A portfolio of properties along North Sheppard Street in Richmond’s Museum District that have been under the same owner for decades has sold for $4.7 million.
The Premier Companies, a Bethesda, Md.-based commercial real estate investment firm, property manager and leasing company, acquired the 18 parcels that are mostly in the 600 and 700 blocks of North Sheppard Street at Park Avenue, according to commercial real estate brokerage Marcus & Millichap, which had listed the portfolio.
The properties were bought by entities tied to The Premier Companies — Parsons Museum District LLC and Cutler Museum District LLC, according to Richmond’s online property records. The sale was completed Dec. 23.
The properties combined are assessed for more than $3.15 million, the online property records show.
“It is rare to have the opportunity to buy two city blocks of contiguous parcels in a close-in location surrounded by new development, beautiful neighborhoods, and world-class museums,” said Jonathan Cutler, Premier’s president.
“The current intention for this property is a long-term hold,” he said. “Premier recognizes the development potential, which will hopefully add value in future decades, but our intention here is to manage and own these properties for the foreseeable future.”
The buildings are home to several commercial tenants, including Buddy’s, Arianna’s Italian Grill and Sheppard Street Tavern. One parcel is the parking lot behind Arianna’s. The buildings between Patterson and Park avenues are on the west side of the street, across from a 7-Eleven, which is owned separately.
The portfolio has a total of 22,599 square feet of retail property.
The parcels had been owned by Bedros Bandazian through various limited liability companies. Bandazian, who started Bandazian and Co., has owned the properties since the 1980s.
“The seller had created value by assembling the portfolio over the last 40 years,” Cutler said. “In our opinion, many of the leases are significantly below market and some are planning to roll soon, so we see the opportunity for long-term value creation through attracting new tenants and Premier’s hands-on brand of management. We do hope to work with the existing tenants.”
Marcus & Millichap began marketing the properties in June. The listing agents were Michael J. Early, Marcus & Millichap’s first vice president of investments; Emily Pochter, an associate; and Martin Mooradian, a senior associate.
“The assets sold at very strong pricing despite hitting the market with Marcus & Millichap during the COVID-19 pandemic,” said Pochter, who attributed it in part to strong demographics, long-term tenants, and withstanding investment potential.
The parcels had been under contract to be sold earlier this year to a group of local partners.
But after looking at the cost of redevelopment, the partners decide to withdraw the offer, said David T. Kalman, vice president at real estate brokerage of S.L. Nusbaum Realty Co. Kalman, along with Nathan A. Shor, the brokerage’s senior vice president, and Danny Meyer, president of Richmond-based Dallan Construction, had put the properties under contract in early January.
The Premier Companies own and manage other properties in the Richmond region, including part of the West Broad Village retail space, the Brookhill Azalea Shopping Center, the Meadowbrook Shopping Center and the Premier Tech Center on North Parham Road.
In October, the company sold the Richmond Business and Medical Center five-building campus on Bremo Road in Henrico after owning it for 15 years.