Virginia Beach receives proposal for developments by convention center

VIRGINIA BEACH — Private developers would like to partner with the city to build a hotel, apartments and a parking garage next door to the convention center near the Oceanfront.

C. Torrey Breeden, executive vice president of Breeden Investment Properties, and Norman Jenkins, president of Capstone Development, proposed building a hotel with 250 or more rooms on land located on the east side of the convention center between 19th and 21st Streets, and Cypress and Parks Avenues.

The hotel would include meeting space and a restaurant. The developers, who intend to form a joint venture, also would like to build 160 to 200 apartment units and a 500-space parking garage, which could be used by people visiting the convention center or sports center. Breeden estimated the entire project would cost $150 million to $200 million.

The companies laid out their pitch in a two-page letter delivered to the city Dec. 3 and obtained Wednesday by The Virginian-Pilot.

On Tuesday, the council was briefed on the proposal in closed session and members gave permission to city staff to begin discussions with the developer, said Councilwoman Rosemary Wilson. The city plans to set up a meeting with the businessmen by early January 2021, said Deputy City Manager Ron Williams.

“It’s very preliminary,” Williams said. “We need to have an informational meeting to see what they have in mind.”

The development area proposed already is occupied by apartments and several businesses including a motel, an architecture firm and Zoes Steak & Seafood restaurant. In total, there are 11 parcels, according to the Real Estate Assessor’s Office.

Breeden, a local real estate developer, said he is working with the landowners in the area to acquire the land needed to complete the project. The letter did not include designs, and Breeden said those would need to be developed with input from city staff.

“We recognize the significant investment the city has made in the convention center and the sports center, and we recognize that for both facilities to maximize their potential and effectively compete for convention and sports demand, requires high-quality lodging options within walking distance of the facilities,” Breeden and Jenkins wrote in the letter.

The city already had identified the land as being the preferred location to develop a Convention Center hotel, Williams said. The city owns one of the properties on the southwest corner, which current houses pop-up art.

Over the years, city leadership has said companies have passed over Virginia Beach as a possible site to host conventions because no hotel is attached to the venue. The Convention Center has struggled to book major conferences to become profitable and needs support from the city’s operational budget.

A strategic plan to grow and develop the resort area, which has been endorsed by the city council, lists the development of a convention center hotel as a priority. Additionally, a 2018 independent market study paid for by the city noted that building a convention center hotel would help the city better compete for regional and national conventions and conferences.

This isn’t the first time private groups have pitched building a hotel in partnership with the city but all other initiatives have failed. The city received another inquiry earlier this year from Southwest Hospitality, but it was a proposal to develop on a city parking lot, Williams said.

In addition to development, Breeden manages nearly 10,000 apartment units, 1,700 homes and more than 2 million square feet of retail and office space. The company partnered with the city to build apartments, retail and a public parking garage at the intersection of 25th Street and Pacific Avenue.

Capstone Development is one of the largest luxury hotel developers in the nation, Williams said. In May 2014, Capstone and its partner developed the $520 million Marriott Marquis Hotel, which is connected to the Washington Convention Center in the nation’s capital. The hotel has 1,175 guest rooms.

Williams said Jenkins has had an interest in the Virginia Beach market and visited in 2019. Capstone’s website says Jenkins “work with partners to develop hotel properties primarily in the mid-Atlantic and in urban markets” and his portfolio includes 11 hotels. Jenkins could not be reached for comment.

“Norman Jenkins is top notch,” Williams said.