There’s been another record-setting land deal in Scott’s Addition.
Last week, Capital Square purchased about 2.7 acres of real estate near the intersection of West Marshall Street and Altamont Avenue for $10.8 million.
The bulk of the deal was for N. Chasen & Son’s holdings at 2919-2924 W. Marshall and 2915 W. Clay streets. Capital Square also acquired the boarded-up former Boulevard Baptist Church building at 2944 W. Marshall St.
The deal comes out to $4 million per acre, the highest per-acre land sale ever in the sought-after neighborhood. The previous high mark was held by a development group out of D.C. that bought 1117-1209 N. Arthur Ashe Blvd. last year for $3.8 million an acre.
Capital Square is planning to raze the existing structures to make way for a trio of mid-rise apartment buildings with 350 units.
The project has been in the works for over a year, as Capital Square was initially planning to partner with Maryland-based Lerner Enterprises. In addition to their work in development, the Lerner family are also principal owners of the Washington Nationals, though it’s been recently reported that they’re exploring selling the baseball franchise.
“We kind of amicably split up along the way,” Adam Stifel, Capital Square’s executive vice president of development, said of the company’s relationship with Lerner. “We were just ultimately more hyper-focused on Richmond and Scott’s Addition than they were.”
The Chasen family bought its Scott’s Addition properties in the early 1970s and has operated its painting and carpentry business in the neighborhood ever since. N. Chasen & Son will stay there through the end of 2022, after which Stifel said Capital Square will look to begin demolition and construction in the first quarter of 2023.
- N. Chasen & Son CFO Leisa Deffenbaugh said the business will continue on with a new headquarters.
“We’ll be rehoming soon, but I can’t share anything yet,” Deffenbaugh said.
The seller of the adjacent Boulevard Baptist Church property was First Baptist Church of Richmond, according to city records.
Not included in the sale was Longoven’s neighboring home at 2939 W. Clay St., which N. Chasen & Son is holding onto and will continue to lease to the restaurant.
The Chasen properties were assessed at a combined $7.2 million, and the church building at $842,000. CBRE’s Jason Hetherington, Chris Wallace and Matt Hamilton represented the Chasens in the deal.
Stifel said the new apartments will be similar in design to The Otis, the six-story building Capital Square is working on at 1601 Roseneath Road with South Carolina-based developer Greystar. Like The Otis, the new project includes four stories of apartments atop two floors of structured parking. Poole & Poole Architecture is the project’s designer.
One way the two projects will differ is in their amount of commercial space. While The Otis has about 10,000 square feet of commercial space — and has secured tenants including PlantHouse, Grit Coffee and Charlottesville-based bakery Cou Cou Rachou — Stifel said the project on the Chasen site will likely have between 2,500 and 5,000 square feet of commercial space.
Stifel said the success of pre-leasing at Capital Square’s nearby Scott’s Collection apartments drove the firm to continue planning projects in the neighborhood.
“We’re doing really well at our first deal across the street,” Stifel said, referencing the Ink building in Scott’s Collection at 3000-3008 W. Clay St. “We’ve learned some lessons from what the market wants.”
Nearly 2,500 apartment units are either currently being built or planned in Scott’s Addition.
One project that recently came to light is a 250-unit building planned at 1701 Roseneath Road by Blackwood Development.