Scott's Addition Development

[whw53]

A ZCL filed last week shows that the Maaco Service Center at 3318 West Broad will be converted into a large format bar\restaurant of some sort.

 

https://energov.richmondgov.com/EnerGov_Prod/SelfService/richmondvaprod#/plan/40c57dcd-e12e-4748-a167-1bda25f5afb7?tab=attachments

 

[Icetera]

1 hour ago, whw53 said:

A ZCL filed last week shows that the Maaco Service Center at 3318 West Broad will be converted into a large format bar\restaurant of some sort.

 

https://energov.richmondgov.com/EnerGov_Prod/SelfService/richmondvaprod#/plan/40c57dcd-e12e-4748-a167-1bda25f5afb7?tab=attachments

 

I am surprised that they would use such prominent street-facing windows for the kitchen.

[I miss RVA]

2 hours ago, Icetera said:

I am surprised that they would use such prominent street-facing windows for the kitchen.

The street-facing kitchen could be a "selling point" in a manner of speaking to potential customers walking up/down Broad Street. I know if I walked by an establishment and could see the kitchen and all the activity, my interest would certainly be piqued and I'd be more likely to go in to sample their offerings.

[ancientcarpenter]

14 hours ago, I miss RVA said:

The street-facing kitchen could be a "selling point" in a manner of speaking to potential customers walking up/down Broad Street. I know if I walked by an establishment and could see the kitchen and all the activity, my interest would certainly be piqued and I'd be more likely to go in to sample their offerings.

Yup, depending on what type of kitchen / restaurant it is that's a genius and common way to market your business. Many breweries and on-site coffee shops do it... I've seen some put out nice looking and copper colored equipment right in the main window to "showcase" it but the item isn't even used nor functional to the business. Distilleries like to do it a lot too. Creates an "aroma of feeling" to the authenticity of the place...whether or not it is authentic is a different question ha!

[I miss RVA]

5 hours ago, ancientcarpenter said:

Yup, depending on what type of kitchen / restaurant it is that's a genius and common way to market your business. Many breweries and on-site coffee shops do it... I've seen some put out nice looking and copper colored equipment right in the main window to "showcase" it but the item isn't even used nor functional to the business. Distilleries like to do it a lot too. Creates an "aroma of feeling" to the authenticity of the place...whether or not it is authentic is a different question ha!

I've been to pizzerias in NYC that do that - it is SO cool to be walking down the street and stop to watch the pizza makers twirling the dough and throwing it into the air. Fun to watch - and damn if it doesn't make you hungry for some pizza! 

[Shakman]

There are restaurants in the DC area that have views of the kitchen from the street.  There are also restaurants that have a premium charge to sit next to and view the kitchen while dining in.

[I miss RVA]

UPDATE on the next big multi-building project for Scott's Addition - the three-building development in the 2900 block W. Marshall on the N. Chasen & Sons property (previously announced):

The developers just plunked down $10.8M for the Chasen property. ALSO - a new nugget: while Chasen is moving to a new location, they will remain in the building on the property through the end of the year - demolition and construction slated to begin Q1 2023.

"The Chasen family bought its Scott’s Addition properties in the early 1970s and has operated its painting and carpentry business in the neighborhood ever since. N. Chasen & Son will stay there through the end of 2022, after which Stifel said Capital Square will look to begin demolition and construction in the first quarter of 2023."

Good to know the timeline of this project.  Also - we have a new rendering. NOTE: Capital Square has also purchased the boarded up former Boulevard Baptist Church on the corner of Altamont and Marshall - and the building will be razed as the property is part of the redevelopment.

From Richmond BizSense:

https://richmondbizsense.com/2022/06/13/nearly-3-acre-scotts-addition-assemblage-sells-for-10-8m/

 

[DowntownCoruscant]

If you zoom in on the picture, you can see that the name of the building will be the “Signage.”

[I miss RVA]

4 hours ago, DowntownCoruscant said:

If you zoom in on the picture, you can see that the name of the building will be the “Signage.”

I noticed that! Yeah - we have "the Otis" ... "the Opus" ... "the Icon" ...  "the Pinecrest" ... "the Tidewater" ... "the Admiral" ...  "the Commodore" ... and now... "the Signage" 

Edited June 13, 2022 by I miss RVA

[eandslee]

Just gotta say that this is encouraging news despite all the negative news you hear out there about an economic recession.  Also, despite historic inflation, the increased cost of construction,  crazy cost of fuel, outrageous rents, etc., they are still planning to build.  Amazing!  Just think what would be happening if our economy was doing better and had a positive outlook!

I do realize that they haven’t stuck a shovel in the dirt yet, so there is still time I guess…

…I don’t even want to think about it!

Edited June 13, 2022 by eandslee

[I miss RVA]

1 hour ago, eandslee said:

Just gotta say that this is encouraging news despite all the negative news you hear out there about an economic recession.  Also, despite historic inflation, the increased cost of construction,  crazy cost of fuel, outrageous rents, etc., they are still planning to build.  Amazing!  Just think what would be happening if our economy was doing better and had a positive outlook!

I do realize that they haven’t stuck a shovel in the dirt yet, so there is still time I guess…

…I don’t even want to think about it!

Perhaps by Q1 2023 things will actually be BETTER than they are now! These things can - and often do - cycle. Particularly when spikes have been SO explosive, as has been the case with construction costs, the recent fuel spike and overall inflation. There are plenty of other economic indicators that are positive at this time - so here's hoping a price correction comes that normalizes and stabilizes costs. I realize we probably won't ever seen construction costs back where they were in 2019-2020 and even 2021, when RVA was boomtown USA from the number of projects chugging along - but I'd like to hope that in six or eight months time we'll see plenty of dirt being turned, concrete being poured and more boom cranes rising above the city.

[Icetera]

1 hour ago, I miss RVA said:

the recent fuel spike

Note that the previous fuel cost spike in the late 2000's were a big factoring in city resurgences.  With chip shortages, EVs are not as obtainable so that helps the urban centers as well as people need walkability and transit.

[ancientcarpenter]

13 hours ago, Icetera said:

Note that the previous fuel cost spike in the late 2000's were a big factoring in city resurgences.  With chip shortages, EVs are not as obtainable so that helps the urban centers as well as people need walkability and transit.

Just a comment: I'm so happy I live in the city and rarely use my car. Same for my wife. We haven't even had the price of gas come up as a conversation for years especially these last few months. Bought 4 gallons yesterday it cost me $20 which is a lot... just happy it's not a repeat of 2006-2010 prices when I was a teen delivering pizzas - that was pricey!

On top of that, we plan to buy an EV in next 3 years. Only problem living downtown is figuring out how to use street parking and plug in. Very privileged problems that we are thankful for. 

[wrldcoupe4]

19 hours ago, I miss RVA said:

UPDATE on the next big multi-building project for Scott's Addition - the three-building development in the 2900 block W. Marshall on the N. Chasen & Sons property (previously announced):

The developers just plunked down $10.8M for the Chasen property. ALSO - a new nugget: while Chasen is moving to a new location, they will remain in the building on the property through the end of the year - demolition and construction slated to begin Q1 2023.

"The Chasen family bought its Scott’s Addition properties in the early 1970s and has operated its painting and carpentry business in the neighborhood ever since. N. Chasen & Son will stay there through the end of 2022, after which Stifel said Capital Square will look to begin demolition and construction in the first quarter of 2023."

Good to know the timeline of this project.  Also - we have a new rendering. NOTE: Capital Square has also purchased the boarded up former Boulevard Baptist Church on the corner of Altamont and Marshall - and the building will be razed as the property is part of the redevelopment.

From Richmond BizSense:

https://richmondbizsense.com/2022/06/13/nearly-3-acre-scotts-addition-assemblage-sells-for-10-8m/

 

Capital Square is building a 20-story residential highrise in Raleigh - https://www.connectcre.com/stories/capital-square-selects-raleigh-for-site-of-100m-mixed-use/

At what point does that make sense here?

[DowntownCoruscant]

When we’re done converting all the other buildings into residential high-rises?

[Shakman]

22 hours ago, I miss RVA said:

I noticed that! Yeah - we have "the Otis" ... "the Opus" ... "the Icon" ...  "the Pinecrest" ... "the Tidewater" ... "the Admiral" ...  "the Commodore" ... and now... "the Signage" 

Oh it's The Commodore.  I thought it was The Commode.

[Brent114]

And wasn’t something this scale (actually more units in RVA, so probably taller) just announced for the block across from Dominion just a few days ago? 
 

I know that was probably just a “testing the waters “ announcement, but the interest is here.  We’ve arrived.  It is just hard to see it from so close up

[eandslee]

2 hours ago, wrldcoupe4 said:

Capital Square is building a 20-story residential highrise in Raleigh - https://www.connectcre.com/stories/capital-square-selects-raleigh-for-site-of-100m-mixed-use/

At what point does that make sense here?

I wish it made sense 2 years ago!  They say there is a lot of demand for residential here, but there must not be enough to drive the rents/condo costs of something like that here.  We need to land another notable HQ2 - Apple and Amazon would have been nice, but they've picked Raleigh and Arlington respectively...and Richmond is in between.  CoStar will be great for Richmond though...we just need another high-paying HQ/HQ2 to move to Richmond to drive the need for something like this...or better!  GRP says they may have a few prospects in the "hopper" if we can just land them!  My fingers are crossed.

[carolina1792]

1 hour ago, eandslee said:

I wish it made sense 2 years ago!  They say there is a lot of demand for residential here, but there must not be enough to drive the rents/condo costs of something like that here.  We need to land another notable HQ2 - Apple and Amazon would have been nice, but they've picked Raleigh and Arlington respectively...and Richmond is in between.  CoStar will be great for Richmond though...we just need another high-paying HQ/HQ2 to move to Richmond to drive the need for something like this...or better!  GRP says they may have a few prospects in the "hopper" if we can just land them!  My fingers are crossed.

Capital Square Raleigh tower was outside investor-driven. They reached their funding goal within a few months. Not a spec build like most towers. 

https://www.multihousingnews.com/capital-square-secures-49m-for-upcoming-raleigh-tower/

"Capital Square in September 2021, has raised $48.5 million in equity to begin the development of 320 West South Street" in Raleigh. 

 

[I miss RVA]

6 hours ago, wrldcoupe4 said:

Capital Square is building a 20-story residential highrise in Raleigh - https://www.connectcre.com/stories/capital-square-selects-raleigh-for-site-of-100m-mixed-use/

At what point does that make sense here?

Haven't I been asking this very question incessently on here for the last couple of years?

The answer that you and @upzoningisgoodkeep saying is that the RVA market size doesn't justify a developer sinking the additional cost into developing a taller residential building. They can't get the rents. The construction costs are too high. There's not enough demand.

So what needs to happen to change that? @eandsleeis right - we need to go out there and grab at least one (if not more) HQ/HQ2's to come here with THOUSANDS of jobs -- and not just the "company A announced it's coming to Richmond and bringing 125 new jobs!!!! YAYYYY!!!"  We need movement that will bring a block (or several of them!) of four-(or even five) digit jobs to the city in one fell swoop - like Raytheon and Boeing moving their global HQs to Arlington (on top of Amazon going there.) Yes - getting 5,000 or 10,200 or whatever - BIG number of new jobs coming here in a relatively short amount of time (meaning, NOT over the course of 20 damn years!!) would go a long way toward moving us up the totem pole.

Obviously there is demand in Raleigh for this kind of building, but not here. Obviously there is rent support there to justify the construction cost, but not here. Obviously their local economy and market size has matured to a level far greater than ours has at this point.

This is the kind of thing that just frustrates the living HELL out of me about RVA. For all our wonderful growth and booming construction and population increases, we are STILL four or five laps down with the leaders pulling away like we're standing still.

Edited June 14, 2022 by I miss RVA

[wrldcoupe4]

Yikes, my question was a bit rhetorical, just unsure where market rents are in Raleigh and where they are projected for a project like this? With that info, we can compare against the Richmond market. Construction costs must be pretty similar, so it should be a question of market rents.

[I miss RVA]

1 hour ago, wrldcoupe4 said:

Yikes, my question was a bit rhetorical, just unsure where market rents are in Raleigh and where they are projected for a project like this? With that info, we can compare against the Richmond market. Construction costs must be pretty similar, so it should be a question of market rents.

Oh, I get that, Coupe. I'm not yelling at you. I'm simply frustrated beyond any/all ways of describing it by the fact that RVA lags behind other mid-size cities/metros and isn't growing nearly as quickly as many of these competing cities/metros are.

Our good friend @KJHburgin Charlotte shared with us this report from redfin.com over on the RVA economy thread. His point was that RVA is 8th in the nation in multi-family development based on building permits per 10,000 people. Which is fantastic news! Glad to see us chugging along. RVA is also 18th in the nation (based on the same building permits/10K people metric) in single-family home construction. Again, wowzers! Great news!

The report includes some interesting data that partially answers your question regarding competing cities.

https://www.redfin.com/news/metros-building-new-construction-Q1-2022/

Redfin.com sourced the data from the U.S. Census building permits survey.

https://www.census.gov/construction/bps/

Specific to your question, Raleigh is ahead of RVA in terms of rents, according to redfin.com. However, RVA is ahead of Virginia Beach according to this survey. Yet - note the activity (inflo/outflow of home "searchers") in the three cities. RVA lags significantly behind both Raleigh and Virginia Beach, which come in at 1.6 and 2.4 times as many searchers respectively as reported for the RVA market.

I culled out data specific to RVA, Raleigh and VAB. ncluded the huge outflow of home searchers for DC and NYC - just to give some perspective of markets RVA should be ACTIVELY raiding for companies to relocate to River City. 

 

Edited June 14, 2022 by I miss RVA

[wrldcoupe4]

RTP is a booming tech hub. I wonder if the Beach numbers other than it being 30% larger is the military presence. Does it create a more transient population than a region like Richmond? I think defense related spending is 35-40% of their regional economy. 
 

[HRVA]

Raytheon & Boeing’s moves were more symbolic. They both already had significant presence in Nova - not a lot of new jobs expected from either moving their HQs. 

[eandslee]

2 minutes ago, wrldcoupe4 said:

RTP is a booming tech hub. I wonder if the Beach numbers other than it being 30% larger is the military presence. Does it create a more transient population than a region like Richmond? I think defense related spending is 35-40% of their regional economy. 
 

Agree, I think the VAB numbers are somewhat skewed because of the transient military in the area and being assigned to bases there...not necessarily because they desire to be there.  Good call, Coupe.  That would suggest that the numbers tell a somewhat misleading story.  However, it's clear that Raleigh is outpacing RVA due to its booming tech industry.  Apple's east coast HQ going there was HUGE!  Dang, RVA needs to land big catches like that...seriously!  Totally agree with what @I miss RVA has to say about this above!

2 minutes ago, HRVA said:

Raytheon & Boeing’s moves were more symbolic. They both already had significant presence in Nova - not a lot of new jobs expected from either moving their HQs. 

Very true, hardly any new jobs will be added due to these announcements, but when you land the Amazon East Coast HQ2 bringing 25,000+ of jobs to Crystal City, the others are just a drop in the bucket!