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Innsbrook-based real estate firm to build new HQ in West Broad Village – RichmondBizSense

Capital Square plans to build office building in Henrico County

A rendering of the new office building being planned in West Broad Village. (Henrico County documents)

A 1-acre parcel of grass in West Broad Village that’s sat undeveloped since the shopping center was built 12 years ago is proposed to be the new home base for a prolific local real estate firm.

Capital Square, currently headquartered in Innsbrook, has filed plans to build a from-scratch office building at 1301 Old Brick Road.

Plans filed with Henrico County show a new four-story, 65,000-square-foot building, as well as a rendering with Capital Square’s name on it.

Capital Square filed plans for the office building in December. The real estate investment and development firm currently hangs its hat a few miles east at 10900 Nuckols Road.

The 1-acre plot sits in the middle of West Broad Village, just west of the Aloft Hotel. The parcel is currently a grassy field, though in winters past it’s been home to an outdoor ice skating rink.

Plans show that the project would include a 17,000-square-foot parking garage below three floors of office space, each with an outdoor terrace. Timmons Group is listed as the project’s engineer, with 3North as the architect.

It’s unclear whether the firm plans to buy the plot or lease it. A Capital Square representative said the company is unable to comment at this time.

Originally built in 2009 by Florida-based Unicorp, West Broad Village was saved by Markel | Eagle Partners during the recession when the local private equity firm invested millions into stabilizing the project. In 2012, California-based Shopcore, then known as Excel Trust, bought the bulk of West Broad Village’s commercial properties for $161 million.

The 1-acre parcel is currently a grassy field, though in years past it’s hosted an outdoor ice skating rink during colder months. (Mike Platania photo)

Capital Square already has a significant stake in West Broad Village. Last fall it bought the 339-unit Flats at West Broad Village apartments for $111 million, marking one of the largest real estate deals in the region in 2021, as well as the highest per-door price for an apartment complex in Henrico history.

Capital Square has pondered a headquarters move in the past. In 2016, it began planning a move to Shockoe Bottom — buying and gutting the former Flood Zone/Have a Nice Day Café building at 11 S. 18th St. That move never happened though and the firm scrapped those plans in early 2017, citing the need for more space than the 13,000-square-foot building could offer.

Shortly after that, the company expanded its office in Innsbrook to occupy 11,400 square feet and sold the Flood Zone building for $669,000.

Capital Square has been among the most active local investors in multifamily properties in recent years with nearly half of a billion dollars in apartment deals since 2019.

Many of those deals have been in its home market. In 2019, it bought the 2000 West Creek apartments in Goochland for $103 million, then followed with the $84 million purchase of the Canopy at Ginter Park apartments in the city’s Northside in late 2020.

Capping one of its busiest years, in 2021 it spent $196 million on a trio of Chesterfield apartment complexes, along with the Flats at West Broad Village deal.

In addition to investing in multifamily projects, Capital Square also develops them with nearly 1,000 units in the works in Scott’s Addition alone.

​​Since its founding in 2012, the company has specialized in purchasing real estate and then selling shares of ownership in each property to pools of investors looking to cash in on 1031 exchanges — a process that allows them to reinvest the proceeds from previously sold properties without paying capital gains taxes.

Then last year it created Capital Square Apartment REIT, a separate arm focused on apartment properties.

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