Norfolk Economic Development Authority Completes Sale of 824 Office Building at Military Circle
Fully leased redeveloped office building sold for $20 million dollars
NORFOLK, VA – The Economic Development Authority of the City of Norfolk (EDA) completed the sale of the 824 Office building to MPB, Inc for $20 million dollars. In 2014, the EDA purchased the building which was a former JC Penney’s for $2.3 million and redeveloped it into the 824 Office Building, a 200,000 square foot modern office space. The property is currently attached to the Gallery at Military Circle. As part of the sale, the buyer has agreed to work with the EDA to enable a successful redevelopment of the mall property and is supportive of the EDA efforts to create a mixed-use district in this corridor.
“The sale of the 824 Office Building to MPB, is another critical development as we lay the groundwork for the transformation of this emerging corridor. Continued direct investment signals that more long-term commitments will be made in the future to support a shared vision for jobs and an economically vibrant Military Circle,” said Mayor Kenneth Cooper Alexander.
This sale follows the recent acquisition of the Gallery at Military Circle, which was purchased by the EDA for $11 million as well as the acquisition of the former Doubletree Hotel for $2.4 million. The most recent property assessment for the site is mall site was $41.1 million.
“This sale provides the EDA with additional liquidity, places the property back on the tax rolls, and will continue to support the City’s efforts to redevelop this corridor bringing new jobs and quality new development while increasing the City’s tax base. We will continue to be aggressive in our redevelopment efforts of this important area.” – Jared Chalk, Executive Director of the EDA
A 2017 state-funded report completed by the City of Norfolk showed the potential for over 6,000 housing units and 16 million square feet of non-residential development in this corridor. A vision has been for a transit-oriented mixed-use development anchored with institutional and civic uses. The plan showed urban streetscapes, parks, and urban plazas with walkable and bikeable streets.
The EDA is a political subdivision of the Commonwealth of Virginia created by the City to acquire, own, lease and dispose of properties to promote industry and induce businesses to locate and remain in Norfolk. The mission of the Economic Development Authority (EDA) is to create jobs, maximize the utilization of Norfolk’s real estate, foster business capital investment, increase revenue by growing the tax base, focus on efforts to build on the strengths and the needs of neighborhoods, and support minority and small businesses.