Wait, 2009 was a good year for downtown projects?

It’s that time of year when business people reflect on the year and toast to a better 2010.

Developers and other real estate professionals gathered at the newly renovated Richmond CenterStage for the second annual downtown real estate year in review, sponsored by Venture Richmond.

Speakers outlined more than 40 completed and ongoing projects underway in and around the central business district.

Below are some of the highlights:

Virginia Commonwealth University announced plans recently to build a new 12-story education building for the School of Medicine on the site of the A.D. Williams building at 12th and Marshall streets. Designed by Pei Cobb Freed & Partners and Ballinger, the new building will have a budget of $158.6 million.

In 2009, the university has completed more than $169 million worth of new projects including a new School of Dentistry building and the new Cary Street Gym which will open to students in January.

“I think we have plateaued and are on the downside of [building],” said Brian Ohlinger, the school’s vice president of facilities.

MeadWestvaco began moving into their new 300,000-square-foot downtown headquarters this month. The $100 million project was developed by New Market Corporation and is part of a multi-building complex called Foundry Park.

Hilton Garden Inn and Miller & Rhoads Condominiums
The 250-room hotel and 133-condo units opened early this year. The $100 million project also has 21,000 square feet of retail space, which has yet to attract any takers. Recently it was reported in the Times-Dispatch that the developers has sold only about eight units, but they’ve become more aggressive about marketing, so we’ll see how sales go in 2010.

The Richmond Marriott got a $14 million makeover which decked out the lobby, added a Starbucks, and the new T. Miller’s sports bar.

Richmond Cold Storage was one of several new apartment complexes to open in downtown area. The first 37 units of the $50 million project came up for rent this year.

The City of Richmond will be seeking several development opportunities over the next year. Director of Real Estate Jane Ferrara outlined several properties owned by the city which they hope to market to developers including 11 acres in Shockoe Bottom which includes Main Street Station. Ferrara said in January that the city will begin talks with consultants to develop a new plan for the Bottom, which was supposed to be the site for the $360 million dollar Shockoe Center project that fell apart over the last year.

The city will also look for a new plan for the 60 acres it owns along the Boulevard, the 2.5-acre 6th Street Marketplace site, the 25-acre former Armstrong High School, the 6.5 acres at Libbie and Patterson that was previously home to the Richmond Community High School, 22-acre site on Southside, and the Leigh Street Armory, among several others.

Despite the many successes highlighted at the review, there are still many projects that seem to be in limbo. Dominion Realty Partners filed for permits to start work on the John Marshall Hotel in the spring, but there has be no word on when that project may begin. That project has had several false starts.

The Central National Bank building at 3rd and Broad, which is owned by D.C.-developer Douglas Jamal, also is still empty after many years.

And six acres of developable riverfront property was taken off the market by Reynolds Packaging North America after it was unable to find a suitable buyer.

Many of the projects highlighted were initiated before the economy declined sharply and lending for new projects became scarce. For the most part it appears there are few new projects planned in 2010. Things could be slow for a while as the recession has slowed the pace at which new projects, say the Miller & Rhoads condominiums for example, have taken foot.

Al Harris covers commercial real estate for BizSense. Please send news tips to Al@richmondbizsense.com.