Costco recently bought an undeveloped site next to its Chesterfield warehouse. (Google Maps)
For the second time this fall, Costco has struck a land deal next to one of its Richmond-area stores.
The retail giant last week purchased an undeveloped plot at 1218 Koger Center Blvd. for $1.1 million, Chesterfield County records show.
The 3.6-acre site is wedged between Costco’s Midlothian warehouse store at 1461 Mall Drive and a recently built Pet Paradise.
The deal comes just weeks after Costco closed a similar deal in Henrico County. In October it spent $13 million on a pair of buildings that sit on 5 acres next to its location at 9650 W. Broad St.
It remains a mystery what the Washington-based company is looking to do with its new holdings. A Costco spokesperson declined to comment, citing a company policy to “not comment regarding future Costco warehouses until we are ready to share details.” The company similarly declined to comment on the Henrico deal, and no plans have been filed for either site.
The seller in the Chesterfield deal was an entity tied to Riverstone Properties, the downtown firm helmed by Bill Goodwin whose portfolio counts The Jefferson Hotel, the James Center office complex and Kiawah Island Golf Resort in South Carolina.
The deal closed Dec. 1. Chesterfield most recently assessed the parcel at $816,000.
Costco also has been making real estate moves outside of the Richmond region. According to The Dallas Morning News, it has a deal in the works to purchase a 10-story office building next to one of its stores in Dallas.
Costco recently bought an undeveloped site next to its Chesterfield warehouse. (Google Maps)
For the second time this fall, Costco has struck a land deal next to one of its Richmond-area stores.
The retail giant last week purchased an undeveloped plot at 1218 Koger Center Blvd. for $1.1 million, Chesterfield County records show.
The 3.6-acre site is wedged between Costco’s Midlothian warehouse store at 1461 Mall Drive and a recently built Pet Paradise.
The deal comes just weeks after Costco closed a similar deal in Henrico County. In October it spent $13 million on a pair of buildings that sit on 5 acres next to its location at 9650 W. Broad St.
It remains a mystery what the Washington-based company is looking to do with its new holdings. A Costco spokesperson declined to comment, citing a company policy to “not comment regarding future Costco warehouses until we are ready to share details.” The company similarly declined to comment on the Henrico deal, and no plans have been filed for either site.
The seller in the Chesterfield deal was an entity tied to Riverstone Properties, the downtown firm helmed by Bill Goodwin whose portfolio counts The Jefferson Hotel, the James Center office complex and Kiawah Island Golf Resort in South Carolina.
The deal closed Dec. 1. Chesterfield most recently assessed the parcel at $816,000.
Costco also has been making real estate moves outside of the Richmond region. According to The Dallas Morning News, it has a deal in the works to purchase a 10-story office building next to one of its stores in Dallas.
This feels like an opportunity to acquire some land and control who its neighbors are. They may develop it one day, but at roughly 148k square feet, it’s very much the average Costco warehouse size.
The acreage purchase on West Broad Street is an obvious play to expand the building size and to clean up the mess that the gas pumps create there. I’m wondering if they won’t flip the building entrance to the opposite side. The Chesterfield acreage purchase is less obvious but perhaps Costco has plans to open a complimentary retail business on each of the sites.
Costco also has a limited number of “business centers”. They are more aimed at small business needs. They have opened these near some of their higher volume locations. Perhaps this is on their radar.
In my opinion the West Broad Street purchase will allow Costco to relocate its tire center to the recently acquired property and expand the store into that space. That in itself will add additional parking for the store.
If Costco is willing to relocate their gas pumps as well it will be a far greater expense. Costco will determine if it’s worth the investment.