Core Fund focuses on class A office building investments in the US. Hines vice president John Harned tells GlobeSt.com that this investment--the first foray into the Richmond market for the firm--is likely to be followed by additional investments either through Core Fund or through other investment vehicles. The Central Business District, in particular, is undergoing a revitalization, which may yield additional investment opportunities. "The fundamentals here are great," he says, "from low vacancy rates, market growth and other factors."

Hines typically invests in class A office assets, Harned says, especially if they are not in core markets. With the building 99% leased, the two 21-story office buildings located at 901 and 951 East Byrd St. fall in that category. The Plaza was designed by HKS Inc. Architects of Dallas and serves as headquarters for Wachovia Securities and Hunton & Williams.

Richmond is attracting greater interest on the part of investors that like the Mid-Atlantic market but have been priced out of Washington, DC and surrounding areas. Los Angeles based real estate investment firm BH Properties LLC, for instance, recently acquired the former Owens & Minor headquarters. The 63,000-sf building which BH Properties bought for $6 million was the firm's first entrances into the market.