The Westwood Corridor in Henrico County continues to attract investor attention, with a local residential real estate firm acquiring a piece of land in the area for its first foray into commercial real estate.
Cava Cos. Acquired 2321, 2323 and 2405 Westwood Ave. for $ 1.77 million at the end of June.
Sitting right across from TopgolfThe plots include an acre of land and two buildings totaling 22,500 square feet.
“I am optimistic about the corridor. I just think it’s in a great location, ”said the director of Cava Cos. Frank Kava.
The company specializes in purchase and renovation of private housesand then put them up for sale. Most of the homes he brings back to the market are worth less than $ 300,000.
Kava said his firm had previously worked on apartment buildings, but this is her first fully commercial investment.
One of the two buildings involved in the deal is the Westwood Music Club, which operates at 2323 Westwood Ave. rebranding and relocation from Libby Grove corridor in 2019… The Malvern Building, an 18,000-square-foot office building, stands at 2405 Westwood Ave. and 2321 Westwood is used as parking.
Parcels were last valued at $ 1.3 million, according to the county. The seller was a person associated with local developer Rebkee Co. Matt Hamilton of CBRE, representing Cava in an off-market deal. Tom Rosman of One South Commercial represented Rebkee.
Kava said his firm is planning renovations on 2405 Westwood Ave. worth $ 2 million and will move the company’s headquarters there, which will occupy about 6,000 square feet. Currently, about 53 percent of the building is leased.
“What we’re going to do is convert it into office space (class) B, B + and go below market with C or C + rental rates,” said Kava. “My goal is to deliver a good product and attract office tenants very quickly. This is a major value-added renovation that is our strong point in terms of what we do in the residential sector. “
Kava said they are honoring all current leases for the building, as well as the Westwood Music Club lease at 2323 Westwood Ave.
Ryan Corbitt, who owns a music school, said he had at least three years left before his current lease and could renew it for another five years.
Kawa added that 2321 Westwood Ave. will remain a parking lot for the foreseeable future.
Cava Cos. Will act as its own general contractor and finance the renovation with a loan from First Community Bank. Kava said he hopes to begin renovations this summer.
Kava said his firm is still active in acquiring single-family homes despite the hot market.
“We find a lot of salespeople from generation to generation or older and tired, as well as a few owners of a small portfolio for one family,” said Kava. “We buy a lot of them and are still looking for suitable value-adding opportunities.”
To the east of the new houses of Cava is Carvana car vending machine website, which has become vertical in recent weeks.