Dominion Tower Sells for $54M

NORFOLK, VA-The 400,234-sf Dominion Tower office and retail building at 999 Waterside Drive has been sold in a transaction valued at nearly $54 million. New Life Towers, LLC, a division of the nonprofit religious organization New Life Corporation of America, purchased the Class A structure from Chicago, IL-based Equity Office Properties. The structure was one of three properties around the country that Equity Office recently disposed of in an effort to downgrade its holdings of non-strategic assets.

Built in 1987, the 26-story building is the largest office building in the Hampton Roads area and carries an assessed value of almost $48 million. Its floor-to-ceiling windows offer a rare panoramic view of the area and the waterfront on which it sits. There are 70,00-sf of reflective glass and 110,000 sf of polished granite brought in from Finland. The attached 1,255-space parking garage was included in the deal, as well.

Dominion is 95% filled to capacity with tenants such as American Management Systems, First Union National Bank, KPMG Peat Marwick, and McDonald’s Corp. New Life owns several income properties and was pleased with the purchase of Dominion. “As an acquisition strategy, we try to buy one or two buildings of that nature each year,” New Life executive director Norvell Olive tells GlobeSt.com. “We’re trying to find one more for this year. We’re looking in the eastern part of the US, primarily in the southeast, for Class A high-rise office towers in the $50 million range.”