Hanover’s Perspective
Winding Brook Poised for New Investments
With the Community Development Authority (CDA) bond restructuring closed, Winding Brook, a 123-acre commercial development in Hanover, is now poised for a resurgence of investment and commercial development.
The Lewistown Commerce Center CDA has successfully completed the restructuring of $36.7 million in defaulted infrastructure bonds. The workout transaction, which was completed this week, reduces the assessment bond debt on the project acreage just south of the Town of Ashland at the southeast intersection of I-95 and Lewistown Road.
“The location of the site and its visibility from I-95 makes it prime commercial real estate,” said Edwin Gaskin, Hanover County’s director of economic development. “There has been significant interest in the site, and the CDA bond restructuring will make it more enticing to potential investors.”
The CDA bond restructuring makes Winding Brook more marketable to potential developers by decreasing the current assessment from approximately $300,000 to $100,000 per acre and also allows for full repayment of the bonds.
Following approval from the Hanover County Board of Supervisors, the CDA was formed in 2006 with bonds issued one year later to finance infrastructure and utilities in the Winding Brook project. As part of the CDA, each property owner in the CDA district must pay a special assessment to help with the bond debt service that financed the improvements.
During the 2008 economic downturn, commercial development in Winding Brook stalled which resulted in the property value not increasing as anticipated. This led to a recent default on the CDA bonds. The CDA bonds are not municipal debt.
Over the past several months, the bondholders, other landowners within the CDA district and Hanover County leaders worked closely with Common Bond Capital Partners to complete the restructuring process.
Winding Brook’s master developer is Holladay Properties of South Bend, Indiana, which owns 55 acres in the project. According to Holladay’s project manager, Austin Haynes, the successful bond workout is just one of three catalysts for near-term development in Winding Brook. “The Virginia Department of Transportation begins a $30 million improvement to the Lewistown Road interchange next year, and Craig Retail Group is expected to break ground on a 375,000 square foot outlet center across the street. We’re already in discussions with a new restaurant, a doctor’s office, a second hotel and a recreation user.”
Winding Brook is anchored by Bass Pro Shops and Country Inn & Suites. Bojangles, Subway and a few other businesses are also located in the development.