Tuesday, December 6, 2011

Southern Title Insurance Company Lists Charlottesville Office for $945,000

Richmond-based Southern Title announced it would no longer offer new mortgage title insurance in September, after losing millions in an alleged embezzlement episode and "higher than normal" claims from 2005-2008 business.  The 4,254 sq ft brick building on the corner of Park and High Streets is ca. 1920, renovated in 2002.  It is assessed at $796K.  It was purchased in 1984 for $200k, which makes the asking price an appreciation of 350+%.  The seller's agent for 401 Park St. is Cushman&Wakefield / Thalhimer.  A few doors up is another building for sale: 427 Park, ca. 1860, advertised as a 2,400 sq ft residence and now owned by W&L University; its asking price has been slowly dropping, and is now at $912k (Update: $775k Oct/12) It is assessed at $629k.  Image copyright seller's agent.

3 comments:

craigger said...

Price is not that crazy. Current price represents a Gross return of 6% per year. If you take out renovation costs and taxes, you probably get to 3-4% or so. not crazy since the downtown mall didn't really exist when the home was bought.

C'ville Bubble Blog said...

Didn't post an *opinion* on price fwiw. Found the listing interesting since it's the title company.

Do you wonder who the potential buyer is, though, when there are rentals in that area? Southern Title held the bldg for 30 yrs. How many businesses can hope to do so nowadays?

Whomever buys will show optimism and confidence.

craigger said...

Buyer will likely be a 1031 exchange investor. There are plenty of rich people here:

http://www.forbes.com/sites/baldwin/2011/09/13/americas-millionaire-capitals/3/