Category: Real Estate

Categories
News Real Estate

Albemarle County biotech company to add 200 jobs at expanded facility

The conceptual rendering above is of Afton Scientific’s expanded manufacturing operations in Albemarle County. Founded in 1991, the company makes technology that can safely create small batches of pharmaceuticals for clinical trials. Image via Scott Collins, Collins Engineering.

Albemarle County’s campaign to grow the biotechnology industry showed a major sign of progress earlier this month when one company announced plans to invest $200 million into an expansion project.  

“We want to expand our manufacturing to make sterile medicines, put in clean rooms, and create really, really great jobs,” said Afton Scientific’s Tom Thorpe during an announcement at the county’s headquarters off Avon Street Extended.

Thorpe founded Afton Scientific in 1991 to make technology that can safely create small batches of pharmaceuticals for clinical trials. In late August, Afton Scientific paid $4.25 million to a subsidiary of Coran Capshaw’s Riverbend Development for the 6.78 acres in the same industrial park for the expansion. The property is just to the south of the Charlottesville border and overlooks Moores Creek. 

According to the trade organization Cville­BioHub, there are at least 75 companies in the area related to the biotech industry, with more than 1,950 employees. Afton Scientific is pledging to add 200 more jobs and will use resources from the Virginia Partnership for Economic Development to find skilled workers.

Albemarle first identified the biotechnology field as one of its targeted sectors in a 2012 study that also prioritized defense, information technology, and financial services. 

“Afton Scientific started in our community 30 years ago and we couldn’t be more proud of this business, of this industry being in our community today,” said County Executive Jeff Richardson. 

One of Afton Scientific’s neighbors is Lighthouse Instruments, another industry representative. Its website describes the company as “the leading global provider of optical-based, non-destructive headspace analysis systems and analytical services.” That means they’re also involved in the pursuit of making medicines safer. 

Virginia’s secretary of commerce and trade was on hand for the announcement and said the Charlottesville area is becoming known as a hub for the industry.

“In Charlottesville, just in the last year, we had more than $400 million of federal research grants,” said Caren Merrick. “We’ve also had more than 90 million in equity investments in our startups.”

But are there enough people in the area who can provide the labor? To answer that question and prepare for the future, CvilleBioHub is seeking state funding for a study of what workforce programs are needed. In addition to private sector jobs, there will be a need for people who can work in the many laboratories that will serve the Manning Institute of Biotechnology that’s currently under construction at the University of Virginia’s Fontaine Research Park. 

“What do we need to be preparing our workforce for now so that we can serve the growth that’s anticipated as a result of the things that are happening?” said Nikki Hastings, CEO of CvilleBioHub at a recent meeting of the Albemarle Economic Development Authority.

The EDA helped negotiate some of the details of the Afton Scientific expansion, including access to the Commonwealth’s Opportunity Fund. The secret deal went by the code name Project Olympian. 

Categories
News Real Estate

A hotel seems more likely at Artful Lodger shopping center

If the project proceeds, the hotel at 218 W. Market St. would replace a shopping center that includes The Artful Lodger, The Livery Stable, and several other businesses. Photo by Eze Amos.

A New York-based developer who had planned to build a nine-story apartment tower on the site of a downtown Charlottesville shopping center has sold the property for $5.75 million. 

Jeffrey Levien’s company Heirloom Development bought 218 W. Market St. in June 2020 for $4 million, but sold the property in mid-September to Cavalier Hospitality LLC. That entity is based out of Glen Allen, Virginia, and has not yet filed new plans for the property. 

However, Levien says he will still be involved in the development of a hotel as a partner. 

“I just couldn’t make the economics work for residential under the new zoning code,” Levien says. 

Under the inclusionary zoning rules in the city’s new Development Code, one of every 10 units in any new development in non-residential areas must be guaranteed to be rented or sold to households below specific incomes. No such requirement would be necessary for a hotel, something that is an allowed use under the zoning that went into effect this past February. 

Levien pursued the residential project at 218 W. Market under the older rules, which required a special use permit for additional height and density. City Council approved a permit in September 2020 despite concerns from former mayor Nikuyah Walker that the project did not address the need for affordable housing. 

In August 2023, council agreed to a permit amendment to allow for a modification of the building’s massing. As part of that approval, Levien agreed to build a minimum of eight affordable units on-site or off-site with two units to be reserved for households making less than 50 percent of the area median income. That was above the minimum requirement but not enough to satisfy the concerns of City Councilor Michael Payne. 

This spring, Levien brought a preliminary design to the Board of Architectural Review for a hotel with a design from Richmond-based NBJ Architecture. That body looked favorably on the concept, but it did not receive an official submission. No plans have been filed since. 

So far there have only been a handful of new projects filed under the new zoning, which is intended to make it easier to build more housing units across the city and to eliminate the role of City Council in making decisions about what gets built. 

One of these new projects, at 1609 Gordon Ave., would see an existing house razed to build a new structure with nine units. A 10th unit would need to be affordable.

Another new development at 2030 Barracks Rd. would see 12 affordable units built alongside 12 market-rate units. 

Levien’s first development in Charlottesville was a luxury 56-unit apartment building that also redeveloped the buildings that contain Blue Moon Diner and a former convenience store. That project broke ground in 2018, nearly two years after council granted approval. 

Another project that has not yet moved forward is the replacement of the University Tire building next door, at 612 W. Main, with another apartment building. Levien says he still plans to proceed with that project, which was approved by council on a 4-1 vote in October 2019. A final site plan has been approved but no building permit has been authorized. 

If it proceeds, the new hotel would replace a shopping center that includes The Artful Lodger, The Livery Stable, and several other businesses. The BAR has approved a permit for demolition pending the issuance of a building permit.

Categories
News Real Estate

Major real estate transactions taking place this month in Fifeville

Neighborhood Investments purchased this half acre lot in Fifeville for $2.24 million, the latest high-profile purchase in the Cherry Avenue area. Photo by Sean Tubbs.

As planning and negotiations continue over a grocery story at 501 Cherry Ave., major transactions continue to take place in the Fifeville neighborhood. 

On September 9, the firm Neighborhood Investments paid $2.24 million for an undeveloped property between Roosevelt Brown Boulevard and Ninth Street SW. There have been several development projects associated with the land, owned by the Piedmont Housing Alliance, on two occasions. 

The Piedmont Housing Alliance sold the 0.56-acre property in March 2016 for $1.19 million. The previous owner filed a site plan amendment in 2020 for 24 residential units and about 11,000 square feet of commercial space, which was never approved. Since then, Charlottesville City Council has adopted a small area plan for Cherry Avenue that discouraged tall buildings in order to preserve the character of surrounding neighborhoods. 

As a result, the city’s new zoning code classified the undeveloped Ninth Street lot as Commercial Mixed Use 3, which sets a base height limit of three stories but an additional two stories are allowed if the project has affordable units that qualify it for bonus space. That is different from other corridors in Charlottesville, such as Barracks Road and Fifth Street Extended, which allow up to 10 stories to encourage shopping centers to redevelop at maximum density. 

Richard Spurzem of Neighborhood Properties said in an email he was not sure if he would proceed with the existing site plan or start fresh. 

This past March, Ronald McDonald House of Charlottesville bought a former auto repair business at 316 Ninth St. SW for $700,000. The nonprofit owns two nearby lots and has not yet decided how it will use its new property. 

The city’s public housing agency is planning to purchase two properties several blocks away on Fifth Street SW to preserve them for affordable housing. There are multiple buildings at both locations, and the Charlottesville Redevelopment and Housing Authority wants to buy them for $2.2 million.

“The acquisition of this portfolio will allow CRHA to preserve the naturally occurring affordable housing units while giving CRHA the ability to redevelop the property to provide additional housing units soon,” reads a resolution adopted by the CRHA Board of Commissioners on September 23. 

The acquisition continues a trend of CRHA purchasing property, including several Fifeville properties that were part of a $10 million purchase from Woodard Properties in August 2023, to expand its portfolio.

Meanwhile, single-family homes still sell at a premium in Fifeville. On September 4, 2024, a two-bedroom house at 223 Fourth St. SW sold for $585,000, well above the 2024 assessment of $376,000. There’s also an accessory dwelling on the property. 

On September 18, a single-family attached home in the Orangedale subdivision at 705 Prospect Ave. sold for $296,500. That’s over 39 percent above the 2024 assessment of $212,900.

No matter the development, the leadership of the Fifeville Neighborhood Association want all projects to align with the values enshrined in the Cherry Avenue Small Area Plan. 

“We encourage developers to come talk with residents directly at our monthly meetings so that we can work together on upcoming projects and make sure residents are informed,” read a statement sent in response to a question from C-VILLE.

Categories
News Real Estate

Albemarle County to seek federal funding to jump-start initiatives

Albemarle County has made at least $4.5 million in investments to help hundreds of units in Southwood remain affordable to households with income below 60 percent of the area median. Image: Atlantic Builders.

The recent purchase of the Cavalier Crossings apartment complex on Fifth Street Extended by an Alexandria-based investment company prompted one member of the Albemarle Planning Commission to tell his colleagues the county should be investing in “social” housing. 

“If we can think about how we can put county resources toward public goods, which to me includes UVA Health wage workers being able to afford to live here, then that’s progress,” said Nathan Moore, representative of the county’s Rio District, at the August 27 commission meeting.

In 2021, both Albemarle and Charlottesville adopted new housing strategies to increase the number of affordable units. While the city’s plan for affordability calls for spending $10 million a year on construction or maintenance of housing, the Housing Albemarle plan does not set a specific target. Still, county supervisors have authorized several investments. 

“Since 2020, the county has invested $17.7 million into projects which have served around 3,000 households in one form or another,” says Stacy Pethia, Albemarle’s assistant director of housing. 

Last week, Pethia told a citizen advisory panel that while the county prioritizes housing funds for those on the lower end of the income spectrum, there’s a need for housing for all levels in a community where the federally defined annual median income is $124,000.

“There’s a range of people that qualify for affordable housing and most of those people are the ones [whom] we rely on every day,” Pethia says. 

In fiscal year 2024, Albemarle contributed $3 million toward the construction of Southwood Apartments by Piedmont Housing Alliance, $1.5 million to Habitat for Humanity for their Cardinal Hill apartments at Southwood, and $700,000 to the Premier Circle project underway by Virginia Supportive Housing. Another $311,655 went to the Albemarle Housing Improvement Program to help rehabilitate existing homes. 

The Albemarle County Board of Supervisors agreed to contribute another $2 million to the housing investment fund in the current fiscal year. A decision about where that money should go will be made in the future. 

On Wednesday, September 18, the Board of Supervisors will hold a public hearing on the county’s intention to apply for $6.5 million in federal funds, including $5 million to establish a revolving fund for loans to developers who build affordable housing units. The supervisors will also ask for $1 million for a fund to entice property owners to rent out units to people with housing vouchers to overcome any stigma that a tenant receiving assistance might face. 

Albemarle administers 345 federal housing vouchers. 

“It can be difficult sometimes for families to find a landlord that will accept their voucher,” Pethia says. 

Albemarle is also seeking $435,000 in funds for construction of a future multifamily development, but it is currently unclear where that project might be. 

As for Cavalier Crossings, The Bonaventure Multifamily Trust paid $20.5 million for the 144-unit complex and plans to renovate units to charge higher rents at market rate. Some leases have not been renewed as work gets underway. 

The purchase did not require any legal notice, as none of the units were built with public money and no public funds are being requested by the new owner.

Categories
News Real Estate

UVA Board of Visitors to meet this week over two private development projects

The 12-story Verve is one of two large student apartment buildings planned for construction within close proximity to the University of Virginia. Photo via ESG Architecture and Design.

The governing body of the area’s largest landowner will meet this week with five new members, at least one of whom has significant experience in real estate. Governor Glenn Youngkin’s latest appointees to the University of Virginia’s Board of Visitors begin their terms at a time when two private, recently approved student developments are moving toward construction and while UVA seeks to provide more housing for students.  

“UVA has committed to expanding its current first-year residency requirement to require all first- and second-year students to live on-Grounds while enrolled at UVA to better support students in their transition to University life, and as residents of the broader Charlottesville community,” reads a May 2024 solicitation for firms to partner to build the housing. 

At the same time, two large private developments near UVA continue to make their way through the finer details of the city’s permitting process. 

On Tuesday, the Charlottesville Planning Commission formally approved a site plan for the Verve, a 12-story student apartment building to be constructed in the heart of central Grounds. Several dozen apartments at the intersection of Jefferson Park Avenue and Emmet Street will soon be demolished to make way for the new building, which will have 442 units, according to the site plan.

City Council approved a rezoning in January for the Verve despite opposition from UVA officials, who argued the tall building would diminish UVA’s architectural character. The plans were submitted in time to qualify under the city’s old zoning rules, which required significantly fewer units to be designated as affordable. In this case, the developer will contribute $6.8 million to the city’s affordable housing fund rather than build units that are price-controlled. 

Earlier this month, the Charlottesville City Council granted approval of another technical step for a 10-story student apartment building at 2117 Ivy Rd. that was approved under the old rules. That project comes with a $3.25 million contribution to the city’s affordable housing fund and required council action to waive a requirement to build sidewalks on all road fronts.

“The waiver request is only for the easternmost portion of the property’s frontage on Copeley Road,” said Dannan O’Connell, a city planner. He added that they will build sidewalks on Ivy Road and a portion of Copeley Road. 

Meanwhile, UVA is planning to build up to 2,000 bedrooms for undergraduate students at both the former University Gardens as well as on Ivy Road. The Afghan Kabob restaurant will be demolished to make way for what UVA calls the Emmet North site. 

Because UVA owns those parcels of land, the city will not collect property tax revenue but they will for both the Verve and 2117 Ivy Rd. UVA officials want the first units to come online for the fall of 2027. 

One of the new members of the Board of Visitors is David F. Webb of Virginia Beach, whose day job is vice chair of development firm CBRE’s Capital Markets Group. Webb is now a member of the Buildings and Grounds Committee, which will meet on Thursday. One item on their agenda is a discussion of student housing. 

Categories
News Real Estate

Closing arguments filed in challenge to city’s new zoning code

The developer of 303 Alderman Rd. will be among the first to take advantage of the new zoning, if and when this single family house is demolished to make way for six townhomes. Photo by Sean Tubbs.

The waiting game continues for a lawsuit filed earlier this year that seeks to nullify Charlottesville’s new zoning code. 

A group of residents filed suit against Charlottesville in January alleging that city officials failed to follow state guidelines to study the impacts higher residential density allowed in the Development Code would have on transportation infrastructure. The land-use rules were rewritten shortly after City Council adopted a new Comprehensive Plan on November 21 that called for more housing across the entire city. 

“A comprehensive plan and zoning ordinance must be submitted to [the Virginia Department of Transportation] for review when [they] will ‘substantially affect’ transportation on state-controlled highways,” wrote attorneys with the firm Flora Pettit in a filing with Charlottesville Circuit Court in late August. 

This spring, Charlottesville responded with a motion seeking to dismiss the case arguing that the plaintiffs do not have the right to sue, and added they cannot prove they will be harmed by the new rules. 

After a 90-minute hearing in late June, both sides filed written closing statements to inform Circuit Court Judge Claude Worrell’s eventual opinion. Lawyers with the firm Gentry Locke argue the suit should not proceed to trial.

“Plaintiffs do not like the policy choices in the new zoning ordinance,” the Gentry Locke attorneys wrote in their recent filing. “The City followed the process in enacting the NZO. The Plaintiffs, therefore, rely on strained legal theories and ignore facts in their effort.” 

Attorneys for the city also argue that Charlottesville followed the rules when submitting the mobility chapter of the Comprehensive Plan to VDOT, a key claim made by the defendants. 

“Plaintiffs cannot now—more than two years after the fact—fault the City for failing to double-check VDOT’s work product,” the closing argument continues. 

Flora Pettit attorney Michael Derdeyn represents those plaintiffs, as well an anonymous group that previously sought to overturn the Comprehensive Plan based on many of the same arguments. He argues that VDOT review should have been based on the theoretical maximum of new housing units that could be built under the new code. 

“There can be no question that the City failed to comply with its obligation,” Derdeyn wrote.

That will be up to Judge Worrell to decide, and a ruling will be issued at some point in the near future. 

Meanwhile, developers have slowly begun taking advantage of the provisions in the new code that allow more density without asking City Council for permission. That includes six units planned to be built at 303 Alderman Rd., a property that had been zoned for single-family residential but is now in the Residential B district. 

Another plan, submitted for land behind the Meadowbrook Shopping Center, will be the first to take advantage of bonus rules if units meet the city’s affordability guidelines. 

A firm called Greenshire Holdings has filed a major development plan to build 24 units on what is now an 0.83-acre lot at 2030 Barracks Rd. The materials sent to the city include a request to subdivide the property into two lots with 12 units to be built on each. 

No traffic management plan would be required because the total amount of construction is under the 50,000 square-foot threshold that would trigger one. 

Categories
News Real Estate

Project Julius to help Home Depot’s redevelopment of Fashion Square Mall

Albemarle County entered into a public-private partnership with Home Depot in 2022. The home improvement hub plans to turn the former Sears at Fashion Square Mall into a new store and garden center. Image via MG2.

Shortly after the signalized intersection at Rio Road and U.S. 29 was converted to an underpass in July 2016, the Albemarle County Board of Supervisors adopted a small area plan to encourage redevelopment of the immediate area to be more dense to meet the needs of the 21st century. 

“The plan identifies the Rio Road/29 intersection as the heart of urban Albemarle County and it designated the four quadrants as critical for the commercial corridor’s future,” says Emily Kilroy, Albemarle’s interim economic development director. “It envisions a dense, walkable, bikeable transit-connected environment.” 

Nearly six years later, the county entered into a public-private partnership with Home Depot to redevelop the former Sears at Fashion Square Mall into a new store and garden center. The Atlanta-based retailer purchased the site, as well as dozens of individual retail spaces inside the mall, in September 2022. 

County officials have approved plans for the new store, but Home Depot’s development costs have increased. 

“It was primarily associated with the demolition of the former Sears and the Sears Auto Center, which had a requirement for asbestos abatement as well as brownfield remediation,” said J.T. Newberry, deputy director of the Albemarle Office of Economic Development. 

Newberry told the board of supervisors on August 21 that the higher costs may have been a barrier to Home Depot proceeding. The county and its Economic Development Authority negotiated terms for a tax increment financing agreement under the codename Project Julius to grant up to $750,000 in real property tax rebates over 10 years. 

In exchange, Home Depot has to be open by December 24, 2025. The company will also dedicate land for a future realignment of Hillsdale Drive, called for in the Rio Road plan.  

“They will help actively market the former Red Lobster site, which is currently vacant,” Newberry said. 

In addition to more property taxes to be generated from the site, Newberry said Albemarle expects the new store to produce between $400,000 and $500,000 a year in local sales taxes. He said the store is expected to create 100 jobs.     

Kilroy says Fashion Square Mall is ripe for a public-private partnership to try to implement that vision. She presented the Board of Supervisors with a slide depicting the decline in value from around $70 million in 2014 to just below $20 million this year. 

“Redevelopment of this parcel will correct what has been a stark decline in property value for this area,” Kilroy says, adding that the county’s investment will support the first major private reinvestment since the Rio Road plan was adopted. 

Belk Stores of Virginia continues to own its store, and developer Richard Hewitt owns the former JCPenney. Albemarle County now rents a portion of that property for a public safety fleet operations center. 

Other investments in the area have not had a public component. Earlier this year, the Carter Machinery Company purchased a 4.67-acre property to the east of the Northside Library for $3.53 million. It has since opened a rental store for construction and lawn equipment, eliminating parking spaces that had been rented for library patrons. 

Categories
News Real Estate

The city’s first large student apartment complex on West Main turns 10 

Completion of The Flats at West Village 10 years ago marked a new era for the West Main Street corridor—one that included students and paved the way for more residential units in the area. Staff photo.

With the University of Virginia back in session next week, students are returning to Charlottesville—including the several hundred who live at 852 W. Main St. The first residents of the building known as The Flats at West Village moved in 10 years ago, beginning a trend of students moving into an area where they had not previously lived. 

Riverbend Development and an out-of-town group took the project through the approval process in December 2012, during which City Council voted 4-1 on a special use permit to allow the building to be eight stories high and to have up to 595 bedrooms. Councilor Dede Smith voted against the permit that night, arguing that the project would have negative impacts on surrounding neighborhoods. 

“Charlottesville was told that a large student complex on West Main would moderate rents across town, stimulate a vibrant mixed-use community, and reintegrate Westhaven and Fifeville into Main Street,” Smith says. “Unfortunately, few, if any, of these benefits have occurred.”

The current owner is an entity called Madison Loft LLC that purchased the property in November 2016 for $77.5 million. Previous structures on the property were automotive in nature, reflecting the role West Main Street played in the 20th century. 

Since people began living at the Flats, the city has collected $6.35 million in taxes, with a bill this year of $821,143.96. The property is now managed by Asset Living, one of the largest property maintenance firms in the United States. 

The Flats was followed by what’s now called The Lark on West Main and The Standard at Charlottesville, adding more students and millions more in tax revenue. 

Previous zoning on the property required the ground floors to be commercial, but that has not been a total success. The Flats opened with a restaurant called World of Beer that folded before the pandemic, and the space was vacant for many years until Mejicali recently opened. The convenience store next door has been the only permanent fixture, but another retail space on the ground floor has never had an occupant. 

The same is true across the street at the Standard, where two retail spaces sit vacant. The retail space at the Lark is currently occupied by Devil’s Backbone Backyard after two similar businesses failed at the location. 

Other buildings constructed to the east include the former Quirk Hotel (now The Doyle Hotel), the Marriott Residence Inn, and the apartment complex at 600 W. Main St. that preserved Blue Moon Diner. That project also has a retail space that has proved difficult to keep rented.

More buildings constructed on West Main will not need approval from the city council because the new zoning code allows taller heights without special permission. Residential density is unlimited, but the new rules require 10 percent of units to be affordable to households or individuals whose incomes are 60 percent below the area median income. 

Meanwhile, UVA is moving ahead with plans to build new residence halls for second-year students as part of an initiative to house more people on Grounds. This spring, the Office of Facilities Management asked firms to submit qualifications to build up to 2,000 new bedrooms either on Ivy Road or Emmet Street. The bid documents state that UVA would like those units to be in place by the fall of 2027.

Categories
News Real Estate

A dangerous Charlottesville intersection could become more crowded

The entrance to Willoughby Place would be 350' from the intersection of Fifth Street SW and Harris Road along a winding road. Image via Shimp Engineering.

If implemented as planners hope, Charlottesville’s new development rules will provide more places for people to live by making it easier for builders to navigate the process. Less certain is what will happen when more of those homes are constructed on a road network with known areas of concern. 

Perhaps one of the most dangerous intersections in Charlottesville is at Fifth Street SW and Harris Road, which has seen at least three fatalities since 2016 and many more just to the north on a stretch of roadway designed to be a highway. Thousands of vehicles pass through this junction every weekday. 

To the west is the city’s Fry’s Spring neighborhood and the Willoughby Shopping Center and to the east and up a hill is the Willoughby neighborhood, which has several dozen homes with city addresses until the roadway passes into Albemarle County. 

Moores Creek LLC, a company associated with Woodard Properties, has plans pending before the city to build a development called Willoughby Place with 84 two-bedroom apartments in two buildings on 4.8 acres. The driveway to this by-right development would be 350′ from the Harris Road intersection. That’s one reason the Willoughby Property Owners Association is opposed to the development. 

“Line of sight expressed by [Moores Creek LLC’s] plans from Harris Road to [the Willoughby Place] entrance is two-dimensional and doesn’t take into account the hill,” reads an August 7 letter from the association to the city requesting a denial of a preliminary site plan. 

The Willoughby Place plans also show a connection to a parcel in Albemarle County, but correspondence between the city and the firm Shimp Engineering indicates there are no efforts to develop that land at this time. There was an effort to do so in 2014 that did not meet with the favor of the county’s planning commission. 

The plans for 610 Harris Rd. were filed under the city’s previous rules, which means that none of the units have to be rented at below-market rates to satisfy affordability requirements, known in the new code as “inclusionary zoning.” Plans filed now require 10 percent of the units to be affordable. 

The northwest quadrant of the Fifth and Harris intersection is a 46-unit townhouse community built by Southern Development in the mid-2000s. The future of the southwest quadrant is wide open with a new owner.

On August 5, an entity based in Staunton called TAP Investments LLC purchased 1113 Fifth St. SW for $1.375 million, slightly above the 2024 assessment. The new zoning code is Commercial Mixed Use 8, which would allow for an eight-story building with unlimited residential density as well as many commercial possibilities. 

A bank operated on the 0.9-acre property for many years and in the fall of 2022, City Council denied a special use permit allowing for Green Clean Albemarle LLC to operate a car wash on the property. 

So far, there are no applications to develop the property.

No matter what gets built, the city is working to make the roadway safer with plans for a “road diet” between Harris Road and Cherry Avenue. 

“We’re expecting to bring those conceptual plans to the public for review this fall,” says Afton Schneider, the city’s director of communications and public engagement. 

Categories
News Real Estate

Chamber of Commerce to relocate after downtown building is sold 

The building at the corner of East Market Street and Fifth Street NW, which for more than 40 years has housed the Chamber of Commerce, is for sale. Photo via Cushman & Wakefield | Thalhimer.

For more than four decades, the Charlottesville Regional Chamber of Commerce has operated at the corner of East Market Street and Fifth Street NW just down the hill from the former Monticello Hotel. 

Now that property is on the market as the chamber continues a search for a new place to advance its mission in a community where economic growth is happening across many geographic locations. 

“They are still in the building but will be planning to move after the sale to something that better accommodates their current staff and allows them to serve the community more flexibly,” says Jenny Stoner, a senior vice president with Cushman & Wakefield | Thalhimer, the listing agent that was awarded an exclusive sales assignment. 

The chamber held an open house in July, and the open house invitation stated that putting the building on the market reflects a strategic direction as the second quarter of the century approaches. 

“This decision reflects a common practice amongst Chambers nationwide to reposition assets in response to the evolving needs of members and the broader business community,” reads the invitation. 

The organization doesn’t plan to go very far as it seeks new office space. 

“We haven’t selected a new location yet, but we plan to continue operating near downtown Charlottesville,” says Ann Marie Hohenberger, the chamber’s director of community engagement. “It is the geographic center of our service area.” 

Hohenberger says the chamber’s Board of Directors is still working on the development of a strategic vision for the future. 

The building at 415 E. Market St. was constructed in 1911 and offers 3,000 square feet on two floors. The Market Street Parking Garage is a block away. The footprint is 0.3 acres and the land is now zoned Downtown Mixed Use. Any demolitions or alterations would have to go through the Board of Architectural Review. 

The chamber itself dates back to 1913 and now has more than 675 members in business across the region. They bought the property in 1981 for $128,500, and the 2024 assessment is $885,400. The asking price is listed as negotiable. 

In recent years, the chamber has put a focus on the role the defense sector plays. They commissioned a study that in May 2023 estimated the industry has an annual economic impact of $1.2 billion. That same month, the Albemarle Board of Supervisors agreed to spend $58 million to purchase 462 acres around the Rivanna Station military base. 

In 2018, the chamber sought real estate expertise in finding a new headquarters in a place that could be seen as the “center of activities” in the region. Their request for proposals wanted double the space in a location with cheaper parking, but the initiative to move didn’t happen on the watch of Elizabeth Cromwell, who served as president from August 2018 to February 2023. 

The chamber is currently without a permanent president following the brief tenure of Natalie Masri, who served for seven months. Since January, former Board Chair Rebecca Ivins has been serving as interim president while a search is conducted. Chief Operating Officer Andrea Copeland served as interim president immediately after Cromwell’s departure and continues to run day-to-day operations. Realtor Sasha Tripp became the new chair of the Board. 

Hohenberger says the chamber is planning to launch a new search for a chief executive officer and a public announcement will be made when the time comes.