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Pembroke Mall Revelopment (Ongoing-Phase 1)


urbanlife

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With Seritage selling off their portfolio, any word on if the developer plans to acquire the Sears parcel? The announced phase 4 & 5 office buildings would be on that parcel but there hasn’t been any info about whether they planned to acquire or JV the site for those phases. 

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3 hours ago, Lluck002 said:

Haha sorry to everyone about that. I should have posted the pics after a short explanation :tw_sweat_smile:

Thank you! I wanted to stay with Virginia Beach to help make more of a positive impact but I was blocked from any sort of advancement here… so I’m moving on to where they are offering me advancement. The Virginia Beach Department of Planning & Community Development has a super high turnover rate for a reason. It’s been an ongoing pattern where young, ambitious, knowledgeable, skilled Planners like me come in, run into the same issues, and then end up being recruited by a more innovative jurisdiction willing to embrace young talent. I’ll forever be grateful for what Virginia Beach taught me and again, I do really care for its future. I’ll still be around from time to time and you know I’ll still be checking up on development news here frequently :tw_smile:

 

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On 9/3/2022 at 12:50 AM, HRVA said:

With Seritage selling off their portfolio, any word on if the developer plans to acquire the Sears parcel? The announced phase 4 & 5 office buildings would be on that parcel but there hasn’t been any info about whether they planned to acquire or JV the site for those phases. 

I have some rather shocking news to report, friends.  Just today, Mr. Ramsay Smith has informed me that Pembroke Square Associates has passed on the Seritage property (formerly Sears, now Decisions) because they deemed the building's 15 year lease to be untenable. 

However, there is a buyer for the site.

And that buyer is...............................

Armada Hoffler  

Yes.  AH is jumping the street...and (potentially) crashing the party.   

 

 

Edited by baobabs727
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2 hours ago, baobabs727 said:

I have some rather shocking news to report, friends.  Just today, Mr. Ramsay Smith has informed me that Pembroke Square Associates has passed on the Seritage property (formerly Sears, now Decisions) because they deemed the building's 15 year lease to be untenable. 

However, there is a buyer for the site.

And that buyer is...............................

Armada Hoffler  

Yes.  AH is jumping the street...and (potentially) crashing the party.   

 

 

Wow. Guess that explains why Divaris continues to market the Decisions space despite their occupancy. The earnings call after this closes should be interesting. 
 

Edit: they’re no longer marketing that space as of a couple of weeks ago. They left it out there for nearly a year after Decisions announced though. 

Edited by HRVA
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2 hours ago, vdogg said:

So, they're buying out the competition to what, squat on another valuable piece of land?  I'm really not liking the sound of this...

Yep. Pretty much. In a nutshell.

I told Mr. Smith that if City Council denies any forthcoming (April 2024) request by A/H for yet another Block 2 option renewal, Pembroke Associates should bid on the option, win...and then build the tallest, shiniest office tower...right smack dab in the heart of AmadaHoffler-land! Oh the delicious irony of it all.  Turnabout is fair play!

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  • 1 month later...
  • 5 weeks later...
8 hours ago, HRVA said:

AH closed on the Sears building last Friday. The discussion during the earnings call seemed to indicate it was purchased as an investment with no mention any development plans. 

https://seekingalpha.com/article/4554834-armada-hoffler-properties-inc-ahh-q3-2022-earnings-call-transcript

Right. There is a 15 year lease on that, as you know. A/H will hold.  It also prevents Pembroke Square (PS) from doing anything there.  Likley ever.  JUICY. Of  course, PS passed on it, willingly, because of that lease.  They wanted to re-develop  well before then, and any buyout would have been too rich.  Sad thing for them is that Mr. Smith told me eons ago that Sears was the property he had always wanted, strategically-speaking, to "open up new opportunities" for Pembroke Mall's future redevelopment.  Personally, and somewhat facetiously, I really hope Pembroke Square bids on the old Beacon Building parcel...if and when A/H loses its option...haha. I floated that "dream" to Mr.  Smith, that their counter move would be to bid, win and then build a tower right smack dab in A/H's "territory."  He responded with, "now THAT would be a beautiful thing!"  I'm sure he was joking, but I wasn't! haha. Oh well,  a man can dream, right?! :) 

Edited by baobabs727
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  • 3 months later...
On 11/11/2022 at 7:53 PM, baobabs727 said:

Right. There is a 15 year lease on that, as you know. A/H will hold.  It also prevents Pembroke Square (PS) from doing anything there.  Likley ever.  JUICY. Of  course, PS passed on it, willingly, because of that lease.  They wanted to re-develop  well before then, and any buyout would have been too rich.  Sad thing for them is that Mr. Smith told me eons ago that Sears was the property he had always wanted, strategically-speaking, to "open up new opportunities" for Pembroke Mall's future redevelopment.  Personally, and somewhat facetiously, I really hope Pembroke Square bids on the old Beacon Building parcel...if and when A/H loses its option...haha. I floated that "dream" to Mr.  Smith, that their counter move would be to bid, win and then build a tower right smack dab in A/H's "territory."  He responded with, "now THAT would be a beautiful thing!"  I'm sure he was joking, but I wasn't! haha. Oh well,  a man can dream, right?! :) 

I do hate that Armada Hoffler sits on land that really needs to be developed and they also seem to be investing heavily in Baltimore right now (look at their LinkedIn; they’re building tons of modern towers along the waterfront), but they are at least pretty experienced when in comes to Urban Design. Pembroke Square Associates is quite small and is only used to developing more traditional suburban retail and such. I hope the two can work together to create a nice extension of Town Center. I could see acquisition in the future maybe. 

On 11/15/2022 at 12:47 AM, urbanlife said:

Hopefully some residential towers will get built in the Pembroke Mall redevelopment because the downtown could definitely use some tall residential towers. 

YES! Exactly! Hampton Roads needs a ton more housing and some nice sleek mixed-use residential skyscrapers would really make a statement. Hampton Roads needs to show the world it should be taken seriously again. 

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7 hours ago, Lluck002 said:

I do hate that Armada Hoffler sits on land that really needs to be developed and they also seem to be investing heavily in Baltimore right now (look at their LinkedIn; they’re building tons of modern towers along the waterfront), but they are at least pretty experienced when in comes to Urban Design. Pembroke Square Associates is quite small and is only used to developing more traditional suburban retail and such. I hope the two can work together to create a nice extension of Town Center. I could see acquisition in the future maybe. 

YES! Exactly! Hampton Roads needs a ton more housing and some nice sleek mixed-use residential skyscrapers would really make a statement. Hampton Roads needs to show the world it should be taken seriously again. 

Opportunistic much, A/H? UGH. They've pretty much declared their endless patience with intent to sit on the southern portion of the  Columbus Village property....  And when they do re-develop, it's likely going to be a sea of mid-rise boxy apartments with a literal sprinkling of "mixed-use."  How exciting.  

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It goes back to the story about the developers in Norfolk that create large scale projects all over the country…..except in Norfolk. City council called them out over the issue recently. 

Why is AH okay with building big everywhere but their own backyard? And why does council allow them to do so? That should be a no-brainer. 

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4 hours ago, BFG said:

It goes back to the story about the developers in Norfolk that create large scale projects all over the country…..except in Norfolk. City council called them out over the issue recently. 

Why is AH okay with building big everywhere but their own backyard? And why does council allow them to do so? That should be a no-brainer. 

Norfolk calling out Hampton Roads Ventures is different because that entity is a subsidiary of NRHA. It’s a weird situation but it’s not the same as what you’re suggesting. 
 

The city should claw back the Beacon site as soon as they can and make it available to anyone with an appropriate proposal but they can’t and shouldn’t demand AH build something that doesn’t meet their financial requirements. They’re building offices in Baltimore because of significant preleasing commitments - that’s obviously not happening here. 

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  • 2 months later...

I'm sorry to say that I have some somewhat sobering news on Pembroke Square. Mr. Smith informs me that 1) As a result of very unfavorable economic conditions, the hotel design has been altered significantly, and the branding has also been modified. The hotel will now be 7 stories instead of 15, with the top 5 floors being stick-built.  Additionally, there will be only ONE Hilton product, not two.  He didn't say which one survived; 2) The hotel construction will actually start prior to the multi-family component; 3) They are programming Phase 4. Details to come. He did not say how any of this will affect the public garage and the nationally-branded signature restaurant(s) in the hotel. I'll follow up.  Overall, a bummer of an update, but what can you do? 

Update Edit:   Signature Restaurant (1) is still a go. Parking structure will be reduced from 3 levels to 2.  

Edited by baobabs727
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This is terrible. I'm so tired of this happening in our area. We just can't catch a break. I was so looking forward to this project too. Wouldn't it just be better to wait until conditions improve than build something mediocre? Nothing to really look forward to now at Pembroke. Wouldn't be surprised if the multifamily component follows suit.

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