Richmond firm buys fully leased Suffolk office building for $31.6M

Richmond-based real estate investment firm John B. Levy & Co. recently purchased the Bridgeway Technology Center in Suffolk for $31.6 million, according to Richmond BizSense. The 261,000-square-foot office building is fully leased to tenants including Lockheed Martin, Smithfield Foods, and the Commonwealth of Virginia.

The firm’s head of new business development, Bram Levy, explained that while the company was not actively seeking new office properties, the current market’s wariness of office space created a buying opportunity. He noted a disconnect between the building’s stable cash flow and the market’s negative perception of office real estate.

Levy & Co. has a history of making similar investments during periods of market uncertainty. During the height of the pandemic, the firm bought a Maryland office park at a low price and sold it two years later for $6 million more. This recent acquisition closed on September 16.

Levy also mentioned that banks remain cautious about financing office deals, with many lenders reluctant to engage. The firm used equity from business partners and debt financing from a life insurance company to complete the purchase.

This deal highlights ongoing shifts in the office real estate market and Levy & Co.’s strategy to capitalize on perceived undervaluation of office assets in the region.