work on multifamily buildings but that this is its first fully commercial investment.
One of the two buildings in the deal is occupied by Westwood Music Club, which has operated out of 2323 Westwood Ave. since its rebranding and move from the Libbie-Grove corridor in 2019. The Malvern Building, an 18,000-square-foot office building, stands at 2405 Westwood Ave., and 2321 Westwood is used as a parking lot.
The parcels were most recently assessed at a combined $1.3 million, county records show. The seller was an entity tied to local developer Rebkee Co. Matt Hamilton of CBRE represented Cava in the off-market deal. Tom Rosman and Lory Markham of One South Commercial represented Rebkee.
Cava said his firm is planning a $2 million renovation for 2405 Westwood Ave. and will move the company’s headquarters there, taking about 6,000 square feet. The building is currently about 53 percent leased.
“What we’re going to do is repurpose it into (Class) B, B+ office space and come out below market with C or C+ rent rates,” Cava said. “My goal is to put out a nice product and very quickly attract office tenants. It’s a heavy value-add renovation, which is our strong suit for what we do on the residential side.”
Cava said they’re honoring any current leases in the building, as well as Westwood Music Club’s lease at 2323 Westwood Ave.
Ryan Corbitt, who owns the music school, said he has at least three years left on his current lease and has an option to extend it for another five years.
Cava added that 2321 Westwood Ave. will remain a parking lot for the foreseeable future.
The Cava Cos. will act as its own general contractor and is financing the renovation with a loan from First Community Bank. Cava said they hope to kick off the renovation this summer.
Cava said his firm remains active in acquiring single-family homes, despite the hot market.
“We’re finding a lot of sellers that are generational or older and tired, and some small portfolio single-family owners,” Cava said. “We’re buying a lot of those and we’re still looking for the right value-add opportunities.”
Just to the east of Cava’s new properties is the site of Carvana’s car vending machine, which has gone vertical in recent weeks.