Virginia Union University will develop a housing project in Northside Richmond through a partnership with a New York-based investment group.
School officials announced the plan during Founders Day celebrations last week. VUU will work with The Steinbridge Group to develop a 2-acre parcel along the northern edge of its campus. TSG is backing the collaboration with a $42-million pledge — the largest investment in the university’s history.
Tawan Davis, Steinbridge’s founding partner and CEO, said the university will not have to take on any debt: “It’s also our estimate that the university will make in cash income roughly 3.5 to 5.5 times what it would make if it sold the assets today. It is our deep conviction that these great institutions shouldn’t be backed into having to sell their land.”
The development will serve as the inaugural phase of Virginia Union's $500-million plan to revitalize its 90-acre Richmond campus by 2032.
VUU owns six parcels along Brook and Overbrook roads, including houses and the former Richmond Community Hospital. The two-party redevelopment initiative is geared toward introducing at least 130 residences to the general public for rental or purchase, according to a VUU press release. It remains unclear whether those properties will be single-family homes or apartments.
The ultimate fate of the abandoned Richmond Community Hospital building remains undecided. Discussions around either repurposing — to highlight the historic significance of the site — or demolition of the building are ongoing.
Beginning in 2019, VUU partnered with design firm Hanbury to develop its comprehensive plan. While specifics like building schematics and heights are pending, the university has set an ambitious timeline, aiming to break ground by the close of 2024. Completion of the TSG collaboration is anticipated by the end of 2025.
“Because we are both a developer and an investor, we get to choose a diverse set of architects, designers and engineers all along the way,” Steinbridge’s Davis said.
The partnership’s aim is to ensure the university can engage in the new growth and development surrounding its campus, VUU President Hakim Lucas said. He went on to discuss the need for affordable housing in Richmond's Northside.
“Why should we allow our students to come and rent in dormitories and not experience the opportunities to become homeowners in this great city of Richmond?” Lucas said during last week’s press conference.
The collaborative venture entails joint ownership of the planned property, with both VUU and The Steinbridge Group sharing in potential profits.
“This is the first time that two Black-owned corporations will turn and give the resources to the future of a Black college in the community,” added Rev. Franklyn Richardson, chairperson of the Virginia Union Board of Trustees. He asserted the need to protect the designated area from neighborhood encroachment, while underlining the university's dedication to its heritage and the community.
Late last year, Steinbridge committed $100 million to aid historically Black colleges and universities and minority service institutions in an effort to unlock "the value" of underutilized land and assets. Virginia Union University is the first recipient of the program’s funds.
The area surrounding VUU has recently been a site of active development.
Charlottesville firm BMC Holdings purchased an industrial complex at 1320 School St. for $3.3 million. Among tenants of the three 123-year-old industrial buildings is VUU’s football offices.
According to Richmond BizSense, “while BMC has been known to do build-to-suit work for the whole gamut of commercial users, it’s not looking to redevelop the School Street property.”
In October, an entity attached to Northern Virginia-based Sugar Mill Construction got the final nod from Richmond City Council to rezone and redevelop a retail and industrial strip along North Lombardy Street. Shortly afterward, plans were filed for two five-story mixed-use buildings at 2412 and 2423 N. Lombardy St.
The VUU-TSG partnership comes during the school’s accreditation probation. According to VUU’s FAQ page regarding the issue, “accreditation probation is a public status signifying that an accredited institution is no longer in compliance with one or more of the [Southern Association of Colleges and Schools Commission on Colleges] Principles of Accreditation.”
Accreditation is a component of students’ ability to access federal loans. VUU was placed on probation “because the SACSCOC Board of Trustees determined that the institution failed to demonstrate compliance with the Principles of Accreditation, namely, Governing board characteristics, Financial documents, Financial responsibility, Control of finances and Federal and state responsibilities.”
The university will remain accredited during the 12-month probation period. A review of the case will take place in December.
