Projects We’re Excited About: Delta Center - City of Hopewell, Virginia

“If you’re looking for commercial office space in Hopewell right now, it doesn’t exist.”?

Ray Miller, principal at Delta Citation, shared this thought with our team in March 2024. It’s a problem that inspired him nearly two years ago to take on the largest renovation of a commercial office space the City of Hopewell has seen in years, and we are thrilled to be a part of the process as he prepares the space to lease.

“This has been an opportunity to work from the ground up on a unique property that has been forgotten about for a long time,” says Eric Hammond , Vice President at Commonwealth Commercial. “It’s an opportunity for us to showcase a rehabilitated, high-end office building that has few competitors in the south Richmond, Hopewell, and Petersburg areas.”?

In economic development circles, this building is in the heart of Virginia’s Gateway Region.

THE PROJECT

Since 1914, the City of Hopewell, Virginia has been widely regarded as an industrial hub.?

Situated at the confluence of the Appomatox and James rivers, Hopewell is just east of both Richmond and Petersburg. The city was incorporated in 1916 after the DuPont Company purchased 1,600 acres and built the largest gun cotton plant in the world. A number of other companies set up shop in Hopewell following DuPont, including Tubize and ANCO (now Allied Chemical).?

In the 1950s, the Allied Chemicals headquarters in Hopewell was a complex that consisted of multiple mid-century modern buildings. One of those buildings—710 S. 6th Street in downtown Hopewell—is the property Miller and his team chose to revitalize as the Delta Center.

“This is a special building,” says Miller, whose company has spent roughly $1M on renovations to the Delta Center. “Our acquisition of the property is consistent with our mission of identifying undervalued assets in the region. This property fit the bill; it had been vacant for about five years. We saw an opportunity.”

Miller purchased the property in 2022. The building itself is two stories with available office space ranging from 4,515± RSF up to 21,515± SF. The property also boasts about five acres of attached, industrial-zoned land. Given the property’s proximity to TriCities Hospital (less than a mile away), Miller is hopeful that the Delta Center will appeal to medical and allied health professionals.

“We’re lucky to work with clients who see value in areas many developers would normally pass on,” says Michael Mayhew , First Vice President at Commonwealth Commercial. “Richmond’s, and especially Chesterfield’s, population has increased significantly in the past ten years. Low vacancy rates and increasing rents have pushed some users out of the Richmond market looking for reprieve. This property will be a Class A option with elevated finishes at a discount compared to Richmond prices.”

THE IMPACT

The Delta Center will no doubt fill a need in Hopewell that has been lingering for years and years. But it’s not just about providing a product; the revitalization is about an investment in Hopewell and the people who call the city and surrounding counties home.

“Hopewell has some great fundamental building blocks,” says Hammond. “It has major industry like Dominion, AdvanSix, and Evonik; good access to the rail and highway system; and a pro-business city government. Some of the same gains that Richmond has seen filtered down from exploding NOVA markets may trickle down to Hopewell as Richmond’s market continues to grow.”

“The site is zoned M-1, which allows a wide array of light industrial uses,” says Bennett Charles , director of economic development and tourism for the City of Hopewell. “The demand for M-1 and M-2 space in Hopewell is very high. There is currently 99% occupancy in this product type. The completion of the Delta Center will provide the market with space to bring new business and expand existing services to the industrial manufacturing base.”

Bennett says the Delta Center at 710 South Sixth Street is located in the Hopewell Enterprise Zone. Businesses who locate here are eligible to receive both state and local benefits, including reduced taxes, grants, and waived permit and development fees.

THE TIMELINE

The Delta Center will be ready to start welcoming occupants in late-Summer 2024. While the team is currently in the process of completing exterior work, the interior demolition is complete and ready for build-outs now.

“If we had someone right now who wanted to lease space and do a build out, that’s something we could do in two months,” says Miller. “That’s the benefit of us being the builders and the owners; we have the ability to self-perform any particular build out that someone might desire.”

“Residential, retail, and industrial are all facing record low vacancy rates,” says Mayhew. “Suburban office parks in the Richmond MSA are thriving despite the headlines more focused on central business districts. Developing new product requires the finding and entitling of properties, which is a lengthy and sometimes fruitless process. There is value in property that is entitled and already built—even if it requires some upfit.”

For more information about the Delta Center or to speak with a Commonwealth Commercial team member, contact Eric Hammond at [email protected] Michael Mayhew at [email protected].

For more information about the Hopewell Enterprise Zone and business opportunities in the City, contact the City of Hopewell Department of Economic Development at 804-541-2270.