Update: CoStar to construct tallest building in state along Richmond River
Commercial real estate data giant CoStar Group is set to make a splash in Richmond with its own commercial real estate project.
The DC-based company on Friday morning announced plans to build a new office complex along the downtown river next to its current main local office at 501 S. 5th St.
The campus, which CoStar CEO Andy Florance described as the company’s “HQ2” would span 750,000 square feet and consist of a 26-story office building and a 6-story mixed-use building.
The project represents an investment of $ 460 million and would bring 2,000 additional jobs to Richmond over the next few years, adding to the 1,000 employees CoStar already has here. This would make it the largest office in the company.
Florance said about 1,000 of the newly created jobs will be in software development and that CoStar also plans to dedicate resources to its residential real estate divisions following its recent acquisition of Norfolk-based Homes.com.
The new building would not only be the tallest building in the city, but also in the entire state. At 510 feet, the CoStar Tower would barely exceed the current tallest building in the Commonwealth, the Westin Virginia Beach Town Center, which the Skyscraper Database says SkyscraperPage, reaches 508 feet.
The project architect is Pickard Chilton, the same company that designed Dominion Energy’s new downtown office tower. Spokesmen for CoStar said a general contractor has yet to be selected.
The project can benefit from public funding. An announcement from the governor’s office says up to $ 15 million would be invested in infrastructure around the complex, including improvements to pedestrian access, improved roads and traffic, and public services.
Investment in infrastructure is subject to the approval of the General Assembly’s Major Employment and Investment Project Approval Commission.
When complete, CoStar will occupy approximately 1 million square feet of office space in downtown Richmond. He is currently the main tenant of the former nine-story WestRock building on 5th Street, which he purchased earlier this year. for $ 130 million.
The new complex would be built on a 4-acre parcel at 600 Tredegar St. that CoStar bought last summer for $ 20 million. Florance said she has acquired all of the land needed to build the complex, but noted that the company has a contract on an unidentified Richmond building that it will use as transitional space until the new buildings are completed.
The company also leased the entire 13,000 square foot area this year. Pattern building at 470, rue Tredegar., and sublet 51,000 square feet on the ninth, tenth and eleventh floors of the East Tower of Riverfront Plaza.
Florence said the new complex will include more than office uses.
“We bring Tredegar Street to life by bringing restaurants, art galleries and retail (at ground level),” said Florance.
He added that it will also have an indoor events hall and an outdoor amphitheater that can accommodate concerts, especially during the folk festival.
CoStar is looking to innovate between mid to late 2022, and Florance has said he expects delivery in 2024.
“There is a lot of work to do, but that’s our goal,” said Florence.
The announcement was made on Friday morning in conjunction with the governor’s and mayor’s offices, in what Gov. Ralph Northam said was likely one of the last economic announcements of his tenure. Mayor Levar Stoney was also present.
BizSense reporter Michael Schwartz contributed to this story.