Hertz Investment Acquires VA Asset for $79M

By Barbra Murray

Dominion Tower

Hertz Investment Group has acquired Dominion Tower, the largest property in Norfolk, Va. Hertz purchased the approximately 403,300-square-foot office building from Harbor Group International in a $79 million transaction, effectively marking its entrée into the City of Norfolk.

Dominion Tower last traded in 2004 for $53.3 million.

“Truthfully, we like everything about this building—the design, the tenant mix and occupancy rate, the parking availability and just a wonderful location next to the Elizabeth River,” said Judah Hertz, chairman of Hertz Investment Group, in a prepared statement.

Located at 999 Waterside Drive in downtown Norfolk in the Hampton Roads MSA, Dominion Tower is a Class A office property that first opened its doors in 1989. The 26-story property underwent a renovation in 2017 and is presently 93 percent leased to a long roster of tenants, including Bank of America, which signed a lease to relocate its headquarters to 15,400 square feet in the building in 2016. The property also features ground-level retail offerings and a 1,224-space parking facility that is one of a handful of privately-owned garages in Norfolk.

“We strive to acquire best-of-class buildings, and with Dominion Tower that mission was accomplished,” Hertz added.

RAPID EXPANSION

Hertz’s Virginia portfolio also includes 1.4 million square feet of office space in Richmond. The company has made a flurry of acquisitions over the last five years, during which time it has doubled its holdings. The privately held real estate company’s acquisitions in 2018 included the three-building, 806,541-square-foot Brookhollow Central portfolio in Houston, which Hertz acquired for $70.5 million. Hertz also entered the Maryland market with its $36.8 million acquisition of Wells Fargo Tower, a 378,010-square-foot property in Baltimore.

Looking ahead, Hertz also expects to expand its newly established presence in Norfolk, “We really like the market and will be exploring additional opportunities here,” said Jim Ingram, chief investment officer of Hertz Investment Group, in prepared remarks. “Hertz Investment Group’s strategy in every market is to acquire Class A office properties in markets poised for growth.”

Image courtesy of Hertz Investment Group