Capital City Partners, a new venture that includes associates of the rejected Navy Hill redevelopment project in downtown Richmond, has finalized its purchase of the city’s Public Safety Building at 500 N. 10th Street.
The conclusion comes four months after the Richmond City Council unanimously agreed to sell the nearly 70-year-old building for $3.5 million.
Capital City Partners said it would begin demolishing the building on the 3-acre property soon to make room for a $325 million, 500,000-square-foot tower development that will be anchored by VCU Health.
In addition to 150,000 square feet of VCU Health office space, the mixed-use development will feature lodging provided by Ronald McDonald House Charities and The Doorways for patients and their families, a VCU Health-operated child care center, 20,000 square feet of ground-level retail space, 90,000 square feet of Class A office space and more than 1,200 parking spaces.
City officials said earlier this year that the Public Safety Building is in poor condition, generates no tax revenue and costs the city about $390,000 annually. The city estimates that needed repairs and maintenance would cost about $21 million.
The city expects the redeveloped property will generate $16.8 million for the city’s general fund over the next decade and nearly $60 million from real estate taxes alone over 25 years.
Capital City Partners has hired the Philadelphia-based architects KieranTimberlake and the local architecture firm SMBW. The contractor for the project is DPR Construction with Canterbury Enterprises, representatives for Capital City Partners said in a news release Thursday evening.
“As downtown begins to rebound from the challenges of the past year, we know this project will breathe new life into a critical urban core and ensure Richmond’s key healthcare and support institutions are operating at full strength,” Susan Eastridge and Michael Hallmark, the co-developers of the project for Capital City Partners, said in the release.
“We thank the City for their support of this project and we look forward to helping our partners at VCU Health, The Doorways, and Ronald McDonald House Charities expand their services to patients and families.”