Highwoods Properties to build a medical office building in Richmond
Highwoods Properties Inc. announced Tuesday that it has signed a long-term build-to-suite lease with Virginia Urology.
Highwoods said it will develop a $29 million, 87,000-square-foot, three-story building that will serve as Virginia Urology’s headquarters and medical facility in Richmond’s Stony Point submarket, not far from one of VU's current facilities.
VU will be the only tenant. The investment on the 100 percent pre-leased development includes structured parking and the value of the company-owned land.
Construction is expected to be completed the end of the third quarter in 2018.
“We are pleased to have been selected by Virginia Urology to build their new headquarters,’’ Ed Fritsch, the president and CEO of Highwoods Properties, said in a statement.
Brigette Booth, Virginia Urology’s CEO, said the new space “will enable us to provide our services in a more cost-effective manner, ensure the highest-quality care and better equip us to respond to ongoing and rapid changes in health care. The location is a perfect fit given its access from major roadways, visibility and convenient location to our existing facility.”
Highwoods, a publicly traded real estate investment trust based in Raleigh, N.C., owns four buildings encompassing 460,000 square feet in Stony Point that it said, on average, are 96 percent
occupied. The Highwoods Stony Point buildings are adjacent to the 669,000-square-foot Stony Point Fashion Park mall, located off of Chippenham Parkway. Highwoods also owns and manages many of the office buildings at the Innsbrook Corporate Center in Henrico County.
With the addition of this project, Highwoods said its development pipeline includes 1 million square feet, representing an investment of nearly $520 million that is more than 70 percent pre-leased.
Virginia Urology (VU) has operated in the greater Richmond area for more than 75 years. VU has seven office locations throughout the area and two licensed and accredited ambulatory surgery
centers. The practice currently has more than 45 providers including physicians that specialize in urology, urogynecology, anesthesiology, pathology, radiation oncology, and radiology.