Genworth Financial’s goal to redevelop its 45-acre Henrico campus is still in play, but the insurance company is no longer aiming to be the project’s office anchor tenant.
The Fortune 500 company on Wednesday said it has scrapped its plans to build a new headquarters building as part of the future transformation of its grounds at 6620 W. Broad St., as it first announced last year.
Instead, it will move its corporate HQ to 11011 and 11013 W. Broad St., where it will take over 175,000 square feet in the former SunTrust Business Center buildings near Innsbrook.
“This direction will get us into our permanent home more quickly and at a significantly lower cost, as the former SunTrust space was fully renovated in 2018 and provides a contemporary foundation from which we can outfit a more modern workplace for our colleagues,” Genworth said in a prepared statement.
“Several factors that come with new construction in today’s world — like supply chain issues, increased costs of building materials, and the potential delays inherent in the process — made us rethink our approach to creating a modern, supportive, and energizing environment where our colleagues can do their best work for Genworth’s next chapter,” it said.
The company said it is currently designing the former SunTrust space to accommodate its entire Richmond workforce, though it added that it expects to remain in a hybrid work setup for the foreseeable future. It has approximately 800 local employees and 2,000 companywide.
It said it doesn’t expect be in the new space before late 2023.
The company’s local hub currently is in 88,000 square feet of subleased space at 6603 W. Broad St., a building previously occupied by Altria in Reynolds Crossing.
The company said it will stay in the Reynolds Crossing space until the former SunTrust buildings are ready for occupancy. The temporary space has room for around 300 Genworth employees at any given time, while it continues a mix of in-person and at-home work.
Genworth said the RFP process to transform its longtime campus into a mixed-use development called Compass Town Center continues.
“We remain engaged in the request-for-proposal process for our former Richmond campus as the landowner and are considering how to best leverage this valuable real estate asset. We plan to continue conversations with a diverse mix of local, regional, and national developers and expect the process to extend into later this year and 2023,” the company said.
It started the process last year with a request for information phase to query developers for ideas. That first phase involved a curated list of developers Genworth invited to participate in the RFI.
The project is envisioned to include office space for other tenants, retail and restaurant space, and townhomes and apartments.
The site is currently home to four buildings totaling nearly 500,000 square feet of office space, much of which is past its prime and empty both from the pandemic and previous downsizing. The property also houses vacant land, a large parking deck and a smaller parking deck. The assemblage was most recently assessed by the county at more than $50 million.
Once it moves in at the former SunTrust Center, Genworth will join locally based education software firm EAB, which earlier this year struck a deal to lease 70,000 square feet at 11011 W. Broad St.
The former SunTrust buildings were vacated by the banking giant in 2021 as part of its merger with BB&T that created Truist Bank. SunTrust had occupied 250,000 square feet across the two buildings.
The properties are owned by Washington, D.C.-based FD Stonewater. It paid $62 million for the buildings and their 32 acres in 2018.