NORFOLK, VIRGINIA:  Cushman & Wakefield | Thalhimer’s Capital Markets Group is pleased to announce the sale of One and Two Commercial Place in Norfolk, Virginia on behalf of the owner, an institutional investor represented by Cornerstone Real Estate Advisers.  Commercial Place has long been the hub of the central business district’s cultural, financial and trading districts since the early 1800s.  At the time of the sale, One Commercial Place, totaling 317,024 square feet and anchored by Maersk (14% GLA) and Bank of America (10% GLA), was 33% leased.  Two Commercial Place, recently vacated in its entirety by Bank of America, was sold completely vacant.

“One and Two Commercial Place are ideally located on three of the largest and most central blocks in Norfolk’s central business district,” said Eric Robison, Senior Vice President with Cushman & Wakefield | Thalhimer’s Capital Markets Group. “Interest in this opportunity was strong and bidding was competitive, indicative of a surging investment climate and investor confidence in downtown Norfolk.”

The property is in the heart of the Norfolk CBD, with a multitude of nearby amenities including The Main, MacArthur Mall and the Waterside District. Rob Wright, Senior Vice President with Cushman & Wakefield | Thalhimer stated about the transaction, “This transaction marks a significant reduction of available inventory in the Norfolk CBD office market. Coupled with increased demand from users outside the market, overall occupancy and rental rates will climb back to levels the Downtown market has not experienced since the delivery of the Wells Fargo Center in 2010.”

Marathon Development purchased both buildings and an adjacent 785 space parking deck from the seller and plans to renovate One Commercial Place into upscale apartments while marketing Two Commercial Place to office users.  The vacancy in Two Commercial Place represents the first time the building has been available in its history, having originally delivered to the market in 1974.

Eric Robison and Rob Wright of Cushman & Wakefield | Thalhimer handled the sale negotiations on behalf of the seller.

Jared Chalk, Senior Business Development Manager with the City of Norfolk added, “In addition to the positive impact on the downtown office market, this transaction will accelerate the long term multi-faceted strategy to retain, expand and diversify the local economy by attracting residents, visitors, and workers that desire the benefits of urban living. This project will create a new complementary anchor that will help activate downtown and provide potential cross-patrons for other venues including the Granby Street, Waterside District and The Main.”