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RICHMOND, VA-Archon Group LP has made its first investment in the Greater Richmond market with the recent acquisition of 41 acres from hospital operator, Bon Secours.
Originally intended by Bon Secours to be a hospital, the site is now zoned for 10 acres of retail, 25 acres of office and five acres of assisted living. The Irving, TX-based Archon currently is in the process of rezoning the property for a mixed-use complex with 200,000 sf of retail and 40,000 sf of office, David Paul, Archon's director of retail investments in the Northeast, tells GlobeSt.com. Plans also call for the development of 79 residential townhouses on the southern portion of the acreage as well an extension of Three Chopt Road west of Lauderdale Drive through the property, which was marketed by Thalhimer Commercial Real Estate in Richmond.
Paul says development costs will be roughly $50 million, excluding the land's purchase price. The project is expected to deliver in late 2008 or early 2009.
The property is located across the street from the 1.2-million-sf Short Pump Town Center, Richmond's newest regional mall--one of the attributes of the location, Paul says. Archon, he adds, is going to target high-end retailers in a lifestyle center format. He says another appeal was the Richmond market itself, which offers solid demographics and strong job growth.
Paul says the Short Pump development is Archon's first in Richmond, but the investment group is looking at other projects in the area, primarily land development deals. That said, he adds there is nothing concrete in the immediate pipeline for another Richmond play.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
