The Program:
Buddy Gadams, arguably the busiest developer in downtown Norfolk, is always on the lookout for the next best deal. Not surprisingly: Norfolk’s largest private property owner has found one. Shockingly: it’s not in real estate, but in bio technology. In the last 10 years, Buddy has closed over $600 million in real estate deals, which has made him Norfolk’s largest private real estate owner. With a focus on State Historic and New Market tax credits, and Opportunity Zone properties, his projects include condos, apartments, office, industrial, marinas and retail. Buddy’s specialties are in Capital Markets with Debt and Equity.
The President of Marathon Development Group, Gadams always knew downtown Norfolk had the makings of greatness, and over the last decade he’s played a big role in its tremendous renaissance to become just that. He gave backstories highlighting a handful of the historic buildings he’s re-purposed into apartments:
- The Law Building (146 Granby St, on the corner of Plume & Granby) – Serves a 22–35 years-old, young demographic. A Virginia ABC store just moved in to this building, next to the Starbucks.
- The Rockefeller (130 Brooke St)– The prior owner, Union Mission, pursued Gadams after a deal with a prior developer fell through. Although Gadams thought it was over-priced, he didn’t want it falling into bad hands, so was willing to do it at break-even cost.
- The James (345 Granby St) – The initial developers went to prison. The price was too good to be true. Gadams bought it out of foreclosure.
- The Virginia Building (101 W Plume St) – Gadams owned the building next to it so thought it would help that building’s occupancy if he could fix its neighbor’s ugly facade. He even recruited the owners of Jack Brown’s Beer & Burger Joint to open one of their successful restaurants in the building.
- The Wainwright (229 W Bute St) – Gadams found this was for sale at auction.com, bid on a note, and had to close in 2 weeks. This was his first building purchase after the recession, when it was hard to get loans.
- ICON (321 E Main St) – Gadams said he hunted this deal for 5 years, and the now-ADP building came with it, which he didn’t want to buy. The sale of that building with a tenant proved lucrative. Unlike the others, the ICON includes a mix of empty nesters and retirees with millennials.
- Savoy (161 Granby St) – This building was previously known as the leaning tower of Granby Street. Gadams thought he’d lose his shirt on this building, which the city was going to tear down. Buddy showed a video of the amazing engineering feat that raised the building 13 inches to straighten over the course of 4 days. (Rotarian Barry Kesser’s family was a previous owner of the building)
After adding 1,500 residential units, two dozen retailers, and roughly 2,200 residents (a 50% increase) to downtown Norfolk, Gadams said that there isn’t much left to do there, and the City’s focus has moved on to redeveloping St. Paul’s quadrant. However, between Gadams and other developers, there are still 1,000 apartments coming on line in the next 4 years in and around downtown (some near the Chrysler Museum, across from ICON, and in the VA Pilot building).
Gadams noted that MacArthur Mall, which provided Downtown Norfolk’s renaissance initial stability and success, has done its job. His crystal ball prediction is that it will revive, but only after facing some hard years ahead. It needs to find an owner willing to make a major investment and create a lifestyle mall, as the Pembroke and Lynnhaven malls have, with more than just shopping (e.g., fitness centers and rock climbing). Fortunately, downtown Norfolk isn’t as reliant on it as it once was.
The surprise investment Buddy revealed was his partnership with EVMS, CHKD and the Childrens Specialist Group to fund a biotech start-up that he’s been following for 10 years. The partners are hoping that their $30-million collective investment will lead to development of a new class of drugs to stop deadly autoimmune responses, while bringing high-paying jobs to the area and divesting our local economy.
The Meeting
As our usual Scope meeting space was otherwise occupied, we met on the Chrysler Hall stage, giving Frank Whitman a chance to play the 9-foot grand piano with Chuck Spence leading our singing the Four-Way Test and Grand Old Flag, both from memory. Carlisle Wroton gave the invocation.
Pam Tubbs reported that Marty Raiss’s husband George is having a surgical procedure on his leg.
School of the Week is P.B. Young Sr. Elementary School (book was given in honor of speaker Buddy Gadams)
Anthony Mia announced guests:
- Steve Jones introduced Mike Spencer (new Director of the Hague School). John Maniscaslo is the retired CFO of Norfolk Public Schools.
- Prospective Rotarian Tyler Smith (with Tom James Co., bespoke downtown haberdasher) recently moved here from Roanoke.
- Visiting Rotarian Manon Lyketsos from the Rotary Club of Chicago Lakeview, Chair of the Women’s Task Force for District 6450 and Past- President of the Rotary Club of Chicago Lakeview,
- Bob Latimer introduced his wife Erle Marie.
- Bill Eisenbeiss introduced Steve Hammond, president of St. Patrick Catholic School.
- Chic Robison introduced prospect Ed Kellam, former Rotarian/past president of the VA Beach Rotary club.
- Ben Mason brought his son “Brother” Mason and prospective Rotarian John Cooper (Cooper-Hurley law firm).
Announcements:
- Laurie Harrison has agreed to fill the Secretary-Treasurer position vacated by Walt Sobczyk (who resigned from the Board after being hired as a Norfolk Public School teacher)
- The Club Member Survey closes on September 3rd...be sure to fill it out online or by using a paper version available from President Lorna.
- John Cameron received his Blue Badge.
Fines / Happy Bucks
- Bill Eisenbeiss and Lorna Cochrane fessed up to their ringing phones, and paid fines
- Barb Lipskis announced Gourmet Giggles, an upcoming fundraising event of her King's Daughter circle. The event will feature four comedians at Norfolk Country Club on September 19th.
- Steve Schulz announced his first granddaughter was born last week.
- John Cameron returned from world travels including a week spent in Mongolia at his son’s archeology site.
- Manon Lyketsos, our visiting Rotarian announced her son is getting married on Sunday. She exchanged banners with our chapter and presented all of the women in attendance a special Rotary pin celebrating women Rotarians.
- Michael Desplaines gave in honor of Jeff Wells being a “bark- itect” in designing one of the dog houses on display this summer at Norfolk Botanical Garden.
- Jeff Wells made a pitch for more Suds & Buds sponsors
- Diane Wallach thanked everyone involved with the Tiel exchange. The club is sending 3-4 teenagers to Tiel next year, so let her know of anyone interested.
Due to our meeting at the Chrysler, there was no raffle today.
.PNG)
Lisa Chandler and Pam Tubbs have been long-term supporters of The Rotary Foundation. Lisa says it is easy to support The Rotary Foundation through "Rotary Direct" automatic monthly contributions. She is now a Paul Harris Fellow plus 7. Pam Tubbs has became a Rotary Foundation Benefactor by including The Rotary Foundation Endowment in her will. Pictured above from the left are Past Presidents Lisa Chandler, Pam Tubbs, Sigur Whitaker, and President Lorna Cochrane, at the club's luncheon meeting on 20 August 2019.
.PNG)