Asset Capital Partners acquired Pinewood Plaza, one of the highest grade office properties on the Virginia Peninsula.

HAMPTON, VIRGINIA -- Pinewood Plaza, originally constructed in 1986, was sold to Asset Capital Partners, LP late last year for $8.5 million, or $120 per square foot. The stand-alone, four-story office building is located at 1919 Commerce Drive in Hampton, Va. 

According to Michael Divaris, President of Divaris Real Estate, Inc., this ranks high on the scale of per-square-foot sale prices for the Virginia peninsula:  “It is one of the highest grade properties on the Peninsula,” said Divaris.  The Virginia Peninsula comprises the cities of Hampton, Newport News, Poquoson, Williamsburg, Gloucester, and the Counties of James City and York.

            Under DRE’s property management and leasing, the 71,066 square-foot Pinewood Plaza has increased more than 60 percent in value.  Contributing to this spike in value were a number of capital improvements made by previous owners Berman Kappler Properties, LLC.  In addition, the adjacent revitalization efforts orchestrated by the city of Hampton, and the stabilization of the property’s tenant base contributed to this increate in value.  Prior to Pinewood Plaza’s sale, the building’s lobby area was renovated and upgrades were made to the appearance and functionality of its elevator system. The cooling tower was also replaced.

            At the same time, Pinewood’s location began to work to its advantage.  “What has happened is that the city of Hampton has focused its attention on revitalizing the Mercury Central corridor with the creation of a Business Area Investment District, the construction of a new convention center and the addition of the Embassy Suites Hotel,” said Divaris.

The City of Hampton has given the green light to a number of area redevelopment projects, including the Power Plant of Hampton Roads, across Interstate 64 from Pinewood Plaza.  This project is anchored by the region’s only Bass Pro Shop.  The city is also working with the owners of Coliseum Mall to convert it into an open air, mixed-use lifestyle center project, called Peninsula Town Center.

            Pinewood Plaza’s current tenant mix—which includes GSH Real Estate, Boeing and Northrop Grumman—has also helped contribute to its enhanced value.  When DRE’s management and leasing assignment began, the occupancy level stood at just 75 percent.  DRE bolstered the building’s leasing activity to an occupancy level of 97 percent.

            Jason Oliver and Alex Divaris of DRE’s Investment Sales Group, and John Howley of the McLean, Va. office of Cushman & Wakefield, represented the seller, Berman Kappler Properties, LLC.  Pinewood is Asset Capital Partners' second Hampton Roads-area acquisition; the first was Hampton’s Executive Tower, in August 2005.