Historic Newport News site to get $20M rehab
Apartments, retail space on tap for former department store
NEWPORT NEWS — A newly designated historic district attracted a developer ready to turn a former department store property into apartments and retail space.
Richmond developer The Monument Cos. plans to spend more than $20 million to turn the former Newport News Shipbuilding offices at 2800 Washington Ave. into 91 apartments and 3,000 square feet of first-floor commercial space.
Monument Cos. principal Chris Johnson said company leaders became interested in the property after downtown Newport News became designated as a historic district by the federal government this year.
“We liked the location,” Johnson said. “It’s sort of right up our alley, in terms of historic rehabilitation projects that we do.”
The designation allows developers to claim federal and state tax credits when redeveloping historic properties, which allows them to pay less on annual state and federal taxes or share in savings with investors through the formation of limited liability corporations, according to the Virginia Department of Historic Resources.
The Monument Cos. had used the programs to finance several redevelopment projects, such as turning the former Virginian-Pilot offices into apartments or a vacant Norfolk school in Colonial Place into apartments and townhomes.
The Monument Cos. purchased the Newport News property in October for $3 million from the city, Johnson said. He said rent prices for the units haven’t been determined, but estimated about $1,400 for one-bedroom units and $1,700 for two-bedroom units.
The retail space will be consistent with a desire by city officials for a walkable downtown district, Johnson said.
The building has lived several lives this past century, according to a request for proposals from the city’s development department. The original building was constructed in 1937 as a Montgomery Ward department store. Another store building, for W.T. Grant, was added in 1949.
For decades, the property was owned and operated by Virginia Specialty Stores. In 1994, the city’s economic development authority purchased it and leased it to Newport News Shipbuilding, which used it for offices until the lease expired last year.
Florence Kingston, Newport News development department director, said in an email the adaptive reuse project would revitalize the city block.
“The Monument Cos. have been great partners and have a proven track record delivering similar projects in other communities,” Kingston added.
The project does not yet have a name but Johnson said it would most likely play off the building’s historic past. Construction is ongoing, and Johnson said the project would be ready by next year or early 2025.