Rapport

This just in>>> Rapport will be hosting a party at the VAR Convention in Sept! More details will follow, but you can check out VAR’s site for more info about the convention. You can’t find a better way to build your statewide referral network and learn some cool stuff at the same time!

www.VARconvention.com

Rapport will be renting a bus and travelling to the convention en masse. If you are interested in joinng the caravan please contact Carter Snipes at cartersnipes@gmail.com

When: May 12, 2008
Where: Holiday Inn Select - Koger South Conference Center
Cost: $125 for Appraisal Institute Members / $150 for Realtor Members (includes CE credit and lunch) 

Attention Brokers: Virginia is now requiring all active brokers whose licenses expire after 6/30/08 to complete 24 hours of CE within their current two year license term. Of the 24 hours of CE required, 8 hours must be Elective Real Estate Related Subjects. The Local Cost Seminar satisfies 7 hours of Elective Real Estate Related Subjects for the broker’s RE CE.   
The Local Cost Seminar, to be hosted on May 12, 2008 by the Virginia Commonwealth Chapter of the Appraisal Institute (VCCAI), will provide real estate professionals: appraisers, assessors, brokers, salespeople and lenders a better understanding of development, and the costs associated with residential and commercial construction, as well as redevelopment and condominium conversion. The registrants will be exposed to the tools they need to better understand the aspects of new construction, and in turn be able to explain the aspects of new construction to their clients. Further, they will gain an understanding of how to compare new construction properties more accurately and competitively for listing, selling, lending and valuation purposes. In summary, the goal of this 7 hour seminar is to expand the registrant’s knowledge base on the cost aspects of the various types of construction in the Richmond market area, therefore increasing the registrant’s level of competency and professionalism in service to the Commonwealth of Virginia and the citizens that require their services.   
The program welcomes several well known and highly respected local speakers.
 
Mr. Allen Dorin: Virginia Commonwealth Chapter of the Appraisal Institute (VCCAI) Immediate Past President—Introduction
Mr. Scott Shaheen: Richmond Association of Realtors (RAR) 2008 President—Current Residential Market Trends in Richmond
Mr. Scott Schaffer: Main Street Homes—Residential Development Costs
Mr. Tripp Hines: Main Street Homes—Residential Single Family Detached Homes
Mr. Mark Damico: McKinney & Co., USA—Commercial Construction
Mr. Rett Turner: Virginia Commonwealth Chapter of the Appraisal Institute (VCCAI) Associates Guidance Chair - Introduction
Mr. Jim Walker: J.R. Walker & Co., Inc.—Custom New Single Family Housing Costs
Mr. Chris Johnson: Monument Construction, LLC— Condo Renovation, Redevelopment & Conversion Costs
Mr. Chad Joyce: Ryan Homes—New Construction Townhouses & Single Family Homes
Mr. Leon Shadowen: Brandywine Realty Trust —Commercial & Residential Development, Construction, Leasing Costs
To register online for this event paying with a credit card, please use this link: www.appraisalinstitute.org/education/VirginiaCommonwlth.aspx
To register for this event paying with a check, and to register three or more people using either method of payment, please print the attached registration form and mail or fax it to Karie Walker at the chapter office:
VCCAI 
2500 Grenoble Road 
Richmond, VA. 23294 
804.377.0940 
vaappraisalinstitute@cavtel.net  
      

Come Downtown and Take in the Views from the Penthouse at Emrick Flats this Friday!!!! This innovative new urban loft development features creative spaces with industrial stylings which create the perfect downtown environment. Our party will be in the penthouse with its wrap-around deck that features sweeping views of Richmond. Come check out the limited inventory in one of downtown’s hottest projects.

101 Marshall Street | Broad Street Arts District
Friday | May 2nd | 5-8pm
OPEN BAR & Catering Sponsored by HomeLand Title 

Thursday, March 20th, 2008

Gumenick Properties Presents….
Monument Square Rocks
w/ Rapport

4:30-7pm | Party under the Tent (Rain or Shine!)
Entertainment | Appetizers | Libations

Location: 5200 Block of Monument Ave (near Willow Lawn)
Tickets: $5 if RSVP before 3/19 | $7 at the door

*All Proceeds will benefit our upcoming “Monte Carlo Night” Charity
Gala for Elder Homes. Stay Tuned.

Send rsvp to richmondrapport@gmail.com

The mission of RAPPORT is to foster professional development within the Richmond real estate community by bringing fellow professionals together to meet, share ideas and build relationships. Also, we will seek to engage in charitable and community oriented activites and programs to better enhance our industry’s visability and overall image.

Join our mailing list at www.RichmondRapport.com or by emailing RichmondRapport@gmail.com

CALL FOR VOLUNTEERS
We need your help to staff “Affordable Housing Awareness Week: April 20-26, 2008″
Register Today To Lend A Helping Hand! www.AffordableHousingRichmond.com
If you would like to volunteer with the Rapport Team email Rett Turner at rturner@petcorea.com

CALL FOR COMMITEE CHAIRS
If you would like to Chair a Rapport committee for the 2008 term please
send an email to richmondrapport@gmail.com with “Committee” in the subject.
We will be having a Board meeting in April.

Here are a few construction leads in Henrico County. 

9500 West Broad; former Haynes car sales; future 7-Eleven with gas?

7204 Brook Road; vacant shopping center outparcel; future Advanced Auto Parts?

3312 Skipwith Road; single-family home; future Greek restaurant?

11351 Nuckols Road; current Food Lion; future Bloom?

10010 West Broad Street; surplus land; future Touchfree Carwash?

I attended the Shockoe neighborhood meeting last night at Main Street Station. The point was to discuss the Downtown Master Plan as it relates to the Slip and the Bottom. Overall, very little of substance was said. It really seemed more like a formality than anything. Hopefully some of the concerned residents and business owners had some success in the face-to-face “open house” after the meeting. What was frustrating for me was that many of the attendees spoke up about blight from undeveloped infill sites in the Bottom. They asked what the City was doing to get these surface parking lots developed. The City didn’t have much to say about it. They mentioned that there was no tax incentive for new construction. What was frustrating though was that the moderator didn’t inform the attendees about the infill development in the pipeline. All Mr. Hardin had to do to put these people at ease was to mention the two or three proposed new construction projects which are SUBSTANTIAL. I’m sure countless other proposals have been discussed recently as well. Frankly though, as I drive or walk around the Bottom, I’m more put off by the blight caused by vacant buildings than surface lots. I would be happy for the market to take its time with the unimproved sites if the plethora of buildings with boarded up windows were rehabbed. Just my $0.02.

I attended the Tranzon auction of nearly a city block across from the Maggie Walker Governor’s School today. There were several heavy hitters at the auction including representatives from RAMZ. I’m not sure who the high bidder was, but I walked out as it was being wrapped up at $500,000 for the 1.3-acre site, not including the 10% buyer’s premium. The logical buyer is the school, but the site is in proximity to VCU and Virginia Union as well.

On behalf of the Virginia Commonwealth Chapter of the Appraisal Institute, Rapport is pleased to announce a new real estate course offered on February 19-20, 2008. Designed for participants with introductory experience and understanding of fundamental concepts of appraising, it focuses on the valuation of vacant land parcels and the development of the cost approach. Develop your skills by creating a current cost estimate using market extraction, interview techniques, and information provided by professional cost data sources. An in-depth case study takes you from the origin of the appraisal assignment to a final value estimate using various cost approach applications.

To register online, please use the following link:  http://www.appraisalinstitute.org/education/more_info.aspx?id=8289

To register with a check, please contact the chapter office at 804.377.0940 or vaappraisalinstitute@cavtel.net

Today’s RTD brought two developments to the forefront once again. I’m not going to give my $0.02 on them, but I’d love to hear from others.

Henrico

Richmond

Carol Hazard covers the redevelopment of the former Rentokil woodpreserving site at the northwest corner of Parham Road and Ackley Avenue in Henrico County. County records do not show a transfer of the property as of yet, so it’s unclear exactly which portions of the property are included in the redevelopment. POD 78-07 is available for public viewing on the Henrico County website. The POD indicates that 12 office/warehouse buildings are to be constructed on a 12.197-acre site, with a GBA not to exceed 110,000 square feet. The RTD article focuses primarily on the Leadership in Energy and Environmental Design (LEED) aspect of the proposed development, which basicall means that the buildings will be constructed to strict environmental standards. Perhaps this is an attempt to offset the potential marketability of the project due to the Superfund site across the street. Whatever the reason, kudos to Empire Development of Virginia Beach for tackling the site and the superior design controls.

Background

Portions of the property (which totals roughly 37 acres) were used as a creosote wood treatment facility between 1956 and 1990. Chemicals and compounds used to preserve wood included mineral spirits, No. 2 fuel oil, chromium zinc arsenate, copper chromated arsenate, creosote, pentachlorophenol, xylene, and fire retardant. Contamination of the area occurred through the drip-drying process whereby freshly treated wood dripped into the soil in the open areas of the site. Furthermore, in 1976-1977, approximately 1,100 to 1,400 pounds of copper chromated arsenate were dumped into a pit in the northeast portion of the site. A summary time line for the site is as follows:
1956 - The first wood treatment structure was installed.
1989 - The site was placed on the EPA’s National Priorities List.
1990 - All wood treatment operations ceased.
1998 - Remediation commenced (removal and off-site storage of contaminated soils and construction of concrete containment structures)
1999 - Remediation was completed at an estimated cost of $10,907,000.
2003 - A 5-year review was completed, giving the site a relatively satisfactory status.
2008 - A 10-year review is scheduled.

Much of the Rentokil property must remain undisturbed indefinitely, as illustrated in the conceptual plan in the RTD article (print version only). Without knowing the details of the sale of the property, I applaud the developer for rolling the dice on what may or may not be risky project due to environmental issues. It seems though, that in this day and age, and in our market, even the nastiest enviromental issues are actually non-issues. Maybe you’ve heard of a little development under construction in Henrico’s East End…White Oak Village? The former Lucent Technologies site was used for storage of chlorinated solvents until 1989 which contaminated the groundwater. In 1991, the EPA issued a Record of Decision requiring a groundwater remediation system which has been operational since 1995. The property was sold to Viasystems Technologies Corporation in 1996, but Lucent (later called Agere Systems, Inc.) retained all remediation responsibility. There reportedly was little interest in the site after cleanup began. As we all are aware, the site is now under construction with one of Richmond’s most abitious mixed-use developments - White Oak Village.

On a final note, I have spoken with numerous developers, lenders, and business owners about the impact (on value) to real estate in proximity to contaminated sites. The overwhelming response is that it isn’t an issue. I realize that anecdotal evidence is a poor tool in deciding the feasibility of a development. In the Richmond MSA though, there isn’t exactly a large amount of real estate activity around contaminated sites from which to glean useful analytical information. So if you’re considering buying one of these proposed “green” office/warehouse buildings in Henrico, you should think more about the positive aspects of the project: Henrico County business-friendly environment, LEED construction standards, convenient access, etc., and  less about the history of the surrounding property.

I mentioned an interesting sale a couple of months ago. Although I think my source was ignorant of the purchaser’s plans, it turns out I was given incomplete information. Greg Gilligan covered a proposed mixed-use development at the corner of Belvidere and West Grace in this RTD article. Talk about maximizing site utility!!! Congratulations are premature for Mr. Uphoff, but I sure hope he gets approval. I wonder if he is aware of a high-end gas station/c-store/cafe/bistro just up the road in C-ville?

Having grown up in Henrico’s West End, I never got to know the village of Chester. I’m doing quite a bit of work there at the moment, and I find it rather interesting.

The village of Chester is noted for its historic charm and having a strong sense of community. Chester has at least 17 active neighborhood associations which communicate frequently with each other to promote responsible development in the neighborhod. The 2006 population is estimated at 22,700, resulting from a 2.7% annual growth rate since 2000. The quaint village atmosphere is being perpetuated by developments such as Chester Village Green ( www.chestervillagegreen.com), a cutting-edge New Urbanism project in the heart of town.Slightly outside of the village boundary is the proposed Branner Station (www.brannerstation.com). In September 2007 the Chesterfield County Board of Supervisors approved 2-1 a rezoning request from HHHunt to rezone 1,614 acres southeast of Chester along the west line of Branders Bridge Road, south of Bradley Bridge Road. Yes, the vote was 2-1 in favor of approval. The current plan is for 2,449 single-family homes, 1,331 condos and townhomes, 908 apartment units, and 300 assisted living units, as well as 470,000 square feet of proposed commercial space. To accommodate this growth, the plan proffers over 100 acres for a new elementary school and a new high school. The proposed development indicates a ”North/South Pkwy Extended” which will intersect Route 10 just steps from the village periphery, at the location of the former CSX railroad right-of-way (now a greenway).

So what’s the point of this post? I just find that the village of Chester is notable because it has managed to maintain its “throwback” identity in the face of development/sprawl. As much as I respect HHHunt, it looks like the old-time charm of Chester is facing an identity crisis.

The new Master Plan and Mr. Crupi’s report has a ton of information, most of which is unfortunately generic, high-level filler. So at random I decided to check out two “Concept Maps”, the Western Downtown and the Manchester Area maps. I appraise quite a bit of property on and around the VCU Campus, so I should know what’s going on. Also, I appraised nearly the entire Old Manchester area several years ago. So what strikes me as odd from these “Concept Maps”, is that they even exist. VCU is a real estate development juggernaut. They have their own Master Plan for their Monroe Campus and believe me…if they want to implement it, they will. Did tax dollars pay for Dover, Kohl & Partners to analyze and update VCU’s work? I don’t get it. The same thing goes for Old Manchester. Two private developers bought the entire neighborhood and have undoubtedly spent hundreds of thousands of dollars on engineering, architectural, and other concpet work. So did Dover, Kohl & Partners gain access to Robin Miller’s private work? Perhaps, but I doubt it. Anyway, I know master planning is critical, but I have to believe that in these two major areas of the City, a Master Plan or concept plan has no teeth.

 More later…

I surprised my wife for her 30th birthday yesterday by taking her (and 15 others) to Richmond’s newest wine shop/cafe/bar/restaurant — Barrel Thief Wine. This place is so much fun. Clearly I’m not alone in this either. Owned an operated by two young guys who have been best friends since childhood, Barrel Thief offers an excellent concept which fuses a retail wine shop with a cafe/bistro/bar atmosphere. Oh, they know their wine too, so prepare to be educated if you so choose. Chef Joe put together a delicious appetizer sampler to soak up the 10 or so bottles that we bought. The entire staff showed us a really good time. The owners, Ross and Ned, were extremely accommodating, and enjoyed hanging out with us. My only regret is that our party had been going on for about 5 hours prior to the wine sampling, so we definitely didn’t appreciate it as we should have. We’ll be back.

 What does this have to do with real estate? Nothing.

Talk about a public-private partnership…man. As reported in this RTD article, Chesterfield County and the owners of the remaining 46 acres comprising the (former) Cloverleaf Mall have reached an agreement for sale. The total price will be $16.5 million for the 83 acres ($198,795 per acre) which the County will pay, and be reimbursed by NC-based developer Crosland, Inc. The tentative plan of development calls for 750 residences and 200,000-300,000 square feet of commercial space. Forget the commercial space for a moment…the density indicates a purchase price of $22,000 per unit. Clearly Crosland has some flexibility here. I doubt the location is conducive for $750k+ homes, but again, with such a low $/lot basis, these guys should be set. Plus, the County is talking about a CDA, which only sweetens the deal. Throw in 200,000 worth of commercial space, and it’s GOT to be a home run.

My interest was piqued by the RTD’s article on Friday entitled Sprawl, ‘hard to serve with transit’. The gist is that public transit cannot effectively serve areas of low density (4 units per acre or less). I decided to scan the Henrico County 2026 Land Use Map for areas of higher densities. The County offers four such zoning categories: Urban Residential (6.8 dua), Multi-family (19.8 dua), Traditional Neighborhood Development (density unknown, but multi-story residential is promoted), and Urban Mixed Use (density unknown, but presumably high from its description). At random, I chose the Urban Mixed Use category, to scan the Land Use Map, and identified very few areas–the obvious ones being along the James River, i.e., Rockett’s Landing, Wilton Farm, and the other PUDs in the east end. In the West End though, I identified only four areas with the Urban Mixed Use land use designation. Three are in the heart of Short Pump, which makes sense. The fourth is Regency Mall, and the 12-acre site across Starling Drive which is proposed for development with a BJ’s Wholesale. A few comments: on the surface, it makes sense that the West End shouldn’t be inundated by Urban Mixed Use developments. Short Pump is probably the most logical place for high-density mixed-use development. I have a problem though with the County presenting a Land Use plan with relatively focused areas for such development, and then scrapping it for a big box retailer. What’s the point in even having the category? The UBU zone is exactly what the RTD article says is needed for public transportation. Unless Regency Mall is turned into a mixed-use develompent in the next decade or so, then the 2026 Land Use plan already shows a serious deficiency in my estimation.

Old ranch dwelling…make way for a new 2-story office building. The Henrico BOS approved the rezoning from R-1 to O-2C for construction of a 2-story 8,700 square foot office building. Nice.

The Henrico County BOS granted conditional rezoning approval to the Rebkee Company to construct a 13,013 square foot CVS on a 2.33-acre site at the northeast corner of Patterson Avenue and Lauderdale Drive. Excellent news in that the old gas station is an eyesore and will be replaced by a useful development. I can’t wait to see what they’re paying for the site.

The 12.5-acre site across Starling Drive from Regency Mall is proposed for development with a 117,286 square foot BJ’s Wholesale with gas pumpers. When I first heard this, all I could think about was how the 2-lane Starling Drive could handle the traffic. Indeed a Traffic Impact Study is actually what is holding up the approval process with Henrico County. Besides the traffic, I suppose it might help improve the health of Regency Mall. The giant purple Disco Sports must be pleased.

Tis the season for political fundraising, or at least reporting the results of one’s efforts in that arena. Popular among journalists, national and local alike, is publicizing from whence candidates’ funds have come. The Times Dispatch has published several articles (1 and 2) on campaign contributions from developers in the Richmond MSA. I’m pleased to see that today’s paper has an article on contributions from conservationists. It’s probably naive to think that conservation groups can compete financially on the level with large developers. But given the relatively small dollar figure contributions in the Richmond MSA races, it appears that they can. Perhaps just as important, conservation groups undoubtedly come with more fervor and passion than businessmen.  I’m sure every municipality has its opposition group to developers, but this Hanover group certainly seems to get its message across. So does this group in Fluvanna County (not in the Richmond MSA I know). Speaking as a professional who earns a living off of real estate development, I often cringe at the spurious arguments made by conservation groups and developers alike. Speaking as a human being who enjoys the natural resources of our Commonwealth, I applaud the point-counterpoint and the democratic process. So hopefully our political candidates are lobbied by balanced representation of their constituents with respect to land use.

When you think of real estate professionals, who comes to mind? Realtors/brokers, builders, developers, appraisers, bankers…probably in that order. Here’s an interesting twist: http://dabneyproperties.com/.

I happened to run into a couple of clients of Dabney Properties and they both reported excellent accommodations and service. I’m not promoting this company by any means. I just thought it is a creative way to earn a living in the real estate industry.

The City of Richmond just cracked down on water consumption. It joins Chesterfield and Hanover in the battle against drought. Henrico County votes on Tuesday on whether or not to impose mandatory conservation.

Tree Hill Farm is what Mr. Rue is talking about. My knowledge of the project is limited to what I’ve read on the developer’s website, and other online sources. But it looks pretty amazing. An adjacent property owner said it best in a recent Times Dispatch article: “Varina has been discovered.” No kidding…Rockett’s (1,500 units), Tree Hill Farm (2,770 units), Wilton Farm (3,209 units), plus Curle’s Neck are all going to be HUGE. I’m also aware of one other MAJOR development in the immediate area which would add nearly 2,000 additional units to be built by a national builder. Seriously, this area of Henrico is going to explode.

This is the fourth of several posts on the 17th Annual Real Estate Trends conference organized by VCU and held at the Richmond Convention Center on October 9, 2007. It was my second time attending, and it was much more informative than the last. There were five speakers, the fourth whom I highlight in this post. Harrison Rue is the Executive Director of the Thomas Jefferson Planning District which advises Charlottesville, Albemarle, Fluvanna, and Louisa counties (among others) on land use and transportation. He presented information on intelligent development and land use. Personally, I found Mr. Rue’s presentation to be the most engaging of the five speakers. I had heard him speak several times previously, and I’m constantly impressed by his vision. I’m not going to pretend to fully grasp everything he has to say about smart growth. Some transportation and tax implications are beyond me. But when I do “get” what he has to say, I wonder why more people don’t see things the way he does.

His presentation, and his job in general, instructs municipalities and developers how to build communities which:
- streamline cost and target investment dollars
- support pedestrian access between residences and commercial space
- incorporate public transportation, thereby reducing traffic

I urge anyone considering developing in the Charlottesville MSA to contact Mr. Rue. Any tidbit of information that he could pass on is invaluable.

This is the second of several posts on the 17th Annual Real Estate Trends conference organized by VCU and held at the Richmond Convention Center on October 9, 2007. There were five speakers, the second of whom I will highlight in this post. Ken Powell works for Stone & Youngberg to facilitate land-secured bonds, i.e., CDAs for developers and municipalities. His presentation defined a Community Development Authority (CDA) as:

…a public instrumentality authorized by the City Council or County Board of Supervisors…for the purpose of providing public infrastructure.

They are established to finance and construct roads, bridges, and other infrastructure needed to serve the municipality as a result of the development. The CDA is basically a bond secured by the land which the municipality authorizes to develop the project. The municipality is not accountable for repayment of the bond. The bond is repaid by special tax assessments. Google will provide you with more than enough resources to educate you on CDAs. Below are some interesting cases in the Commonwealth handled by Stone & Youngberg.

The Farms of New Kent, 30 miles east of Richmond (New Kent County), September 2006
$85,666,000 bond amount
1,450 age-restricted units / 300 estate lots / 450 sfd / 100 resort cottages / 830,000 sf commercial / 18-hold golf course / winery, vineyards, polo, farmers market
Developer - Boddie-Noell Enterprises, Republic Land, and K. Hovnanian
Use of Proceeds: road, water, and wastewater infrastructure

Reynolds Crossing (Henrico County), May 2007
$14,594,000 bond amount
250-room Westin Hotel / 480,000 sf office / 170,000 sf restaurant and retail
Developer - Reynolds Holdings, LLC
Use of Proceeds: road improvements, water and sewer infrastructure

The Shops and White Oak Village (Henrico County), October 2007
$23,870,000 bond amount
870,000 sf open-air retail / 150-room Hyatt
Developer - Forest City Enterprises, Inc.
Use of Proceeds: earthworks, off-ramps, parking, traffic lights, water and sewer infrastructure

I find CDAs particularly interesting because I’m working (slowly) on a large (potentially 900 acres) mixed-use development in Fluvanna County. This property — and Fluvanna in general — almost certainly needs a CDA to be developed properly. So while many at the VCU conference may have found Mr. Powell’s presentation boring, I was extremely interested.

This is the first of several posts on the 17th Annual Real Estate Trends conference organized by VCU and held at the Richmond Convention Center on October 9, 2007. It was my second time attending, and it was much more informative than the last. There were five speakers, the first of whom I will highlight in this post. Mark Zandi is the Chief Economist and co-founder of Moody’s Economy.com, Inc. His presentation was largely on how the sub-prime real estate market is impacting the national economy. Instead of summarizing his findings, I will simply insert the charts and graphs which he provided. These three graphs don’t necessarily relate to one another. I simply thought they were the most informative.

If you accept a positive corellation between credit risk and the TED spread, I think the above graph puts today’s credit risks into historical perspective.

Hooray for Richmond….

Boo for Richmond

For those of you in the real estate business who haven’t attended a VCU Trends conference, you should. I would like to see more attention given to Richmond or even the Commonwealth, but overall its a great event. There is ample time before the speakers, and between sessions for you to meet other people too.

Virginiabusiness.com has published an article in its October issue which highlights several of the largest construction projects in the Commonwealth. Of the 9 projects included in the article, four are in Richmond:

Westchester Commons / Watkins Center in Chesterfield County, $165 million
1.3 million square feet of retail
2 million square feet of office and industrial space
1,600 residential units

The Shops at White Oak Village in Henrico County, $161 million
900,000 square feet of retail space

Miller & Rhoads Renovation in the City of Richmond, $95 million
250 hotel rooms
130+ residential condominium units

Meadwestvaco Corporate Headquarters in the City of Richmond, $80 million
300,000 square foot build-to-suit office building

The Richmond Times Dispatch published a short article on Richmond home sales. Highlights:

The Richmond MSA saw a nearly 20% decline in year-over-year home sales for September.
The average sale price rose nearly 4% to $276,438.

Contributors to the Rapport blog will periodically communicate interesting market data (sales/lease). This is the first such post.

I was on what used to be the eastern periphery of the VCU Monroe Park campus today appraising some property, and inspecting two recent sales. The first is the sale of 600-606 West Grace Street, more commonly identified as the BP-Amoco on the corner of Belvidere and West Grace Street. The 0.35-acre site has a 456 square foot c-store kiosk and a 302 square foot office/storage building. The four 10,000-gallon underground gas tanks provide fuel for six 3-hose dispensers and one 2-hose dispenser. The property sold September 17, 2007 for $1,100,000. While some value was added by the existing fuel infrastructure, the $1,100,000 equates to $71.19 per square foot of land area….pretty crazy for the City of Richmond (outside of the CBD). The new owner reportedly will demolish most of the existing improvements and install new equipment to operate an Uppy’s Convenience Store. What I really find interesting about the sale though, is that VCU didn’t buy it. This property is an important part of the Monroe Park campus master plan, and it is transferring hands in the private sector.

The second sale I also find interesting, chiefly because I find infill developent in the City so interesting. It’s the sale of 114-118 South Belvidere Street. the 19,000 square foot site includes a vacant residential shell building with little to no value. I haven’t verified the details of the sale, so I don’t know if it will be remodeled or demolished…let’s hope for the latter. The site is immediately north of the 7-Eleven and I-195. It was listed for over a year for $1,250,000 ($65.79/sf), and sold August 2, 2007 for $1,000,000 ($52.63 per square foot of land area).

That’s all for now.