Dominion’s Eighth & Main tower was previously planned to be converted into apartments. (Mike Platania photos)
A local developer has pulled the plug on its plans for hundreds of new apartments downtown.
Genesis Properties confirmed last week that it is no longer pursuing the purchase of Dominion Energy’s Eighth & Main office tower at 707 E. Main St. and the utility giant’s neighboring 7th & Cary parking deck at 620 E. Cary St.
The Richmond-based developer had been planning to convert the 20-story office tower into apartments and to build a high-rise apartment building on top of the parking deck. The project, first proposed last year when Genesis put the properties under contract, would have brought around 600 apartments to downtown, the most the neighborhood would have seen in a new project in recent years.
Genesis Director of Development Ed Solarz confirmed that the deal has been called off but declined to comment further.
The office building and parking deck are now once again being marketed for sale for an undisclosed amount. CBRE’s Andrew Ferguson, Jason Hetherington and Chris Wallace have the listing.
Built in 1976, the Eighth & Main office tower totals 325,000 square feet and is eligible for historic tax credits. Dominion previously said it expected to vacate the building by the end of 2022, but the company said this week it has yet to fully move out.
Once planned to be a park with electric vehicle chargers, the 2-acre plot at 701 E. Cary St. was recently put back on the market.
Dominion’s Eighth & Main parcels total 1.2 acres, adding to the 2-acre city block at 701 E. Cary St. the company put up for sale earlier this year after punting on its plans to build an electric vehicle-focused park on the land. Dominion also is in the process of offloading an additional five acres in the Fan.
Across South Eighth Street is the Wytestone Plaza office tower, which was recently put under contract by a local group that’s planning to convert the 17-story office building into 300 apartments.
Also nearby, fencing recently went up around the former Virginia Employment Commission office at 703 E. Main St. and its adjacent parking deck at 7 S. Seventh St. ahead of the planned demolition of both structures.
The state had been planning to build a 13-story office building on the VEC site, but during January’s General Assembly session the Department of General Services, the agency that owns and oversees the state’s downtown real estate, announced in a presentation that it has tabled the project. Demolition is still expected to occur despite the pause.
Dominion’s Eighth & Main tower was previously planned to be converted into apartments. (Mike Platania photos)
A local developer has pulled the plug on its plans for hundreds of new apartments downtown.
Genesis Properties confirmed last week that it is no longer pursuing the purchase of Dominion Energy’s Eighth & Main office tower at 707 E. Main St. and the utility giant’s neighboring 7th & Cary parking deck at 620 E. Cary St.
The Richmond-based developer had been planning to convert the 20-story office tower into apartments and to build a high-rise apartment building on top of the parking deck. The project, first proposed last year when Genesis put the properties under contract, would have brought around 600 apartments to downtown, the most the neighborhood would have seen in a new project in recent years.
Genesis Director of Development Ed Solarz confirmed that the deal has been called off but declined to comment further.
The office building and parking deck are now once again being marketed for sale for an undisclosed amount. CBRE’s Andrew Ferguson, Jason Hetherington and Chris Wallace have the listing.
Built in 1976, the Eighth & Main office tower totals 325,000 square feet and is eligible for historic tax credits. Dominion previously said it expected to vacate the building by the end of 2022, but the company said this week it has yet to fully move out.
Once planned to be a park with electric vehicle chargers, the 2-acre plot at 701 E. Cary St. was recently put back on the market.
Dominion’s Eighth & Main parcels total 1.2 acres, adding to the 2-acre city block at 701 E. Cary St. the company put up for sale earlier this year after punting on its plans to build an electric vehicle-focused park on the land. Dominion also is in the process of offloading an additional five acres in the Fan.
Across South Eighth Street is the Wytestone Plaza office tower, which was recently put under contract by a local group that’s planning to convert the 17-story office building into 300 apartments.
Also nearby, fencing recently went up around the former Virginia Employment Commission office at 703 E. Main St. and its adjacent parking deck at 7 S. Seventh St. ahead of the planned demolition of both structures.
The state had been planning to build a 13-story office building on the VEC site, but during January’s General Assembly session the Department of General Services, the agency that owns and oversees the state’s downtown real estate, announced in a presentation that it has tabled the project. Demolition is still expected to occur despite the pause.
Ever rising interest rates are adding to the bottom line pressures on developers even as ever rising rental rates add to the top line. Most thought that the capital markets would settle down by now but those predictions are not bearing fruit. Demand for more housing remains strong applying more pressure to affordability. The only solution to affordability is more production though so something has to give. The housing crisis continues.
Interest rates aren’t slowing down other Southern cities similar or smaller in size. Greenville just approved a 19-story tower just two weeks ago. There’s something about this pocket of Richmond and I could bet it’s being sandwiched between three one-way “highways”. Who wants to risk building a modern-day mixed-use in one of the most uninviting street designs for pedestrians in the city.
Movement from the City needs to take place to convert Main & Cary to two ways and this land just blocks away from the James would be much more appealing.
Agreed.
I looked up the building in Greenville out of curiosity. To note the article I read indicated it is planned and now approved but the developer hasn’t broken ground in this high interest rate environment. “Plans call for 264 market-rate residential units in the new tower along with a 480-space parking garage and 2,000 square feet of retail space.”
My gosh I can’t imagine the comments here on building 480 parking spaces for 264 units. Apparently the developers don’t subscribe to the Richmond progressive thinking that our resources should not be used on “wasted” parking spaces.
I love you——–lol!
Agreed. A friend of mine this spring sold his house and moved to Alabama. I was helping with the truck loading and met the buyer and the RE Agent and I asked him for intelligence on the Chesterfield market. He said “just the same No Inventory issue and high prices, but you will be able to refinance at a lower rate soon…..” and I gave him the sly eye and said “now, now….. if I could predict which way interest rates were going to go, I wouldn’t help my friend load his truck, I’d hire a guy to help him… Read more »
I couldn’t agree more. When affordable housing only effected the poor or “entitled people” as you subtly called them, it was meh, you could hear them, but no one really cared to do something about it… But now that it affects native Europeans, we have a problem on our hands.
Here’s to hoping for the best outcome where everyone can atleast have the opportunity to have a place to call home.
Ha ha. That is hardly what I am saying. It costs a lot of $$$$$ to build a house, or even a condo. Do you understand this? It also cost a lot of money to do so back circa 2003. Add in a profit for the builder, and most likely a lender and somebody can buy a home, dig? It was NOT “non-Europeans” who were doing most of the complaining circa 2004 — it was young middle class people, including cops and teachers and nurses who were complaining that they couldn’t own a home —- I told them not to… Read more »
Thanks for clarifying. My skepticism leads me to think the worst of others until proven wrong.
I’m from Coruscant by the way….
I appreciate your humor. We are all temped by the dark side, me no less than any one else. Unfortunately, our culture seems to have been encouraging ALL of us to assume the worst of each other. A lot of the time, you get just about any two Americans together and talk about what it is they actually want society to accomplish, they tend to find a lot of common ground — it’s just when they talk about the IDEOLOGIES about how one goes about things where they start to bug. I am increasingly of the opinion that ideological rigidities… Read more »
BTW, when I referred to Northern Europe, I was referring to what I and I think most Americans know about home prices abroad. The equation is more complicated than translating just to “dollar terms” —- affordability is a measure that is derived from local income levels v. the price of homes in the local currency. I knew from Germany that a lot of people who were making a good income, and led a high quality of life, did not choose to buy a home because of the expense — and many Americans are shocked by how small middle class apts… Read more »
Could someone more familiar with the qualifications for historic tax credits explain how this qualifies? I think it is a good thing because it might help move the property, but I find it hard to believe something that is not even 50 years old qualifies.
Agreed.
Wytestone building? It was built in 1964; that was 59 years ago. It is eligible.
Eighth and Main is c. 1975 so it also is close enough I think to apply for certification that is pending eligibility for tax credits.
So now you will have one and half adbutting city blocks of vacant prime land downtown. Way to build up the City. You will soon be able to stand at 7th and Main looking all the way down to the new DOM tower front door and probably the river. That VEC building is so small and dated but with the state having so MUCH teleworking and no one moving on the DOM site why is the state paying to tear it down when the might sell off the parcel.
Demolishing the building makes the property more appealing to a developer as it saves the cost of clearing the site. This is particularly true when the building has no architectural appeal, which is certainly the case here.
I don’t disagree I just think if a developer wants it, let them pay for the for it and not taxpayers first….if no bidders then take it down and try again as surplus.
Were this privately owned land, I would agree with you, but as long as it’s in the possession of the Commonwealth of Virginia, it’s not going anywhere. Once grass and trees are planted on this parcel, that little park is going to stay there “untill whenever” – because the state will apply the “Justin Case” philosophy of the the land – meaning, they won’t sell off a prime piece of real estate in the heart of the old legacy Financial District. Rather, they’ll hold onto it and let it sit undeveloped for years “just in case” they need to build… Read more »
It’s true they’re some reality nice homes in Southside,all they need is updated and a little yard work.
I’ve been in this building. It’s a very nice office building. Would be nice to have as high-quality B+/A- office space…always thought there were too many moving parts on this project.