Jones Lang LaSalle Incorporated : Sale of landmark office building in Richmond closes

WASHINGTON, D.C. - July 11, 2022 -JLL Capital Markets announced today that it has closed the sale of Gateway Plaza, a 328,581-square-foot, landmark trophy office in Richmond, Virginia.

JLL marketed the property on behalf of the seller, an affiliate of LXP Industrial Trust. Northridge Capital, LLC acquired the asset. In addition, JLL has been retained for leasing and property management services at the property.

Built in 2015, the 18-story Gateway Plaza is 97.6% leased to a variety of creditworthy tenants across a diverse range of industries, including law, banking, energy products, financial services, real estate and consulting. The property is anchored by McGuireWoods, an international law firm.

Located in Richmond's CBD at 800 East Canal St., the office building offers convenient access to the live-work-play amenities offered by the River Arts District and the greater CBD. Gateway Plaza has multiple points of ingress/egress and offers superior access to Interstates 95, 195 and 64, the area's primary transportation arteries. With just under 180,000 employees within a five-mile radius, the property benefits from the areas highly educated work force, many of which are graduates of the local universities.

Gateway Plaza further benefits from the high barriers of entry due to limited availability of developable land sites, which limits new, large block availability. There are currently no availabilities within Richmond's CBD larger than 150,000 square feet, leaving no options for large tenants to relocate within the submarket. Moreover, with no new office developments on the pipeline, this trend of limited large block supply is expected to continue. In addition, Richmond is seeing a flight to quality in recent years, which paired with the limited supply of premier office space, has driven down trophy vacancy rates to 3.4%.

The JLL Capital Markets team representing the seller was led by Managing Director Chris Lingerfelt, Director Daniel Flynn and Senior Managing Directors Ryan Clutter and Andrew Weir.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients - whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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