Unsolicited Proposal to Purchase

City of Richmond-Owned Real Estate

in accordance with
Richmond Municipal Code
Chapter 8 Article III, Sec. 8-58

May 1, 2020

Capital City Partners LLC

May 1, 2020

Ms. Lenora Reid

Interim Chief Administrative Officer
City of Richmond
900 East Broad Street
Richmond, VA 23219

Re: Unsolicited Proposal to Purchase City of Richmond-Owned Real Estate

Dear Ms. Reid:

In accordance with the Municipal Code of the City Richmond, Chapter 8, article III and sections 8-58
through 8-67, the attached document details Capital City Partners’ unsolicited proposal to purchase City-
owned real estate located at 500 North 10th Street, more commonly known as the ‘Public Safety
Building’ site.

Our proposal has been structured to address City of Richmond evaluation criteria outlined in the
ordinances including the proposed use of the property, price, compatibility with existing master plans, and
overall benefits that might be expected to accrue to Richmonders as a result of the transaction.

As you will see in the proposal, the benefits will be significant to our community and, in today’s uncertain
times, critically important to realize now. There will be immediate revenue to the City as a result of the
land sale, and new jobs generated. Perhaps most significantly, underutilized City land will go back on the
tax rolls creating new revenue to the City year after year.

There is sincere urgency to this offer, and time is of the essence for this land sale.

The key tenants proposed for the development, VCU Health System, The Doorways, Ronald McDonald
House Charities, and VCU Child Care need these new facilities now. As they were originally intended to
benefit from expanded facilities in the proposed Navy Hill development, their plans have been stalled,
creating uncertainty for their leadership, for essential workers and staff, and for their philanthropic
supporters.

With the progress that has already been accomplished toward realizing this development over the last
year, work on this project can proceed immediately. At a time when our community needs all of its service
institutions at full strength, and reassurance from its civic leadership of an improving local economy, the
proposed development is positioned to move forward as soon as City approvals are in place.

Timely action now benefits all Richmonders.

Sincerely,

CAPITAL CITY PARTNERS, LLC

 Index

Executive Summary

Evaluation Criteria
1. Proposed Uses of the Land
2. Financial Ability of the Proposer
3. Past Experience of the Proposer
4. Effect of the Proposed Use on Other Properties
5. Compatibility with the City’s Master Plan
6. Price of the Proposer’s Offer
7. Economic Benefits to the City

Appendix
A. Development Program and Concept Design

B. Development Team Profiles

Capital City Partners

SMBW
DPR Construction
VHB
Water Street Studio
Colliers International
SDS
Omni Eco Systems

C. Letters of Support

VCU Health System

The Doorways
Ronald McDonald House Charities
VA Bio+Tech

D. Land Appraisal

Executive Summary

E. Escrow Receipt of Deposit

F. Letter of Intent

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 4
 Executive Summary

This unsolicited proposal from Capital City Partners to purchase the City of Richmond-owned site located
at 500 North 10th Street is an important next step in response to urgent facility needs of VCU Health
System, The Doorways, Ronald McDonald House Charities, and expanded child care facilities that will
support working families. In addition to these tenant programs, 150,000 square feet of “spec” Class A
commercial office space will also be developed to attract new business and jobs to downtown Richmond.

One of the important underlying economic benefits to the City of the proposed development is that it will
be privately financed and owned, and the ownership proposes to pay full property taxes – thereby taking
a downtown Richmond property from a tax-exempt to taxable status.

Capital City Partners (“CCP”), as developer, is offering a cash price of $3,175,000 to the City for the
purchase and acquisition of this site. The price is based on a detailed valuation of the property by Matt
Mitchell, MAI, managing director of CBRE. His conclusion, in the form of an executive summary from
the appraisal report, can be found in “Appendix D” of this proposal document. The full appraisal report is
provided under separate cover.

CCP has deposited 10% of this price ($317,500) as a good faith deposit in an escrow account with Thomas
Title & Escrow simultaneous to the submission of this proposal. The receipt of the escrow deposit can be
found in the “Appendix E”.

Time is of the essence. The developer, VCU Health System and other committed tenants have been
working together on the proposed project program and design for more than a year as one of the anchor
developments of the original Navy Hill master plan. Given the current public health challenges, the need
for these facilities is magnified. The urgently needed programs provided for in the proposed development
must now be allowed to proceed on their own merits.

As mandated by City ordinance, this proposal provides detailed responses to seven key evaluation criteria:
1) The use of the site, 2) the proposer’s ability to finance the intended development, 3) experience of the
proposer, 4) the effect of the proposed development on other properties, 5) compatibility with the City’s
master plan, 6) the price offered for the land, and 7) other evaluation factors which are determined by the
City. We have included an additional section of economic benefits to aid in that evaluation.

The site currently is the location of the obsolete Public Safety Building. The original design and construction
of that facility resulted in the creation of a super block that interrupted the City’s grid. The proposed
development will rebuild Clay Street, returning that portion of the site to its original public purpose. This
means that we will be developing on a restored city block, 2.27 acres of the total 3.01 acres, with the
remaining area returned to the City in the form of a reopened and fully improved Clay Street between 9th
and 10th Streets. The remaining land is proposed to be returned to the DSS site to form a complete urban
parcel for future development.

The schedule for the delivery of the development is to complete the project by the 3rd quarter of 2023.
This is a necessary fast-track delivery that relies on a land closing within 90 days. It is for this reason that
we request the City Administration and City Council act with expediency and approve this transaction on
its merits in a timely manner.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 5
 Evaluation Criteria
1. Proposed Uses of the Land

The proposed project planned for the 500 North 10th Street site is a privately financed, mixed-use
development composed of several operationally dependent but synergistically interrelated tenants.

The major Tenant for the complex will be VCU Health System (“VCUHS”), with The Doorways, Ronald
McDonald House Charities (“RMHC”), and VCU Health System Child Care leasing space from VCUHS as
subtenants, allowing them to replace their existing, aging, and operationally inadequate current facilities.

In addition to these core tenants, there will be approximately 150,000 square feet of additional “spec” new
Class A commercial office space, 20,000 square feet of ground level retail, and up to 1,900 parking spaces.
A summary of the project program is provided below.

Program Summary

VCU Health System 150,000 s.f.
The Doorways 125,000 s.f.
RMHC 65,000 s.t.
Child Care 35,000 s.t.
Retail 20,000 s.f.
Class A Spec Office: 150,000 s.f.

Total 545,000 s.f. + 1,900 parking spaces

The building design for these uses was determined through a series of programming workshops with
various stakeholders, including input received from the VCU Master Facility Plan process (“One VCU”),
meetings with VCU Health System leadership and staff, meetings and program workshops with The
Doorways leadership and staff, meetings and program workshops with RMHC leadership and staff, and
meetings and program workshops with VCU Health System Child Care leadership and staff.

Summaries of the key tenants and program elements are outlined below. More specific program and
design information is provided in ‘Appendix A’ of this document.

VCU Health System

• The new Adult Outpatient Pavilion (“AOP”), currently under construction, is scheduled to open in
the Spring of 2021, and the proposed development will provide critically needed support space for
physicians and other health care staff offices, as well as amenities such as a retail pharmacy and
health-related retail.
• It is anticipated there will be 18,000 incremental outpatient visits by the second year of the new AOP’s
operation; the number of visits will grow to 48,000 by year five.
• The proposed Navy Hill redevelopment project had included the programmed support spaces
described in this proposal. Although Navy Hill is no longer moving forward, the critical need for support
spaces remains and it can be met by the proposed development, albeit at an extended time lag after
the opening of the AOP.
• Every month that the proposed project is delayed will further forestall the availability of critical support
for the new AOP and the ability to deliver critical healthcare support services.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 6
 The Doorways

The proposed project includes a new 145 guestroom hospitality facility for The Doorways to replace their
current and functionally obsolete property located on Marshall Street.

• The Doorways is currently located within an aging building (60 years) and its leadership has been
analyzing options for the future and how to best serve its guests. Undersized at only 115 guestrooms,
the new building planned would allow it to grow to 145 guestrooms.
• The choices before Doorways are to 1) make significant infrastructure investments in its current aging
facility or 2) relocate to a new building closer to VCU Health System.
• The Doorways had planned to move into a new building as part of the Navy Hill redevelopment but, with
the stalled progress of that proposal, now must continue to operate within an aging building that has
only managed to exacerbate the seriousness of the situation.
• The Doorways’ current situation makes it difficult to plan for the future and this intensifies anxiety with
leadership, staff, and donors over the condition of the building and raises great concerns about meeting
the needs of their guests.
• The Doorways’ current building is not conducive to the growing needs of long-term guests, approximately
50% of whom reside at Doorways for 30 days or more while recovering and/or being treated for bone
marrow transplants and other serious conditions. These patients and their family members have had to
reside in sub-standard size hotel rooms for many months at a time.
• A new building will offer larger, extended stay rooms for the patients and their families.
• Even now with 115 guest rooms, Doorways is at or near capacity nearly every day, sometimes turning
families away because they have had to take rooms off-line for maintenance issues. (On average, 10-
15 rooms per day are off-line for maintenance reasons).
• The availability of funds for the current 60-year-old building’s ongoing maintenance and repair needs is
very limited. For example, there is a current project requiring The Doorways to spend nearly $1,000,000
to shore up the exterior walkways in their eight-story building.

Adult
Outpatient
Pavilion

Bio+Tech
Children’s
Site Hospital

500 North 10th Street

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 7
 Evaluation Criteria

1. Proposed Uses of the Land cont...

Ronald McDonald House Charities Richmond

The proposed project includes a new, expanded Ronald McDonald House (RMH)
providing a minimum of 40 beds, and allowing RMH to greatly expand its mission -
serving greater Richmond’s pediatric patients and their families.

• The existing Ronald McDonald House is located on Monument Avenue and is
inadequate in both space and layout with only 9 beds compared to a market need
seven (7) times that capacity.
• The new facility is programmed to have 40 beds with the ability to grow to 60 beds,
enabling RMH to meet demand and operate much more efficiently.
• The existing hospital has three beds in-house and the new children’s hospital will
grow this to six.
• In February of 2020 alone, RMH had to provide 30 nights of alternative housing for
families from the Richmond area.
• For over four years, RMH has been searching for an opportunity to expand, many
of these years in collaboration with VCU Health System.
• The new Children’s Hospital of Richmond will open in late 2022 and an expanded
Ronald McDonald House located just two blocks away would be able to serve
young patients and their families in a way that would serve as an exemplary model
of national best practice.
• The new RMH would not only expand the number of rooms but also would continue
the outstanding family-centric programming that allows for maximal rest and healing
for young patients and their.
• The new RMH will also provide better support for patients and families with limited
mobility, including those requiring treatments that call for high infection control
standards.

VCU Health System Child Care

The proposed project includes 35,000 square feet of space programmed for child care
services addressing a major need in this area of downtown Richmond.

• The existing child care center at VCU Health System has a waiting list of over 250
families in the Richmond community.
• The new proposed development presents an opportunity to not only provide a new
modern facility but also to expand child care offerings.
• The proposed child care center will include dedicated outdoor green space for the
children.
• The proposed child care center will support the families at the Doorways and Ronald
McDonald House as well as the Richmond community’s essential employees and
residents in the broader Richmond community.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 8
 Ground Floor Retail

The proposed project includes 20,000 square feet of ground level retail space that will
help activate 9th Street, 10th Street and Clay Street and create a connection to Court
End and the rest of the VCUHS campus. Retail uses under consideration include a
much-needed drive-through pharmacy, other wellness support uses, and food services
that will serve the downtown community.

Additional Class A Commercial Office Space

As an economic development inducement to the City, and given the lack of any new
Class A office space in the downtown development pipeline, the proposed project
incorporates an additional 150,000 square feet of Class A commercial office space
that will be available to other office tenants and to attract more high-paying jobs to
downtown. Another benefit to this additional office space is that over the long-term,
VCU Health System will have the ability to expand into some of this space.

This additional space will add six floors to the office tower, for a 300,000 total square
feet of new office space.

CCP is committed to working closely with the City’s economic development professionals
to market and prelease this space to potential tenants during the construction of the
project.

Structured Parking

The proposed project includes up to 1,900 parking spaces for the project tenants and to
meet the existing demand for additional parking spaces on the VCUHS campus.

Having adequate parking is a key project programmatic requirement for VCUHS and an
important component to the success of the proposed project. VCUHS has stipulated that
the proposed project should include a maximum number of parking spaces to support
the uses tenanting the project and also to provide relief parking for the VCUHS campus.

Street Improvements

The proposed project includes plans to rebuild Clay Street (between 9th and 10th),
now blocked by the DPS building, reestablishing the urban street grid in the area, and
reactivating street-level pedestrian and vehicular traffic patterns. Walkability will be
enhanced. Traffic patterns will be better articulated, and neighborhood connectivity will
be restored.

Improvements will also be made to 9th Street and 10th Street to create a friendly and
welcoming public space.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 9
 Above
The existing Department of Public Safety building at 9th Street and East Clay.
Note the encroachment over the East Clay Street alignment.

Right
The proposed development restoring East Clay Street, providing new Class A office
space, new downtown Richmond facilities for The Doorways, Ronald McDonald House
Charities, expanded child care, retail, and parking.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 10
Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 11
 Evaluation Criteria

2. Financial Ability of the Proposer

The proposer, Capital City Partners, LLC (CCP), serves as the Project’s developer
and is solely responsible for the financing, design, construction, and delivery of the
completed facilities and related Clay Street improvements to be developed on the 500
North 10th Street site.

CCP and the major Tenant, VCU Health System (“VCUHS”), will enter into a long-term
lease for the completed facilities. The financial terms contained within the lease will
serve as the underwriting for the project funding.

The plan of finance is a credit-backed single tenant “build to suit/leaseback” structure.

CCP will source a minimum of three term sheets from qualified financial institutions that
specialize in this type of project funding structure and will work closely in partnership
with VCUHS to select the financial institution with which to negotiate the final terms of
the lease and financing. The additional “spec” Class A commercial office space will be
financed independently within a condominium regime.

Preliminary discussions about potential financing terms are already underway with
qualified financial institutions for the project. Project funding will close at the time of
the purchase of the site and will provide 100% of the necessary funds to complete and
deliver the facilities “turnkey” to the tenants.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 12
 3. Past Experience of the Proposer

As a result of its diverse uses and potential synergies, the 500 North 10th Street project
is a unique development challenge. Its proposed uses include professional office
space in support of VCU Health System’s programs, specialized healthcare hospitality
programs for adults, children and their families who support them, and integrated street-
level retail.

Other uses include a much-needed expansion to child care programs that support the
essential workers who make these programs function, and the introduction of service
retail, including a drive-through pharmacy. All of this programming is set within an urban
framework that will enhance existing neighborhoods and create greater connectivity
within Richmond’s downtown.

This uniquely complex program requires a seasoned development team with an

unusually broad range of experience in programming specialty building types, financing
initiatives, creative project visioning, design, and construction management.

Capital City Partners, LLC (“CCP”) was formed to bring these needed skills together
into one entity. CCP is a Virginia limited liability company comprised of two professional
firms, Concord Eastridge, Inc., and Future Cities, LLC, each with distinguished track
records in the development of complex mixed-use urban projects.

Concord Eastridge was founded in the early 2000’s by Susan Eastridge who has
successfully developed across a range of asset classes including build-to-suit and
multi-tenant office, hospitality, conference centers, research, retail and multi-family
housing. Many of these developments have been executed for, or in close proximity to,
major universities in downtown cores.

Future Cities was founded in 2000 by Michael Hallmark and is focused primarily on
urban redevelopment projects that capitalize on the under-performing potential of urban
cores and city centers. Future Cities’ work has revitalized downtowns like Los Angeles,
and reintroduced lost retail and entertainment uses to the urban cores of sprawl cities
like Phoenix.

Collectively, Capital City Partners and its key consultants are organized to design,
finance, and rebuild in core areas, but specifically to revitalize dormant real estate
assets in downtown Richmond, Virginia. CCP, with knowledge in urban redevelopment
strategies and in consultation with local professionals and experts, understands and
is equipped with the know-how to redevelop urban cores by reconnecting existing
business uses by reopening closed streets, and by restoring active street life through
the introduction of new street-level retail and services.

Specific experience and principal bios for Capital City Partners are included in “Appendix
B - Development Team”, along with the experience of key development team members
who have worked together to bring this project program and design to reality.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 13
 Evaluation Criteria

4. Effect of the Proposed Uses on Other Properties

A. Benefits of Public Safety Building Demolition to adjacent properties

There is widespread agreement within the Richmond community that the downtown
Public Safety Building has outlived both its original program purpose as well as any
ability to effectively support alternative uses. Over the last several years, it has become
an economic development roadblock for the continued dynamic growth of downtown
Richmond.

Built in 1964, when Eleanor P. Sheppard served as Richmond’s Mayor, the Public
Safety Building lost its primary tenant when the Richmond Police Department relocated
to West Grace Street in 2002. This move set in motion the gradual deterioration of the
property.

In an article from the Richmond Times Dispatch in Feb 12, 2018 entitled “Richmond’s
Public Safety Building has outlived its usefulness”, Michael Paul Williams writes:

“The decaying Public Safety Building and environs has become a site where
individuals of relatively little means, or none at all, are robbed of their dignity.”

“…the erasure of the old Public Safety Building from our landscape can’t
happen soon enough”

The first local community benefit delivered by the project will be the demolition of the
Public Safety Building.

B. Benefits of Rebuilding East Clay Street between 9th and 10th Street

Apart from its deteriorated conditions, additional negative impacts of the existing Public
Safety Building are a result of the original civic planning and building design that feature
open, recessed parking wells, and discontinuity of Clay Street. The design itself has
contributed to the building and surrounding area’s deterioration over the years.

The discontinuity of other streets in the area (Leigh, 6th, and Clay Streets in the vicinity of
the Coliseum) created lasting harm to the physical, perceptual, and economic cohesion
of neighborhood and community. Clay Street’s disruption, in particular, isolated the
historic Court End, the Valentine Museum, and the VCU Health System campus from
the rest of the Center City.

Reopening East Clay Street between 9th and 10th will restore the street grid in this area.
Walkability will be enhanced, traffic patterns will be better articulated, and neighborhood
connectivity will be restored.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 14
 C. Benefits for Critical Programs Enhanced by Proposed New Development

VCU Health System – The primary office tower within the project will comprise
approximately 300,000 square feetof the overal site program, with 150,000 square feet
of that dedicated to VCUHS administrative space and physician offices – something
that is desperately needed within the VCU Health System campus. New retail space
will provide products and services that are desired within the community, but currently
absent, including a street level pharmacy and other program spaces being designed to
support the new VCU Adult Outpatient Pavilion currently under construction at Leigh
and 10th Street. These new uses will also support the current VCU Health System
Children’s Hospital Pavilion and its expansion now underway at Marshall and 10th
Streets.

VCU Health System Child Care Facilities – The existing child development center
currently has a waiting list of over 250 families in the Richmond community. The unmet
demand will be absorbed (along with many others not on the waitlist) within the 35,000
square feet of new programmed child care space, which includes dedicated outdoor
green space.

The Doorways –The Doorways’ current site, located on Marshall Street between 6th
and 7th Streets (adjacent to the Blues Armory), will be relocated to the new development
in its own new building, freeing up its current site for other redevelopment uses.

The Doorways’ new 145-bed modern hospitality venue will bring new vibrancy and
activity to the area.

Ronald McDonald House Charities of Richmond – The new RMHC facility will be a
modern and expanded hospitality facility for children and their families who are receiving
medical care in the Richmond area. The new RMHC facility will replace its current
undersized building on Monument Avenue.

Department of Social Services (DSS) – The existing DSS will have its site expanded
north as a result of reopening Clay Street. The additional area can be landscaped or
made available for street-level retail, coffee / sandwich shops, and other amenities not
previously feasible due to site constraints.

VA Bio +Tech properties – With the demolition of the Public Safety Building (an
obstacle to redevelopment because of its current site configuration) and a redeveloped
and better-connected downtown district south of Leigh, current and future Bio+Tech
and related-uses will be able to expand into this downtown area currently impeded by
disinvestment and lack of office space.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 15
 Evaluation Criteria

5. Compatibility with the City’s Master Plan

“Make certain that we don’t dream it forever, but do it today.”

– Mayor L. Douglas Wilder
July 26, 2007, at the Richmond Downtown Work-in-Progress Presentation,

The proposed project is fully compatible with the City’s Master Plan as it embodies the
goals and desired outcomes that have been the foundation of every downtown Richmond
Master Plan undertaken in the last decade, including, high-density development within
the City Center, development that enhances economic activity, a diversity of uses, street
level retail, and connection of districts by creating walkable streets (e.g. reopening
streets that were closed as a result of previous civic improvement plans).

Excerpts from three of those planning initiatives are provided below for comparison to
the proposed 500 North 10th Street Plan:

• Richmond Downtown Plan (2009)

• VCU 2020 Master Plan (2013)
• Richmond 300 Master Plan (2020 Draft)

Richmond Downtown Plan (2009)

The Richmond Downtown Plan was developed with significant public participation and
input during the summer of 2007, with these efforts led by professional planners and
staff. The resulting document, published in 2009, highlights sound planning principles
that the 500 North 10th Street project will employ:

Essential role of urban streets as public spaces

“Streets play an essential role in the healthy operation of cities. They are a
city’s circulation system and its public spaces. Streets permit access to light
and fresh air, provide a location for social interaction, and straight streets such
as Richmond’s allow views through the city. Street closures and development
that take up more than one city block (also known as “superblock” development)
restrict public access and connectivity. Given the importance of the street
grid to Richmond’s urban environment, the grid (including alleys) should be
preserved, and wherever possible, reinstated, as the City develops further.”

Require ground floor retail in the City Center in key locations

“Frequent storefront uses on the ground floor should be a staple of City Center
development. Despite the large supply of retail space in Downtown as a whole
and further down Broad Street, City Center’s own retail offerings are spotty
and fragmented, giving rise to a situation in which the part of town with the
largest daytime worker population has relatively limited convenient shopping
opportunities.”

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 Integrate the VCU Medical Center into Downtown’s urban fabric

“Virginia Commonwealth University’s MCV Campus is an internationally

recognized medical research hospital located in the center of Downtown
Richmond. Centered along the eastern end of Broad Street, the campus is
organized as a series of large super-blocks with mid-rise buildings flanking
Downtown streets. Parking garages are located adjacent to buildings and
along the interstate. The campus has a high volume of pedestrian traffic and
automobile traffic is somewhat limited due to street closures.

The Downtown Plan respects VCU 2020, VCU’s Master Plan completed in
2004, and recommends consideration of certain revisions to ensure the integrity
of the urban environment. The MCV Campus is a special community within
downtown, serving thousands of employees, visitors and students every day.
Incorporating complementary development in addition to medical facilities will
help to serve the needs of the campus community. Continued expansion of
multiple uses, such as the restaurants and retail establishments that already
exist, will improve walkability and offer more choices within the district.”

Reopen East Clay Street and Revive Court End

“The 900 block of Clay Street should be re-opened for pedestrian and vehicular
traffic. The opening of Clay Street would provide a visual and physical
connection between the Convention Center and Court End. Parking for visitors
should occur at a centralized location within a five-minute walk of the area.”

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 17
 Evaluation Criteria

5. Compatibility with the City’s Master Plan cont...

VCU Master Plans

Virginia Commonwealth University has long demonstrated a strong ethos of planning.

The planning efforts in 1996 and 2004 guided the University through a period of significant
institutional growth, especially in the expansion of its Health System’s programs.

The Public Safety Building site has appeared in each of VCU’s plans as a potential
growth site that would bring new vitality to the area and reopen Clay Street (a consistent
theme in all studies).

The below excerpts from the VCU 2020 Master Plan Update 2013, as an example,
describe not only the need for growth, but how the Public Safety Building site could be
redeveloped to benefit the area:
MCV CAMPUS 85
“On the MCV Campus, the urban location and topography significantly
constrain development. The Master Site Plan supports the complex interplay
and growth of research, scholarship, and clinical practice. There are pressing
needs but few development sites. Campus circulation is challenging and
should be clarified.

On the MCV Campus, the campus boundary now includes two blocks
previously considered adjacent to the campus. The Public Safety Building
site is bounded by Clay, 9th, Leigh, and 10th Streets.”

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 18
 Richmond 300 Plan

The most recent plan to describe future Richmond is the Richmond 300 Plan. While
not focused on specific sites found in previous plans, the Richmond 300 Plan does
offer descriptive categories for future development in various subdistricts of Richmond,
including City Center and the CBD which is the context for the proposed project at 500
North 10th Street. An excerpt from the Richmond 300 Plan:

General Description
Central business district of the Richmond region features high-density
development with office buildings, residential buildings, and a mix of
complementary uses, including regional destinations in a highly walkable
urban environment.

Development Style
Higher-density pedestrian and transit-oriented development encouraged on
vacant or underutilized sites; new development should be urban in form and
may be of larger scale than existing context. Plazas and setbacks create an
engaging street life. Many buildings are vertically mixed-use.

Ground Floor
Ground floor uses that engage with and enliven the street. Monolithic walls are
discouraged, while windows, doors, storefronts and other features that allow
transparency and interaction between building and street are encouraged.
Active commercial ground floor uses required on Street-Oriented Commercial
Frontages.

Access
Driveway entrances required to be off alleys whenever possible; new driveways
prohibited on Priority Street and Principal Street frontages. Surface parking
prohibited as a principal use; when surface parking is provided as an accessory
use, it should be located to the rear of buildings and screened by shade trees.
Parking requirements are substantially less in these areas than other areas of
the city and are largely eliminated. Bicycle, pedestrian, and transit access are
prioritized and accommodated.

Density / Height
High density, buildings typically a minimum height of 5 stories.

Primary Uses
Diverse mix of office, retail, personal service, multi-family residential, and
cultural uses.

Secondary Uses
Institutional and governmental uses, and open space.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 19
 Evaluation Criteria

6. Price of the Proposer’s Offer

In this section, the valuation of the 500 North 10th Street property is discussed and
the methodology behind the offered purchase price is detailed. Further, the terms and
conditions of the offer are outlined herein.

CCP proposes to acquire the underlying 3.01 acres (131,115.6 square feet) and
345,607 square feet of improvements located at 500 North 10th Street for the purpose
of developing a mixed-use project of approximately 545,000 square feet on the
northernmost 2.27 acres (98,936 square feet) of the property, and to dedicate back
to the City of Richmond, 0.74 acres of land and street improvements, in the form of a
re-opened Clay Street between 9th and 10th Streets, an extended Leigh Street (at the
southwest corner of 10th Street) and an area of land to the south of the re-opened Clay
Street.

The Proposer’s Offer is $3,175,000, cash for the purchase of the property “as is”.
This offer is tied to certain terms and conditions discussed below and in the Letter of
Intent found in the Appendix.

CCP retained the professional appraisal services of CBRE to conduct a valuation of the
property. The appraiser, Matt Mitchell, MAI, provided his appraisal report to CCP, dated
April 29, 2020. An executive summary of the appraisal report can be found in Appendix
D.

The appraiser provided an “as is” valuation of $3,175,000 for a “fee simple estate”
interest. He arrived at this valuation through an analysis of comparable land sales and
an evaluation of the costs associated with making the property “shovel ready” for new
development.

In summary, the appraiser’s valuation consisted of his opinion of value based on

comparable land sales and then deducted the costs of demolition and necessary public
infrastructure improvements for Clay Street (to be paid for by the developer).

His valuation is as follows:

DESCRIPTION VALUE
Value of “shovel ready” land area $8,500,000
Deduct Clay Street off-site infrastructure costs ($3,424,312) DPR estimate
Deduct 10% profit for developer’s risk ($ 342,431) Appraiser’s assumption
Deduct demolition costs ($1,555,232) Appraiser’s assumption
Calculation $3,178,025

APPRAISER’S VALUATION $3,175,000

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 20
 Further, it should be noted that the appraiser caveats his appraisal report with significant
information concerning the current Coronavirus Pandemic and the uncertainty this
creates for property values. The appraiser concludes that there is insufficient information
available about the pandemic’s impact to property values and therefore he does not
base his findings on this uncertainty.

Finally, given that the cost of demolition and the rebuilding of Clay Street has a direct
impact on the land valuation, and are estimates at this time, CCP will construct all of the
off-site infrastructure improvements on an “open book” basis with the City.

If the demolition and/or the Clay Street improvements can be realized for a cost less
than the estimated cost used for the appraisal, CCP will refund the difference to the
City. Likewise, should the costs of one or both of these items exceed the estimated cost
utilized within the appraisal, the City should reimburse the developer for the difference.

Terms and Conditions:

The offer and related terms and conditions are found in the Letter of Intent (“LOI”)
provided in Appendix F, addressed to Ms. Lenora Reid, Interim Chief Administrative
Officer for the City of Richmond and dated May 1, 2020.

Upon approval of this offer by the Seller, both Buyer and Seller will execute the LOI,
which will provide the basis for the completion and execution of the Purchase and Sale
Agreement (“PSA”).

The major terms and conditions of the offer and subsequent purchase of the property
are:

• Purchase price: $3,175,000 – cash paid at closing.

• Deposit upon submission of unsolicited offer: $317,500 – deposited in escrow
(receipt of deposit by Thomas Title and Escrow is included in Appendix E) to be
held as a refundable deposit until closing; upon closing the deposit is to be credited
against the purchase price.
• Due diligence period: 60 days upon execution of the PSA; the parties can mutually
agree to a shorter due diligence period in writing.
• Period from due diligence completion to land closing: 30 days; the parties can
mutually agree to a shorter closing period in writing.
• Proposed reimbursement provision: the purchase offer is conditioned upon certain
assumptions of cost to bring the site to a “shovel ready” condition for the new
development. Given that the cost of demolition and the rebuilding of Clay Street
have a direct impact on the land valuation, and are estimates at this time, CCP will
construct all of the off-site infrastructure improvements on an “open book” basis
with the City. If the demolition and/or the Clay Street improvements can be realized
for a cost less than the estimated cost used for the appraisal, CCP will refund the
difference to the City. Likewise, should the costs of one or both of these items
exceed the estimated cost utilized within the appraisal, the City will reimburse CCP
for the difference. This proposed term is subject to further discussions with the City.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 21
 Evaluation Criteria

7. Economic Benefit to the City

projected investment value, tax revenue and job creation

Projected Investment Value

Total development costs for the project are anticipated to exceed $350 million.

Proposed “speculative” Class A commercial office space (150,000 square feet) is

included as a direct economic inducement to the City of Richmond to support economic
development efforts to attract good jobs to downtown Richmond. This represents a
direct investment of over $70 million to bring this needed office space and associated
parking to the downtown market.

The City profits from several quantifiable economic benefits from this project, including:

• Proceeds from the sale of the land;

• Needed public infrastructure paid for by the private sector;
• New tax generation; and
• New job creation.

The sale of the land will generate $3,175,000 upfront in cash proceeds to the City this
year. See previous Section 6 concerning the calculation of the offered land price.

CCP will pay an estimated $3.4 million to $6.4 million in public infrastructure
improvements (for improvements to Clay Street, 9th Street and 10th Street) and will
also pay for the demolition of the existing Public Safety Building facilities (appraiser’s
estimate of demolition costs is $1.55 million).

New tax generation (detailed below) is estimated to be about $60 million over 20 years
and direct job creation is projected to be approximately 3,800 (also detailed below).

Harder to quantify are the significant economic benefits to the City of Richmond realized
through this project, such as:

• Expansion of VCU Health System employment in downtown Richmond;

• A new 35,000 square foot child care center open to the public;
• Expanded patient hospitality capacity for children, families, and adults;
• Service retail, including a pharmacy and other wellness offerings;
• Available Class A commercial office space for attracting more jobs to downtown;
• The removal of a City-owned eyesore/obsolete building (DPS) at no cost to the City;
• A rebuilt and reopened Clay Street and a reconnected Court End;
• Additional downtown parking to support healthcare delivery; and
• A strong beginning step to the redevelopment of this blighted quadrant of downtown
Richmond.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 22
 Evaluation Criteria

Projected Tax Revenue:

The proposed project will facilitate the expansion of VCU Health System, convert City-
owned real estate into a taxable asset, and create new sources of tax revenues. Those
new taxes include real estate, sales, and meals taxes. Based on our current analysis,
the newly constructed office and hospitality buildings will generate additional annual
real estate tax revenues to the City as shown in the table below.

This table summarizes real estate taxes generated during the construction period and
after a certificate of occupancy is issued. After 2025, we assume a 2% annual growth
rate for the assessed value of the land and building.

In addition, the City will collect sales taxes (1.0%) from construction materials purchased
in the City of Richmond during the construction period. Once the building is completed
and leased, the retail uses will generate sales taxes (1.0%), as well as meals taxes
(7.5%). For operating sales and meals taxes, we have assumed a 50/50 split between
retail and restaurant uses to serve as an illustration of the potential value to the City.
After the first full year of operations, 2024, we assume a 2% annual growth rate in sales
generated from the operating retail and restaurant uses. The following table summarizes
these additional revenues to the City over 20 years.

Tax Revenues to City over 20 Years

Construction Operating
Year Real Estate Materials Sales Meals Total
2020 $ - $ - $ - $ - $ -
2021 $ 77,017 $ 30,286 $ - $ - $ 107,303
2022 $ 546,721 $ 16,492 $ - $ - $ 563,213
2023 $ 1,297,918 $ 91,318 $ 16,230 $ 121,726 $ 1,527,193
2024 $ 2,015,893 $ - $ 99,329 $ 744,966 $ 2,860,188
2025 $ 2,015,893 $ - $ 101,315 $ 759,865 $ 2,877,073
2026 $ 2,056,210 $ - $ 103,342 $ 775,063 $ 2,934,615
2027 $ 2,097,335 $ - $ 105,409 $ 790,564 $ 2,993,307
2028 $ 2,139,281 $ - $ 107,517 $ 806,375 $ 3,053,173
2029 $ 2,182,067 $ - $ 109,667 $ 822,503 $ 3,114,237
2030 $ 2,225,708 $ - $ 111,860 $ 838,953 $ 3,176,522
2031 $ 2,270,223 $ - $ 114,098 $ 855,732 $ 3,240,052
2032 $ 2,315,627 $ - $ 116,380 $ 872,846 $ 3,304,853
2033 $ 2,361,939 $ - $ 118,707 $ 890,303 $ 3,370,950
2034 $ 2,409,178 $ - $ 121,081 $ 908,109 $ 3,438,369
2035 $ 2,457,362 $ - $ 123,503 $ 926,272 $ 3,507,136
2036 $ 2,506,509 $ - $ 125,973 $ 944,797 $ 3,577,279
2037 $ 2,556,639 $ - $ 128,492 $ 963,693 $ 3,648,825
2038 $ 2,607,772 $ - $ 131,062 $ 982,967 $ 3,721,801
2039 $ 2,659,927 $ - $ 133,684 $ 1,002,626 $ 3,796,237
2040 $ 2,713,126 $ - $ 136,357 $ 1,022,679 $ 3,872,162
Total $ 41,512,347 $ 138,096 $ 2,004,005 $ 15,030,041 $ 58,684,489

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 23
 Evaluation Criteria

7. Economic Benefit to the City cont...

Projected Direct Job Creation and Related Economic Benefit:

The proposed development plan calls for 545,000 square feet of commercial facilities
that will directly support the mission of the VCU Health System, Ronald McDonald
House Charities, The Doorways, and bring future new business to Downtown.

Utilizing macro data assumptions compiled by the Virginia Commonwealth University’s

L. Douglas Wilder School of Government and Public Affairs Center for Urban and
Regional Analysis (CURA) in their February 2018 Economic Impact Study conducted
for the Capital City Opportunity Plan (North of Broad Redevelopment Plan), we were
able to extrapolate the creation of approximately 1,862 construction jobs tied to the
proposed 500 North 10th Street development plan.

Employment wages are estimated to total $110 million over the construction phase with
a direct economic impact of $296 million. These are “one time” impacts realized during
the construction phase of the project.

Job creation tied to the 300,000 square feet of commercial Class A office space is
estimated at 1,000 direct jobs with annual employment wages estimated to be at least
$76.75 million. Total economic impact is projected to approach $101 million annually.

Job creation tied to the 242,400 square feet of space comprising the Child Care, the
Doorways and the Ronald McDonald House facilities are estimated to reach as many
as 800 jobs (24/7) with estimated annual wages of $22.65 million and a total direct
economic impact of over $78 million annually.

Job creation from the 20,000 square feet of retail space is estimated to generate 140
jobs, with annual wages estimated to be $3.23 million and a total direct economic impact
of $6.5 million annually.

The total direct job creation generated by the project is estimated to be 3,767 jobs, as
shown in the following table. Total direct employment wages during construction are
estimated to be $110 million, and direct annual employment wages generated by the
completed project to exceed $102 million annually.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 24
 Job creation from the 26,800 square feet of retail space is estimated to generate 140 jobs, with annual
wages estimated to be $3.23 million and a total direct economic impact of $6.5 million annually.
The estimated direct economic impact of this employment, construction through
The totalannual operations
direct job of the completed
creation generated project
by the project totals to
is estimated over $481 jobs,
be 3,767 million. It is important
as shown in the to
following table. Total direct employment wages during construction are estimated to be $110 million and
noteemployment
direct annual that we have notgenerated
wages projectedbyindirect or induced
the completed projecteconomic
exceed $102impacts which would
million annually.
increase these numbers substantially.
The estimated direct economic impact of this employment, construction through annual operations of the
completed project totals over $481 million. It is important to note that we have not projected indirect or
induced economic impacts which would increase these numbers substantially.

TOTAL DIRECT JOB CREATION

Construction Jobs (one time) 1,862

Office Jobs (annual) 1,000
Child Care, Doorways, RMDH Jobs (annual) 800
Retail Jobs (annual) 105
TOTAL JOBS 3,767

TOTAL DIRECT EMPLOYMENT WAGES

Construction Jobs (one time) $110,000,000

Office Jobs (annual) $76,750,000
Child Care, Doorways, RMDH Jobs (annual) $22,650,000
Retail Jobs (annual) $3,230,000
TOTAL WAGES $212,630,000

TOTAL DIRECT ECONOMIC IMPACT

Construction Jobs (one time) $296,000,000

Office Jobs (annual) $101,000,000
Child Care, Doorways, RMDH Jobs (annual) $78,000,000
Retail Jobs (annual) $6,500,000
TOTAL DIRECT ECONOMIC IMPACT $481,500,000

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 25
 Appendix A
Development Program & Concept Design

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 26
 Development Program
Tenant Facility Programs

VCU Health System

135,500 s.f. to 150,000 s.f.
The development is an opportunity for VCU Health System to expand its administration
and office space functions to support the new AOP building, as well as the expanded
Children’s Pavilion project. This site is an ideal location for direct access to the health
system at large amd for the AOP facility in particular. In addition to the support space, it
will provide parking, retail for pharmacy and future expansion space. This development
is critical for the success of those programs, as well as helping VCU Health System
realize their master plan goals for the campus. The ability to locate these program
spaces off campus gives the VCU Health System flexibility to implement future projects
within their campus.

The Doorways
125,000 s.f., 145 guest rooms
The Doorways provides over 50,000 nights of lodging, transportation, and meals to
over 9,700 individuals and their families or caregivers seeking primary care, diagnostic
tests, treatments, and surgeries. Nearly 50% of the length of stays are one month or
longer. Over 11% of the guests are Veterans or families of Veterans. At least 66% of
Doorways guests are at or below the Federal Poverty Guidelines, making access to
resources critical to their recovery process. While The Doorways hosts a diverse range
of patients, an area of focus is transplant patients. Currently operating in an aging
facility badly in need of repair is not accommodating or sterile for immune compromised
patients.

A new facility located within walking distance of VCU Health System is critical to The
Doorways mission for economic, operational, and customer service benefits including:

• On-site resources and workspace for VCU Health medical and social work
employees to provide ongoing care assessments. Close proximity allows frequent
and convenient care assessments, critical for transplant recovery patients with
limited mobility.

• Networking with other families experiencing similar situations helps patients and
their caregivers cope with trauma.

• Being within walking distance from VCU Health System and downtown convenience
amenities (groceries, pharmacy) gives families independence from relying on public
transportation and Doorways shuttles, while having wellness benefits.

• Doorways would provide parking for guests with vehicles and volunteers, which
alleviates the need to park at VCU Health System.

• Close proximity allows caregivers easy access to their patient/family member

throughout the day, supporting family-centered healthcare which is proven to
accelerate the rate of patient healing.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 27
 Development Program
Tenant Facility Programs

Ronald McDonald House Charities

65,000 s.f. , 60 guest rooms

RMHC serves families from five countries, 21 different states, and 72 Virginia counties
who rely on lodging, transportation to and from to the hospital, and meals. Family
stays range from one night to five months. In 2020, an estimated 48 rooms are needed
daily to serve the present population. RMHC presently has only nine guestrooms that
are over two miles from the closest hospital, have shared bathrooms, are not ADA
accessible, and have limited play space and parking.

RMHC Volunteers work over 10,000 hours annually at the VCU Health System, at
RMHC, and preparing meals in service to the Richmond community. Volunteer parking
on-site will allow easier management and training of future volunteers and enable them
to walk to the hospital, unburdening VCU Health System parking and the RMHC shuttle.

RMHC also houses rooms to support World Pediatric Project families who face cultural
and language barriers with a home away from their international home while their child
heals. Annually, WPP brings over 75 children and their families to the United States
for extensive medical care they cannot receive at home. These families rely entirely on
public transportation or RMHC shuttles for access to groceries and to run errands, so
the proposed downtown location will allow them, for first time, to be independent and
walk to neighborhood amenities.

• Close proximity to VCU Health System is both critical to the RMHC mission for
economic, operational and customer service benefits including:

• Improved psychological well-being for children and their care-givers, better

perceptions of their child’s recovery.

• Playing with other children and networking with families experiencing similar
situations help children and their families cope with trauma.

• Being within walking distance from VCU Health System and downtown convenience
amenities (groceries, pharmacy) gives families independence from relying on public
transportation and RMHC shuttles, while having wellness benefits.

• RMHC would provide parking for guests with vehicles which alleviates the need to
park at VCU Health System.

• Close proximity allows families easy access to their child throughout the day,
supporting family centered healthcare - a proven way to accelerate the rate of
patient healing.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 28
 VCU Health System Child Care
35,000 s.f.

The VCU Child Development Center offers daycare and educational services for the
VCU Health System faculty and staff. In addition, they sponsor a small senior care
program that is integrated into the child services. This program is vitally important to
supporting the work of VCU Health System clinical personnel and medical staff.

A new facility would enable expanded care services, the ability to accept more children
and provide for a dedicated, secure outdoor play space. In addition, there will be
opportunities to share some support services with RMHC and The Doorways. Being
adjacent to VCU Health System would be a tremendous benefit to the staff and the
families they serve by offering:

• Classrooms for children 18 months to 3 years, and from 3 to 6 years

• Playrooms, group rooms
• Secure outdoor play areas
• Full-service kitchen
• Laundry services
• Nursing Center
• Parents room
• Adult care center for 6 to 10 adults (part of intergenerational care programming)
• Administrative offices and support space

Class A Office Space

150,000 s.f.

Beyond dedicated VCU Health System space, the development plan incorporates an additional
150,000 square feet of Class A commercial office space that will be available to other office tenants
and result in more high-paying jobs to locate in downtown.

This space will add six floors to the office tower, for a total square footage of approximately 300,000
of new office space.

CCP will work closely with the City’s economic development professionals to market and prelease
this space to potential tenants during the construction of the project.

Retail
10,000 to 20,000 s.f.

Street level retail will include a new walk-in pharmacy, street level services, banking, and other
services, as well as space for food/restaurant related retail.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 29
 Concept Design Leigh Street

LEIGH STREET

VCU AOF

10TH STREET
9TH STREET

PARKING

10th Street
9th Street

ClayCLAYStreet
STREET

Department of
Social Services
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 LEIGH STREET

10TH STREET
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RETAIL ENTRY

CLAY STREET

AREA LEGEND OFFICE LOADING

Child Development
CHILD CARE ABOVE GRADE
PARKING ENTRY

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ROOM / UTILITIES

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 LEIGH STREET

RETAIL ENTRY

RETAIL ENTRY

OFFICE UTILITY

LOADING
LOBBY OFFICE ENTRY
OFFICE LOADING

ABOVE GRADE BELOW GRADE

PARKING ENTRY PARKING ENTRY

P1 LEVEL BELOW

UTILITIES TEMPORARY PARKING

DAYCARE ENTRY

10TH STREET
9TH STREET

UTILITIES

LOADING

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DOORWAYS ENTRY

LOADING

RETAIL ENTRY
RETAIL ENTRY RETAIL ENTRY

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 LEIGH STREET

CHILD CARE
ENTRY

CHILD CARE DROP-OFF

10TH STREET
9TH STREET

OPEN TO BELOW OPEN TO BELOW

OPEN TO BELOW

RETAIL ENTRY

CLAY STREET
AREA LEGEND OFFICE LOADING

Child Development
CHILD CARE ABOVE GRADE
PARKING ENTRY

TheDoorways
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COMMAND / PUMP
ROOM / UTILITIES

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 LEIGH STREET

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AREA LEGEND OFFICE LOADING

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RMHC Typical Program Level
DOORWAYS ENTRY

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5
34
 LEIGH STREET

10TH STREET
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RETAIL ENTRY

CLAY STREET
AREA LEGEND OFFICE LOADING

Child Development
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PARKING ENTRY

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Typical Office Level
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 4

Clay Street
Leigh Street

RETAIL ENTRY

AREA LEGEND OFFICE LOADING

Child Development
CHILD CARE ABOVE GRADE
PARKING ENTRY

The Doorways
DOORWAYS

SPRINKLER / FIRE
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RETAIL

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 OfficeTower

RMHC
ElevatedParkingStructure

The Doorways

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At-gradeParking

Child Development

Below-gradeParking

Program Diagram
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8
 Appendix B
Development Team Profiles

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 38
 Development Team

DEVELOPER MAJOR TENANTS

Capital City Partners, LLC VCU Health System
Concord Eastridge, Inc Melinda Hancock
Future Cities, LLC
Susan Eastridge The Doorways
Michael Hallmark Stacey Brinkley
Sean Duncan
Wade Eller Ronald McDonald House Charities
Michael Haller Kerry Blumberg
Chee Kung
VCU Health System Child Care
Paula Henderson
ARCHITECTS
SMBW PLLC
Spencer Grice
Taylor Clark
Fred Hopkins
Tamara VanMeter

CONTRACTOR
DPR Construction SUSTAINABILITY CONSULTANTS
Jay Stoda SDC
Jason Maxwell Sandra Leibowitz
Mike Locher Luis Huertas

CIVIL ENGINEERS ROOFTOP LANDSCAPE

VHB OMNI ECOSYSTEMS
Diane Linderman Molly Meyer
John Carty Michael Skowlund

LANDSCAPE / STREETSCAPE DESIGN TENANT CONSULTING / LEASING

Waterstreet Studios Colliers International
Jill Nolt David Wilkins
Eugene Ryang

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 39
Capital City Partners Susan Eastridge founded Concord Eastridge, Inc. in
2003 and serves as its President and CEO. Susan has
Developer over 30 years of experience in the commercial real estate
industry, with a focus on acquisition and disposition, public/
private development, leasing, and management. She has
overseen the planning and development of urban mixed-use
Capital City Partners, LLC is a Virginia limited liability projects, as well as build-to-suit facilities for corporations,
company comprised of two professional firms, Concord educational entities, and government agencies.
Eastridge, Inc., and Future Cities, LLC, each with a
distinguished track records in the development of complex Her experience includes the development of more than
mixed-use urban projects. 7 million square feet of commercial space valued at over
$2 billion and the acquisition/disposition of approximately
Concord Eastridge was founded in the early 2000’s $900 million in commercial property. She has leased more
by Susan Eastridge, who has successfully developed than 1.5 million square feet of office, retail and industrial
across a range of asset classes, including build-to-suit space, and she also has directed a management portfolio
and multi-tenant office, hospitality, conference centers, of commercial properties totaling 3.8 million square feet.
research, retail, and multi-family housing. Many of these
developments have been executed for, or in close proximity Susan completed her undergraduate education in Political
to, major universities in downtown cores. Science and Economics at Arizona State University and is
a licensed real estate broker in the State of Arizona.
Future Cities was founded in 2000 by Michael Hallmark
focused primarily on urban redevelopment projects that
capitalize on the under-performing potential of urban Michael Hallmark is recognized as one of the country’s
cores and city centers. Future Cities’ work has revitalized leading innovators in the design and redevelopment of
downtowns like Los Angeles, and reintroduced lost retail urban core facilities and their integration with ancillary real
and entertainment uses to the urban cores of sprawl cities estate assets. Since the 1980s, he has led in creating next
like Phoenix, Arizona. generation destination attractors, including theaters and
sports venues. Sports Business Journal named him one of
Collectively, Capital City Partners are organized to the Nation’s “20 most influential persons in the design and
design, finance, and rebuild in core areas, but specifically development of sports facilities” in annual reporting.
to revitalize dormant real estate assets in downtown
Richmond, Virginia - to reconnect existing business uses Prior to the formation of Future Cities, Michael was a
by reopening closed streets, and to introduce new street- principal and director at two of the nation’s leading planning
level service retail. and design firms, Ellerbe Becket (now AECOM) and NBBJ.
Under his leadership, his firms designed a wide range of
Key Personnel urban mixed-use projects including office developments,
hotels, theaters and sports venues. Some of his signature
Susan Eastridge Michael Hallmark projects include Arizona Center – a mixed-use office and
Mike Haller Sean Duncan retail development in Phoenix, AZ, and LA Live, a mixed-
Nathan Mateer Wade Eller use entertainment complex in downtown Los Angeles.
Greg Derby Chee Kung Other urban mixed-use sports and entertainment projects
Andrew Klamon Scott Ebert include Capital One Arena in Washington, NBA arenas in
Alisa Cutright-Thompson Brian Oakley Boston, Cleveland and Portland, MLB ballparks in Atlanta,
Milwaukee and Seattle, and NFL venues in Philadelphia
Leslie Eastridge Jon Green
and Cincinnati.

Michael has a Bachelor of Architecture degree from Arizona

State University

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 40
Sean Duncan joined Future Cities in 2004, after serving Michael Haller joined Concord Eastridge in 2002 and
as a senior designer on a variety of US and international serves as its Executive Vice President. With more than
urban retail projects for the Jerde Partnership where his 40 years of commercial real estate and development
focus has been design for the exciting intersection of experience, he brings a broad foundation to the Company.
entertainment and commerce. His knowledge of private and public real estate development
and his understanding of the development process
Career highlights include the entertainment/retail portion allows him to provide clients and partners with creative
of Victory, a 75-acre new urban district in Dallas, Texas solutions. Mr. Haller’s primary focus at Concord Eastridge
surrounding American Airlines Center. Design of this is the development of new business and investment
project centered on the development of a media and relationships, as well as the coordination and transitioning
advertising master-plan for the district with its high-tech, of new opportunities into the due diligence stage.
high-energy focus fronting the arena at Victory Plaza. Other
completed developments include the electrifying rebirth of Over the course of his career, he has completed corporate
the Fashion Show at the heart of Las Vegas Boulevard in educational/training facilities in excess of $500M. He
Las Vegas, Nevada, and the critically acclaimed expansion has also developed more than 4 million square feet of
and renovation of USA Airways arena in Phoenix, Arizona. commercial buildings. His professional affiliations have
Sean has a Bachelor of Architecture degree from the included a multi-term position on the National Board of
University of Minnesota Directors for the National Association of Industrial and
Office Properties (NAIOP) and is a former Member of the
Wade Eller formed Eller Group in 2007 and has provided Year for the Northern Virginia NAIOP Chapter.
owner’s representation and project management services
on a wide range of complex projects throughout the United Chee Kung, Senior Vice President of Concord Eastridge,
States. With over 30 years of experience in the commercial provides full-cycle project management and supports
construction and real estate industries, Mr. Eller has been new business initiatives through due diligence efforts in
actively involved as an owner’s representative and project conceptual design, market feasibility studies, and project
manager in the design and construction, from inception to financing.
completion, of many complex projects, most recently on
the new Dominion Energy Tower One in Richmond, VA. Prior to joining Concord Eastridge in 2007, Mr. Kung
was a Vice President of Development with The Stout &
Mr. Eller has significant project management experience Teague Companies in McLean, Virginia and an architect
in the development and construction of multi-family / with Murphy/Jahn Architects in Chicago, Illinois. While at
residential apartments, hotels, commercial office buildings, Murphy/Jahn, he worked on a number of high-profile high-
retail centers, parking garages, and special use facilities. rise projects in Asia and Europe. Mr. Kung has experience
Mr. Eller serves on Virginia Tech’s Myers-Lawson School with multiple asset types and has managed all phases
of Construction Industry Board and the Program in Real of the development process. He has worked on projects
Estate Industry Advisory Board. ranging in size from building renovations to multi-phase
1-million Square feet mixed-use projects. He brings a
Mr. Eller earned a Bachelor of Science in Building deep understanding of market knowledge, design, finance,
Construction from Virginia Tech and a Master of Science project management to Concord Eastridge.
in Real Estate from Johns Hopkins University. He is a
Certified Construction Manager (CCM), as well. Mr. Kung earned his Bachelor of Architecture from the
University of Houston and his master’s degree in real
estate from Cornell University. Fluent in Mandarin Chinese,
Mr. Kung is able to communicate with business associates
globally.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 41
Capital City Partners
Developer

Mixed-Use Commercial Office

Residential, Office, Hospitality and Retail Build-to-Suit Office

Roosevelt Point, Phoenix, AZ The Offices @ Net Center, Hampton, VA

L Building, Raleigh, NC Hellman, US Headquarters, Miami, FL
Warner Building and Theatre, Washington, DC Summit II, Reston, VA
Silver Spring Metro Plaza, Silver Spring, MD Phoenix West, Phoenix, AZ
Med Center Conversion, San Antonio, TX Tucson West, Tucson, AZ
Albuquerque Plaza, Albuquerque, NM 5090 Building, Phoenix, AZ
Phoenix Plaza, Phoenix, AZ Plaza 1900, Tysons Corner, VA
Mockingbird Center, Dallas, TX Park Place, McLean, VA
Longbow, Mesa, AZ Enterprise Center, McLean, VA
Los Olivos, Phoenix, AZ Carnegie Endowment Headquarters, Washington, DC
Home2 Suites by Hilton, Mesa, AZ Space Center / Tyson’s, McLean, VA
Varsity on K, Washington, DC German Embassy, Washington, DC
The Mirador, Oakland, CA Henry L Kaiser Family Foundation, Washington DC
Varsity at Berkeley, Berkeley, CA Eagle Village at University of Mary Washington,
Varsity at Ann Arbor, Ann Arbor, Michigan Fredericksburg, VA
Hampton Roads Transit (Phase I) - Norfolk, VA Hamilton Square, Washington, DC
Eagle Village at University of Mary Washington, 1900 K Street, Washington, DC
Fredericksburg, VA
Education & Childcare
Hospitality
Sunrise Academies, 32 facilities, AZ, HI, CO, WI
StateView Hotel / Conference Center Raleigh, NC Campus Center, University of Mary Washington -
University of Mary Washington - Hyatt Place Hotel, Fredericksburg, VA
Fredericksburg, VA Maurice Sendak Elementary, North Hollywood, CA
Marriott at Prudential Center, Newark, NJ Rosa Parks Learning Center, North Hills, CA
Marriott, US Capitol, Washington, DC Inderkum High School, Sacramento, CA
Residence Inn & Springhill Suites, San Jose, CA Panorama City Elementary School, Panorama City, CA
Marriott, Mayo Clinic, Phoenix, AZ Sarah Coughlin Elementary School, Pacoima, CA
Florida International University, Miami, FL The Frederick Douglass Child Development & Family
Marriott Wardman Park Hotel, Washington, DC Support Center, Washington, DC
Mason Inn - George Mason University, Fairfax, VA Several Charter Schools (Elementary), multiple states
U.S. Military Academy / Hotel Thayer, West Point, NY Private School Facility, Silver Spring, MD
Grand Lakes Ritz Carlton Hotel, Orlando, FL
Mandarin Oriental Hotel, Washington, DC Mixed-Use Anchors, Entertainment and Districts
One Washington Circle, Washington, DC
US Airways, Phoenix, AZ
Build to Suit Research Fashion Show, Las Vegas, NV
Victory / AT&T Plaza, Dallas, TX
Corning Clinical Labs, Denver, CO Jackson Street, Phoenix, AZ
Corning Clinical Labs, Pittsburgh, PA ASU Stadium District, Tempe, AZ
Corning Clinical Labs, Detroit, MI Golden State Warrior Arena, San Francisco, CA
Virginia Tech National Institute of Aerospace, Nokia Theater, Los Angeles, CA
Hampton, VA Arizona Federal Theater, Phoenix, AZ

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 42
 Inderkum High School, Sacramento, CA Arizona Federal Theatre, Phoenix, AZ LA Live / Staples Center, Los Angeles, CA Phoenix Plaza, Phoenix, AZ

Albuquerque Plaza, Albuquerque, NM Victory, Dallas, TX Henry L Kaiser Family Foundation, Wash., DC Warner Building & Theatre, Washington, DC

Inderkum High School, Sacramento, CA Ahmanson Theater, Los Angeles, CA Fashion Show, Las Vegas, NV AT&T Plaza, Dallas, TX

Roosevelt Point, Phoenix, AZ US Airways Center, Phoenix, AZ Marriott Prudential Center, Newark, NJ Arizona Center, Phoenix, AZ

NC State Hotel & Conference Center, Raleigh The “L”, Raleigh, NC Jackson Street, Phoenix , AZ Fashion Show, Las Vegas, NV

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 43
 SMBW is a Richmond-based, award-winning leader in
SMBW the design of corporate, higher education, civic, and retail
Architecture + Interior Design projects in the mid-Atlantic region. Much of their work is
in urban and campus settings where the relationships
between buildings, landscapes, and uses give an
added richness to the design solutions and the resulting
environments for working, learning, and living.

Their practice is grounded in client engagement and

relationships, and research into client needs and design
Relevant Richmond Projects precedent. They embrace a client-centric view of their
mission, understanding that success and functionality
• Activation Capital drives all aesthetic decisions. They are dedicated to
• Angler Environmental finding unique, progressive solutions that make a lasting
• Capital One 1717 Innovation Center impact on space and users.
• Capital One Knolls
• Luckstone Corporate HQ
• MicroAire HQ
• Rackspace HQ Spencer Grice, AIA One of SMBW’s lead design eyes,
• UNOS National Headquarters Spencer approaches concept design with a strong and
• Greater Richmond Convention Center respected voice, helping staff improve ideas and shaping
Expansion the way people interact in an architectural landscape.
• Main Street Station His understanding of real estate as an underpinning to
• US Army Women Museum, Fort Lee a client’s business translates into design and brings an
• UVA Fralin Art Museum Expansion added level of value to any project – large or small.
• Washington Park Pool House
• Virginia Museum of Fine Arts Spencer has a Bachelor of Architecture from North Carolina
• Virginia War Memoria State University and a Bachelors of Environmental Design
• City Campus Biotechnology Park from Texas A&M University. He is a registered architect in
• Indoor Bio-technologies VA and Washington, DC with 27 years of experience.
• Virginia Tech Corporate Research Park
Role: Principal-In-Charge of Architecture
Focus: Planning and Design Strategy

Key Personnel Taylor Clark Taylor brings a broad range of design

experience across market segments- technology,
Spencer Grice Principal, Architecture corporate, and mixed-use developments. He is passionate
Taylor Clark Project Architect about crafting elegant design solutions, unique to the
Fred Hopkins Technical Director individual challenges of a project and believes that good
Tamara Van Meter Principal, Interiors design stands the test of time, offering longevity for the
client. Taylor’s thoughtful approach to solving problems
delivers tangible results for client’s through the built
environment.

Taylor has a Bachelor of Arts from the University of Virginia

and a Master of Architecture from Virginia Tech. He is a
registered architect in VA with 15 years of experience.

Role: Project Architect

Focus: Project Design

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 44
 8L Building, Activation Capital, Richmond, VA Five50, Richmond, VA

UNOS Headquarters, Richmond, VA

Main Street Stationl, Richmond, VA 1717 Innovation Hub, Richmond, VA

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 45
 DPR Construction is a leading national general
DPR Construction contractor and construction manager specializing in
Contractor technically complex and sustainable projects for the
commercial, healthcare, advanced technology, and
hospitality markets. Founded in 1990, DPR is a privately
held, employee-owned company that has grown to a
multi-billion-dollar organization with offices in 27 locations
around the country, including Richmond.

DPR has a proven track record in challenging, corporate

office projects that demand a high level of detail, finish and
quality. Our team of estimators, MEP specialists, design
Relevant Projects and construction managers, and engineers has built
100 million square feet of commercial space for a wide
• Children’s Hospital of Richmond at range of organizations from site selection and building
VCU; Richmond, VA evaluation through system start-up and commissioning.
• Rosslyn City Center; Arlington, VA
• Inova Loudoun Hospital; Leesburg, VA
• Hoffman & Associates Wharf Water
Buildings; Washington, D.C.
• CODA at Technology Square Office Jay Stoda Business Unit Leader, brings nearly two
decades of preconstruction and construction experience
Tower; Atlanta, GA
to the project. Jay has been part of highly complex,
• KPMG Global Training Facility;
technical projects for clients across a variety of market
Orlando, FL
sectors including commercial, healthcare, education, and
• Indeed Tower; Austin, TX
advanced tech. Jay will provide operational guidance of
• Third + Shoal Office Tower; Austin, TX critical path items as required. He is focused on refining
and simplifying workflow and communication, informed
learning across projects, and combining experience with
data to improve decision-making.

Jason Maxwell Project Executive, has close to 30 years

of experience in a broad range of construction types and
all phases of project development, from inception through
planning, design and construction. Jason has strong
people skills, a proven record of building successful
teams, and technical expertise to informed lessons
learned and ensure project success.

Mike Locher General Superintendent, has over 30 years

of experience supervising technically demanding projects
requiring strong technical knowledge and coordination
skills. During his career, he has performed as a project
manager, superintendent and field engineer and is an
industry leader in knowledge of means and methods
as well as scheduling and productivity expertise. He
has supported the successful on-time and on-budget
completion of many large-scale commercial and
healthcare projects across Virginia.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 46
 VCU Children’s Hospital of Richmond

Trammel Crow Block 71, Austin, TX

Shoal Office Building, Austin TX

Coda at Technology Square, Atlanta GA Rosslyn City Center, Arlington, VA

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 47
 VHB provides site civil engineering and transportation
VHB planning and design services to help shape smart cities.
Site Civil and Transportation From projects right here in Richmond to New York and
Washington, DC, VHB brings a thorough understanding of
complex transportation and development considerations
in dense urban environments. VHB balances the needs
of competing modes on Complete Streets, and creates
designs to enhance cities’ social, economic, and
environmental health.

Diane Linderman, PE, PWLF, ENV SP, has focused her

Relevant Richmond Projects
career on urban planning and development in Richmond
and central Virginia. Her 14-year career as the City of
• City of Richmond Annual Engineering
Richmond’s City Engineer and Public Works Director gives
Services Contract
her unique insight into the local economic development
• City of Richmond Sustainability Plan
and regulatory processes. Since entering the private
• Altria Center for Research and sector, Diane has focused on developing solutions
Technology in transportation that encompass bike/pedestrian,
• 7th Street and Duval Street Intersection corridor improvements, transit, traffic operations, traffic
Improvements engineering, and traffic impact analysis, as well as
• The Locks Apartments exploring municipal/state funding for transportation
• City View Landing and transportation policy. Diane has also influenced
• Shockoe Valley Street Improvements the development of major commercial and industrial
• Virginia Capital Trail – Richmond facilities including Altria Client Services land holdings,
Riverfront Section Capital One, Rolls-Royce’s Crosspointe, and Alleghany
• Virginia Commonwealth University Warehouse land repositioning. She is a member of the
(VCU) Traffic and Parking Term Contract VCU Real Estate Circle of Excellence and a member of
• VCU Institute for Contemporary Art the executive committee of Richmond Real Estate Group.
• Children’s Hospital of Richmond Pavilion Education: BS, Civil Engineering, Lehigh University, 1979
at VCU Pavilion
• VCU West Grace Street Housing
• Reynolds South Site Development (City John Carty, PE, LEED AP, ENV SP, brings extensive land
development experience including residential,commercial,
View)
and institutional projects. He is skilled in planning, site
design, cost estimating, grading, erosion and sediment
control, stormwater management, conveyance and
discharge, and utility design. During his 20-year career
in land development, John is an expert in the permitting
process for the City of Richmond, and has led the VHB
team in many notable projects including the T. Tyler
Potterfield Memorial Bridge, the Maggie Walker Memorial
Plaza, the Institute of Contemporary Art at Virginia
Commonwealth University (VCU), City View Landing, the
Locks, and Maymont’s Headquarters. John also serves
on a subcommittee for the Unites States Green Building
Council (USGBC), Virginia Chapter. Education: BS,
Civil Engineering, Virginia Polytechnic Institute & State
University, 1998

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 48
 City View Landing, Richmond, VA Virginia Capital Trail, Richmond, VA

Altria Center for Research, Richmond, VA

City View Landing, Richmond, VA 7th and Duval Streets, Richmond, VA

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 49
 Waterstreet Studio is a multi-disciplinary design firm
Waterstreet Studio serving private and public sector clients from offices in
Streetscape / Landscape Design Charlottesville and Richmond, Virginia. Foremost, they
are landscape architects committed to client service and
effective creativity. Their work ranges in scale and nature
from commercial site and institutional campus planning, to
estate and urban streetscape and park design.

Responding to such diversity, they employ a philosophy

and approach that promotes creative expression,
pioneering thought and active contribution among all
disciplines and stakeholders. Across all commissions,
their primary objective is to connect people to place by
Relevant Projects creating purposeful and engaging landscapes that are both
economically viable
• VCU Linden Street Pedestrian Commons
• Shafer + Franklin Intersection Improvements
• Linden + Main Intersection Improvements
• VCU Campus Master Plan Eugene Ryang, PLA is a co-founding principal at
• Richmond Low Line Waterstreet Studio. Eugene brings unique perspective
• 14th Street Stormwater Retrofit and broad range of experience to our projects and design
• Valentine Richmond History Center philosophy. Eugene has overseen and collaborated on
projects ranging from commercial mixed-use development
• Virginia Museum of Fine Arts
and streetscapes, schools, universities and museums,
• Elkhardt Middle School
parks and arboretums.
• George Mason Elementary School
• E.S.H. Greene Elementary School
Prior to opening Waterstreet, Eugene spent five years
• 10th Street Jefferson Greenway Study running a boutique design engineering firm and working
• RMA Plaza Study in the offices of Nelson Byrd Woltz Landscape Architects.
• Monroe Park Eugene received his Master’s in Landscape Architecture,
• Charlottesville City Market and Cultural Anthropology from the University of Virginia
• Dairy Central Mixed-Use and a BA in History from Columbia University.

Jill Nolt, PLA, RA is a Project Director at Waterstreet

Studio. As a dual license architect/landscape architect, Jill
oversees complex urban and institutional design projects,
managing consultants, design and production. Jill serves
on Richmond’s Urban Design Committee and is actively
engaged in the Downtown Community.

Prior to joining Waterstreet, Jill served as a Director at

Glave and Holmes Architects and at 3north. She received
a BS in Architecture, and Masters degrees in Architecture
and Landscape Architecture from University of Virginia.

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 50
 14th Street Stormwater Retrofit - Richmond, VA Linden Street - Richmond, VA

Dairy Central - Charlottesville, VA

Libbie Mill Library - Richmond, VA Low Line Green - Richmond, VA

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 51
 SDC is a small business dedicated to bettering our
Sustainable Design built environment through sustainable development.
Consulting Headquartered in Richmond, Virginia, SDC guides projects
seeking high-performance design and certification under
Sustainability Consultant local, regional and national green building standards.
Services include green building process management,
sustainability planning, building science analyses,
material and financing research and post-occupancy
evaluations.

Relevant Projects Sandra Leibowitz is the Founder, Owner and Managing

Principal of SDC. Based in Richmond, she leads SDC’s
• Capital One 1717 Innovation Hub team of experienced and credentialed professionals
• KIPP DC AIM Academy integrating green building design, construction, operations
• VDGS Barbara Johns Office Building and maintenance concepts into projects of varying size
• Dovetail Construction Office and complexity. Sandra and her team have provided green
• Dove Street Redevelopment building consulting services for over 500 commercial-scale
• Main Street Station Renovation projects, including 159 multi-unit residential buildings, 57
• Links Foundation Offices historic and 10 hospitality projects. 72 of SDC’s projects
• Starwood Hotels are located in Richmond. Sandra has been honored with
• Carr City Centers a Women in Sustainability Leadership Award in 2017,
• Marriott International as one of the first class of LEED Fellows in 2011 and as
among the Top 20 Most Influential Women in Richmond
• Homewood Suites Arlington
Commercial Real Estate in 2010
• Hoffman-Streuver Waterfront
Education: University of Oregon, Lehigh University
• Carr City Centers Wharf Hotel
• SW Waterfront Redevelopment
• The Yards Masterplan Luis Huertas serves SDC as a Project Manager.
• The Views at Clarendon In his role, Luis consults on LEED compliance and
• The Cadence at Downtown Crown sustainable design strategies, for a wide range of
• Hine Renovation project types including commercial, higher education,
• Union on Queen healthcare, hospitality and institutional projects. He also
• St. Matthews Redevelopment advises teams on the applicability of a variety of other
• VCU West Grace Housing green building and energy efficiency standards and
• VCU Laurel Deck rating systems and spearheads SDC’s scope and tool
• VCU School of Pharmacy development for LEED V4 readiness. Luis is one of the
• VCU School of Dentistry founders of the USGBC Caribbean Chapter and he has
• VCU Medical Center Main Hospital also served as a panelist at the Bermuda Ministry of
Cafeteria Economic Development’s Bermuda Energy Summit. He
currently serves as a Board member for the Artistic Lab
• VCU Health System Mother-Child Unit
for Design Ecology and architecture (ALDEA) and is a
• Penguins Civic Arena Redevelopment
Board Member of the AIA Richmond Chapter, chairing the
• Blairs Masterplan 2012, SIlver Spring
Public Relations committee.
• Terrapin Row Redevelopment
Education: Arizona State; Temple University
• Cafritz Property at Riverdale Park

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 52
 The Cadence at Downtown Crown, Gaithersburg, MD

VCU Laurel Parking Deck, Richmond, VA

Wharf Intercontinental Hotel, Washington, DC

Prince Street Hotel, Alexandria, VA Element and Aloft Hotel, Washington, DC

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 53
 Omni Ecosystems™ redefined living infrastructure with
Omni Ecosystems its Infinity Media™ and groundbreaking Comprehensive
Living Infrastructure green roof. Omni’s staff has diverse expertise in landscape
architecture, horticulture, soils, sustainable infrastructure,
construction services, ecosystem stewardship, and
urban agriculture. With its multi-disciplinary team and
vertical integration, Omni brings robust problem solving,
interdisciplinary innovation, and long-term reliability to
engaging nature in the built environment.

Relevant Living Infrastructure Projects

• Cummins Distribution Headquarters Molly Meyer is the CEO and Founder of Omni
• Harvard Business School Ecosystems™. She leads Omni’s strategy and business
• Studio Gang Architects development and oversees Omni’s product innovation
• McDonald’s Headquarters and field operations. She founded Omni with the mission
• Nobu Hotel to democratize access to natural spaces and to create an
• AMA Plaza organization that continuously engages in bold endeavors
• CityWay YMCA that elevate the triple bottom line: ecological, financial,
• Halstead CGA Office and social. Molly is also the Co-Founder & CEO of The
• Keep Indianapolis Beautiful Roof Crop™, a commercial rooftop farming company. Her
• Method Factory work at Stanford University in systems problem-solving
and in biogeochemical research and her field experience
• The Roof Crop
in construction means and methods were foundational in
• Land Collective David Rubin
redefining the American green roof industry with Omni’s
• Carling Hotel
groundbreaking Comprehensive green roof system.
• Stevenson High School
Education: MS and BS in Earth Systems with Honors,
• Riverline West Stanford University
• Grand Cayman Professional License: Green Roof Professional, LEED
Green Associate

MIchael Skowlund is a professional landscape architect

and Director of the Omni Workshop, with over 15 years of
experience in site planning and landscape design. Leading
on projects of all scales across the country and abroad,
Michael is adept at finding solutions to complicated
building, site and climate challenges. Focused on
collaboration between clients and multidisciplinary design
teams, he crafts resilient operative landscapes that
maximize functional and aesthetic potential, connecting
people to land. His career is marked by studying the art of
design and employing the built environment to reinforce
stewardship and social responsibility.
Education: Bachelor of Landscape Architecture, University
of Wisconsin-Madison
Professional License: PLA, ASLA, LEED AP and CLARB
Certified, Registered in GA, IL, OH, VA, WI

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 54
 Fulton West, Chicago, IL

Dune Acres, IN Fulton West, Chicago, IL

Cummins Headquarters, Indianapolis, IN

CityWay YMCA, Indianapolis, IN Harvard Business School. Boston, MA

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 55
 Appendix C
Letters of Support

VCU Health System

The Doorways
Ronald McDonald House Charities
VA Bio+Tech Park

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 56
May 1, 2020

Ms. Lenora Reid

Interim Chief Administrative Officer
City of Richmond
900 E. Broad Street
Richmond, Virginia 23219

Dear Ms. Reid,

VCU Health System supports without reservation the proposal offered by Capital City
Partners to purchase and redevelop the site of the Department of Public Safety Building
at 500 North 10th Street in the City of Richmond.

While we remain committed to the equitable and comprehensive redevelopment of the

underutilized portions of the entire Navy Hill neighborhood, this specific proposal timely
advances the mutual interests of the City of Richmond and the critical needs of the
anchor institutions that are the proposed key tenants of the development: The
Doorways, Ronald McDonald House, and VCU Health System.

Expeditious acceptance of this unsolicited proposal by the Administration and Council is

essential for VCU Health System to carry out its safety net healthcare mission; a
mission which specifically benefits those in high-need and vulnerable communities
throughout the City of Richmond. Our Adult Outpatient Pavilion located on East Leigh
Street is nearing the end of the construction phase and will be open to serve these
patients and patients throughout the region in the Spring of 2021.

Our Children’s Hospital inpatient facility will open in December 2022. Both of these
projects relied on components of the prior Navy Hill proposal that are addressed now by
Capital City Partners’ proposal. Time is truly of the essence.

Just as important, this proposal would redevelop underutilized parcels currently owned
by the City of Richmond and would return them to revenue producing parcels. In
contrast with the existing state of Public Safety Building, the retail, office, and other
improvements attendant to the proposed development will be a significant source of
economic development for the City and, simultaneously, contribute to the experience of
our patients, students, and employees. The tax revenues produced by this
development will meaningfully support city services, including pre-K through 12
education.

[Link]

An equal opportunity/affirmative action university

May 1,
VCU 2020System supports the proposal offered by Capital City Partners, and it is our
Health
hope that the Administration will advance it to Council for their review and approval.
Because of the tremendous investments we have made in the surrounding
neighborhood and the criticality of this project to our mission, we will be available to you
at every step in the review process. Please do not hesitate to contact me with any
questions at any time.
Ms. Lenora Reid
Interim Chief Administrative Officer
Sincerely,
City of Richmond
900 E. Broad Street
Richmond, Virginia 23219
Melinda Hancock
Dear Ms.
Chief Reid,
Administrative & Financial Officer
VCU Health System
VCU Health System supports without reservation the proposal offered by Capital City
Partners to purchase and redevelop the site of the Department of Public Safety Building
at 500 North 10th Street in the City of Richmond.

While we remain committed to the equitable and comprehensive redevelopment of the

underutilized portions of the entire Navy Hill neighborhood, this specific proposal timely
advances the mutual interests of the City of Richmond and the critical needs of the
anchor institutions that are the proposed key tenants of the development: The
Doorways, Ronald McDonald House, and VCU Health System.

Expeditious acceptance of this unsolicited proposal by the Administration and Council is

essential for VCU Health System to carry out its safety net healthcare mission; a
mission which specifically benefits those in high-need and vulnerable communities
throughout the City of Richmond. Our Adult Outpatient Pavilion located on East Leigh
Street is nearing the end of the construction phase and will be open to serve these
patients and patients throughout the region in the Spring of 2021.

Our Children’s Hospital inpatient facility will open in December 2022. Both of these
projects relied on components of the prior Navy Hill proposal that are addressed now by
Capital City Partners’ proposal. Time is truly of the essence.

Just as important, this proposal would redevelop underutilized parcels currently owned
by the City of Richmond and would return them to revenue producing parcels. In
contrast with the existing state of Public Safety Building, the retail, office, and other
improvements attendant to the proposed development will be a significant source of
economic development for the City and, simultaneously, contribute to the experience of
our patients, students, and employees. The tax revenues produced by this
development will meaningfully support city services, including pre-K through 12
education.

[Link]

An equal opportunity/affirmative action university

May 1, 2020

Ms. Lenora Reid

Interim Chief Administrative Officer
City of Richmond
900 East Broad Street
Richmond, VA 23219

Dear Ms. Reid & Members of the City Council,

Since 1980, Ronald McDonald House Charities of Richmond has seen the housing needs of
pediatric patient families in our region grow to seven times the capacity of our current
Ronald McDonald House. In addition, our historic House offers limited accessibility and does
not meet standards for all disease-specific treatment plans.

The proposed new Ronald McDonald House would elevate Richmond as a hub for family-
centered care, providing Richmond’s pediatric patient families with an ADA compliant
facility featuring immune-compromised suites, enhanced community and family spaces,
and up to 50 new sleep rooms all aimed at reducing the financial and emotional burdens of
having a child receiving medical care.

A RMHC Global study found that families believed that the proximity of a Ronald McDonald
House to the hospital helped them stay together during a difficult time and improved their
perceptions about their sick child’s recovery.

The new House would offer comfort and respite to families from all area hospitals and
medical facilities, while providing peace of mind for those most vulnerable and critical
pediatric families served just footsteps away at Children’s Hospital of Richmond at VCU.

Our work is made possible thanks to the vital financial support of individuals and businesses
in the Richmond community and we are fueled by thousands of local volunteers. In 2019 we
hosted families at our Ronald McDonald House on Monument Avenue for 2,240 nights of
care from 86 counties in Virginia, 22 states across the country and 5 countries and territories
around the world for an average of 8.5 nights a family. 100% of families stated in exit surveys
that they would recommend our House as an option for families of hospitalized children.
As we plan for a future Ronald McDonald House, we are expanding our in-hospital work,
bringing care to caregivers where they are.
We have limited capacity with only 9 bedrooms regularly operating with wait list and
overflow, inadequate family facilities (only one bathroom currently meets immune system
requirements, only bedroom one can be reached by wheelchair and the House is not ADA
compliant limiting some guests to the first floor), and we have extremely limited storage,
staff and meeting spaces. Our current structure does not offer private bathrooms for each
of our nine guest rooms and due to the recent COVID – 19 crisis we do not believe we will
ever be able to reach full capacity in our house again and will need to limit the number of
families to 5.

RMHC Richmond completed a feasibility study using discharge data from area hospitals,
determining the projected need will be 62 beds a night by 2025. Over the last three years
we have invested over $40,000 of resources sponsoring family overflow nights, and more
than $30,000 in off-site storage and office needs in order to maximize the House’s square
foot access for families. We expect these numbers to grow. It is vitally important for us to
begin the process of building a new Ronald McDonald House.

A new Campus style Ronald McDonald House would enable us to meet the needs of
families and community volunteers providing a fully ADA compliant building up to current
standards for pediatric patient families, with sufficient bedrooms, parking, and community
spaces in close proximity to our number one referral partner.

On behalf of Ronald McDonald House Charities and supporters, we ask that you act on this
proposal with the same sense of urgency that we have each day for the children and
families we serve.

Sincerely,

Kerry Blumberg Chris Siderio

Executive Director President, Board of Directors
Ronald McDonald House Charities Ronald McDonald House Charities
of Richmond of Richmond
 April 29, 2020 
 
Ms. Lenora Reid 
Interim Chief Administrative Officer 
City of Richmond 
900 East Broad Street 
Richmond, VA   23219 
 
Dear Lenora: 
 
I am writing to express support for the Capital City Partners’ proposal to acquire the 
Department of Public Safety Building site, and to develop new space for VCU Health, The 
Doorways, and Ronald McDonald House Charities.  
 
As our life sciences‐advanced technology campus – the VA Bio+Tech Park – is located adjacent 
to the site, we see first‐hand the importance of this significant economic development project. 
Over the last 25 years, we have been successfully fulfilling our mission in the development of a 
bio‐science and innovation eco‐system. For us to have continued success in attracting 
investment, innovative partners and programs to Richmond, however, we must all work 
together to build an even better urban infrastructure for business and research.   
 
The obsolete Public Safety Building is an obstacle to this goal. Its continued existence takes 
away from a tremendous opportunity for VCU Health and VA Bio+Tech Park continued growth 
and it prevents us from having a well‐connected neighborhood. 
 
The Capital City Partners proposal is an opportunity to solve a part of the problem in a way that 
lifts the area around it. While we believe there is even more work to be done in the north of 
broad area, this new project will encourage new business growth and help support our efforts 
to recruit new talent and innovation to Richmond. 
 
It is our hope you will help this project move forward. Its approval will send out an important 
message that Richmond is the place for innovation and investment.  
 
Sincerely, 

 
Carrie Roth 
 
 

VA Bio+Tech Park | 800 E Leigh St. | Richmond, Virginia 23219

 Appendix D
Land Appraisal
Executive Summary

Full Report is Available

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 64
CBRE VALUATION & ADVISORY SERVICES

APPRAISAL
REPORT
VA C ANT SIT E - 500 NO RT H 1 0 T H ST RE E T
500 NORTH 10TH STREET
R I C H M OND, VIRGINIA 2 3 2 1 9
C B RE G R OU P , INC. F ILE N O. 2 0 - 3 4 1 SE - 1 8 7 4 - 2

CAPITAL CITY PARTNERS, LLC

© 2020 CBRE, Inc.

VALUATION & ADVISORY SERVICES

8730 Stony Point Parkway

Richmond, VA 23235

T 804-201-2001
F 804-201-2020

[Link]

Date of Report: April 29, 2020

Ms. Susan H Eastridge

CAPITAL CITY PARTNERS, LLC
3160 Fairview Park Dr, Suite 110
Falls Church, Virginia 22042

RE: Appraisal of: Vacant Site - 500 North 10th Street

500 North 10th Street
Richmond, Virginia
CBRE, Inc. File No. 20-341SE-1874-2

Dear Ms. Eastridge:

At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of
the referenced property. Our analysis is presented in the following Appraisal Report.
The subject is a 2.27-acre (98,936 sq. ft.) tract of vacant commercial land located at 500 North
10th Street in the city of Richmond, Virginia. The site is currently 2.92 acres in size, but 0.65 acres
of the site will be dedicated to extending Leigh Street at the north end of the site and Clay Street
at the south end of the site, reflecting 2.27 acres developable land area. A new VCU Health
System facility is proposed for this site but our valuation represents the as is vacant land only.
The owner/developer of this site will be responsible for extraordinary off-site street improvement
infrastructure to Clay Street (between 9th and 10th Streets) prior to any development. The subject is
currently improved with an old City of Richmond municipal building and parking garage that is
vacant and reportedly no longer functional for occupancy. These improvements contribute no
value to the property and must be demolished and removed prior to development.

© 2020 CBRE, Inc.

Ms. Susan H Eastridge
April 29, 2020
Page 2

Based on the analysis contained in the following report, the market value of the subject is
concluded as follows:
MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion
As Is Fee Simple Estate April 10, 2020 $3,175,000
Compiled by CBRE

EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is defined as “an assignment-specific assumption as of the effective
date regarding uncertain information used in an analysis which, if found to be false, could alter
1
the appraiser’s opinions or conclusions.”

 Based on survey plats prepared by VHB and provided by our client (prospective developer),
0.65 acres of the site will be dedicated to extending Leigh Street at the north end of the site
and Clay Street at the south end of the site, reflecting 2.27 acres developable land area. We
have made the extraordinary assumption that these land areas are accurate.
 The owner/developer of this site will be responsible for off-site street improvement
infrastructure to Clay Street (between 9th Street and 10th Street) prior to any development. We
were provided detailed cost estimates for this work by our client and have made the
extraordinary assumption that these estimates are accurate.
 The use of these extraordinary assumptions may have affected the assignment results.
The report, in its entirety, including all assumptions and limiting conditions, is an integral part of,
and inseparable from, this letter.
As of the date of value and the date of this report, the nation, region, and market area are
impacted by the COVID-19 pandemic. This could have a prolonged effect on macroeconomic
conditions, though at this time the length of duration is unknown. The perceived impact on real
estate varies on several factors including asset class, use, tenancy, and location. Our analysis
considers available information as of the effective date.
The following appraisal sets forth the most pertinent data gathered, the techniques employed,
and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were
developed based on, and this report has been prepared in conformance with, the guidelines and
recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP),
and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal
Practice of the Appraisal Institute.
The intended use and user of our report are specifically identified in our report as agreed upon in
our contract for services and/or reliance language found in the report. As a condition to being
granted the status of an intended user, any intended user who has not entered into a written
agreement with CBRE in connection with its use of our report agrees to be bound by the terms
and conditions of the agreement between CBRE and the client who ordered the report. No other
use or user of the report is permitted by any other party for any other purpose. Dissemination of

1
The Appraisal Foundation, USPAP, 2020-2021

© 2020 CBRE, Inc.

Ms. Susan H Eastridge
April 29, 2020
Page 3

this report by any party to any non-intended users does not extend reliance to any such party,
and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its
conclusions or contents (or any portion thereof).
It has been a pleasure to assist you in this assignment. If you have any questions concerning the
analysis, or if CBRE can be of further service, please contact us.

Respectfully submitted,

CBRE, Inc. - VALUATION & ADVISORY SERVICES

Matthew Mitchell, MAI

Managing Director
Virginia Certification #4001-008965

Phone: 804-201-2001
Fax: 804-201-2020
Email: [Link]@[Link]

© 2020 CBRE, Inc.

 Certification

Certification
We certify to the best of our knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions and are our personal, impartial and unbiased
professional analyses, opinions, and conclusions.
3. We have no present or prospective interest in or bias with respect to the property that is the
subject of this report and have no personal interest in or bias with respect to the parties
involved with this assignment.
4. Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
5. Our compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal.
6. This appraisal assignment was not based upon a requested minimum valuation, a specific
valuation, or the approval of a loan.
7. Our analyses, opinions, and conclusions were developed, and this report has been prepared,
in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the
requirements of the Commonwealth of Virginia.
8. The reported analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal Institute.
9. The use of this report is subject to the requirements of the Appraisal Institute relating to review
by its duly authorized representatives.
10. As of the date of this report, Matthew Mitchell, MAI has not completed the continuing
education program for Designated Members of the Appraisal Institute.
11. Matthew Mitchell, MAI has made a personal inspection of the property that is the subject of
this report.
12. No one provided significant real property appraisal assistance to the persons signing this
report.
13. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc.
Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine
market research investigations, absolute client confidentiality and privacy were maintained at
all times with regard to this assignment without conflict of interest.

i
Vacant Site - 500 North 10th Street, Richmond, Virginia
© 2020 CBRE, Inc.
 Certification

14. Matthew Mitchell, MAI has not provided any services, as an appraiser or in any other
capacity, regarding the property that is the subject of this report within the three-year period
immediately preceding agreement to perform this assignment.
MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion
As Is Fee Simple Estate April 10, 2020 $3,175,000
Compiled by CBRE

EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is defined as “an assignment-specific assumption as of the effective
date regarding uncertain information used in an analysis which, if found to be false, could alter
2
the appraiser’s opinions or conclusions.”

 Based on survey plats prepared by VHB and provided by our client (prospective developer),
0.65 acres of the site will be dedicated to extending Leigh Street at the north end of the site
and Clay Street at the south end of the site, reflecting 2.27 acres developable land area. We
have made the extraordinary assumption that these land areas are accurate.
 The owner/developer of this site will be responsible for off-site street improvement
infrastructure to Clay Street (between 9th Street and 10th Street) prior to any development. We
were provided detailed cost estimates for this work by our client and have made the
extraordinary assumption that these estimates are accurate.
 The use of these extraordinary assumptions may have affected the assignment results.

Matthew Mitchell, MAI

Virginia Certification #4001-008965

2
The Appraisal Foundation, USPAP, 2020-2021

ii
Vacant Site - 500 North 10th Street, Richmond, Virginia
© 2020 CBRE, Inc.
 Subject Photographs

Subject Photographs

Aerial View

iii
Vacant Site - 500 North 10th Street, Richmond, Virginia
© 2020 CBRE, Inc.
 Subject Photographs

Subject Site Subject Site

Subject Site 10th Street Facing North

iv
Vacant Site - 500 North 10th Street, Richmond, Virginia
© 2020 CBRE, Inc.
 Executive Summary

Executive Summary
Property Name Vacant Site - 500 North 10th Street
Location 500 North 10th Street
Richmond, VA 23219

Parcel Number(s) E0000235001

Client CAPITAL CITY PARTNERS, LLC

Highest and Best Use
As If Vacant Commercial
As Improved Redevelop with Commercial Use
Property Rights Appraised Fee Simple Estate
Date of Inspection April 10, 2020
Estimated Exposure Time 12 Months
Estimated Marketing Time 12 Months
Primary Land Area 2.27 AC 98,936 SF
Zoning B-4, Central Business
Buyer Profile Developer
VALUATION Total Per SF
Land Value $8,500,000 $85.91

Market Value As Is On April 10, 2020 $3,175,000 $32.09

CONCLUDED MARKET VALUE

Appraisal Premise Interest Appraised Date of Value Value
As Is Fee Simple Estate April 10, 2020 $3,175,000
Compiled by CBRE

STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT)

Strengths/ Opportunities
 The subject is located in a densely developed area of downtown Richmond that is targeted for
redevelopment
 It is zoned B-4, a very inclusive zoning designation that allows many commercial uses with a
high density 6.0 maximum FAR and no maximum height restrictions.
Weaknesses/ Threats
 A significant investment in off-site street infrastructure is required of any developer of this site
 The site is currently improved with an old building and parking garage that must be
demolished prior to any development
 Increased uncertainty and risk associated with COVID-19 (see discussion below). Most
participants anticipate with the greatest impact felt in the next 3-9 months. Although the
greatest impact of this risk is expected to be felt in the next 3-9 months and any new

v
Vacant Site - 500 North 10th Street, Richmond, Virginia
© 2020 CBRE, Inc.
 Executive Summary

development would likely not commence, and definitely not be completed, within that time
frame, there is still great uncertainty regarding potential for new developments at this time.

IMPORTANT WARNING - MATERIAL VALUATION UNCERTAINTY FROM NOVEL

CORONAVIRUS
The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health Organisation
as a “Global Pandemic” on the 11th March 2020, has impacted global financial markets. Travel
restrictions have been implemented by many countries. Market activity is being impacted in many
sectors. As at the valuation date, we consider that we can attach less weight to previous market
evidence for comparison purposes, to inform opinions of value. Indeed, the current response to
COVID-19 means that we are faced with an unprecedented set of circumstances on which to
base a judgement. Our valuation(s) is / are therefore reported as being subject to ‘material
valuation uncertainty’ as set out in VPS 3 and VPGA 10 of the RICS Valuation – Global Standards.
Consequently, less certainty – and a higher degree of caution – should be attached to our
valuation than would normally be the case. Given the unknown future impact that COVID-19
might have on the real estate market, we recommend that you keep the valuation of [this
property] under frequent review. For the avoidance of doubt, the inclusion of the ‘material
valuation uncertainty’ declaration above does not mean that the valuation cannot be relied upon.
Rather, the declaration has been included to ensure transparency of the fact that – in the current
extraordinary circumstances – less certainty can be attached to the valuation than would
otherwise be the case. The material uncertainty clause is to serve as a precaution and does not
invalidate the valuation.

EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is defined as “an assignment-specific assumption as of the effective
date regarding uncertain information used in an analysis which, if found to be false, could alter
3
the appraiser’s opinions or conclusions.”

 Based on survey plats prepared by VHB and provided by our client (prospective developer),
0.65 acres of the site will be dedicated to extending Leigh Street at the north end of the site
and Clay Street at the south end of the site, reflecting 2.27 acres developable land area. We
have made the extraordinary assumption that these land areas are accurate.
 The owner/developer of this site will be responsible for off-site street improvement
infrastructure to Clay Street (between 9th Street and 10th Street) prior to any development. We
were provided detailed cost estimates for this work by our client and have made the
extraordinary assumption that these estimates are accurate.
 The use of these extraordinary assumptions may have affected the assignment results.

3
The Appraisal Foundation, USPAP, 2020-2021

vi
Vacant Site - 500 North 10th Street, Richmond, Virginia
© 2020 CBRE, Inc.
 Executive Summary

HYPOTHETICAL CONDITIONS
A hypothetical condition is defined as “a condition, directly related to a specific assignment,
which is contrary to what is known by the appraiser to exist on the effective date of the
4
assignment results but is used for the purposes of analysis.”

 None noted

OWNERSHIP AND PROPERTY HISTORY

The subject is currently owned by City of Richmond Public works, a municipal entity of the City of
Richmond. There have been no known arm’s length ownership transfers of the property within
three years of the date of appraisal and, to our knowledge, the subject is not currently under
contract.

EXPOSURE/MARKETING TIME
Current appraisal guidelines require an estimate of a reasonable time period in which the subject
could be brought to market and sold. This reasonable time frame can either be examined
historically or prospectively. In a historical analysis, this is referred to as exposure time. Exposure
time always precedes the date of value, with the underlying premise being the time a property
would have been on the market prior to the date of value, such that it would sell at its appraised
value as of the date of value. On a prospective basis, the term marketing time is most often
used. The exposure/marketing time is a function of price, time, and use. It is not an isolated
estimate of time alone. In consideration of these factors, we have analyzed the following:

 exposure periods for comparable sales used in this appraisal;

 the opinions of market participants.
The following table presents the information derived from these sources.

EXPOSURE/MARKETING TIME DATA

Exposure/Mktg. (Months)
Investment Type Range Average
Comparable Sales Data 6.0 - 36.0 12.0
Local Market Professionals 6.0 - 36.0 12.0
CBRE Exposure Time Estimate 12 Months
CBRE Marketing Period Estimate 12 Months
Source: Comparable Sales Data & Local Market Professionals

4
The Appraisal Foundation, USPAP, 2020-2021

vii
Vacant Site - 500 North 10th Street, Richmond, Virginia
© 2020 CBRE, Inc.
 Appendix E
Escrow Receipt of Deposit

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 76
  



  





Receipt of Deposit

Company:

Thomas Title & Escrow, LLC d/b/a Thomas

National Commercial Services
3100 McKinnon Street, Suite 170
Dallas, TX 75201

File Number: 1526NTL

Receipt Number: 12
Type of Funds: Wire
Reference Number:
Bank: Alliance Bank of Arizona - Virginia NTL
Virginia License Number: 142601

Date: 4/30/2020
Payor: Capital City Partners, LLC
Property: 500 North 10th Street, Richmond, VA 23219
Amount: $317,500.00
Description: This Escrow is being held on behalf of Capital City Partners, LLC
To hold the deposit related to the Unsolicited Proposal to Purchase City of
Richmond-Owned Real Estate at 500 North 10th Street, Richmond, VA 23219

Received By: Sheila Hunter

Receiver's Signature:

4/30/2020 7:51:53 AM
 Appendix F
Letter of Intent

Capital City Partners, LLC PROPOSAL TO PURCHASE CITY OF RICHMOND-OWNED REAL ESTATE 78
 Capital City Partners LLC

May 1, 2020

Lenora G. Reid
Acting Chief Administrative Officer
City of Richmond
900 East Broad Street, Suite 201
Richmond, VA 23129

Re: LETTER OF INTENT (“LOI”) to purchase 500 North 10th Street, Richmond, VA, 23219 (Patent
Parcel ID: E0000235001) containing approximately 345,607 square feet of building
improvements on approximately 3.01 acres of land as indicated in Exhibit 1 (the “Property”)

Dear Ms. Reid:

Please find below offer dated May 1, 2020 including the terms and conditions under which Capital City
Partners would purchase the above-referenced Property. Upon the execution and return of this letter
by the Seller, this correspondence will constitute a non-binding Letter of Intent.

The following general terms shall be incorporated into a Purchase and Sale Agreement (“PSA”) for the
Property:

Seller: City of Richmond Public Works and / or its assigns

Purchaser: Capital City Partners, LLC and / or its assigns

Development Plan: The Property is to be acquired by the Purchaser for the development of
build to suit facilities for occupancy by the Virginia Commonwealth
University Health System and others, as well as commercial office and
retail spaces with parking and as part of that development the
Purchaser will demolish the existing improvements on the Property and
recreate East Clay Street between 9th and 10th Streets resulting in a new
500 North 10 Street containing 2.27 acres and adding .65 acres of land
to extend Leigh Street at the north end of the site and to Clay Street at
the south of the site (see Exhibits 2 and 3 for to be created site plan and
Scope of Work for reopened East Clay Street).

Net Purchase Price: $3,175,000 - Three Million One Hundred Seventy-Five Thousand and
no/100 Dollars.

Deposit: Simultaneous to the submittal of the Unsolicited Offer to Purchase City

of Richmond-Owned Real Estate, dated April 30, 2020, Purchaser has
deposited with the national commercial office of Thomas Title & Escrow
Company (designated Escrow Agent) the sum of $317,500 (10% of
purchase price) Three Hundred Thousand Seventeen Thousand Five
Hundred and no/100 Dollars as the good faith Deposit. The receipt of
the escrowed Deposit is attached as Exhibit 4 to this LOI). Said Deposit

1 East Broad Street, Richmond, VA 23219 3610 Fairview Park Drive, Suite 110, Falls Church, VA 22042 877.850.5070
 Capital City Partners LLC

shall be applied to the Net Purchase Price at Closing or shall be returned

in full to the Purchaser in the event of Seller’s default or if during the
Inspection Period it is determined, in Purchaser’s sole discretion, that
the purchase of the Property is not feasible. In the event the
transaction fails to close due to Purchaser’s default, Seller shall retain
whatever portion that the Deposit equals true liquidated damages.

Inspection Period: Purchaser shall have Sixty (60) days from the execution of the Contract
for its Inspection Period. Seller shall provide Purchaser with copies of its
title policy and exceptions, survey, soil drainage and geotechnical
report, building plans and Phase I Environmental report in its possession
within five (5) days of Contract execution. During the Inspection Period,
Seller shall provide Purchaser with reasonable access to the Property
upon reasonable advance notice. The Purchaser shall have the right to
terminate the Contract for any reason during the Inspection Period. If
Purchaser waives the contingencies during its Inspection Period, the
Earnest Money shall become non-refundable to Purchaser (except in
the case of Seller default) but shall remain applicable to the Purchase
Price, paid at Closing. Purchaser and Seller shall have the right to end
the Inspection Period earlier if mutually agreeable, in writing.

Closing: 30 Days after Inspection period.

Purchaser and Seller shall have the right to close early if mutually
agreeable, in writing.

Expenses: Each party shall be responsible for their own attorney fees and other
consulting expenses that either party may incur during the course of
this transaction. All recordation fees and/or other taxes imposed by the
State or City of Richmond in conjunction with this transaction shall be
shared equally by the Purchaser and the Seller.

Broker: Seller and Purchaser acknowledge that there are no brokers involved in
this transaction.

1 East Broad Street, Richmond, VA 23219 3610 Fairview Park Drive, Suite 110, Falls Church, VA 22042 877.850.5070
 Capital City Partners LLC

This Agreement shall constitute an exclusive arrangement between the parties hereto. From and after
the date of execution of this Agreement by Seller and until such time as this Agreement and the PSA are
terminated, neither Seller nor its agents, affiliates or employees shall sell, offer for sale, negotiate with
respect to, or otherwise deal in the sale or other transfer of this Property or any interest therein or any
interest of Seller or any other entity holding a legal or beneficial interest in the Property.

If those terms set forth above are acceptable to you, please indicate so by countersigning this Letter of
Intent in the space provided below.

Very truly yours,

Capital City Partners, LLC

By:
Susan Eastridge
Manager

We hereby acknowledge and confirm that the foregoing correctly sets forth the understanding between
Purchaser and Seller.

Date:___________________, 2020 By:_________________________________

Its:__________________________________

1 East Broad Street, Richmond, VA 23219 3610 Fairview Park Drive, Suite 110, Falls Church, VA 22042 877.850.5070
 Capital City Partners LLC

EXHIBIT 1

CURRENT TAX MAP

Subject Photographs

Subject Photographs

1 East Broad Street, Richmond, VA 23219 3610 Fairview Park Drive, Suite 110, Falls Church, VA 22042 877.850.5070
 Capital City Partners LLC

EXHIBIT 2

TO BE CREATED SITE

\\vhb\gbl\proj\Richmond\34447.00 North of Broad Redevelop\cad\ld\Planmisc\VCU Leigh_10th\Block [Link]

PROPERTY LINE INFORMATION DEPICTED IN THIS

EXHIBIT IS BASED ON COMPILED INFORMATION
FROM CITY GIS, PLANS OF RECORDS AND VARIOUS
SURVEYS. NO FIELD SURVEY OR PROPERTY
RESEARCH WAS COMPLETED AS PART OF THIS
EFFORT.

S 53°37'46" E
252.92'

PROPERTY LINE TO BE ADJUSTED

N36°37'56"E 391.57

S36°36'42"W 390.57
44
2.27± Acres
98936± SF

N/F
CITY OF RICHMOND
DEPT. OF PUBLIC WORKS
E000-0235-001
500 N 10th Street
RICHMOND, VIRGINIA, 23219
DEED REFERENCE: N/A
Saved Wednesday, April 15, 2020 9:15:13 AM MBURDICK Plotted Wednesday, April 15, 2020 3:26:52 PM Burdick, Mike

253.07'
N 53°51'25" W

Legend
RIGHT OF WAY DEDICATION

RIGHT OF WAY CLOSURE RIGHT OF WAY

DEDICATION

0 30 60 120 Feet

115 South 15th Street North of Broad Redevelopment

Suite 200
Richmond, VA 23219 Parcel Boundary Exhibit
804.343.7100

January 29, 2020

MSB
KH 1"=60' July 22, 2019 . 5 10

1 East Broad Street, Richmond, VA 23219 3610 Fairview Park Drive, Suite 110, Falls Church, VA 22042 877.850.5070
Capital City Partners
CBRE VALUATION & ADVISORY SERVICES

APPRAISAL
REPORT
VACANT SITE - 500 NORTH 10TH STREET
500 NORTH 10TH STREET
RICHMOND, VIRGINIA 23219
CBRE GROUP, INC. FILE NO. 20-341SE-1874-2

CAPITAL CITY PARTNERS, LLC

© 2020 CBRE, Inc.

VALUATION & ADVISORY SERVICES

8730 Stony Point Parkway

Richmond, VA 23235

T 804-201-2001
F 804-201-2020

[Link]

Date of Report: April 29, 2020

Ms. Susan H Eastridge

CAPITAL CITY PARTNERS, LLC
3160 Fairview Park Dr, Suite 110
Falls Church, Virginia 22042

RE: Appraisal of: Vacant Site - 500 North 10th Street

500 North 10th Street
Richmond, Virginia
CBRE, Inc. File No. 20-341SE-1874-2

Dear Ms. Eastridge:

At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of
the referenced property. Our analysis is presented in the following Appraisal Report.
The subject is a 2.27-acre (98,936 sq. ft.) tract of vacant commercial land located at 500 North
10th Street in the city of Richmond, Virginia. The site is currently 2.92 acres in size, but 0.65 acres
of the site will be dedicated to extending Leigh Street at the north end of the site and Clay Street
at the south end of the site, reflecting 2.27 acres developable land area. A new VCU Health
System facility is proposed for this site but our valuation represents the as is vacant land only.
The owner/developer of this site will be responsible for extraordinary off-site street improvement
infrastructure to Clay Street (between 9th and 10th Streets) prior to any development. The subject is
currently improved with an old City of Richmond municipal building and parking garage that is
vacant and reportedly no longer functional for occupancy. These improvements contribute no
value to the property and must be demolished and removed prior to development.

© 2020 CBRE, Inc.

Ms. Susan H Eastridge
April 29, 2020
Page 2

Based on the analysis contained in the following report, the market value of the subject is
concluded as follows:
MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion
As Is Fee Simple Estate April 10, 2020 $3,175,000
Compiled by CBRE

EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is defined as “an assignment-specific assumption as of the effective
date regarding uncertain information used in an analysis which, if found to be false, could alter
1
the appraiser’s opinions or conclusions.”

 Based on survey plats prepared by VHB and provided by our client (prospective developer),
0.65 acres of the site will be dedicated to extending Leigh Street at the north end of the site
and Clay Street at the south end of the site, reflecting 2.27 acres developable land area. We
have made the extraordinary assumption that these land areas are accurate.
 The owner/developer of this site will be responsible for off-site street improvement
infrastructure to Clay Street (between 9th Street and 10th Street) prior to any development. We
were provided detailed cost estimates for this work by our client and have made the
extraordinary assumption that these estimates are accurate.
 The use of these extraordinary assumptions may have affected the assignment results.
The report, in its entirety, including all assumptions and limiting conditions, is an integral part of,
and inseparable from, this letter.
As of the date of value and the date of this report, the nation, region, and market area are
impacted by the COVID-19 pandemic. This could have a prolonged effect on macroeconomic
conditions, though at this time the length of duration is unknown. The perceived impact on real
estate varies on several factors including asset class, use, tenancy, and location. Our analysis
considers available information as of the effective date.
The following appraisal sets forth the most pertinent data gathered, the techniques employed,
and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were
developed based on, and this report has been prepared in conformance with, the guidelines and
recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP),
and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal
Practice of the Appraisal Institute.
The intended use and user of our report are specifically identified in our report as agreed upon in
our contract for services and/or reliance language found in the report. As a condition to being
granted the status of an intended user, any intended user who has not entered into a written
agreement with CBRE in connection with its use of our report agrees to be bound by the terms
and conditions of the agreement between CBRE and the client who ordered the report. No other
use or user of the report is permitted by any other party for any other purpose. Dissemination of

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The Appraisal Foundation, USPAP, 2020-2021

© 2020 CBRE, Inc.

Ms. Susan H Eastridge
April 29, 2020
Page 3

this report by any party to any non-intended users does not extend reliance to any such party,
and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its
conclusions or contents (or any portion thereof).
It has been a pleasure to assist you in this assignment. If you have any questions concerning the
analysis, or if CBRE can be of further service, please contact us.

Respectfully submitted,

CBRE, Inc. - VALUATION & ADVISORY SERVICES

Matthew Mitchell, MAI

Managing Director
Virginia Certification #4001-008965

Phone: 804-201-2001
Fax: 804-201-2020
Email: [Link]@[Link]

© 2020 CBRE, Inc.

 Certification

Certification
We certify to the best of our knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions and are our personal, impartial and unbiased
professional analyses, opinions, and conclusions.
3. We have no present or prospective interest in or bias with respect to the property that is the
subject of this report and have no personal interest in or bias with respect to the parties
involved with this assignment.
4. Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
5. Our compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal.
6. This appraisal assignment was not based upon a requested minimum valuation, a specific
valuation, or the approval of a loan.
7. Our analyses, opinions, and conclusions were developed, and this report has been prepared,
in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the
requirements of the Commonwealth of Virginia.
8. The reported analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal Institute.
9. The use of this report is subject to the requirements of the Appraisal Institute relating to review
by its duly authorized representatives.
10. As of the date of this report, Matthew Mitchell, MAI has not completed the continuing
education program for Designated Members of the Appraisal Institute.
11. Matthew Mitchell, MAI has made a personal inspection of the property that is the subject of
this report.
12. No one provided significant real property appraisal assistance to the persons signing this
report.
13. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc.
Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine
market research investigations, absolute client confidentiality and privacy were maintained at
all times with regard to this assignment without conflict of interest.

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Vacant Site - 500 North 10th Street, Richmond, Virginia
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 Certification

14. Matthew Mitchell, MAI has not provided any services, as an appraiser or in any other
capacity, regarding the property that is the subject of this report within the three-year period
immediately preceding agreement to perform this assignment.
MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion
As Is Fee Simple Estate April 10, 2020 $3,175,000
Compiled by CBRE

EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is defined as “an assignment-specific assumption as of the effective
date regarding uncertain information used in an analysis which, if found to be false, could alter
2
the appraiser’s opinions or conclusions.”

 Based on survey plats prepared by VHB and provided by our client (prospective developer),
0.65 acres of the site will be dedicated to extending Leigh Street at the north end of the site
and Clay Street at the south end of the site, reflecting 2.27 acres developable land area. We
have made the extraordinary assumption that these land areas are accurate.
 The owner/developer of this site will be responsible for off-site street improvement
infrastructure to Clay Street (between 9th Street and 10th Street) prior to any development. We
were provided detailed cost estimates for this work by our client and have made the
extraordinary assumption that these estimates are accurate.
 The use of these extraordinary assumptions may have affected the assignment results.

Matthew Mitchell, MAI

Virginia Certification #4001-008965

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The Appraisal Foundation, USPAP, 2020-2021

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Vacant Site - 500 North 10th Street, Richmond, Virginia
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 Subject Photographs

Subject Photographs

Aerial View

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Vacant Site - 500 North 10th Street, Richmond, Virginia
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 Subject Photographs

Subject Site Subject Site

Subject Site 10th Street Facing North

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Vacant Site - 500 North 10th Street, Richmond, Virginia
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 Executive Summary

Executive Summary
Property Name Vacant Site - 500 North 10th Street
Location 500 North 10th Street
Richmond, VA 23219

Parcel Number(s) E0000235001

Client CAPITAL CITY PARTNERS, LLC

Highest and Best Use
As If Vacant Commercial
As Improved Redevelop with Commercial Use
Property Rights Appraised Fee Simple Estate
Date of Inspection April 10, 2020
Estimated Exposure Time 12 Months
Estimated Marketing Time 12 Months
Primary Land Area 2.27 AC 98,936 SF
Zoning B-4, Central Business
Buyer Profile Developer
VALUATION Total Per SF
Land Value $8,500,000 $85.91

Market Value As Is On April 10, 2020 $3,175,000 $32.09

CONCLUDED MARKET VALUE

Appraisal Premise Interest Appraised Date of Value Value
As Is Fee Simple Estate April 10, 2020 $3,175,000
Compiled by CBRE

STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT)

Strengths/ Opportunities
 The subject is located in a densely developed area of downtown Richmond that is targeted for
redevelopment
 It is zoned B-4, a very inclusive zoning designation that allows many commercial uses with a
high density 6.0 maximum FAR and no maximum height restrictions.
Weaknesses/ Threats
 A significant investment in off-site street infrastructure is required of any developer of this site
 The site is currently improved with an old building and parking garage that must be
demolished prior to any development
 Increased uncertainty and risk associated with COVID-19 (see discussion below). Most
participants anticipate with the greatest impact felt in the next 3-9 months. Although the
greatest impact of this risk is expected to be felt in the next 3-9 months and any new

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 Executive Summary

development would likely not commence, and definitely not be completed, within that time
frame, there is still great uncertainty regarding potential for new developments at this time.

IMPORTANT WARNING - MATERIAL VALUATION UNCERTAINTY FROM NOVEL

CORONAVIRUS
The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health Organisation
as a “Global Pandemic” on the 11th March 2020, has impacted global financial markets. Travel
restrictions have been implemented by many countries. Market activity is being impacted in many
sectors. As at the valuation date, we consider that we can attach less weight to previous market
evidence for comparison purposes, to inform opinions of value. Indeed, the current response to
COVID-19 means that we are faced with an unprecedented set of circumstances on which to
base a judgement. Our valuation(s) is / are therefore reported as being subject to ‘material
valuation uncertainty’ as set out in VPS 3 and VPGA 10 of the RICS Valuation – Global Standards.
Consequently, less certainty – and a higher degree of caution – should be attached to our
valuation than would normally be the case. Given the unknown future impact that COVID-19
might have on the real estate market, we recommend that you keep the valuation of [this
property] under frequent review. For the avoidance of doubt, the inclusion of the ‘material
valuation uncertainty’ declaration above does not mean that the valuation cannot be relied upon.
Rather, the declaration has been included to ensure transparency of the fact that – in the current
extraordinary circumstances – less certainty can be attached to the valuation than would
otherwise be the case. The material uncertainty clause is to serve as a precaution and does not
invalidate the valuation.

EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is defined as “an assignment-specific assumption as of the effective
date regarding uncertain information used in an analysis which, if found to be false, could alter
3
the appraiser’s opinions or conclusions.”

 Based on survey plats prepared by VHB and provided by our client (prospective developer),
0.65 acres of the site will be dedicated to extending Leigh Street at the north end of the site
and Clay Street at the south end of the site, reflecting 2.27 acres developable land area. We
have made the extraordinary assumption that these land areas are accurate.
 The owner/developer of this site will be responsible for off-site street improvement
infrastructure to Clay Street (between 9th Street and 10th Street) prior to any development. We
were provided detailed cost estimates for this work by our client and have made the
extraordinary assumption that these estimates are accurate.
 The use of these extraordinary assumptions may have affected the assignment results.

3
The Appraisal Foundation, USPAP, 2020-2021

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 Executive Summary

HYPOTHETICAL CONDITIONS
A hypothetical condition is defined as “a condition, directly related to a specific assignment,
which is contrary to what is known by the appraiser to exist on the effective date of the
4
assignment results but is used for the purposes of analysis.”

 None noted

OWNERSHIP AND PROPERTY HISTORY

The subject is currently owned by City of Richmond Public works, a municipal entity of the City of
Richmond. There have been no known arm’s length ownership transfers of the property within
three years of the date of appraisal and, to our knowledge, the subject is not currently under
contract.

EXPOSURE/MARKETING TIME
Current appraisal guidelines require an estimate of a reasonable time period in which the subject
could be brought to market and sold. This reasonable time frame can either be examined
historically or prospectively. In a historical analysis, this is referred to as exposure time. Exposure
time always precedes the date of value, with the underlying premise being the time a property
would have been on the market prior to the date of value, such that it would sell at its appraised
value as of the date of value. On a prospective basis, the term marketing time is most often
used. The exposure/marketing time is a function of price, time, and use. It is not an isolated
estimate of time alone. In consideration of these factors, we have analyzed the following:

 exposure periods for comparable sales used in this appraisal;

 the opinions of market participants.
The following table presents the information derived from these sources.

EXPOSURE/MARKETING TIME DATA

Exposure/Mktg. (Months)
Investment Type Range Average
Comparable Sales Data 6.0 - 36.0 12.0
Local Market Professionals 6.0 - 36.0 12.0
CBRE Exposure Time Estimate 12 Months
CBRE Marketing Period Estimate 12 Months
Source: Comparable Sales Data & Local Market Professionals

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 Table of Contents

Table of Contents
Certification ......................................................................................................................... i 
Subject Photographs............................................................................................................iii 
Executive Summary ..............................................................................................................v 
Table of Contents .............................................................................................................. viii 
Scope of Work..................................................................................................................... 1 
Area Analysis ...................................................................................................................... 5 
Neighborhood Analysis ....................................................................................................... 7 
Site Analysis ...................................................................................................................... 14 
Improvement Analysis ....................................................................................................... 17 
Zoning .............................................................................................................................. 19 
Tax and Assessment Data .................................................................................................. 20 
Q1 2020 Preview: U.S. MacRo Outlook Amid COVID-19 ................................................... 21 
Highest and Best Use ........................................................................................................ 28 
Land Value........................................................................................................................ 30 
Reconciliation of Value ...................................................................................................... 35 
Assumptions and Limiting Conditions ................................................................................ 36 
ADDENDA
A Land Sale Data Sheets 
B Client Contract Information 
C Qualifications 

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 Scope of Work

Scope of Work
This Appraisal Report is intended to comply with the reporting requirements set forth under
Standards Rule 2 of USPAP. The scope of the assignment relates to the extent and manner in
which research is conducted, data is gathered, and analysis is applied.

INTENDED USE OF REPORT

This appraisal is to be used for internal decision making purposes and no other use is permitted.

CLIENT
The client is CAPITAL CITY PARTNERS, LLC.

INTENDED USER OF REPORT

This appraisal is to be used by CAPITAL CITY PARTNERS, LLC. No other user(s) may rely on our
report unless as specifically indicated in this report.

Intended Users - the intended user is the person (or entity) who the appraiser intends
will use the results of the appraisal. The client may provide the appraiser with
information about other potential users of the appraisal, but the appraiser ultimately
determines who the appropriate users are given the appraisal problem to be solved.
Identifying the intended users is necessary so that the appraiser can report the
opinions and conclusions developed in the appraisal in a manner that is clear and
understandable to the intended users. Parties who receive or might receive a copy of
the appraisal are not necessarily intended users. The appraiser’s responsibility is to
the intended users identified in the report, not to all readers of the appraisal report. 5

PURPOSE OF THE APPRAISAL

The purpose of this appraisal is to estimate the market value of the subject property.

DEFINITION OF VALUE
The current economic definition of market value agreed upon by agencies that regulate federal
financial institutions in the U.S. (and used herein) is as follows:

The most probable price which a property should bring in a competitive and open market under
all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this
definition is the consummation of a sale as of a specified date and the passing of title from seller
to buyer under conditions whereby:

1. buyer and seller are typically motivated;

5
Appraisal Institute, The Appraisal of Real Estate, 14th ed. (Chicago: Appraisal Institute, 2013), 50.

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Vacant Site - 500 North 10th Street, Richmond, Virginia
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 Scope of Work

2. both parties are well informed or well advised, and acting in what they consider their own
best interests;
3. a reasonable time is allowed for exposure in the open market;
4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
5. the price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale. 6

INTEREST APPRAISED
The value estimated represents Fee Simple Estate as defined below:

Fee Simple Estate - Absolute ownership unencumbered by any other interest or estate,
subject only to the limitations imposed by the governmental powers of taxation,
eminent domain, police power and escheat. 7
Extent to Which the Property is Identified
The property is identified through the following sources:

 postal address
 assessor’s records
 Survey
Extent to Which the Property is Inspected
The extent of the inspection included viewing the entire site and existing building from the exterior
only.

Type and Extent of the Data Researched

CBRE reviewed the following:

 applicable tax data

 zoning requirements
 flood zone status
 demographics
 comparable data
Type and Extent of Analysis Applied
CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal
methodology to arrive at a probable value indication via each applicable approach to value. For
vacant land, the sales comparison approach has been employed for this assignment.

6
Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237,
Page 77472.
7
Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015), 90.

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 Scope of Work

Data Resources Utilized in the Analysis

DATA SOURCES
Item: Source(s):
Site Data
Size Survey Plats prepared by VHB 7/31/2018 & 7/22/2019
Improved Data
Building Area City of Richmond Real Estate Assessment records
Other
Off-Site Costs Construction Budget by DPR Construction, 4/23/2020
Demolition Costs CBRE estimate
Compiled by CBRE

APPRAISAL METHODOLOGY
In appraisal practice, an approach to value is included or omitted based on its applicability to the
property type being valued and the quality and quantity of information available. Depending on
a specific appraisal assignment, any of the following four methods may be used to determine the
market value of the fee simple interest of land:

 Sales Comparison Approach;

 Income Capitalization Procedures;
 Allocation; and
 Extraction.
The following summaries of each method are paraphrased from the text.

The first is the sales comparison approach. This is a process of analyzing sales of similar,
recently sold parcels in order to derive an indication of the most probable sales price (or value) of
the property being appraised. The reliability of this approach is dependent upon (a) the
availability of comparable sales data, (b) the verification of the sales data regarding size, price,
terms of sale, etc., (c) the degree of comparability or extent of adjustment necessary for
differences between the subject and the comparables, and (d) the absence of nontypical
conditions affecting the sales price. This is the primary and most reliable method used to value
land (if adequate data exists).

The income capitalization procedures include three methods: land residual technique, ground
rent capitalization, and Subdivision Development Analysis. A discussion of each of these three
techniques is presented in the following paragraphs.

The land residual method may be used to estimate land value when sales data on
similar parcels of vacant land are lacking. This technique is based on the principle of
balance and the related concept of contribution, which are concerned with equilibrium
among the agents of production--i.e. labor, capital, coordination, and land. The land
residual technique can be used to estimate land value when: 1) building value is
known or can be accurately estimated, 2) stabilized, annual net operating income to
the property is known or estimable, and 3) both building and land capitalization rates

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 Scope of Work

can be extracted from the market. Building value can be estimated for new or
proposed buildings that represent the highest and best use of the property and have
not yet incurred physical deterioration or functional obsolescence.
The subdivision development method is used to value land when subdivision and
development represent the highest and best use of the appraised parcel. In this
method, an appraiser determines the number and size of lots that can be created
from the appraised land physically, legally, and economically. The value of the
underlying land is then estimated through a discounted cash flow analysis with
revenues based on the achievable sale price of the finished product and expenses
based on all costs required to complete and sell the finished product.
The ground rent capitalization procedure is predicated upon the assumption that
ground rents can be capitalized at an appropriate rate to indicate the market value of
a site. Ground rent is paid for the right to use and occupy the land according to the
terms of the ground lease; it corresponds to the value of the landowner's interest in the
land. Market-derived capitalization rates are used to convert ground rent into market
value. This procedure is useful when an analysis of comparable sales of leased land
indicates a range of rents and reasonable support for capitalization rates can be
obtained.
The allocation method is typically used when sales are so rare that the value cannot be estimated
by direct comparison. This method is based on the principle of balance and the related concept
of contribution, which affirm that there is a normal or typical ratio of land value to property value
for specific categories of real estate in specific locations. This ratio is generally more reliable
when the subject property includes relatively new improvements. The allocation method does not
produce conclusive value indications, but it can be used to establish land value when the number
of vacant land sales is inadequate.

The extraction method is a variant of the allocation method in which land value is extracted from
the sale price of an improved property by deducting the contribution of the improvements, which
is estimated from their depreciated costs. The remaining value represents the value of the land.
Value indications derived in this way are generally unpersuasive because the assessment ratios
may be unreliable and the extraction method does not reflect market considerations.

For the purposes of this analysis, we have utilized the sales comparison approach as this
methodology is most commonly considered by buyers and sellers of sites that are feasible for
immediate development. The other methodologies are used primarily when comparable land
sales data is non-existent. Therefore, these approaches have not been used.

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 Area Analysis

Area Analysis

The subject is located in the Richmond, VA Metropolitan Statistical Area. Key information about
the area is provided in the following tables.

POPULATION
The area has a population of 1,320,715 and a AREA POPULATION  BY AGE
200,000
median age of 39, with the largest population
150,000
group in the 20-29 age range and the smallest
100,000
population in 80+ age range. 50,000

0
Source: Esri 0‐9 10‐19 20‐29 30‐39 40‐49 50‐59 60‐69 70‐79 80+

Population has increased by 112,614 since POPULATION  BY YEAR

2010, reflecting an annual increase of 1.0%.
1,500,000

1,320,715 1,386,149
Population is projected to increase by an 1,000,000 1,208,101

additional 65,434 by 2024, reflecting 1.0% 500,000

annual population growth.
0
Source: Esri 2010 2019 2024

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 Area Analysis

INCOME
The area features an average household MEDIAN INCOME BY YEAR
income of $92,190 and a median household $100,000

income of $67,972. Over the next five years, $80,000

$76,798
median household income is expected to
$60,000 $67,972
$40,000
increase by 13.0%, or $1,765 per annum. $20,000
$0
Source: Esri 2019 2024

EDUCATION
A total of 37.3% of individuals over the age of POPULATION  BY DEGREE

24 have a college degree, with 23.0% holding

a bachelor's degree and 14.2% holding a Bachelor's Degree 23.0%
graduate degree. Graduate Degree
14.2%
Other 62.7%

Source: Esri

EMPLOYMENT

Health Care/Social Assistance

Retail Trade

Educational Services

Finance/Insurance

Prof/Scientific/Tech Services

Public Administration

Construction

Manufacturing

Accommodation/Food Services

Other Services (excl Publ Adm)

0% 2% 4% 6% 8% 10% 12% 14% 16%

Source: Esri

The area includes a total of 664,452 employees and has a 4.3% unemployment rate. The top
three industries within the area are Health Care/Social Assistance, Retail Trade and
Educational Services, which represent a combined total of 34% of the population.

In summary, the area is forecasted to experience an increase in population, an increase in

household income, and an increase in household values.

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 Neighborhood Analysis

Neighborhood Analysis

LOCATION
The subject is located in the downtown area of the city of Richmond, Virginia. This is an urban
location that includes the Richmond Central Business District.

BOUNDARIES
The neighborhood boundaries are detailed as follows:

North: Interstate 95/64

South: James River
East: Interstate 95
West: Belvidere Street (US 1/301)

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 Neighborhood Analysis

LAND USE
Land uses within the subject neighborhood consist of a mixture of commercial and residential
development. As the city’s urban core, the immediate area surrounding the subject is densely
developed of predominantly older construction dating from the late 19th Century through the first
half of the 20th Century. Existing development consists of a number of commercial and
multifamily buildings, including small walk-up apartment buildings and larger elevator buildings.
As the city’s Central Business District, many local government offices are located within this
neighborhood. Additionally, as the state capital, there are many state and federal government
offices located here. There are also several high-rise Class A and B office buildings constructed
during the second half of the 20th Century within close proximity of the subject.

The downtown area contains many notable buildings and locations such as; the James Monroe
Building, VCU Medical Center, The American Civil War Center at Tredegar Iron Works, the
Library of Virginia, Richmond Convention Center, the Coliseum, The Jefferson Hotel, the Red
Cross building, the Downtown YMCA, the Virginia State Capitol building, the Federal Reserve
Bank of Richmond, the James Center Plaza, the Dominion building, New Market Corp. (formerly
Ethyl) headquarters and Belle Isle park in the James River.

The majority of the multifamily residential properties are adaptive reuse properties that consists of
old warehouse and commercial buildings that have been renovated and converted to apartment
properties. In addition, many are also mixed-use buildings with commercial or office space
located on the ground floor. The bulk of the adaptive reuse projects have occurred either in the
Shockoe Slip/Shockoe Bottom districts or closer to the Virginia Commonwealth campus. New
ground-up development has been limited in recent years since the area has been essentially fully
developed for many years, but renovation and adaptive reuse development has been strong.

A major land use in the immediate area is the campus of Virginia Commonwealth University
(VCU). VCU, established in 1968, is the largest university in Virginia with an enrollment of over
30,000 students. It is composed of two campuses. The 90.6-acre Monroe Park Campus is
situated in Richmond’s historic Fan District. The 52.4-acre VCU Medical Center, which includes
the VCU Health System, is located two miles east in the financial, commercial and governmental
district of downtown Richmond. VCU occupies 201 buildings, 40 of which were built prior to
1900 and 54 of which are designated as historic or lie within a historic district.

The subject site lies with the Navy Hill neighborhood, north of Broad Street and south of Interstate
95 and includes the Richmond Coliseum, an indoor arena that was closed in 2019. The subject
is part of a 10-block redevelopment project of City-owned properties within Navy Hill, including
the Coliseum, that had been proposed for $1 billion of private development that would have
seen extensive construction of new office, multifamily residential, lodging and retail developments
along with renovation or rebuilding of the Coliseum. This project was ultimately voted down by
the Richmond City Council in early 2020. While this specific larger project is no longer moving

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 Neighborhood Analysis

forward and, therefore, creating uncertainty for near term redevelopment opportunities in the
neighborhood, there is still potential for redevelopment in the neighborhood as separate one-off
projects rather than the larger overall project recently voted down. The immediate neighborhood
includes much of the VCU Medical Center, including the Main Hospital, Children’s Hospital, and
new Adult Outpatient Pavilion currently under construction at the corner of N 10th Street and
Leigh Street.

GROWTH PATTERNS
Downtown Richmond was the commercial, business, social and cultural focal point through the
first half of the 20th Century. But, like many cities, population growth and popularity began
shifting from the urban core into the suburbs by the mid-1900s. This led to a gradual decline in

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 Neighborhood Analysis

occupancy levels and property conditions in the downtown market and a subsequent rise in
poverty and crime. By the late 1900s, a once thriving downtown retail market had essentially
vanished and many properties had been vacated and boarded up. Over the past decade, the
downtown area has experienced significant revitalization, however. The Virginia Commonwealth
University enrollment has grown tremendously and the university has invested hundreds of
millions of dollars into the area over the past decade. Many private investors and developers
have followed suit by rehabbing and redeveloping older properties into new apartment units,
primarily targeted to students, and supporting commercial uses. Historic rehab, or adaptive
reuse, properties have experienced significant growth over the past few years due to their
advantageous historic tax credit incentives. The city and state government has also contributed to
the revitalization with new government offices and a new convention center. Other catalysts for
growth include the Virginia BioTechnology Research Park and many infrastructure upgrades to
transportation systems and parking garages in the city.

VCU has been a major catalyst for growth in the downtown Richmond market for several years.
The university rapidly expanded its student enrollment has increased from 23,481 in 1999 (Fall)
to 32,284 by 2008 (Fall); average enrollment has been over 30,000 students over the past
decade with 2019 Fall enrollment of 30,103. This expansion has spurred significant growth in
on-campus university facilities as well as surrounding off-campus private development. Off-
campus private development, such as the subject, has benefited greatly from the increased
student population as demand for housing, retail and restaurants has grown.

New apartment development in the subject’s neighborhood faces barriers such as financial
feasibility (in some cases), a scarcity of parking, and the lack of available development sites.
Therefore, the city has offered developer’s tax abatements to owners that renovate, convert, or
reuse older shell buildings. Over the past decade several old office buildings, hotels, and
factories have been converted to apartment units.

ACCESS
Primary access to the neighborhood is provided by Interstates 95 and 64, which span around the
northern and eastern parts of the city. The Downtown Expressway is a toll road that connects with
I-95 to the east and I-64 to the northwest and provides good access to the CBD. Major traffic
arteries throughout the neighborhood included Main Street, Cary Street, Franklin Street, Canal
Street and Broad Street, all of which provide access to the CBD.

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 Neighborhood Analysis

DEMOGRAPHICS
Selected neighborhood demographics in 1-, 3- and 5-mile radius from the subject are shown in
the following table:

SELECTED NEIGHBORHOOD DEMOGRAPHICS

500 North 10th Street Richmond, VA
1 Mile Radius 3 Mile Radius 5 Mile Radius
Richmond, VA 23219 Metropolitan
Population
2024 Total Population 23,477 142,441 262,897 1,386,149
2019 Total Population 21,753 133,879 250,511 1,320,715
2010 Total Population 17,371 116,916 225,664 1,208,101
2000 Total Population 14,687 110,584 212,984 1,055,680
Annual Growth 2019 - 2024 1.54% 1.25% 0.97% 0.97%
Annual Growth 2010 - 2019 2.53% 1.52% 1.17% 1.00%
Annual Growth 2000 - 2010 1.69% 0.56% 0.58% 1.36%
Households
2024 Total Households 10,575 61,008 112,756 535,772
2019 Total Households 9,619 57,093 107,368 511,225
2010 Total Households 7,168 49,226 96,576 468,524
2000 Total Households 5,403 45,293 90,816 408,953
Annual Growth 2019 - 2024 1.91% 1.34% 0.98% 0.94%
Annual Growth 2010 - 2019 3.32% 1.66% 1.18% 0.97%
Annual Growth 2000 - 2010 2.87% 0.84% 0.62% 1.37%
Income
2019 Median Household Income $29,819 $41,425 $46,079 $67,972
2019 Average Household Income $49,957 $63,471 $69,964 $92,190
2019 Per Capita Income $23,062 $27,278 $30,149 $35,891
2019 Pop 25+ College Graduates 5,529 32,221 60,423 340,747
Age 25+ Percent College Graduates - 2019 43.4% 38.1% 36.4% 37.3%
Source: ESRI

CONCLUSION
The subject neighborhood is a densely populated urban location. The median income is
considered average to slightly below average and it is influenced by the college population and
young professionals. There is a tremendous amount of redevelopment occurring throughout the
area and population growth is projected to remain moderate.

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 Site Analysis

SURVEY

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Vacant Site - 500 North 10th Street, Richmond, Virginia
 Site Analysis

FLOOD PLAIN MAP

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 Site Analysis

Site Analysis
The following chart summarizes the salient characteristics of the subject site.

SITE SUMMARY AND ANALYSIS

Physical Description
Gross Site Area 2.27 Acres 98,936 Sq. Ft.
Net Site Area 2.27 Acres 98,936 Sq. Ft.
Primary Road Frontage N 10th Street 3,501 Feet
Secondary Road Frontage N 9th Street 384 Feet
Additional Road Frontage E Leigh Street 213 Feet
Additional Road Frontage E Clay Street 253 Feet
Average Depth n/a
Excess Land Area None n/a
Surplus Land Area None n/a
Shape Rectangular
Topography Generally Level
Parcel Number(s) E0000235001
Zoning District B-4, Central Business
Flood Map Panel No. & Date 5101290041E 16-Jul-14
Flood Zone Zone X (Unshaded)
Adjacent Land Uses Commercial, governmental and residential uses
Earthquake Zone n/a

Comparative Analysis Rating

Visibility Good
Functional Utility Good
Adequacy of Utilities Assumed adequate
Landscaping Average
Drainage Assumed adequate

Utilities Provider Availability

Water City of Richmond Yes
Sewer City of Richmond Yes
Natural Gas City of Richmond Yes
Electricity Dominion Virginia Power Yes
Mass Transit GRTC (bus) Yes

Other Yes No Unknown

Detrimental Easements X
Encroachments X
Deed Restrictions X
Reciprocal Parking Rights X

Source: Various sources compiled by CBRE

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 Site Analysis

TOPOGRAPHY AND DRAINAGE

The site is generally level and at street grade. The topography of the site is not seen as an
impediment to the development of the property. During our inspection of the site, we observed no
drainage problems and assume that none exist.

SOILS
A soils analysis for the site has not been provided for the preparation of this appraisal. In the
absence of a soils report, it is a specific assumption that the site has adequate soils to support the
highest and best use.

EASEMENTS AND ENCROACHMENTS

There are no known easements or encroachments impacting the site that are considered to affect
the marketability or highest and best use. It is recommended that the client/reader obtain a
current title policy outlining all easements and encroachments on the property, if any, prior to
making a business decision.

COVENANTS, CONDITIONS AND RESTRICTIONS

There are no known covenants, conditions or restrictions impacting the site that are considered to
affect the marketability or highest and best use. It is recommended that the client/reader obtain
a copy of the current covenants, conditions and restrictions, if any, prior to making a business
decision.

UTILITIES AND SERVICES

The site includes all municipal services, including police, fire and refuse garbage collection. All
utilities are available to the site in adequate quality and quantity to service the highest and best
use.

ENVIRONMENTAL ISSUES
Although CBRE was not provided an Environmental Site Assessment (ESA), a tour of the site did
not reveal any obvious issues regarding environmental contamination or adverse conditions.

The appraiser is not qualified to detect the existence of potentially hazardous material or
underground storage tanks which may be present on or near the site. The existence of
hazardous materials or underground storage tanks may affect the value of the property. For this
appraisal, CBRE, Inc. has specifically assumed that the property is not affected by any hazardous
materials that may be present on or near the property.

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 Site Analysis

ADJACENT PROPERTIES
The adjacent land uses are summarized as follows:
North: VCU educational facilities, across Leigh Street
South: Office
East: VCU Medical facilities, across 10th Street
West: Surface Parking Lot, across 9th Street

OFF-SITE STREET INFRASTRUCTURE COSTS

Prior to redevelopment of the subject site, extensive off-site street infrastructure improvements will
be required by the developer. This includes extended Clay Street from 9th Street to 10th Street
along the southern end of the site, as well as improvements to both 9th and 10th Streets. Leigh
Street will be improved by the City of Richmond at no cost to the subject owner/developer. The
estimated construction costs for the improvements to Clay, 9th and 10th Streets is summarized
below.

OFF-SITE INFRASTRUCTURE COSTS

Street Infrastructure - Clay Street (9th Street to 10th Street) $3,424,312
Subtotal $3,424,312
Plus: Profit @ 10% $342,431
Total Deferred Maintenance: $3,766,743
Source: Construction Budget by DPR Construction, 4/23/2020

CONCLUSION
The subject site could be developed with multiple commercial uses including mixed-use
commercial and residential development. It is deemed to be functional for the proposed uses.

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 Improvement Analysis

Improvement Analysis
The subject is currently improved with an old 345,607 SF, 3-story municipal building and parking
garage that is vacant and does not contribute any value. These improvements will have to be
demolished and removed prior to any new construction. A preliminary construction budget for a
new VCU Health System facility proposed for the site indicates a total demolition cost of
$1,280,000, or roughly $3.70 per SF. Marshall & Swift estimates a demolition cost range
between $5.72 and $8.40 for Class A construction or $4.54 to $6.75 for Class C construction.
Market participants typically estimate $4.00 to $5.00 for demolition costs in the local market.
We have concluded $4.50 per SF for the subject.

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 Zoning

ZONING MAP

Subject

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 Zoning

Zoning
The following chart summarizes the subject’s zoning requirements.

ZONING SUMMARY
Current Zoning B-4, Central Business
Legally Conforming Yes
Uses Permitted Wide variety of retail, office, multifamily
residential, parking garage, hotels and
hospital uses
Zoning Change Not likely
Category Zoning Requirement
Minimum Lot Size None required
Minimum Lot Width None required
Maximum Height None required
Minimum Setbacks
Front Yard None required; 10 feet maximum
Side Yard None required, unless abutting a site zoned R
or RO, then 10 feet
Rear Yard None required, unless abutting a site, or
across an alley from a site, zoned R or RO,
then 20 feet
Minimum Usable Open Space Ratio 8%
Maximum FAR/Density 6.00 : 1
Source: Planning & Zoning Dept.

ANALYSIS AND CONCLUSION

Additional information may be obtained from the appropriate governmental authority. For
purposes of this appraisal, CBRE has assumed the information obtained is correct.

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 Tax and Assessment Data

Tax and Assessment Data

AD VALOREM TAX INFORMATION
Parcel Assessor's Parcel No. Parcel Description 2019 2020 Pro Forma
1 E0000235001 14,939,000 15,386,000

Subtotal $14,939,000 $15,386,000 $15,386,000

Assessed Value @ 100% 100% 100%
14,939,000 15,386,000 $15,386,000

General Tax Rate (per $100 A.V.) 1.200000 1.200000 1.200000

Total Taxes $179,268 $184,632 $184,632

Source: Assessor's Office

The local Assessor’s methodology for valuation consists of valuing real estate at 100% of fee
simple market value, in accordance with state law, and reassessments occur annually. The
assessor utilizes a combination of the sales comparison approach and income approach. A
transfer of the subject will not trigger a reassessment at the sale price, but it may influence the
assessed market value during the reassessment the following year. The subject’s current
assessment includes existing improvements and is an exempt property since it is owned by the
City of Richmond for public use. For purposes of this analysis, CBRE, Inc. assumes that all taxes
are current.

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 2020 Macro US Outlook

Q1 2020 Preview: U.S. MacRo Outlook Amid COVID-19

March 19, 2020
The following is directly taken from the Q1 2020 Preview: U.S. Macro Outlook Amid COVID-19
provided by CBRE Econometric Advisors:

2020 Outlook – It Was All Looking So Good

MOMENTUM WAS PICKING-UP FOR 2020 BUT FEARS OF A GLOBAL SLOWDOWN FROM THE COVID-19 HAVE NOW TAKEN HOLD.
Before COVID-19, growth was poised to slow a bit in 2020, especially from slower business
investment, and some positive factors were materializing in late 2019. In mid-March, CBRE EA
lowered its expectations for U.S. GDP growth to 0.4% for 2020, down from a previously
estimated 2.0%. Specifically, we expect the economy will contract in H1 2020 followed by a
bounce back in Q3. This deteriorating backdrop in the near-term has sparked a flight-to-safety
among investors, forcing the Federal Reserve (Fed) to take aggressive action.

The labor market will come under significant strain in coming weeks and months as many
workers, especially non-salaried service employees, forfeit hours and wages.

OUTLOOK FOR 2020 – MUCH LOWER EXPECTATIONS BUT PERFORMANCE COULD VARY BY INDUSTRY
COVID-19 is having a major impact on investor sentiment. Chinese PMI has fallen to 2008 levels
and U.S. equity markets are in a correction. The Fed is taking these events very seriously and has
dropped its short-term target rate to the 0.0%-0.25% range.

Aggressive simulative action is unlikely to stem the economic slowdown this year. As key
components of the U.S. economy literally shut down in Q1 and Q2 2020, GDP will materially
contract in coming months. However, reduced demand during H1 2020 will result in stronger
growth for H2 2020 and 2021 as some capital outlays are delayed.

COVID-19 will impact various industries differently. The hospitality sector will likely bear the brunt
from the epidemic. Major urban travel markets, such as San Francisco and New York, will suffer
from a reduced inflow of high-spending international tourists. Cancelled trips and conferences
will translate into a permanent loss in revenue. Conversely, production sectors should see more
of a bounce-back as supply chains must be restored. Also, the housing market could potentially
see a boost from the material drop in mortgage rates.

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 2020 Macro US Outlook

Financial Markets are Strained by the Pandemic

The global pandemic has sparked concern around corporate revenue growth and a global sell-
off of risky assets, which will be an impediment to capital formation, hiring and overall economic
growth in the near-term.

Corporate debt markets are also showing signs of strain. Low grade corporate bond yields have
spiked by the greatest magnitude since the 2008 financial crisis.

A key cause-for-concern is that there are far more BBB-rated firms today relative to previous
market downturns. Many of these BBB-rated firms are clustered in the U.S. oil & gas sector and
will struggle to operate profitably as oil prices remain low.

How our House View has Evolved in Response to the Coronavirus

Prior to COVID-19, 2020 was expected to be a weaker year due to delayed business investment
and slower job growth and household spending. But now COVID-19 has forced us to revise our
annual outlook down further.

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 2020 Macro US Outlook

The figures highlighted in the charts (above) show how we have downgraded our forecast in
response to pandemic. U.S. GDP growth will merely break even in 2020 as a painful contraction
in the first half of the year is followed by a bounce back in Q3.

Compared to other OECD economies the U.S. should perform relatively well, as its economy was
in a stronger position before the pandemic began. The chronic spread of COVID-19 across
Italy’s industrial core will result in a 1.6% contraction for 2020, with significant downside risk. The
APAC region’s economy will slow by more than a percentage point to 2.7%.

We expect economic growth in 2021 to hit 3.3%, well above our previous expectation of 1.7%, as
supply chains are rejuvenated, and firms move ahead with delayed investment plans. However,
some consumer-facing sectors (e.g. hotels, restaurants, and services) are likely to see a
permanent revenue loss in H1 2020.

The labor market should see a net decline this year as firms cancel events and suspend
operations. Service workers are most vulnerable to seeing a drop in hours worked and wages.
Firms with strong balance sheets will attempt to retain staff during the pandemic. Government
stimulus for distressed industries will help maintain employment.

Job Gains Weaken; Wage Growth Moderates

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 2020 Macro US Outlook

Although unemployment remains at its lowest rate since 1969, the labor market will face a period
of severe dislocation in H1 2020, especially as demand for food service, hospitality and
transportation workers grinds to a halt. On the upside, most of these effects will be transitory.

Even before the COVID-19 hit there were signs the labor market was cooling. Both the job
openings rate and headline wage growth were trending downward in recent quarters. These
shifts mainly reflect industry-level movements. The decline in new openings was concentrated in
the manufacturing, transportation/logistics and mining sectors.

The employment-to-population ratio for those aged 25-54 is 80.5%, approaching the record
high of 82% back in 2000. Although the U.S. labor market is poised to slacked in the near-term,
the reduced supply of labor and ageing population will limit the longer-term pace of future job
growth.

U.S. Consumers have been Resilient

Consumer spending accounts for approximately two-thirds of U.S. economic activity. Low
inflation, low interest rates, healthy wage gains supported by a 50-year low unemployment rate
and strong consumer sentiment provided a solid base for continued spending. This foundation
will almost certainly be eroded by COVID-19 which is delivering both demand and supply-side
shocks to consumers. Most U.S. households are limiting trips outside the home and many
retailers are scaling back operations or closing operations altogether for a few weeks.

The loss in sales will be permanent for many food, drink and tourism operators; however, most
retailers should benefit from a pent-up demand later in Q2 and H2 2020 as sales bounce-back.

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 2020 Macro US Outlook

COVID-19 has Forced the Fed’s Hand

The Fed’s preferred gauge of inflation, the core personal consumption expenditures price index
(Core PCE), grew by 2.4% Y-o-Y in February—just above the Fed’s 2% target. Rising housing
costs, especially apartment rents, have been a key driver of inflation.

Despite core inflation running above 2% the Fed has radically changed its policy stance. Weaker
global trade forced the Fed to cut rates in 2019 and now growing liquidity concerns stemming
from COVID-19 have forced the Fed to cut short-term rates by 100 bps in March 2020 to a
target range of 0% to 0.25%. Further, the Fed has announced asset purchases of $500 billion in
Treasury securities and $200 billion in mortgage-backed securities. Following radical stimulation
by the Fed in 2020 we forecast that short- and longer-term rates will face upward pressure in
2021.

Metro Level Performance

When comparing economic growth for the largest 25 metro areas (shown in the scatterplot
above) the most upbeat stories are generally defined by technology and demographics.
Outperformance in the San Francisco Bay Area and Seattle was driven by continued business
investment in technology during 2019. Meanwhile, growth in Phoenix, Dallas and Charlotte is

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 2020 Macro US Outlook

driven by strong in-migration—often from more expensive cities—and locally-oriented industries

that serve this expanding population base.

COVID-19 initially hit large coastal cities but its economic impact quickly became a systemic
rather than regional story. Risks to specific industries will have a regional pattern. Falling oil
prices, due to both weakened global demand and a breakdown in OPEC solidarity, will
undoubtedly impact U.S. oil & gas investment and the pace of job growth in Houston and West
Texas. Also, the freeze in global tourism will impact spending in major gateway cities and
destinations, such as New York, San Francisco and Orlando.

CBRE FLASH CALL – COVID-19 IMPACT ON COMMERCIAL REAL ESTATE

The following is taken directed from the CBRE Flash Call March 18 Call Summary on COVID-19
Impact on Commercial Real Estate:

CBRE specialists, along with an equity market analyst from Citi, examined the impacts on the
macro economy, specific real estate asset classes, capital markets, publicly traded securities as
well as key operational issues. The following is the link to listen to the full recording: CBRE FLASH
CALL - COVID-19 Impact on Commercial Real Estate

Macroeconomy
 CBRE has downgraded our outlook for the Global and U.S. economy. We expect a
recession in the global economy – with a sharp downturn in Q2 in the U.S. (-6%) and the
start of a bounce back in Q3. It is increasingly unlikely that the U.S. will escape a
technical recession with U.S. GDP growth expected to be 0.4% for the year.

 The trajectory of the economy’s decline and recovery will resemble a Nike swoosh (not a
“V” or “U”).

 The rate of infections in the U.S. will likely peak between May and August – probably
closer to May if the pattern observed in China prevails.

 China has already begun to recover and may surprise on the upside in Q2.

Public REIT Activity

 Since the market peak in mid-February – the broad market is down about 28%, 10-year is
down 105bps to 70bps, and REITs are down about 32% - about mid-pack compared with
other sectors.

 REIT balance sheets are in the best position they have ever been with Net Debt to EBITDA
of ~5/5.5x, Debt to GAV of ~30-35% and limited near term maturities. REIT dividends
are more secure today than they were before the Global Financial Crisis (GFC).

 The best performing sectors have been tied to the digital economy – with Data Centers
and the Towers – the clear outperformers – Data Centers down 6% while Towers down

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 2020 Macro US Outlook

10%. Self-Storage is also doing better than the rest – down only 20% – limited human
interaction – and low cost for a household.

 Lodging owners down almost 60% and the lodging managers down 40%.

 Malls are down 50% and shopping centers are down 45% – and similar to lodging – was
on a rough patch heading into this with widespread bankruptcies and closures – that
likely only accelerate from here.

Equity Capital Markets Commercial Real Estate Conditions

TRANSACTION VOLUME
• Saw a meaningful fall off in transaction volume (supply) as measured by deals coming to
market and demand (as measured by confidentiality agreements signed).

• That said, most transactions in market are proceeding fueled in part by a lot of 1031 Like-Kind
Exchange buyers looking for opportunities, particularly in multifamily.

VALUE
CBRE surveyed our capital markets professionals to learn what changes they are seeing from
clients:

• Over 50% have seen sellers delay bringing assets to market

• Over 70% expect more of this disruption in the next 30 days

• Size of bidding pools is contracting: 65% getting smaller; 80% expect to shrink further

• 50% of buyers trying to “re-price” deals that are under contract (asking for a price reduction)

• Two-thirds of buyers have asked for 5% price reduction

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 Highest and Best Use

Highest and Best Use

In appraisal practice, the concept of highest and best use represents the premise upon which
value is based. The four criteria the highest and best use must meet are:

 legally permissible;
 physically possible;
 financially feasible; and
 maximally productive.
The highest and best use analysis of the subject is discussed below.

AS VACANT
Legal Permissibility
The legally permissible uses were discussed in the Zoning Section. The site is zoned B-4, Central
Business, which allows for a maximum 6.0 FAR with no height maximum or setback requirements
and only a small 8% open space requirement. The B-4 district is also very inclusive regarding
uses and allows for a wide variety of retail, office, multifamily residential, parking garage, hotels
and hospital uses.

Physical Possibility
Although 0.65 total acres of the existing site will have to be given up for road improvements, the
remaining 2.27 acres is a mostly rectangular site that is very efficient for development. The
subject is adequately served by utilities, and has an adequate shape and size, sufficient access,
etc., to be a separately developable site. There are no known physical reasons why the subject
site would not support any legally probable development (i.e. it appears adequate for
development).

Existing structures on similar sites provides additional evidence for the physical possibility of
development.

Financial Feasibility
Considering the neighborhood trends, the most likely use of the site is for commercial use; either
office or medical use, lodging, or a mixed-use development with ground floor
commercial/parking and at least 4 stories of multifamily residential above. There have been
several similar developments completed, under construction, and/or proposed within the
immediate neighborhood recently. Densities are ranging from 4-5 stories up to 10-12 stories.
Based on ongoing development in the area and strong interest for redevelopment sites, a new
similar development is considered financially feasible.

Maximum Productivity - Conclusion

The final test of highest and best use of the site as if vacant is that the use be maximally
productive, yielding the highest return to the land.

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 Highest and Best Use

Based on the information presented above, we conclude that the highest and best use of the
subject as if vacant would be the development of an office or medical facility, hotel, or a mixed-
use development with ground floor commercial and multifamily residential above. Our analysis
of the subject and its respective market characteristics indicate the most likely buyer, as if vacant,
would be an investor (land speculation) or a developer.

AS IMPROVED
Legal Permissibility
The site is currently improved with a municipal office development that is a legal, conforming use.

Physical Possibility
The layout and positioning of the improvements are considered functional for continued use.
However, although we were not given access to the interior of the building it is our understanding
that the building is in poor overall condition and no longer functional for occupancy.

Financial Feasibility
Given the subject’s poor overall condition and the fact that it is no longer functional for
occupancy as is, it would not be feasible to continue as is. Furthermore, the residual market
value of the underlying land is higher than the cost to demolish the improvements as presented in
the valuation section of this report below.

Maximum Productivity - Conclusion

As indicated above, a redevelopment of the site is the maximally productive use of the subject
property. The most likely buyer would be a local or national developer.

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 Land Value

Land Value
The following map and table summarize the comparable data used in the valuation of the subject
site. A detailed description of each transaction is included in the addenda.

SUMMARY OF COMPARABLE LAND SALES

Transaction Actual Sale Adjusted Sale Size Size Allowable Maximum Price Price Per
No. Property Location Type Date Zoning Price 1 (Acres) (SF) Bldg. Area (SF) FAR Per SF SF (FAR)
Price

1 1003 E Cary St Sale Jan-20 B-4, Central $7,800,000 $7,800,000 1.51 65,857 395,145 6.00 $118.44 $19.74
& 1017 E Canal St Business
Richmond, VA 23219

2 3105-3115 W Marshall Street Sale Jan-19 TOD-1, Transit- $2,175,000 $2,275,000 0.59 25,857 129,000 4.99 $87.98 $17.64
Richmond, VA 23230 Oriented Nodal
District

3 2 W Marshall Street Sale Oct-17 B-4, Central $2,750,000 $2,750,000 0.81 35,109 210,654 6.00 $78.33 $13.05
Richmond, VA 23220 Business

4 200 E Marshall Street Sale Nov-16 B-4, Central $2,000,000 $2,000,000 0.75 32,875 197,250 6.00 $60.84 $10.14
Richmond, VA 23219 Business

5 535 West Broad Street Sale Mar-15 B-4, Central $3,150,000 $3,150,000 0.61 26,484 158,904 6.00 $118.94 $19.82
Richmond, VA 23220 Business District

Subject 500 North 10th Street, --- --- B-4, Central --- --- 2.27 98,936 585,701 5.92 --- ---
Richmond, Virginia Business
1
Adjusted sale price for cash equivalency and/or development costs (where applicable)
Compiled by CBRE

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 Land Value

The sales utilized represent the best data available for comparison with the subject and were
selected from our search of similar downtown Richmond land sales with a primary focus on
similar B-4 zoned sites and/or other higher density development sites. Sale 2 has a different
zoning without a specific maximum FAR but is similar in density. Given the urban nature of the
subject, the area is mostly built out and has been for decades; therefore, vacant land sales in this
immediate submarket are somewhat limited. Although sales 4, 5 and 6 are somewhat dated,
they still provide reliable evidence for our value estimate based on similar size and zoning.

DISCUSSION/ANALYSIS OF LAND SALES

Land Sale One
This comparable represents 1.5119 acres at 1003 E Cary Street & 1017 E Canal Street. This
property represents two non-contiguous, but nearby, parcels adjacent to the James Center office
development in the CBD. The site is zoned B-4, Central Business, and the buyer had no
immediate development plans. Although the buyer already owned the adjacent James Center,
they indicated that the sale was openly negotiated and they felt they paid market price and no
premium due to the assemblage. The property sold in January 2020 for $7,800,000, or
$118.44 per square foot ($19.74 per FAR).

In comparison to the subject, a downward adjustment is warranted for its smaller size as smaller
sites typically command higher per-SF prices than larger sites.

Land Sale Two

This comparable represents 0.5936 acres at 3105-3115 W Marshall Street in Richmond’s Scotts
Addition neighborhood. The site is zoned TOD-1, Transit-Oriented Nodal District, and the
proposed use was for a 118-unit apartment building with ground floor retail. The property sold
in January 2019 for $2,275,000, or $87.98 per square foot ($17.64 per FAR). The difference
between the Actual Sale Price and Adjusted Sale Price reflects an adjustment of $100,000 for
demolition costs required to remove existing improvements prior to redevelopment.

In comparison to the subject, a downward adjustment is warranted for its smaller size as smaller
sites typically command higher per-SF prices than larger sites. An upward adjustment is
warranted for a slightly inferior location in Scotts addition with slightly lower barriers to entry and
t is further from the CBD. An upward adjustment is also warranted for a slightly inferior zoning
that requires a slightly higher percentage of open space.

Land Sale Three

This comparable represents 0.806 acres at 2 W Marshall Street in Richmond’s Jackson Ward
neighborhood. The site is zoned B-4, Central Business, and the proposed use was for a 167-unit
apartment building with ground floor commercial. The property sold in October 2017 for
$2,750,000, or $78.33 per square foot ($13.05 per FAR).

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Vacant Site - 500 North 10th Street, Richmond, Virginia
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 Land Value

In comparison to the subject, a downward adjustment is warranted for its smaller size as smaller
sites typically command higher per-SF prices than larger sites.

Land Sale Four

This comparable represents 0.7547 acres at 200 E Marshall Street in Richmond’s Jackson Ward
neighborhood. The site is zoned B-4, Central Business, and there were no immediate plans for
development. The property sold in November 2016 for $2,000,000, or $60.84 per square foot
($10.14 per FAR).

In comparison to the subject, a downward adjustment is warranted for its smaller size as smaller
sites typically command higher per-SF prices than larger sites.

Land Sale Five

This comparable represents 0.608 acres at 535 West Broad Street. The site is zoned B-4,
Central Business District, and the proposed use was unknown at the time of sale; it was
purchased by VCU as part of their ongoing assemblage for campus expansion. The property
sold in March 2015 for $3,150,000, or $118.94 per square foot ($19.82 per FAR).

In comparison to the subject, a downward adjustment is warranted for its smaller size as smaller
sites typically command higher per-SF prices than larger sites.

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Vacant Site - 500 North 10th Street, Richmond, Virginia
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 Land Value

SUMMARY OF ADJUSTMENTS
Based on our comparative analysis, the following chart summarizes the adjustments warranted to
each comparable.
LAND SALES ADJUSTMENT GRID

Comparable Number 1 2 3 4 5 Subject

Transaction Type Sale Sale Sale Sale Sale ---
Transaction Date Jan-20 Jan-19 Oct-17 Nov-16 Mar-15 ---
Zoning B-4, Central TOD-1, Transit- B-4, Central B-4, Central B-4, Central B-4, Central
Business Oriented Business Business Business Business
Actual Sale Price $7,800,000 $2,175,000 $2,750,000 $2,000,000 $3,150,000 ---
Adjusted Sale Price 1 $7,800,000 $2,275,000 $2,750,000 $2,000,000 $3,150,000 ---
Size (Acres) 1.51 0.59 0.81 0.75 0.61 2.27
Size (SF) 65,857 25,857 35,109 32,875 26,484 98,936
Price Per SF $118.44 $87.98 $78.33 $60.84 $118.94 ---
Price Per Bldg. Area $19.74 $17.64 $13.05 $10.14 $19.82 ---
Price ($ PSF) $118.44 $87.98 $78.33 $60.84 $118.94
Property Rights Conveyed 0% 0% 0% 0% 0%
Financing Terms 1 0% 0% 0% 0% 0%
Conditions of Sale 0% 0% 0% 0% 0%
Market Conditions (Time) 0% 0% 0% 0% 0%
Subtotal $118.44 $87.98 $78.33 $60.84 $118.94
Size -5% -5% -5% -5% -5%
Shape 0% 0% 0% 15% 0%
Corner 0% 0% 0% 0% 0%
Frontage 0% 0% 0% 0% 0%
Topography 0% 0% 0% 0% 0%
Location -15% -5% 0% 0% -10%
Zoning/Density 0% 5% 0% 0% 0%
Utilities 0% 0% 0% 0% 0%
Highest & Best Use 0% 0% 0% 0% 0%
Total Other Adjustments -20% -5% -5% 10% -15%
Value Indication for Subject $94.75 $83.58 $74.41 $66.92 $101.10
Absolute Adjustment 20% 15% 5% 20% 15%
1
Adjusted sale price for cash equivalency and/or development costs (where applicable)
Compiled by CBRE

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Vacant Site - 500 North 10th Street, Richmond, Virginia
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 Land Value

CONCLUSION
The following table presents the valuation conclusion:

CONCLUDED LAND VALUE

$ PSF Subject SF Total
$80.00 x 98,936 = $7,914,880
$90.00 x 98,936 = $8,904,240
Indicated Land Value: $8,500,000
(Rounded $ PSF) $85.91
(Rounded $/FAR) $14.51

Less: Demolition Costs ($1,555,232)

Less: Off-Site Inrastructure Costs ($3,766,743)
Indicated Value - As Is $3,175,000
(Rounded $ PSF) $32.09
(Rounded $/FAR) $5.42
Compiled by CBRE

Before consideration of demolition costs and off-site road infrastructure costs, our estimate of
$8,500,000 equates to $85.91 per SF of land area or $14.51 per SF of FAR (building area),
both of which are well within the ranges indicated by the comparables and slightly toward the
lower end of the adjusted range, which is considered reasonable given the subject’s larger size
and current uncertainty in the market from the ongoing COVID-19 situation.

As previously indicated, existing on-site improvements must be demolished prior to construction

of any new development. Additionally, significant and extraordinary off-site street infrastructure
must be completed by the developer of the subject site prior to or in conjunction with
development of the site. Since both of these are extraordinary costs above and beyond typical
development costs, the market value of the subject must be adjusted for these costs.

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Vacant Site - 500 North 10th Street, Richmond, Virginia
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 Reconciliation of Value

Reconciliation of Value
In the sales comparison approach, the subject is compared to similar properties that have been
sold recently or for which listing prices or offers are known. The sales used in this analysis are
considered highly comparable to the subject, and the required adjustments were based on
reasonable and well-supported rationale. In addition, market participants are currently analyzing
purchase prices on other properties as they relate to available substitutes in the market.
Therefore, the sales comparison approach is considered to provide a reliable value indication.

Based on the foregoing, the market value of the subject has been concluded as follows:

MARKET VALUE CONCLUSION

Appraisal Premise Interest Appraised Date of Value Value Conclusion
As Is Fee Simple Estate April 10, 2020 $3,175,000
Compiled by CBRE

EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is defined as “an assignment-specific assumption as of the effective
date regarding uncertain information used in an analysis which, if found to be false, could alter
8
the appraiser’s opinions or conclusions.”

 Based on survey plats prepared by VHB and provided by our client (prospective developer),
0.65 acres of the site will be dedicated to extending Leigh Street at the north end of the site
and Clay Street at the south end of the site, reflecting 2.27 acres developable land area. We
have made the extraordinary assumption that these land areas are accurate.
 The owner/developer of this site will be responsible for off-site street improvement
infrastructure to Clay Street (between 9th Street and 10th Street) prior to any development. We
were provided detailed cost estimates for this work by our client and have made the
extraordinary assumption that these estimates are accurate.
 The use of these extraordinary assumptions may have affected the assignment results.

8
The Appraisal Foundation, USPAP, 2020-2021

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Vacant Site - 500 North 10th Street, Richmond, Virginia
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 Assumptions and Limiting Conditions

Assumptions and Limiting Conditions

1. CBRE, Inc. through its appraiser (collectively, “CBRE”) has inspected through reasonable observation the subject
property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil
and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is
made as to such matters.
2. The report, including its conclusions and any portion of such report (the “Report”), is as of the date set forth in the
letter of transmittal and based upon the information, market, economic, and property conditions and projected
levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based
upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of
fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or
other events or conditions which occur subsequent to such date.
3. Unless otherwise expressly noted in the Report, CBRE has assumed that:
(i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or
exceptions to title that would adversely affect marketability or value. CBRE has not examined title records
(including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may
affect the title or use of the subject property) and makes no representations regarding title or its limitations on
the use of the subject property. Insurance against financial loss that may arise out of defects in title should be
sought from a qualified title insurance company.
(ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes
and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike
manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing,
etc.) are in good working order with no major deferred maintenance or repair required; and the roof and
exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent
structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no
representations relative to the condition of improvements. CBRE appraisers are not engineers and are not
qualified to judge matters of an engineering nature, and furthermore structural problems or building system
problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a
sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity
of building systems.
(iii) Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in
a workmanlike manner according to standard practices.
(iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances.
The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater,
mold, or other potentially hazardous materials may affect the value of the property.
(v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid,
or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights
associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report.
(vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in
the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the
value of the subject property.
(vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any
local, state, nor national government or private entity or organization have been or can be readily obtained or
renewed for any use on which the Report is based.
(viii) The subject property is managed and operated in a prudent and competent manner, neither inefficiently or
super-efficiently.
(ix) The subject property and its use, management, and operation are in full compliance with all applicable federal,
state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic
hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable
uses, building codes, permits, and licenses.
(x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified
to assess the subject property’s compliance with the ADA, notwithstanding any discussion of possible readily
achievable barrier removal construction items in the Report.

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 Assumptions and Limiting Conditions

(xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and
no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property nor
reviewed or confirmed the accuracy of any legal description of the subject property.
Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE’s
attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information
inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial
negative impact on the Report. Accordingly, if any such information is subsequently made known to CBRE, CBRE
reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no
responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover
them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such
conditions.
4. CBRE has assumed that all documents, data and information furnished by or behalf of the client, property owner,
or owner’s representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and
information include, without limitation, numerical street addresses, lot and block numbers, Assessor’s Parcel
Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building
areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating
expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report.
Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the
Report, which may include the conclusions of the Report. The client and intended user should carefully review all
assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any
questions or errors within 30 days after the date of delivery of the Report.
5. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or
information not provided to CBRE, including without limitation any termite inspection, survey or occupancy permit.
6. All furnishings, equipment and business operations have been disregarded with only real property being
considered in the Report, except as otherwise expressly stated and typically considered part of real property.
7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the
information and assumptions contained within the Report. Any projections of income, expenses and economic
conditions utilized in the Report, including such cash flows, should be considered as only estimates of the
expectations of future income and expenses as of the date of the Report and not predictions of the future. Actual
results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating
economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE
does not warrant any such projections.
8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or
guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to
the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort,
terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole
purpose of providing the intended user with CBRE’s independent professional opinion of the value of the subject
property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any
investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor,
or lending institution may undertake related to the subject property, and CBRE has not been compensated to
assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect
recommendation of CBRE to buy, sell, hold, or finance the subject property.
9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge
beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in
areas that fall outside the scope of the real estate appraisal profession for such matters.
10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for
flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the
actual need for Flood Hazard Insurance.
11. Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any
special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full,
comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no
responsibility for any situation arising out of the user’s failure to become familiar with and understand the same.
12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional
interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of
interests.

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Vacant Site - 500 North 10th Street, Richmond, Virginia
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 Assumptions and Limiting Conditions

13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing
use of the subject property. The allocations of values for each of the land and improvements are not intended to
be used with any other property or appraisal and are not valid for any such use.
14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes
only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be
removed, reproduced, or used apart from the Report.
15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written
consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is
duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit
of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of
any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that
the Report and its contents shall not be published, in whole or in part, in any public document without the written
consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made
available to the public or otherwise used in any offering of the property or any security, as defined by applicable
law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its
conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in
connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user.

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Vacant Site - 500 North 10th Street, Richmond, Virginia
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 Addenda

ADDENDA

© 2020 CBRE, Inc.

 Addenda

Addendum A

LAND SALE DATA SHEETS

© 2020 CBRE, Inc.

Sale Land - Office No. 1
Property Name James Center Plaza & Surface Lot
Address 1003 E Cary St
& 1017 E Canal St
Richmond, VA 23219

County n/a
Govt./Tax ID Multiple
Land Area Net 1.512 ac/ 65,857 sf
Land Area Gross 1.512 ac/ 65,857 sf
Site Development Status N/A
Utilities all publicly available
Maximum FAR 6.00
Min Land Bldg Ratio 0.17:1
Shape Irregular
Topography Generally Level
Flood Zone Class N/A
Flood Panel No./ Date N/A
Zoning B-4, Central Business
Entitlement Status N/A

Transaction Details
Type Sale Primary Verification Buyer, Public Records, CoStar
Interest Transferred Fee Simple Transaction Date 01/15/2020
Condition of Sale Arm's Length Recording Date 01/15/2020
Recorded Buyer Riverstone Properties LLC Sale Price $7,800,000
Buyer Type Private Investor Financing Cash to Seller
Recorded Seller James Center Parking LLC & James Center Cash Equivalent $7,800,000
Plaza LLC
Marketing Time N/A Capital Adjustment $0
Listing Broker N/A Adjusted Price $7,800,000
Doc # ID2020-1117 & 1118 Adjusted Price / ac and $5,159,071 / $118.44
/ sf
Adjusted Price/ FAR $19.74
Adjusted Price/ Unit N/A

Comments
This comparable represents the purchase of two nearby, but non-contiguous, parcels of B-4 land located in the Richmond CBD and adjacent to the
James Center 3-building, a roughly 1 million SF office property. One parcel is a vacant site that currently serves as the "plaza", or small park,
adjacent to James Center 2 and 3 buildings. The second parcel is currently used as a surface parking lot across Canal Street from the office
buildings. The buyer is also the owner of The James Center office complex, which they purchased in 2017, and they purchased these parcels as
one transaction, although they were recorded as two separate transactions. The buyer also noted that they feel they paid market price.

The buyer had no immediate development plans and purchased them as a long term investment. The "Plaza" site cannot be developed before
2022 due to original development covenants that expire in 2022. The buyer already had a perpetual easement in place to use the parking lot
parcel and, therefore, gained no additional revenue from leasing these spaces by this purchase.

© 2020 CBRE, Inc.

Sale Land - Multi Unit Residential No. 2
Property Name The Nest site
Address 3105-3115 W Marshall Street
Richmond, VA 23230

County City of Richmond

Govt./Tax ID N0001710023 & N0001710009
Land Area Net 0.594 ac/ 25,857 sf
Land Area Gross 0.594 ac/ 25,857 sf
Site Development Status Finished
Utilities All public available
Maximum FAR 4.99
Min Land Bldg Ratio 0.20:1
Shape N/A
Topography Generally Level
Flood Zone Class Zone X (Unshaded)
Flood Panel No./ Date 5101290028D/ Apr 2009
Zoning TOD-1, Transit-Oriented Nodal District
Entitlement Status N/A

Transaction Details
Type Sale Primary Verification Seller, Public Records
Interest Transferred Fee Simple Transaction Date 01/08/2019
Condition of Sale Arm's Length Recording Date 01/08/2019
Recorded Buyer N/A Sale Price $2,175,000
Buyer Type Developer Financing Cash to Seller
Recorded Seller Summit Suites LLC Cash Equivalent $2,175,000
Marketing Time N/A Capital Adjustment $100,000
Listing Broker N/A Adjusted Price $2,275,000
Doc # 2019-501 Adjusted Price / ac and $3,832,547 / $87.98
/ sf
Adjusted Price/ FAR $17.64
Adjusted Price/ Unit $19,280

Comments
This site represents the sale for the development of a 118-unit, 129,000 SF 6-story apartment building that also includes roughly 3,300 SF of
ground floor commercial space. The buyers are an entity led by local developers Fountainhead Properties and Dodson Commercial. The seller
is another local development group that purchased the site in 2016 for $2.333 million with the intention of redeveloping the existing older
buildings on the site; however, a zoning change to TOD-1 and momentum towards apartments in Scott's Addition led to offers for redevelopment.
The proposed development is planned for five stories of apartments above a mix of commercial space and parking on the ground floor.
Amenities planned include a shared work space component, a leasing office and a pool. The site is currently improved with two older vacant
buildings that will be razed prior to construction. The seller noted a cost for this between $50,000 and $200,000. We estimate a cost between
$4 and $5 per SF and conclude a total of $100,000, or roughly $4.50 per SF, which has been added to the purchase price as a capital
adjustment.

© 2020 CBRE, Inc.

Sale Land - Multi Unit Residential No. 3
Property Name The Penny Apartments Site
Address 2 W Marshall Street
Richmond, VA 23220

County n/a
Govt./Tax ID N0000077046
Land Area Net 0.806 ac/ 35,109 sf
Land Area Gross 0.806 ac/ 35,109 sf
Site Development Status N/A
Utilities all publicly available
Maximum FAR 6.00
Min Land Bldg Ratio 0.17:1
Shape Rectangular
Topography Generally Level
Flood Zone Class N/A
Flood Panel No./ Date N/A
Zoning B-4, Central Business
Entitlement Status N/A

Transaction Details
Public Records, Knowledgeable Third
Type Sale Primary Verification
Party
Interest Transferred Fee Simple Transaction Date 10/03/2017
Condition of Sale Arm's Length Recording Date 10/03/2017
Recorded Buyer SNP Development LLC Sale Price $2,750,000
Buyer Type Developer Financing Cash to Seller
Recorded Seller 2 East Marshall St LLC Cash Equivalent $2,750,000
Marketing Time N/A Capital Adjustment $0
Listing Broker N/A Adjusted Price $2,750,000
Doc # ID2017-20952 Adjusted Price / ac and $3,411,911 / $78.33
/ sf
Adjusted Price/ FAR $13.05
Adjusted Price/ Unit $16,467

Comments
This site was purchased for the development of a 5-story, 167-unit luxury apartment property with 4,000 SF ground floor commercial space and
165-space parking garage. About 80% of the units will be studios and i-bedroom units, with the remainder 2-bedroom units and amenities will
include a pool and fitness center.

© 2020 CBRE, Inc.

Sale Land - Mixed-Use No. 4
Property Name 200 E Marshall Street
Address 200 E Marshall Street
Richmond, VA 23219

County n/a
Govt./Tax ID N0000038025
Land Area Net 0.755 ac/ 32,875 sf
Land Area Gross 0.755 ac/ 32,875 sf
Site Development Status Raw
Utilities all publicly available
Maximum FAR 6.00
Min Land Bldg Ratio 0.17:1
Shape L Shaped
Topography Generally Level
Flood Zone Class N/A
Flood Panel No./ Date N/A
Zoning B-4, Central Business
Entitlement Status N/A

Transaction Details
Public records, knowledgeable third
Type Sale Primary Verification
party
Interest Transferred Fee Simple Transaction Date 11/18/2016
Condition of Sale Arm's Length Recording Date 11/18/2016
Recorded Buyer 200 E Marshall Street LLC Sale Price $2,000,000
Buyer Type N/A Financing Cash to Seller
Recorded Seller Restaurateur Inc Cash Equivalent $2,000,000
Marketing Time N/A Capital Adjustment $0
Listing Broker N/A Adjusted Price $2,000,000
Doc # ID2016-22769 Adjusted Price / ac and $2,650,060 / $60.84
/ sf
Adjusted Price/ FAR $10.14
Adjusted Price/ Unit N/A

Comments
This site was improved with an 81-space surface parking lot that was purchased as a speculative investment with no immediate development
plans at the time of sale.

© 2020 CBRE, Inc.

Sale Land - Office No. 5
Property Name Proposed VCU Expansion Site
Address 535 West Broad Street
Richmond, VA 23220

County City of Richmond

Govt./Tax ID W0000259004
Land Area Net 0.608 ac/ 26,484 sf
Land Area Gross 0.608 ac/ 26,484 sf
Site Development Status Finished
Utilities All available
Maximum FAR 6.00
Min Land Bldg Ratio 0.17:1
Shape Rectangular
Topography Level, At Street Grade
Flood Zone Class N/A
Flood Panel No./ Date N/A
Zoning B-4, Central Business District
Entitlement Status N/A

Transaction Details
Type Sale Primary Verification Public records, reliable third party
Interest Transferred Fee Simple Transaction Date 03/02/2015
Condition of Sale None Recording Date N/A
Recorded Buyer 535 W Broad LLC Sale Price $3,150,000
Buyer Type End User Financing Cash to Seller
Recorded Seller Hess Retail Stores, LLC Cash Equivalent $3,150,000
Marketing Time N/A Capital Adjustment $0
Listing Broker N/A Adjusted Price $3,150,000
Doc # 2015/3276 Adjusted Price / ac and $5,180,921 / $118.94
/ sf
Adjusted Price/ FAR $19.82
Adjusted Price/ Unit N/A

Comments
This comparable represents the sale of a .604 acre site located at 535 West Broad Street in the city of Richmond, Virginia. This property sold in
March 2015 for $3,150,000 or $118.94 per square foot of land area. This property was improved with a Hess gas station and convenience store
at the time of sale. This property is located at the southeast corner of Belvidere Street (U.S. Route 301) and West Broad Street (U.S. Route 250) at
what is considered the most important gateway into the VCU Monroe Park campus. It was purchased by the VCU Real Estate Foundation as part
of an on-going assemblage of the campus. The sale included a restrictive covenant that the property cannot be used as a convenience store of for
gasoline sales for a period of 20 years from recordation of the deed.

© 2020 CBRE, Inc.

 Addenda

Addendum B

CLIENT CONTRACT INFORMATION

Confidential & Proprietary

© 2020 CBRE, Inc.

 Addenda

Addendum C

QUALIFICATIONS

© 2020 CBRE, Inc.

 Matthew B Mitchell, MAI
Managing Director

CBRE, Inc.
Valuation & Advisory Services
8730 Stony Point Parkway, Suite 250
Richmond, Virginia 23235
Voice (804) 201-2001
Fax (804) 201-2020
E-Mail [Link]@[Link]

EDUCATION

Bachelor of Science in Finance, Cum Laude, Virginia Tech, Blacksburg, Virginia

Successfully completed all the necessary courses to qualify for the MAI designation

Apartment Appraisal, Appraisal Institute

Marshall & Swift Commercial Cost Training, Appraisal Institute
Report Writing and Valuation Analysis, Appraisal Institute
Evaluating Commercial Construction, Appraisal Institute
Business Practices and Ethics, Appraisal Institute
Advanced Applications, Appraisal Institute
Advanced Sales Comparison and Cost Approaches, Appraisal Institute
Highest & Best Use and Market Analysis, Appraisal Institute
Advanced Income Capitalization, Appraisal Institute
ARGUS software training, REALM Business Solutions
National Uniform Standards of Professional Appraisal Practice, Appraisal Institute
Basic Income Capitalization, Appraisal Institute

PROFESSIONAL

Designated Member, Appraisal Institute (MAI), Current on Continuing Education

Member, Board of Directors – Virginia Commonwealth Chapter, Appraisal Institute 2010-2013
Qualified Expert Witness – United States Bankruptcy Court

CERTIFICATIONS

Certified General Real Estate Appraiser in the Commonwealth of Virginia, License #4001 008965
Certified General Real Estate Appraiser in the State of Maryland, License #32056

EXPERIENCE

Over fifteen (15) years of Real Estate Appraisal and Consulting experience throughout the state of
Virginia with primary focus on the Richmond metropolitan area.

2006 - Present CBRE, Inc. - Valuation & Advisory Services Richmond, VA

2002 - 2006 MGMiller Valuations Richmond, VA.
2001 - 2002 Straub Appraisal Service Blacksburg, VA

Assignments span a wide variety of properties including retail, office, medical office and STARK Law
compliance, industrial, multi-family, adaptive reuse, mixed-use, and special purpose properties.

© 2020 CBRE, Inc.

© 2020 CBRE, Inc.