A former office building in Richmond, Virginia, is set to be converted to a mix of 200 hotel rooms and 290 apartment units, an indicator of growing interest in living in and visiting the city’s downtown.
Douglas Development Corp. bought the 20-story tower at 707 East Main St., which formerly housed some of Dominion Energy’s employees in December after construction was completed on the utility company’s new building nearby at 600 Canal Place.
Construction on the conversion of the East Main Street building will begin this year and should be completed by 2027. The plan to convert office space to a new set of uses won the project a nod from an independent panel of area industry professionals for a 2025 CoStar Impact Award as the market’s sale of the year.
This isn’t the first time Douglas Development, which is based in Washington, D.C., has ventured into the central Richmond market. In 2022, the developer renovated another commercial building one block away, the Residences at Richmond Trust, into 188 apartments. The company also owns The Deco at CNB, an Art Deco-style 23-story apartment building on Broad Street, the main artery through downtown.
About the project: The 707 East Main St. property sold for $19.25 million. The building currently totals 325,000 square feet.
What the judges said: “This is another example of what creative developers can do to alleviate a crushing housing shortage,” said Tom Rosman, director of commercial brokerage/principal at Richmond-based One South Commercial.
“It will create a model for urban living that is not yet available in the city of Richmond,” said Andy Little, managing director for Queenswood Partners.
They made it happen: Isaac Rudin, manager of acquisitions and capital markets, handled the purchase for Douglas Development. The deal was brokered by CBRE senior vice presidents Christopher Wallace and Andrew Ferguson.