The James Center Three Iconic Office Towers for sale in Richmond, Virginia

Update: This property is no longer on the market since it sold. Click here to read about the HFF-brokered sale of the property 

Holliday Fenoglio Fowler, L.P. (HFF), a Virginia licensed real estate broker, on behalf of the owner, is marketing for sale The James Center, three iconic office towers known as One, Two and Three James Center in the Richmond, Virginia, central business district. The commercial property for sale is centrally located in the River District of downtown Richmond with convenient access to historic Shockhoe Bottom, high-end residential, corporate decision makers and numerous nearby amenities. Bolstered by an epicenter location and abundant surrounding amenities, investment opportunities such as this one are truly generational.

The James Center from HFF on Vimeo.

Located at 901, 1021 and 1051 East Cary Street, the James Center features two on-site restaurants and greatly benefits from its connection to the Omni Hotel and its restaurants, Trevi’s Grille, Trevi’s Lounge and Trevi’s Market, and Starbucks. Additionally, the office property is within walking distance to more than 100 restaurants ranging from fast casual to fine dining, including notable restaurants Pasture, Rapp Session and the Dining Room at the Berkeley Hotel.

The property is ideally located along the James River in the heart of flourishing downtown Richmond with multiple attractions and entertainment outlets, including the James River Park System, Bon Secours Washington Redskins Training Center, Richmond Coliseum and Stone Brewery. Visitors have multiple lodging options, including the Four-Star Omni Hotel (directly adjacent to the James Center), the Berkley Hotel, the Jefferson Hotel and Westin Richmond.

Office Tower for Sale Investment Benefits

  • Significant Opportunity to Purchase Iconic Assets Below Replacement and Sale-Comparable Costs:  With an estimated replacement cost of $350 to $375 per square foot, potential investors are presented with an excellent opportunity to invest at an extremely attractive basis, in turn, driving significant bottom-line growth. An investor’s stabilization of the property, inclusive of subsequent lease-up and capital costs, offers a significant discount to recent sales comparables. In the last 25 months, Richmond’s CBD has seen five significant office transactions (those defined as $40 million and higher) resulting in a weighted average price per square foot of $222.
  • Value-Add Enhancement Opportunity:  Prospective owners have a superb opportunity to harness considerable upside through modest capital improvements. Current ownership has taken considerable steps to conceptualize the necessary improvements that will substantially drive rental rates and allow for a strong return on a capital investment. By completing capital improvements, the James Center will be able to push rents and compete with A+ buildings.
  • Attractive, Credit Tenant Roster with Significant Remaining Lease Term:  The James Center offers an attractive tenant roster inclusive of local, regional, national and international companies from various industries. Notable companies include Wells Fargo Bank (NYSE:WFC | Moody’s Aa1), Virginia Economic Development Partnership (private, HQ | Moody's Aaa) and Davenport & Company (private, HQ). Not only does the James Center comprise a diverse tenant base, it is stabilized by an impressive percentage of credit worthy tenants. Currently, 40 percent of tenants maintain investment grade credit with nearly five years of average weighted remaining lease term, providing additional security to prospective investors.
  • Healthy Economy Poised for Growth:  The Richmond market benefits from a stable, robust and diversified local economy. Diverse industries and companies, combined with numerous educational institutions, such as the University of Richmond and Virginia Commonwealth University, provide an ample supply of well-educated employees with a range of skills and experience for both new and expanding companies. As a result, a number of companies have moved their headquarters to the Richmond market. Notable firms that have chosen Richmond as the perfect site for their corporate headquarters relocation include: Altria Group, Dominion Resources and MeadWestvaco. Richmond offers a rare blend of business-friendly regulations, affordable yet high-quality lifestyles and first-class executive amenities, making Richmond an ideal site to relocate. Firms that have grown organically in Richmond and maintain their headquarters there include Genworth Financial, Universal Corporation, Virginia Economic Development Partnership, McKesson Medical-Surgical Inc. and Markel. Additionally, the presence of the Federal Reserve Bank of Richmond underscores the area’s leading presence in the financial services industry.

The James Center is an investment offering that represents a rare, generational opportunity to acquire three of Richmond’s most iconic assets. Investors will immediately benefit from the James Center’s attractive credit tenant roster, coupled with an irreplaceable CBD location at a highly-attractive cost basis. Moreover, current occupancy of the property is significantly below historical occupancy, leaving investors with considerable upside potential. For more information on this or other commercial properties for sale in the area, please contact HFF Senior Managing Directors Dek Potts or Ryan Clutter, Director Scot Humphrey or Associate Director Chris Lingerfelt.

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