Dominion Realty Buys a Bundle in Richmond

The three buildings in Boulders Office Park commanded $25.7 million and had a 76 percent occupancy rate upon closing.

By Bogdan Odagescu, Associate Editor

Boulders II, Richmond, Va.
Boulders II, Richmond, Va.

Richmond, Va.Dominion Realty Partners has expanded its Richmond portfolio with the acquisition of three buildings within Boulders Office Park, a complex located close to the intersection of Chippenham Parkway and Midlothian Turnpike.

According to Chesterfield County records, the assets traded for roughly $25.7 million. Seller LSOP VA LLC of South Norwalk, Conn., was represented by Eric Robinson of Cushman & Wakefield | Thalhimer. County records also show that the portfolio last changed hands in April 2012 for a little over $21.6 million.

Boulders I, II and III total 288,416 square feet and are located at 1001 Boulders Parkway, 7400 Beaufort Springs Drive and 1100 Boulders Parkway, respectively. Situated across the Chippenham Parkway from the Chippenham Hospital, the properties sit within a 15-minute drive from downtown Richmond and 25 minutes from the Richmond International Airport.

The three buildings had a collective occupancy rate of 76 percent at the time of the sale. The 34-strong tenant roster currently includes Timmons Group and Tredegar Corp.

Boulders I, Richmond, Va.
Boulders I, Richmond, Va.

The new owner is planning an extensive revamping process, which will include upgrades of the common area lobbies, corridors, restrooms, parking lot resurfacing and landscaping improvements. According to the Richmond Times-Dispatch, the properties were constructed between 1985 and 1989. The publication also reports that the sale included an additional 3.73-acre office site.

“We have been working really hard to find acquisition opportunities like this,” said Chris Carlino, senior financial analyst with Dominion, in a prepared statement. “These buildings are a great fit for us. The fact that they are 76 percent leased means that there is an opportunity to unlock additional value, both through leasing and capital improvements,” he concluded. Dominion’s value-add acquisition initiative, which started in 2015, is set to continue across Virginia and the Carolinas.

Five other buildings within the office complex, Boulders IV, V, VI, VII and VIII, are owned by Brandywine Realty Trust. Brandywine’s Boulders portfolio adds up to approximately 500,000 square feet.

Dominion recently disposed of Charter Square, an 11-story, 243,000-square-foot office tower in nearby Raleigh, N.C. Highwoods Properties shelled out $78 million for the LEED Platinum-certified building.

Images courtesy of Cushman & Wakefield | Thalhimer