The nearly 3-acre Scott’s Addition assemblage is selling for $10.8 million
There was another record-breaking land deal in Scott’s Addition.
Last week, Capital Square bought about 2.7 acres of land near the intersection of West Marshall Street and Altamont Avenue for $10.8 million.
The bulk of the deal involved N. Chasen & Son’s holdings at 2919-2924 W. Marshall Streets and 2915 W. Clay Streets. Capital Square also acquired the boarded up building of the former Boulevard Baptist Church at 2944 W. Marshall St.
The deal is for $4 million per acre, the highest land sale ever in the coveted area. The previous high was held by the DC development group, which purchased 1117-1209 N. Arthur Ashe Blvd. last year for $3.8 million per acre.
Capital Square plans to demolish the existing structures to make way for a trio of 350-unit mid-rise apartment buildings.
The project has been in the works for over a year as Capital Square originally planned to partner with Maryland-based Lerner Enterprises. In addition to their developmental work, the Lerner family is also the majority owner of the Washington Nationals, although it is recently reported that they are investigating the sale of the baseball franchise.
“We amicably parted ways over time,” said Adam Stifel, Capital Square’s executive vice president of development, of the company’s relationship with Lerner. “We just focused more on Richmond and Scott’s Addition than they did.”
The Chasen family bought their lots at Scott’s Addition in the early 1970’s and have operated their painting and carpentry business in the neighborhood ever since. N. Chasen & Son will remain there until the end of 2022, after which Capital Square plans to start demolition and construction in the first quarter of 2023, according to Stifel.
- N. Chasen & Son CFO Leisa Deffenbaugh said the business will continue, albeit with a new headquarters.
“We’ll be finding a new home soon, but I can’t share anything yet,” Deffenbaugh said.
The seller of the property adjacent to the Boulevard Baptist Church was the First Baptist Church of Richmond, according to city records.
Not included in the sale was Longoven’s neighboring home at 2939 W. Clay St., which N. Chasen & Son retains and continues to lease to the restaurant.
The Chasen properties were valued at $7.2 million and the church building at $842,000. CBRE’s Jason Hetherington, Chris Wallace and Matt Hamilton represented the Chasens in the deal.
Stifel said the new apartments will be similar in design to The Otis, the six-story building Capital Square is working on at 1601 Roseneath Road with South Carolina-based developer Greystar. Like The Otis, the new project comprises four floors of apartments on two floors of structured parking and Poole & Poole Architecture is the designer of the project.
The two projects will differ, among other things, in the amount of commercial space. While The Otis has about 10,000 square feet of commercial space — and has secured tenants like PlantHouse, Grit Coffee and Charlottesville-based bakery Cou Cou Rachou — Stifel said the project on the Chasen lot will likely have between 2,500 and 5,000 square feet of commercial space.
Stifel said the success of pre-letting the nearby Scott’s Collection apartments in Capital Square has prompted the company to continue planning projects in the neighborhood.
“We’re doing a really good job on our first deal across the street,” Stifel said, pointing to the Ink Building at Scott’s Collection at 3000-3008 W. Clay St. “We have learned some lessons from what the market wants.”
Nearly 2,500 residential units are currently under construction or planned at Scott’s Addition.
One project that has recently come to light is a 250-unit building designed by Blackwood Development at 1701 Roseneath Road.