Norfolk Southern sells former regional headquarters in Roanoke
Nearly 17 months after Norfolk Southern Corp. listed its regional headquarters building in downtown Roanoke for sale, the 11-story office property has sold to a group of local investors who plan to lease it to multiple tenants.
Both Norfolk Southern and 110 Franklin LLC confirmed that the sale had closed for an undisclosed price.
“We’re currently talking with a number of tenants who could occupy one to two floors. We’re hoping we can begin announcing tenants over the next six months,” said Blair Godsey, the managing member of 110 Franklin and a partner and the director of operations and business development at Altus Group Inc., a Roanoke construction firm.
“Generally, these are companies that are in the market, expanding in the market, some that are in downtown and some that are not,” he added. Planned Improvements iinclude a renovation to the building's main lobby, the addition of a fitness center with locker rooms and landscaping upgrades with an outdoor plaza.
Godsey said the investor group has engaged the Roanoke office brokerage group of Cushman & Wakefield |Thalhimer to handle leasing.
The 203,632-square-foot building went on the market in 2015 following Norfolk Southern’s decision to move 426 jobs from Roanoke to Norfolk or Atlanta. The building, located in the heart of the city’s downtown central business district at 110 Franklin Road SE, is one of Roanoke’s landmark office assets. Situated on 1.4 acres, it’s visible from nearly all points downtown and nearby Interstate 581.
The Class A building was built in 1992 for Norfolk Southern. It offers an elegant entrance lobby, executive offices, conference rooms and open workstations. The building has been vacant since summer of 2015 following the jobs relocation.
Poe and Cronk Real Estate Group in Roanoke and Colliers International in Richmond facilitated the sale on behalf of Norfolk Southern. At one point, the asking price for the building was $19.9 million.