Here’s a recap of the top stories for the week of November 28, 2025:
CoStar set to receive financial incentives from local and state governments
Reported by BizSense’s Mike Platania
CoStar Group is nearing the completion of its 26-story, riverfront office tower at 600 Tredegar St. in Richmond and is in line to receive significant public incentive to support the buildout.
The company is set to be awarded a $15 million grant from the state, routed through the Virginia Economic Development Partnership (VEDP), then to the City of Richmond and finally to Richmond’s Economic Development Authority (EDA).
This grant is meant to reimburse CoStar for infrastructure costs tied to the project and is part of a larger incentive package established in 2021. In addition to the state grant, CoStar is benefiting from a real estate tax rebate program at the city level.
However, these incentives come with performance conditions. CoStar agreed to create 1,984 new jobs in Richmond, with an average annual wage over $85,000 — or risk paying back part or all of the incentives.
GRTC Launches Developer Search for Downtown Transit Hub & Mixed-Use Project
Reported by BizSense’s Jack Jacobs
The Greater Richmond Transit Company, in partnership with Richmond’s Economic Development Authority, has formally launched its search for a developer interested in completing its downtown transit hub.
The project is planned for a 3-acre site at 500 N 10th St., where the city’s former Public Safety Building was located. GRTC’s plan calls for a modern bus transfer station featuring 10 bus bays, two entrances, public restrooms and a North-South Pulse station, among other amenities.
Above the transfer station, the designs includes a mid- to high-rise mixed-use development, with residential units, retail, and commercial space. According to the company’s Request for Qualifications, the site could accommodate 500+ residential units, around 28,000 sq. ft. of retail, and 30,000 sq. ft. in amenity space.
The project is projected to cost $47.3 million and to help fund it, GRTC has already secured $6.5 million from the Central Virginia Transportation Authority and $3 million from the Virginia Department of Rail and Public Transportation. However, more financing will be needed, especially for the private mixed-use build above,
The RFQ process includes a virtual pre-response conference on Dec. 1, and developers must submit their qualifications by Jan. 30, 2026.
VCU board approves $25 million contract for Grace Street dorm project.
Reported by BizSense’s Jack Jacobs
VCU’s Board of Visitors approved a $25.5 million contract with Kjellstrom & Lee as they began working on a new residence hall located on 720 W Grace St. and 700 W Grace St.
The 1-acre property will be home to a new dorm complex with room for 1,000 beds. The site work contract will include demolition of existing buildings on the property namely the BookHolders building and a three-story VCU office building — as well as excavation and utility improvements.
The project, dubbed the West Grace Street Housing Project, would feature a 14-story west tower and an eight-story east section. The dorm is also planned to have two 1,500-square-foot retail spaces, a 6,000-square-foot mail center and a 5,000-square-foot dining hall.
That initial phase is slated to start in 2026 and would be funded through university auxiliary funds and debt paid with student housing payments.
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