Armada Hoffler, a Virginia Beach-based development andcompany, has announced plans for a new 14-story, 174,000-sq.-ft. class-A office tower that will anchor an $89 million mixed-use development in Virginia Beach’s Town Center. The project will also include an 850-space public parking garage, a 267-unit apartment building and 18,000 sq. ft. 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, in a statement. “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. Sessom in a statement. “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 on September 18, with formal consideration of the terms of the project anticipated for October 9. The Development Authority will consider the project at its 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 national architecturalfirm, will lease 80,000 sq. ft. 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 sq. ft. 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.