Demolition has signaled the start of a redevelopment of a longtime motel site on Brook Road in Henrico – one of three residential projects in the Richmond area that an out-of-town developer has in the pipeline.
Vienna-based Middleburg Communities held a “demo day” event last week to kick off The Brook, a primarily residential development that will replace the former Knights Inn motel at 9002 Brook Road with more than 300 apartments and townhomes, along with a commercial outparcel building.
George Elias, Middleburg’s development manager, said the demolition work would wrap up this week, setting the stage for a two-year project that’s scheduled to start delivering units in the second half of 2024. S.B. Cox and Middleburg Construction conducted the demolition.
“We’re excited about the revitalization of the Brook Road corridor here, and we appreciate Henrico County’s support,” Elias said, referring to rezoning and permit approvals secured last year.
Noting that the project involves a county tax abatement for redevelopment of hotel and motel real estate, he added, “We appreciate Henrico County putting together those programs to incentivize developers like us to continue to invest in this corridor. Those are great and make it easy for us to move forward from a financial standpoint.”
A joint venture between Middleburg and The Resmark Cos., a Los Angeles-based investment firm, The Brook is to consist of five four-story buildings that will house 274 apartments, a townhome section with 36 rental units, and a commercial outparcel building fronting Brook Road. Elias said a commercial tenant has not been lined up.
Rents for the apartments and townhomes will be market-rate, and planned amenities include a pool, fitness center, co-working lounge and dog park. Middleburg has not disclosed a cost estimate for the project, which is being financed by Truist Bank.
Middleburg and Resmark paid over $6 million for the 13-acre site in three transactions that closed in March. They paid $4.4 million for the 7.5-acre motel site, and $1.77 million combined for the rest of the land, which consisted of eight additional parcels. Henrico County had assessed the nine parcels at $1.8 million collectively last year.
The Brook adds to a wave of new development in the area revitalizing that stretch of Brook Road, particularly the massive Retreat at One project that Stanley Martin Homes is developing across the street from the motel site. The corridor is also near the planned GreenCity development, which Middleburg has said drew it to the area.
“We’re excited to provide some supply of rentals in this area. It’s a growing area with a lot of demand,” Elias said. “Across the street you’ve got Stanley Martin’s Retreat at One, so you see a lot of other people investing in this area. We’re excited to see what the future of the Brook Road corridor looks like.”
South Carolina-based SGA | NW Design is the architect on the townhomes, and North Carolina-based Design Resource Group is the engineer on the project, according to plans filed with the county.
Meanwhile, Middleburg also is getting started on Hamlet at Watkins Centre, a 283-home development in Chesterfield County on a 30-acre site at 15100 East West Road, which Middleburg purchased in March for $4.5 million. Online property records did not include a county assessment.
The build-to-rent community will consist of 111 cottage-style homes, 12 duplexes and 37 townhomes, with a mix of surface and garage parking. The homes will range in size from about 780 to 1,800 square feet.
Construction is set to start in coming months, with units cominf online in 2025. EagleBank is providing financing for the project.
Also in Chesterfield, Middleburg is planning Hamlet at Falling Creek, a 365-unit community on nearly 100 acres at 12600 Genito Road. The cottage-style homes also will be build-to-rent units, meaning homes built specifically as long-term rentals.
Middleburg bought that 96-acre site in February for $3.2 million. The county had assessed the property at over $4 million. The seller was Stigall Family Ltd. Partnership.
Elias said Middleburg is bullish on Richmond and is on the hunt for more work in the market. Founded in 2004, the company has acquired or built over 20,000 apartments in markets primarily in the Southeast, according to its website. It also has properties in Nebraska, Texas and Utah.
“We’re investing in Richmond, with the growth around Henrico County, Chesterfield County, and looking at projects all over the greater Richmond area,” Elias said.