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| Developers say the planned Wachovia Center would be in essence a town center along Monticello Avenue.
(Architectural rendering: Davis Carter Scott Associates/courtesy of S.L. Nusbaum Realty Co.) |
By HARRY MINIUM
The Virginian-Pilot
NORFOLK - MacArthur Center is getting its first high-rise neighbor: a $150 million, 22-story office tower and apartment/retail complex between Scope and the shopping mall.
Developers said the project, called Wachovia Center, is in essence a town center that will be built just north of the city's central business district along Monticello Avenue.
It will include 250,000 square feet of office space, 53 percent of which is leased; 175 apartments and 50,000 square feet of retail space spread across 4.5 acres. The three known tenants for the center, including Wachovia Bank, come from other downtown buildings.
It will also have 2,000 parking spaces in two garages to be built by the city. The $50 million garages will be paid for by parking fees and will not affect the city's debt limit.
The city will donate 1.4 acres of land and the air rights over one of the garages to the developer, S.L. Nusbaum Realty Co. The project will not receive any other incentives, such as tax rebates.
"This project says downtown Norfolk continues to be the financial and business center for all of Hampton Roads," Mayor Paul Fraim said Friday. "We're in a very competitive market, but this shows that people want to do business downtown."
The project, to be announced by Nusbaum officials on Monday, is expected to generate $28 million in direct taxes over its first 10 years and will house 1,300 employees, said Roderick S. Woolard, the city's director of economic development.
The complex will rise on a site that now houses a city parking lot and parking garage. It will be steps from MacArthur Center, in front of a stop on the city's proposed light rail line and a block from the Granby Street restaurant corridor.
City officials once had hoped to build a major sports arena there, but they don't currently have the money.
The 1,200 existing parking spaces, used by patrons at Scope and Chrysler Hall, among others, will be temporarily replaced with parking at the former Downtown Plaza shopping center, now owned by the city. When Wachovia Center opens in 2010, it will bring 850 additional parking spaces.
Alan Nusbaum, chairman of the 100-year-old company that carries his family name, will relocate his company from the Bank of America Building into 35,000 square feet in the Wachovia Center.
With offices in Norfolk and Richmond, Nusbaum Realty handles leasing for millions of square feet of office space and shopping centers and thousands of apartments. It also offers other real estate services and has developed shopping centers and apartments in several states.
Wachovia will consolidate its downtown offices from three buildings into 41,500 square feet, including a first-floor branch, said Jeff Dyckman, Eastern Virginia r egional p resident for Wachovia Bank.
Goodman and Company, one of the state's largest accounting firms, will lease 25,000 square feet. Nusbaum said other tenants will be announced soon.
Nusbaum said his company has outgrown the Bank of America Building, where his 143 employees are spread across three floors, and could not find suitable space elsewhere downtown.
He began talks with the city 14 months ago about a new office building. Fraim said he worried Nusbaum, Goodman and other tenants might leave for office space in other cities given the tight office market downtown, and the fact that so many of downtown's office buildings are aging.
With vacancy rates dipping to 8 percent recently for downtown's 5 million square feet of office space, there has been speculation for more than a year about a new office building.
"If someone is looking for 50,000 square feet of office space in downtown Norfolk, that isn't available today," said Deborah Stearns, managing director of GVA Advantis Real Estate's Norfolk office. "The time is right for a new building."
Thomas G. Johnson III, vice president of sales and development for Nusbaum Realty, said the building could grow taller than 22 stories.
"It all depends on demand," he said. "If we are able to attract most of the companies we're talking to, it will grow a few stories."
Nusbaum said his building will have the region's most pricey rent - about $30 per square foot - and that staying downtown will be more expensive for him and his tenants than relocating to the suburbs.
"But we're a Norfolk company," he said. "And we're paying a premium to stay here."
Wachovia's Dyckman said staying downtown was an important economic decision for his company.
"All of the shops and restaurants, everything that's going on downtown, that is important in recruiting and retaining good people," he said. "Our employees want to be downtown."
The office tower will be built atop a 500-car parking garage on the north end of the project. To the rear of the tower, a small parcel of land will be preserved by the city - perhaps as the site of a future symphony hall, Fraim said, though nothing is definite.
On the south side of the project, adjacent to the mall, a 1,500-car parking garage will be surrounded by five stories of apartments, and along Monticello Avenue, retail space and apartments.
The Nusbaum announcement comes amidst a downtown building boom that has changed the city's skyline but done little to ease the tight office space market.
The 20-story Dominion Enterprises Building, which will add 300,000 square feet of office space and more than 1,000 employees, opens Monday. Nearly all that space will be used by Dominion.
Harbor Heights, a 15-story, $38 million structure on Boush Street that includes condominiums, office space for Tidewater Community College and a grocery store, is under construction.
Turner Construction Co. will begin pounding the first of 1,300 foundation pilings next month for Granby Tower, a 34-story, $180.5-million condominium project that will be the city's tallest building.
Fraim said he expects to announce a deal soon on a Hilton Hotel that will be topped with luxury condominiums and be attached to a conference center, a $110 million, 25-story project.
Construction will begin on the Wachovia Center in mid -2008, Nusbaum said.
Fraim said the retail space will add a component missing from Granby Street.
"One of the main reasons you don't see a lot of retail on Granby Street is that there is not convenient parking for customers," Nusbaum said. "Our 50,000 square feet of retail is going to have 2,000 parking places right on top of them."
It will also be located adjacent to a plot of vacant land at MacArthur Center, where Taubman Co. has an option to build a third anchor store for the mall. Fraim said he hopes the retail component of Wachovia Center "will push Taubman to make a decision about a third anchor."
Nusbaum Realty decided to build apartments because it believes the current market has an oversupply of condominiums and not enough apartments. Rents haven't been set.
Nusbaum said Wachovia Center will be the first building his company has developed downtown in decades.
"We want this to be the premium address in the region for decades to come," he said.
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Great Idea
I think this is a great idea for Norfolk so they could improve downtown. The only problem is the project housing that is located near downtown. It seems like Va Beach is the only city that is getting all the fame and doing bigger things. I hope Norfolk could manage all this downtown work going on at the same time plus the need to place some focus on other areas like Ocean View and Denby Park. I am glad they building this because it would fit in with the rest of downtown.
im wit it
im wit it but y does dizz area complain about every little thing...u kno how many things pass us that we bypass its stupid...building the building is a good idea for living,jobs,stuff like that...thats what matters in the whole process peaople go over board and try puttin crime in the picture and all that ...it has nothing to do with tryna be like this place and tryna be like that...its about whats gonna help...we live in a big area without the support...hate it or love it...but i think tha granby tower,light rail,all this stuff is a good idea for the area
Too much complaining and whining
Traffic bad in Norfolk? I moved to downtown Norfolk about three years ago from Chesapeake. There is no more traffic in downtown Norfolk than there is in Great Bridge and Greenbrier, and often less.
A world class 20,000 seat sports arena? Who's going to pay for that? Is that supposed to be another thing on the back of the taxpayer's of Norfolk? Norfolk is growing up just fine, as evidenced by this and so many other quality projects recently or about to be built.
Boring? Taking a street level parking lot and adding this huge building with office, apartments and retail is exciting!
Most people do not go to Norfolk "only when forced to". The facts prove otherwise. There is parking everywhere (remember, this is a city, not Chesapeake Square Mall), some traffic is to be expected, and the city does a great job keeping things looking good in spite of all the construction.
An arena for college sports? ODU, NSU, VWC, Hampton, CNU, and William & Mary all have fine arenas.
Redevolpment
I've read the complaints from the disidents and i've found most of them to be "transplants". I simply say, If you find the area so "distasteful" an un-acceptable, Move to a place where you relish.
All of these "misfits" carp and complain and do nothing to alleviate the situation.
I doubt if any of them know just how far Norfolk has improved and what it has taken to do it. I appreciate what has taken place and I feel in my heart that Norfolk will attain greater results.
My message is, "If you don't like the area leave as soon as possible!!!. You and all those that think like you will help alleviate traffic.
Why did you come here anyway?, what have you done constructive for the city?
Ideal location....
Who wouldn't want to look out over the project housing immediately across the street or the severe traffic jams right there along Monticello every evening. Hey, you can count the number of gun shots every night from your penthouse balcony!! Ocean, shmocean! As for spending a day in downtown, go back to VB, its safer and there is more to do than just go to the mall or the overrated/overhyped/overpriced Nauticus.
Hampton Roads (Norfolk) vs. Triangle Park (Raleigh)
I agree with " Larry S. " out of Hampton in regards to Norfolk-VA Beach metro desperately needing a sports arena, really the metropolitan needs a state of the art arena for college sports and concert events. I was born in Norfolk, VA in the 80's and from there on up until 2002 I resided until I relocated to Raleigh-Durham for my job. I agree with Larry a lot, even though Hampton Roads is a major metropolitan of the southeast, it's fairly unique compared to all others, simply because its the only seven city metro on the coast, others cities like Orlando are just the epicenter city with 3 or 4 suburbs at the most. Norfolk is one of the oldest cities in America's History, I think Virginia's house is more focused on embracing Virginia Beach as the focal point of Hampton Roads. Norfolk has had over 400 years of relivance of Virginia's first city, really America's first port city, compared to citys that should be where Norfolk is such as Wilmington, NC which believe it or not in the 1860's.
about time
I think it's great,downtown norfolk is a great place to spend a weekend day,great sceneary better than looking out at the ocean.
Give me an old box building, functional and inexpensive.
"We're in a very competitive market, but this shows that people want to do business downtown. Most people (myself included)only go to Norfolk when I'm absolutely forced to. Parking stinks, traffic stinks, the place is filt, hard to get around and looks like the slums. I don't think many people "want to do business" in "downtown norfolk." I find norfolk to be little more than big city wannabe. Politicians, developers and transplanted northerners are the only people that want to build it up more. It's congesstive enough as it is and the developers and planners don't seem to think it's necessary to build roads and parking to support their big dream plans.
Boring!
I agree with you Ray J, can we get something a little more sleek and modern? He says, "we want this to be the premium address in the region for decades to come." But the design looks like another Trader building for the most part. Except for the glass top portion. The retail rendering also looks like town center in VB. All they did was copy Reston Town Center. The store fronts are the same old boring red brick with traditional awnings. Lets think outside the box, decrease the footprint and increase the height. Can we stop with the 20 story buildings! Change the sky line please!
1st Light Rail hub destination
what a great light rail hub destination. I'm sure that more will be on the way. This will ease traffic congestion coming into the downtown building.
I lived in Balt. 10 years ago and used the light rail to go to work downtown and saw how it spurred development along it's route.
Way to go Norfolk!!
Yawn
Yawn.
Boring.
When are we going to get some dynamic, exciting architecture in downtown Norfolk? This is just another box, filling the block. Seems developers would want to "out-do" each other in the way of creating more interesting environment for potential occupants. It works that way in Atlanta, Washington and other major cities.
This is about as dynamic as that new box on Granby at City Hall Avenue; Not.
And what about that Bloomingdale's that they touted when the mall was being developed. They seem to be out of the financial slumpt they were in. We don't need a Macy's as they are now a dime-a-dozen in the Severn Cities, but a Bloomies would be a great addition to the downtown shopping arena.
Please..........rethink this opportunity to do something that creates visual excitement and an interactive environment. Everything downtown is starting to look the same..........blahland; with more to come!
Kind of Sad
So in instead of a world-class 20,000-seat sports arena that Norfolk desperately needs, and does not have "the money" for, Norfolk has to settle for another shrimpy skyscraper, below 400 feet tall.
Pathetic, it seems like Norfolk does not want to be like competitive cities, such as Charlotte, Raleigh, Jacksonville, Nashville or even Oklahoma City. Even New Orleans still looks!!!! Those cities are in regional command with their modern arenas and gigantic skyscrapers. I guess Norfolk will always be Virginia's low-class navy town, where big corporate businesses, big indoor concert acts and professional sports teams will continue to bypass, because all Norfolk has is the 1971-built Norfolk Scope and the new 450-foot tall Granby Tower. And why, because of the everlasting excuse of the lack of regional cooperation. Dallas gets along with Fort Worth; Tampa gets along with St. Petersburg. Why can't Norfolk do the same, with its regional neighbors?
Norfolk, grow upand get serious!!!!!!!
another great piece of the puzzle coming together
Another complement to norfolk who is championing superb urban planning. instead of the sprawling unmanaged growth that so many cities in virginia have embraced. The node of activitiy with the new federal bldg tower, wachovia bldg and granby tower expands the vibracy of the entire downtown area.
Traffic and More Traffic
Sounds great but what is the City doing about the roads to support these new developments? Traffic is already atrocious in Norfolk.
Awesome!
Awesome! More office space and apartment space to depress the rates in both markets! Not to forget a nice looking building! Keep it up!! As for a sports arena, the sports teams want too much handout.
Noooo!!!
I love all the news on these new high rises. Great for Norfolk and our region. But, it's on hallowed ground for our a new arena our region desperately needs. I wonder if Norfolk has found a better location for an arena. I hope!
A better Norfolk!
Now this is the kind of projects that benefits everyone: the city, the developer and the citizens. Tell that clown that wants city subsidy to build a hotel to go elsewhere!