Virginia Beach Town Center

Virginia Beach Town Center is a large-scale, mixed-use development situated in the Central Business District of Virginia Beach, Virginia. An ongoing, multi-phase development that started in 2000 as a public-private partnership between the City of Virginia Beach and Armada Hoffler, it functions as the city's emerging urban core — a deliberate answer to Virginia Beach's long-standing lack of a traditional downtown. Located in the heart of "uptown" Virginia Beach, this carefully-curated 36-acre mixed-use lifestyle center features more than 450,000 square feet of retail, 162,000 square feet of entertainment, and over 1 million square feet of Class A office space. Town Center is located 9 miles from the Virginia Beach Oceanfront and 10 miles from downtown Norfolk, Virginia.

History and Origins

Back to at least the early 1980s, the city government had considered developing the property into a central business district, and in the 1990s, Walmart explored acquiring it. The idea of a true downtown for Virginia Beach — a city that had long been defined by its sprawling suburban landscape and oceanfront resort character — was decades in the making. In 1999, the area across from Virginia Beach's aging Pembroke Mall was described as "a conglomeration of nothing." Despite a great location in the middle of Virginia Beach along the city's busiest road — Virginia Beach Boulevard — the 18 acres across from Pembroke were mostly undeveloped, save for a small office building and a scattering of houses. Built in 1966, Pembroke Mall itself was seeing major vacancies as tenants departed for newer shopping venues.

In 1999, City Manager Jim Spore and then-Councilman Louis Jones negotiated a deal with Armada Hoffler. They lobbied for "tax increment financing," or TIF — a method to pay for public infrastructure improvements in an area by depositing increases in real estate tax revenue into a special fund — which would pay for roads, plazas, and parking garages in Town Center. The Virginia Beach City Council formally established a Tax Increment Financing District in 1999 to fund public infrastructure improvements in and around Town Center.

The developers faced a tough question from the city: what happens if the taxes are insufficient to pay the bonds? Armada Hoffler agreed to make up any shortfall, and in 2000, the city approved the plan. Construction on Phase I began in 2000, culminating in 2002 with the unveiling of the 23-story Armada Hoffler Tower, as well as retail and parking components. In 2003, the company moved its headquarters to Virginia Beach and has been a mainstay in the area ever since.

Development continued and withstood challenging periods for the country at large, including the aftermath of the September 11 terrorist attacks and the global financial crisis from 2007 to 2009. Phases II through VI built upon the initial foundation by providing additional residential apartments, public plazas, community space, parking garages, hotels, and entertainment.

Development and Investment

Town Center represents one of the most ambitious public-private partnerships in Hampton Roads history. To date, the City of Virginia Beach has invested $200 million in the Town Center of Virginia Beach, while Armada Hoffler and associates have invested approximately $500 million to create this open-air, pedestrian-friendly lifestyle center.

In Virginia Beach, the city contributed $83.6 million to the Town Center, providing public parking garages, the plaza, infrastructure, and streetscape features such as fountains, while Armada Hoffler invested more than $300 million. The city brings in about $13.5 million in assorted tax income from the center each year. A big chunk of that revenue — $5.2 million — comes from the special Tax Increment Financing district set up to repay the city's debt service on the project. Another $1.5 million in special service district taxes pays to maintain city-funded features such as the parking garage and plaza, while the remaining $6.8 million stems from assorted fees such as sales, meals, admissions taxes, and business licensing fees.

Phase II of the development was particularly significant in shaping the Town Center's cultural and hospitality profile. Phase II included the Westin Virginia Beach Town Center hotel and residences, Studio 56 Lofts, the Sandler Center for the Performing Arts, a five-story office building, and additional parking. Phase II added 996,979 square feet with a $173 million private investment and a $28.8 million public investment.

The success of Town Center has also spurred development in surrounding areas of the city by other developers benefiting from new development patterns catalyzed by Town Center. The project also introduced structured parking decks to the area, which previously had only suburban open-style parking.

Layout and Facilities

The mixed-use project spans 17 pedestrian-friendly blocks and features an eclectic mix of upscale retail, dining options, Class A office space, luxury residences, as well as entertainment and cultural venues. The development currently features over 800 apartments and condominiums, more than 400 hotel rooms, approximately 800,000 square feet of Class A office space, and nearly 500,000 square feet of retail space.

Visitors can enjoy over 4,000 free parking spots within five covered garages, two state-of-the-art performing arts centers, and two hotels with over 400 rooms. Three luxury apartment complexes with over 800 units provide residential options. Centrally located, Town Center is a short commute from the Virginia Beach oceanfront and only minutes away from Norfolk International Airport.

Major office tenants have been drawn to Town Center's walkable, amenity-rich environment. In January 2024, Armada Hoffler completed a new lease with KPMG LLP, the U.S. audit, tax, and advisory firm. Beginning January 2024, KPMG occupies 13,044 square feet, bringing the mixed-use property's office space to 98% leased. Other major commercial tenants include Armada Hoffler itself, HBA Architects, Troutman Sanders, Clark Nexsen, and Divaris Real Estate.

Retail and Dining

With more than 25 appealing restaurants and nearly as many shops — from local boutiques to international retailers — Town Center offers visitors and residents a broad range of options for shopping and dining.

Restaurants include Keagan's Irish Pub, the Cheesecake Factory, Cold Stone Creamery, P.F. Chang's China Bistro, California Pizza Kitchen, Bravo!, Ruth's Chris Steakhouse, Cantina Laredo, and Tupelo Honey Cafe. Notable stores include Nike, Brooks Brothers, Lego, Anthropologie, Free People, Ann Taylor Loft, Lululemon Athletica, West Elm, Pottery Barn, Williams Sonoma, Ulta Beauty, and Barnes & Noble, along with a number of boutiques.

More than 50 percent of tenants are new to Virginia Beach and over 30 percent are new to Coastal Virginia, making Town Center a significant economic catalyst for both the city and the broader region.

Entertainment and Performing Arts

Entertainment venues at Town Center include the Sandler Center for the Performing Arts, the Zeiders American Dream Theater, and Apex Entertainment. When the sun goes down, Town Center also offers performances at Funny Bone Comedy Club alongside those at the Sandler Center and Zeiders.

The Sandler Center for the Performing Arts stands as the cultural anchor of Town Center. The Sandler Center for the Performing Arts is a $47.5 million performing arts theater with 1,308 seats, and it opened on November 3, 2007. It was named after Hampton Roads businessmen, philanthropists, and brothers Steve and Art Sandler. Violin virtuoso Itzhak Perlman was the first artist to perform at the Sandler Center, on opening night. In addition to hosting concerts, comedians, forums, military events, and other events, local resident companies call the Sandler Center home, including Ballet Virginia, the Virginia Symphony Orchestra, Virginia Musical Theatre, and the Virginia Arts Festival.

It soon became apparent to the Virginia Beach City Council that the city needed its own cultural center, and the Council began its plans to replace the existing 1,000-seat Pavilion Theatre with a facility deemed "equal or better."

Town Center is also home to the Zeiders American Dream Theater, a 17,000-square-foot, 310-seat experimental nonprofit theater for emerging artists with a focus on local talent.

The Ynot Wednesdays outdoor summer concert series, held on the plaza, is a popular recurring attraction. Proceeds from Ynot Wednesdays benefit the Sandler Center Foundation.

Economic Impact

Town Center is cited alongside the Virginia Beach Convention Center as an example of public-private development in Virginia Beach. The city assisted in financing the project through the use of tax increment financing, creating special tax districts and constructing associated street and infrastructure to support the developments.

In the 21st century, huge investments poured into the area, resulting in office buildings, shops, hotels, and eateries in the Virginia Beach Town Center complex. The city continues to grow, and with the Town Center's development, it began to attract businesses looking for excellent destinations to host conferences for customers and employees — adding another layer to the local economy.

Town Center is home to more than 100 commercial tenants, half of which are new to Virginia Beach, and a third of which are new to the entire region. "Town Center of Virginia Beach continues to buck national office real estate trends because it offers tenants a dynamic, all-encompassing environment for their employees to work, live and spend time in," said Shawn Tibbetts, CEO and President of Armada Hoffler, in January 2025.

With the next phase of development now underway, Town Center continues to evolve, reinforcing its role as the primary urban hub of Virginia's most populous city.

Location and Access

The Virginia Beach Town Center is located in the Central Business District of Virginia Beach, across the street from Pembroke Mall. Its address is 222 Central Park Avenue, Virginia Beach, Virginia 23462. Centrally located, Town Center is a short commute from the Virginia Beach oceanfront and only minutes away from Norfolk International Airport.

Hampton Roads Transit offers bus service from the Oceanfront to Town Center. Drivers benefit from an abundance of free parking: Town Center features five parking garages with 4,606 free parking spaces.

Also nearby to the Virginia Beach Town Center is Princess Anne High School, home to the International Baccalaureate academy.