Christmas came early for Spy Rock Real Estate Group.
The local developer closed a pair of deals in Scott’s Addition just prior to the holiday, totaling nearly $17 million. One was in the neighborhood’s historic district, and the other a few streets to the north.
The company, led by Andrew Basham and Taylor Williams, acquired the Greendale Railing building at 2031 Westwood Ave. for $7.5 million on Dec. 21. A day later it bought 3406 Carlton St. for $9.3 million.
The 4.7-acre Westwood parcel houses a pair of industrial buildings that date back to 1947 and total about 99,000 square feet. Greendale Railing, Richmond Steel and Richmond Recreational Storage are currently tenants in the buildings.
Basham said the tenants will remain for at least the next few years and that it’s too soon to say whether a potential redevelopment is in store.
“We certainly have the experience in doing (adaptive reuse projects). I guess time will tell,” Basham said.
“It’s zoned for potential redevelopment should we choose to go that route. Strategically, it’s another part of our expansion in the neighborhood,” he added, referencing Spy Rock’s nearby holdings on Ellen Road in Greater Scott’s Addition where they’ve secured biotech startup Grenova and dog park-bar Ruff Canine Club as tenants.
New York-based Mercer Street Partners was a partner with Spy Rock in the Westwood deal. The two firms became acquainted in 2019 when Spy Rock sold its South Bank apartments in Manchester to Mercer Street for $23 million.
Mercer Street has remained active in the region, most recently snagging the Star Lofts in Petersburg for $7 million last year.
An entity tied to the Mayers family was the seller of the Westwood parcel. It was most recently assessed by the city at $4 million.
Meanwhile, just to the south over the train tracks, Spy Rock acquired the 3.7-acre Carlton Street property needed for a proposed 134-unit condo project. Spy Rock is working with local home builder StyleCraft Homes on the development. The two companies are also working together on the townhome section of the Hardywood-anchored Brewer’s Row project on Ownby Lane.
The seller in the Carlton Street deal was longtime masonry firm Riverside Brick & Supply Co., which has since consolidated its headquarters to 1200 Maury St. in the Southside. Divaris’ Read Goode and Cheryle Toy represented the sellers.
The parcel was most recently assessed by the city at $4.9 million.
Basham said he thinks the condo project will help meet demand for home ownership in Scott’s Addition, a neighborhood he estimates currently has less than 50 single-family homes.
“We think that given the lack of supply in general in this part of Richmond, we’ll have a strong demand for first-time homebuyers but also maybe folks that are empty-nesters or want to be back in the city,” Basham said.
“There’s no question there’s a serious pent-up demand for it. We have people asking us all the time if there’s an opportunity for home ownership in the neighborhood.”
Basham said they’re hoping to break ground on the condos by the second quarter of 2022. Prices for the condos have not been disclosed.