Cartograf’s unfinished packaging plant at Meadowville Technology Park. (BizSense file)
A Chesterfield judge has at least two options to choose from in the quest to sell an incomplete packaging factory in the county.
Richmond-based construction company Hourigan and American Real Estate Partners (AREP), a real estate investment firm based in Fairfax, have made offers on the unfinished Cartograf manufacturing facility at Meadowville Technology Park, according to recent legal filings in Chesterfield Circuit Court.
The factory, at 1600 Digital Drive, is subject to a court-ordered sale spurred by lawsuits filed against the factory’s would-be user and property owner, Mexican packaging company Cartograf. The lawsuits were filed by the facility’s general contractor, Georgia-based Choate Construction Co., and Texas-based bank Comerica, which financed the project.
Filings show that AREP was the mystery lone bidder that made a $16.5 million offer on the property at a court-ordered auction held Dec. 7.
Hourigan has made an offer outside of the auction process, and says it’s willing to pay $20 million for the nearly 300,000-square-foot unfinished factory on a 104-acre property.
Motleys Asset Disposition Group, the auction house handling the sale, pegs the property’s appraised value at $18.9 million. Cartograf has argued the property’s value is between $25.2 million and $29.4 million.
It was unclear what Hourigan and AREP envision for the property under their respective ownership. Hourigan declined to comment for this article, and AREP didn’t respond to a request for comment Friday.
AREP’s portfolio is focused on office, mixed-use and industrial properties, as well as data centers through its PowerHouse subsidiary. AREP was founded in 2003 and has spent at least $5.3 billion on acquisitions since then, according to its website. Locally, AREP formerly owned Riverside on the James, an office and condo tower at 1001 Haxall Point.
As a court-ordered sale, Circuit Court Judge Duncan Minton will provide final approval of one of the offers made on the Cartograf property. A hearing held Thursday to finalize the sale was continued to later this month at the request of Cartograf, which earlier this month attempted to halt the sale with a motion seeking a temporary injunction.
Cartograf’s incomplete facility occupies about 104 acres at Meadowville Technology Park.
At Thursday’s hearing, lawyers for Comerica and Choate argued in favor of AREP’s bid because the company has agreed to buy the property as-is and to close on the deal within five days of the judge’s approval. Hourgian has requested a 75-day feasibility period, which would allow it to inspect the property should its offer be selected. It also would allow it to back out of the deal during that time.
Proceeds from the sale would be used to satisfy liens that have been placed on the property. The anticipated net proceeds from the Hourigan offer would be between $18 million and $18.5 million, while the anticipated net proceeds from the AREP offer would be expected to fall between $16 million and $16.5 million, according to a report by the special commissioner charged with overseeing the sale of the property.
Hourigan’s offer would also cover a $1 million commission paid to Motleys, marketing fees paid to Motleys and a $500,000 break fee paid to AREP.
AREP made an unsolicited offer to buy the plant before the court ordered in November a sale of the property. That $16.5 million offer was used as the starting bid in the auction held Dec. 7.
While 10 bidders registered to participate in the auction both online and in-person, no additional bids were made. Hourigan’s written offer to buy the property for $20 million was received by Motleys the morning of the auction, according to the special commissioner’s report.
In 2019, Cartograf, in coordination with the Gov. Ralph Northam administration and Chesterfield County, announced a $65 million project to build a folding and microcorrugated package printing plant that was anticipated to create 63 jobs.
The facility never opened, and the partially completed project prompted lawsuits by Choate and Comerica. The court ordered the property sale in November to satisfy liens held by those companies.
Choate hit Cartograf with a lawsuit in 2020 seeking $15 million for its work on the first phase of construction of the Chesterfield plant. The suit claimed that part of the project was nearing completion and that Choate was keeping up with its side of the agreement when Cartograf failed to pay for the general contractor’s efforts. Cartograf disputed that Choate had fulfilled its agreed-upon duties.
In October, the court ruled Choate is able to enforce $7.9 million in mechanic’s liens on the property, in addition to court fees and interest, since September 2022.
As for Comerica, the bank sued Cartograf in federal court in 2021 after Cartograf defaulted on a loan tied to the Chesterfield plant. A federal judge in Michigan ruled in Comerica’s favor, allowing the bank to collect $9.7 million in principal in addition to interest and fees in a process playing out in Chesterfield Circuit Court.
Motleys’ listing for the property says the unfinished facility is around 284,000 square feet. In its 2019 announcement, the county described the specs of the facility as being planned to be 275,000 square feet. The property is zoned general industrial (I-2).
Cartograf’s project was eligible for a $750,000 grant from the state’s Commonwealth’s Development Opportunity Fund, as well as support for employee training programs through the Virginia Jobs Investment Program. A Virginia Economic Development Partnership spokeswoman said the project ultimately didn’t receive any funding or benefits through those programs.
Meadowville Technology Park is also home to toy-maker Lego’s upcoming $1 billion manufacturing plant, as well as an Amazon distribution center and Niagara bottling facility.
Cartograf’s unfinished packaging plant at Meadowville Technology Park. (BizSense file)
A Chesterfield judge has at least two options to choose from in the quest to sell an incomplete packaging factory in the county.
Richmond-based construction company Hourigan and American Real Estate Partners (AREP), a real estate investment firm based in Fairfax, have made offers on the unfinished Cartograf manufacturing facility at Meadowville Technology Park, according to recent legal filings in Chesterfield Circuit Court.
The factory, at 1600 Digital Drive, is subject to a court-ordered sale spurred by lawsuits filed against the factory’s would-be user and property owner, Mexican packaging company Cartograf. The lawsuits were filed by the facility’s general contractor, Georgia-based Choate Construction Co., and Texas-based bank Comerica, which financed the project.
Filings show that AREP was the mystery lone bidder that made a $16.5 million offer on the property at a court-ordered auction held Dec. 7.
Hourigan has made an offer outside of the auction process, and says it’s willing to pay $20 million for the nearly 300,000-square-foot unfinished factory on a 104-acre property.
Motleys Asset Disposition Group, the auction house handling the sale, pegs the property’s appraised value at $18.9 million. Cartograf has argued the property’s value is between $25.2 million and $29.4 million.
It was unclear what Hourigan and AREP envision for the property under their respective ownership. Hourigan declined to comment for this article, and AREP didn’t respond to a request for comment Friday.
AREP’s portfolio is focused on office, mixed-use and industrial properties, as well as data centers through its PowerHouse subsidiary. AREP was founded in 2003 and has spent at least $5.3 billion on acquisitions since then, according to its website. Locally, AREP formerly owned Riverside on the James, an office and condo tower at 1001 Haxall Point.
As a court-ordered sale, Circuit Court Judge Duncan Minton will provide final approval of one of the offers made on the Cartograf property. A hearing held Thursday to finalize the sale was continued to later this month at the request of Cartograf, which earlier this month attempted to halt the sale with a motion seeking a temporary injunction.
Cartograf’s incomplete facility occupies about 104 acres at Meadowville Technology Park.
At Thursday’s hearing, lawyers for Comerica and Choate argued in favor of AREP’s bid because the company has agreed to buy the property as-is and to close on the deal within five days of the judge’s approval. Hourgian has requested a 75-day feasibility period, which would allow it to inspect the property should its offer be selected. It also would allow it to back out of the deal during that time.
Proceeds from the sale would be used to satisfy liens that have been placed on the property. The anticipated net proceeds from the Hourigan offer would be between $18 million and $18.5 million, while the anticipated net proceeds from the AREP offer would be expected to fall between $16 million and $16.5 million, according to a report by the special commissioner charged with overseeing the sale of the property.
Hourigan’s offer would also cover a $1 million commission paid to Motleys, marketing fees paid to Motleys and a $500,000 break fee paid to AREP.
AREP made an unsolicited offer to buy the plant before the court ordered in November a sale of the property. That $16.5 million offer was used as the starting bid in the auction held Dec. 7.
While 10 bidders registered to participate in the auction both online and in-person, no additional bids were made. Hourigan’s written offer to buy the property for $20 million was received by Motleys the morning of the auction, according to the special commissioner’s report.
In 2019, Cartograf, in coordination with the Gov. Ralph Northam administration and Chesterfield County, announced a $65 million project to build a folding and microcorrugated package printing plant that was anticipated to create 63 jobs.
The facility never opened, and the partially completed project prompted lawsuits by Choate and Comerica. The court ordered the property sale in November to satisfy liens held by those companies.
Choate hit Cartograf with a lawsuit in 2020 seeking $15 million for its work on the first phase of construction of the Chesterfield plant. The suit claimed that part of the project was nearing completion and that Choate was keeping up with its side of the agreement when Cartograf failed to pay for the general contractor’s efforts. Cartograf disputed that Choate had fulfilled its agreed-upon duties.
In October, the court ruled Choate is able to enforce $7.9 million in mechanic’s liens on the property, in addition to court fees and interest, since September 2022.
As for Comerica, the bank sued Cartograf in federal court in 2021 after Cartograf defaulted on a loan tied to the Chesterfield plant. A federal judge in Michigan ruled in Comerica’s favor, allowing the bank to collect $9.7 million in principal in addition to interest and fees in a process playing out in Chesterfield Circuit Court.
Motleys’ listing for the property says the unfinished facility is around 284,000 square feet. In its 2019 announcement, the county described the specs of the facility as being planned to be 275,000 square feet. The property is zoned general industrial (I-2).
Cartograf’s project was eligible for a $750,000 grant from the state’s Commonwealth’s Development Opportunity Fund, as well as support for employee training programs through the Virginia Jobs Investment Program. A Virginia Economic Development Partnership spokeswoman said the project ultimately didn’t receive any funding or benefits through those programs.
Meadowville Technology Park is also home to toy-maker Lego’s upcoming $1 billion manufacturing plant, as well as an Amazon distribution center and Niagara bottling facility.