Editor’s note: Since this story was published, another major deal closed in the area: Levco Management’s $102 million acquisition of the Belmont Hills Apartments in Chesterfield.
Rising interest rates look to have cooled off the top of the region’s commercial real estate market in 2023.
In 2022 the 10 biggest real estate deals in the region fetched a combined $1.19 billion. This year, that total is just over $759 million – a more than 36 percent decrease in total deal value.
2023 also saw the rise of industrial deals on the top end of the market, with warehouse complexes accounting for four of the top 10 sales, and two of the top three.
Here are the 10 highest-dollar commercial real estate deals the Richmond region saw in 2023 (per local property records, as of press time):
Built in 1989, Westerre I sits just east of Innsbrook.
Seminole Trail Management, a Charlottesville-based investment firm, continued to have an appetite for Innsbrook-area office buildings: in 2022 it spent $119 million on nearly a dozen buildings in the office park, and followed it up with a $25 million deal for Westerre I and II in October.
- 9. Millspring Commons, $34.1 million
-
The Millspring Commons apartments were built in 1972.
The 159-unit apartment complex in Central Henrico traded for nearly $215,000 per door over the summer, and the seller was Republic Properties Corp., the D.C. firm that was selected to be part of the city’s Diamond District development team.
8. Scott Farm at GreenCity, $35.1 million
An aerial rendering of the proposed $2.3 billion GreenCity development.
The August sale of 111 acres in Central Henrico marked a milestone for Henrico County’s massive GreenCity development. A joint venture between Markel | Eagle, Henrico County and Henrico County’s Economic Development Authority bought the land off Scott Road on which nearly 900 for-sale homes are planned to rise as part of the GreenCity project.
- 7. Coca-Cola Consolidated warehouse, $37.5 million
-
The 350,000-square-foot distribution center in Meadowville Technology Park is leased by Coca-Cola Consolidated.
A newly-built, 350,000-square-foot warehouse in which Coca-Cola products are bottled and distributed caught the eye of San Francisco firm Bailard, which bought it in the spring for $37.5 million.
6. Deepwater Industrial Park, $40.2 million
The 119,000-square-foot warehouse at 2301 Commerce Road was one of two that sold.
The largest transaction in the city limits came in October, when two warehouses in Hourigan Development’s Deepwater Industrial Park off Commerce Road sold to Maryland-based Matan Cos.
- 5. The Station at Chester, $60.5 million
-
The Station apartments are at 4101 Runner Loop in Chester.
Construction was completed on The Station at Chester earlier this year, and by Halloween the 201-unit apartment complex had already reached 99-percent occupancy and sold for more than $60 million, making it the largest multifamily deal in the region this year. The buyer remains a mystery, as the purchasing LLCs are all tied back to various real estate attorneys.
Though the company’s rebranded to Elevance Health, Anthem’s logo still adorns the building.
This deal proved to be a foreshadowing of more development to come at the intersection of West Broad Street and Staples Mill Road near Willow Lawn.
Late last year Kinsale Capital Group bought the Elevance Health complex for $77 million, and then over the summer it flipped the office at 2103 Staples Mill Road to Arizona-based investment firm The Salus Group for $66 million.
Weeks later, Kinsale would unveil plans for a massive development plan for the remainder of the 29-acre site, one that could add hundreds of apartments, a hotel and commercial space to the area.
- 3. Walthall and Northlake Distribution Centers, $105.6 million
-
The Walthall Distribution Center on Ruffin Mill Road.
Local player Lingerfelt teamed up with global firm Partners Group to buy both the Walthall Distribution Center in Chesterfield County, and the Lakeridge Distribution Center in Hanover County. The two complexes span over 1 million square feet across multiple buildings, with tenants like Owens & Minor and Mazda Remanufacturing.
- 2. Parham Plaza, Staples Mill Square, Stonehenge Village and Ridge Shopping Center, $110 million
-
The Wegmans-anchored Stonehenge Village shopping center sold for the second time in four years.
In another portfolio deal, H.I.G. Realty Partners out of New York bought a quartet of grocery-anchored shopping centers in Henrico and Chesterfield. The largest individual sale within H.I.G.’s May deal was for Stonehenge Village in Midlothian, where Wegmans debuted in the region in 2016.
- 1. Richmond Distribution Center, Woodland Center and 4717 Eubank Road, $245 million
-
The industrial park sits just east of Richmond Raceway.
The biggest deal recorded in the region this year was more than double the next-highest price tag, as LBA Realty, a Southern California-based investment firm, bought a trio of industrial complexes in Henrico for $245 million.
Its purchase included the 1.9-million-square-foot Richmond Distribution Center near Richmond Raceway for $191.6 million, as well as five other warehouses across two properties in Eastern Henrico for $53.4 million.
Editor’s note: Since this story was published, another major deal closed in the area: Levco Management’s $102 million acquisition of the Belmont Hills Apartments in Chesterfield.
Rising interest rates look to have cooled off the top of the region’s commercial real estate market in 2023.
In 2022 the 10 biggest real estate deals in the region fetched a combined $1.19 billion. This year, that total is just over $759 million – a more than 36 percent decrease in total deal value.
2023 also saw the rise of industrial deals on the top end of the market, with warehouse complexes accounting for four of the top 10 sales, and two of the top three.
Here are the 10 highest-dollar commercial real estate deals the Richmond region saw in 2023 (per local property records, as of press time):
Built in 1989, Westerre I sits just east of Innsbrook.
Seminole Trail Management, a Charlottesville-based investment firm, continued to have an appetite for Innsbrook-area office buildings: in 2022 it spent $119 million on nearly a dozen buildings in the office park, and followed it up with a $25 million deal for Westerre I and II in October.
- 9. Millspring Commons, $34.1 million
-
The Millspring Commons apartments were built in 1972.
The 159-unit apartment complex in Central Henrico traded for nearly $215,000 per door over the summer, and the seller was Republic Properties Corp., the D.C. firm that was selected to be part of the city’s Diamond District development team.
8. Scott Farm at GreenCity, $35.1 million
An aerial rendering of the proposed $2.3 billion GreenCity development.
The August sale of 111 acres in Central Henrico marked a milestone for Henrico County’s massive GreenCity development. A joint venture between Markel | Eagle, Henrico County and Henrico County’s Economic Development Authority bought the land off Scott Road on which nearly 900 for-sale homes are planned to rise as part of the GreenCity project.
- 7. Coca-Cola Consolidated warehouse, $37.5 million
-
The 350,000-square-foot distribution center in Meadowville Technology Park is leased by Coca-Cola Consolidated.
A newly-built, 350,000-square-foot warehouse in which Coca-Cola products are bottled and distributed caught the eye of San Francisco firm Bailard, which bought it in the spring for $37.5 million.
6. Deepwater Industrial Park, $40.2 million
The 119,000-square-foot warehouse at 2301 Commerce Road was one of two that sold.
The largest transaction in the city limits came in October, when two warehouses in Hourigan Development’s Deepwater Industrial Park off Commerce Road sold to Maryland-based Matan Cos.
- 5. The Station at Chester, $60.5 million
-
The Station apartments are at 4101 Runner Loop in Chester.
Construction was completed on The Station at Chester earlier this year, and by Halloween the 201-unit apartment complex had already reached 99-percent occupancy and sold for more than $60 million, making it the largest multifamily deal in the region this year. The buyer remains a mystery, as the purchasing LLCs are all tied back to various real estate attorneys.
Though the company’s rebranded to Elevance Health, Anthem’s logo still adorns the building.
This deal proved to be a foreshadowing of more development to come at the intersection of West Broad Street and Staples Mill Road near Willow Lawn.
Late last year Kinsale Capital Group bought the Elevance Health complex for $77 million, and then over the summer it flipped the office at 2103 Staples Mill Road to Arizona-based investment firm The Salus Group for $66 million.
Weeks later, Kinsale would unveil plans for a massive development plan for the remainder of the 29-acre site, one that could add hundreds of apartments, a hotel and commercial space to the area.
- 3. Walthall and Northlake Distribution Centers, $105.6 million
-
The Walthall Distribution Center on Ruffin Mill Road.
Local player Lingerfelt teamed up with global firm Partners Group to buy both the Walthall Distribution Center in Chesterfield County, and the Lakeridge Distribution Center in Hanover County. The two complexes span over 1 million square feet across multiple buildings, with tenants like Owens & Minor and Mazda Remanufacturing.
- 2. Parham Plaza, Staples Mill Square, Stonehenge Village and Ridge Shopping Center, $110 million
-
The Wegmans-anchored Stonehenge Village shopping center sold for the second time in four years.
In another portfolio deal, H.I.G. Realty Partners out of New York bought a quartet of grocery-anchored shopping centers in Henrico and Chesterfield. The largest individual sale within H.I.G.’s May deal was for Stonehenge Village in Midlothian, where Wegmans debuted in the region in 2016.
- 1. Richmond Distribution Center, Woodland Center and 4717 Eubank Road, $245 million
-
The industrial park sits just east of Richmond Raceway.
The biggest deal recorded in the region this year was more than double the next-highest price tag, as LBA Realty, a Southern California-based investment firm, bought a trio of industrial complexes in Henrico for $245 million.
Its purchase included the 1.9-million-square-foot Richmond Distribution Center near Richmond Raceway for $191.6 million, as well as five other warehouses across two properties in Eastern Henrico for $53.4 million.