Markel | Eagle Sells Richmond Office Asset for $56M

Deep Run 3

Markel | Eagle Partners has sold the Deep Run 3 office building in Richmond, Va., for $56 million. Cushman & Wakefield | Thalhimer’s Capital Markets Group represented the seller. The buyer remained undisclosed. Markel | Eagle paid $12.4 million to acquire the building out of foreclosure in 2011 from Bank of America, according to Yardi Matrix.

Completed in 1997, Deep Run 3 is located at 9954 Mayland Drive in Henrico County. At closing, the 355,449-square-foot office was 98 percent occupied by seven tenants, including McKesson Medical-Surgical, Essex Bank and the East coast claims and billing center for Travelers Insurance.

Markel | Eagle Partners invested $19 million to renovate the building in 2013. The upgrades included the addition of a 250,000-square-foot parking garage, a new roof, a fitness center, a 7,504-square-foot cafeteria, as well as mechanical upgrades to elevators and other systems.

Attractive investment

The office is under 1 mile from interstates 64 and 295, providing immediate access to metro Richmond. The neighboring area features several retailers, bars and restaurants. Downtown Richmond is approximately 13 miles away.

“Deep Run 3 was highly sought-after while on the market late last year. The strength of the tenant roster and high quality of the asset brought a wide-range of investor interest from both institutional and international buyers,” said Eric Robinson, senior vice president at Cushman & Wakefield | Thalhimer, in a prepared statement.

Robinson, along with Executive Managing Director Eric Berkman completed the transaction. Back in May, the duo was responsible for closing the $62 million sale of SunTrust Center One and Two, also in Richmond, a 419,700-square-foot office complex acquired by FD Stonewater.

Image courtesy of Cushman & Wakefield | Thalhimer Capital Markets