Scott’s Addition continues its streak as the local hotspot for new bank branches.
Fulton Bank, a $26 billion bank out of Pennsylvania, is looking to open a new location at 3200 W. Broad St. in The Icon development along the neighborhood’s southern border.
The bank would occupy around 5,000 square feet at the western end of the mixed-used project’s commercial section.
Karen Frye, Fulton’s commercial market executive for the Richmond region, said the bank expects to open the new branch in the third quarter. In addition to being a retail branch, the space also will house commercial and mortgage operations.
It will be Fulton’s third outpost in the Richmond region, joining locations in Stony Point and Innsbrook.
Those two branches housed around $185 million in deposits as of June 30, according to the most recent figures from the FDIC. Fulton also has a location in Charlottesville that operates within its Central Virginia operations.
“The goal with the new Scott’s Addition location is to strategically expand our presence and services in an area of Richmond that will enable us to conveniently serve a broader client base for retail, commercial and mortgage banking,” Frye said in an email.
The bank has more than 200 branches in total, including 12 in Virginia and the rest spread across Delaware, Maryland, New Jersey and its home state of Pennsylvania. It’s headquartered in Lancaster, Pennsylvania, and was founded in the late 1800s.
Fulton would be the latest financial institution to open shop in Scott’s Addition and the second along The Icon’s Broad Street-fronting commercial section. Locally based Virginia Credit Union recently opened a branch at the eastern end of the strip.
Built by local developer Historic Housing, The Icon is made up of a converted hotel-turned mixed-use building fronting Broad Street, an adjoining new-construction, 12-story apartment tower and a six-story parking deck. It will have 300 apartments at completion.
The project’s 24,000 square feet of commercial space is mostly housed in an atrium-like structure along Broad.
Brian White, president of Main Street Realty, Historic Housing’s leasing and property management arm, said there’s a reason banks are flocking to the neighborhood.
“It’s an area that I think a lot of banks are looking at. They see it as an area where the young, upwardly mobile people are going to be,” White said.
The trend extends beyond just VACU and Fulton Bank. Richmond-based Atlantic Union Bank last year opened its first Scott’s Addition branch in Historic Housing’s Scott’s View development. Charlottesville-based Virginia National Bank opened its first Richmond-area branch in former nightclub building at 1401 Roseneath Road. And Midlothian-based Village Bank opened a branch in The Nest development at 3117 W. Marshall St.
M&T Bank has a long-standing branch at 3124 W. Broad St.
As for progress on the rest of The Icon, White said the first phase of apartments in the former Quality Inn hotel is nearly 100 percent leased after completion about a year ago.
The 12-story tower – the neighborhood’s tallest building – is slated for completion next month. White said about 85 percent of the completed units on the building’s upper half are leased.
He said rental rates range from around $1,400-$2,500 a month with all utilities included.
White said rents in Richmond seem to have plateaued after years on the upswing.
“They’re not coming down, but not growing like they were a year ago,” White said. “I think we’re seeing rents stable with what they were last summer. This time last summer it was going up and up. We knew it wasn’t sustainable. It had to normalize and I think that’s happened.”
Historic Housing also is underway on a 12-story, 212-unit apartment tower at the former Weiman’s Bakery property in Shockoe Bottom.