The city and Point Hope LLC, which consists of seven of the original founding partners plus an additional ten new partners, expect that further development will move forward, she added.

The city has invested more than $90 million in the project over the years, but only owns the parking garages and a 50,000-square foot conference center, managed by Marriott.

“There are another seven acres of land that didn't convey in the first agreement and the city would like to see that be built out as well.” Newport News' contribution, if those seven acres were to be developed, would be the development of another parking garage.

NEWPORT NEWS, VA—The original developers of City Center at Oyster Point, as well as joint equity partner Northwestern Mutual Real Estate, have just sold their ownership in the project to a new group, which consists of some of the same faces as the original group of developers, plus several new players. This buying entity, called Pointe Hope LLC, paid $69 million for the stake in the 574,466-square foot project, which still has plenty of development potential. It secured $54 million in acquisition financing from the Peninsula Division of TowneBank and Union Bank & Trust, as well as additional funding for TIs and commissions.

When City Center at Oyster Point launched in 2000 the founding partners and the city of Newport News envisioned the $200 million project creating a downtown cluster of buildings that would house the area's accounting, banking, finance, law, architecture, technology, defense government and healthcare operations. There would also be restaurant and retail amenities for these workers. Three buildings were quickly developed and then in 2003 Northwestern Mutual was brought in as an equity partner.

Today, there are nine properties that make up City Center at Oyster Point. While the office is performing well -- it is 92% leased -- the retail component has become a repositioning play following the recession's hollowing out of chain retail and Big Box stores. It is currently 50% leased, and according to Patricia Earnest, senior managing director of Savills Studley's capital markets group, the new owners are planning to re-tenant the retail portion with local restaurants and entertainment venues.

Earnest led the Savills Studley team, which also included Senior Managing Directors Lindsay Stroud and Stephanie Lynch, in the sale and, in fact, helped arranged the initial venture more than sixteen years ago.

The city and Point Hope LLC, which consists of seven of the original founding partners plus an additional ten new partners, expect that further development will move forward, she added.

The city has invested more than $90 million in the project over the years, but only owns the parking garages and a 50,000-square foot conference center, managed by Marriott.

“There are another seven acres of land that didn't convey in the first agreement and the city would like to see that be built out as well.” Newport News' contribution, if those seven acres were to be developed, would be the development of another parking garage.