Armada Hoffler, a Virginia Beach-based development and construction company, has announced plans for a new 14-story class “A” office tower of 174,000 square feet that will anchor an $89 million mixed-use development in the Town Center of Virginia Beach. As proposed, the project will also include an 850-space public parking garage, a 267-unit apartment building and 18,000 square feet of new retail space.
“There aren’t many markets around the country that can attract and support this type of project today,” said Lou Haddad, president and CEO of Armada Hoffler. “The City of Virginia Beach has the economic momentum and local leadership that make this an exciting and viable investment for our company.”
Town Center of Virginia Beach is a 17-block, $500 million multi-phased, mixed-use public-private partnership between the City of Virginia Beach and Armada Hoffler. The proposed new expansion will include $70.4 million of private investment, $18 million of Tax Increment Financing for a public parking garage and $1 million of local grant funding for additional infrastructure improvements. The Virginia Beach City Council established a Tax Increment Financing District in 1999 to fund public infrastructure improvements in and around Town Center.
“The City is excited to see this type of commitment from our business and development communities,” said Virginia Beach Mayor William D. Sessoms. “City Council and the Development Authority work hard to make Virginia Beach an attractive place for new investment and business growth, and Town Center is the perfect example of the success that can be achieved when local government sets clear goals and makes sound fiscal decisions.”
The project must be approved by both the Virginia Beach City Council and Virginia Beach Development Authority. The City Council is expected to hold a public hearing on the proposal September 18, with formal consideration of the terms of the project anticipated for October 9. The Development Authority will consider the project at their October 16 meeting. If approved, construction would begin February 2013 with completion expected in the summer of 2014.
Armada Hoffler also announced two business expansions associated with the project. Clark Nexsen, a Top 200 National Architectural Design Firm, according to Engineering News Record, will lease 80,000 square feet of space in the new office tower for its corporate headquarters. The company, with nine offices in four states, will move 350 of its 550 total U.S. employees into the new building from the current location in Norfolk, Virginia. Average salaries will be $75,000.
Hampton University College of Virginia Beach will expand its presence in Town Center by leasing an additional 25,000 square feet of space in Armada Hoffler’s existing 222 Central Park Avenue office tower. The growth will allow Hampton University to add 55 new course offerings and increase student enrollment to 350.
Armada Hoffler has developed and built more than 25.4 million square feet of commercial real estate with a market value in excess of $3.3 billion. Their current ownership and management portfolio consists of more than 5.5 million square feet of commercial real estate with a market value in excess of $647.5 million. Armada Hoffler Construction Company is one of the largest general contractors headquartered in Virginia and has been ranked among the top 400 contractors nationwide.
The mission of the Virginia Beach Department of Economic Development is to attract and retain national and international business and industry that results in the creation of new capital investment and jobs that increase the per capita income in the community. The City of Virginia Beach is the most populous city in the Commonwealth of Virginia with a population of 434,000 and is the 39th largest city in the United States. The City of Virginia Beach is recognized as the best run cities in America, by 24/7 Wall Street in 2012, and in 2011, Virginia Beach ranked number one for economic growth potential by Business Facilities. In 2012, the Department of Economic Development received re-accreditation through the International Economic Development Council, one of only 29 economic development organizations in the world to have this recognition. In 2011, the Department won an Award of Excellence for its marketing efforts from the International Economic Development Council. For more information, visit www.yesvirginiabeach.com.