Virginia Beach

Pembroke Mall Transforms into Pembroke Square: A New Chapter for Virginia Beach

By HRCNN – Hampton Roads Construction News Network Managing Editor

The redevelopment of Pembroke Mall into Pembroke Square marks one of the most ambitious urban renewal projects Virginia Beach has seen in decades. Long known as a central retail hub, the site is now being reshaped into a mixed-use destination that combines housing, office, hospitality, and community amenities—all designed to meet the needs of a growing and evolving city.

At the heart of this transformation is Core 22 Design Build, the Virginia Beach–based firm entrusted with bringing the vision to life. Founded with a commitment to delivering high-quality, locally grounded projects, Core 22 has steadily built a reputation for combining innovative design with deep knowledge of regional development patterns. The firm’s role at Pembroke Square underscores its growing importance in shaping the urban fabric of Hampton Roads.

The project will introduce a blend of uses that go well beyond retail. Plans call for new residential units, modern office space, dining, and a hotel component—creating a 24/7 environment that supports both economic vitality and community engagement. For Virginia Beach, Pembroke Square is intended not only to replace the aging mall but also to anchor the broader Town Center district as the city’s signature urban core.

City leaders have framed the project as a model for future redevelopment efforts. By transitioning from single-purpose retail toward a mixed-use framework, Pembroke Square reflects national trends in commercial real estate while responding to local demand for housing, walkability, and sustainable infrastructure. The shift also signals how municipalities are rethinking suburban commercial corridors to meet 21st-century needs.

Core 22’s involvement ensures that the project is not simply about construction, but about long-term community integration. With a track record in residential and commercial development, the firm brings expertise in both vertical building and local site considerations—from zoning compliance to stormwater management. Their approach positions Pembroke Square as more than a redevelopment; it’s an investment in a resilient, livable future for Virginia Beach.

The economic impact of Pembroke Square is expected to be significant. Beyond the immediate construction jobs, the project will generate ongoing employment through retail, office, and hospitality operations. It also promises to expand the city’s tax base, contributing to infrastructure and services that benefit residents across Virginia Beach.

As Pembroke Square takes shape, it embodies a larger story unfolding in Hampton Roads: the reinvention of aging spaces into mixed-use anchors that support both growth and sustainability. With Core 22 Design Build at the helm, this redevelopment represents not just a new chapter for Town Center but a blueprint for how cities across Virginia can navigate the challenges—and seize the opportunities—of modern urban development.

About HRCNN The Hampton Roads Construction News Network (HRCNN) provides independent coverage of infrastructure, housing, zoning, and environmental policy across Virginia. By highlighting the intersection of local development and national trends, HRCNN delivers fact-driven reporting for industry professionals, policymakers, and the communities they serve.

Quarterra’s Arrival Could Reshape Virginia’s Housing Landscape

By HRCNN — Hampton Roads Construction News Network

In the Hampton Roads housing market, where inventory remains tight and prices continue to climb, the arrival of a national multifamily builder such as Quarterra carries consequences worth examining. While most headlines around housing tend to focus on interest rates or local rezonings, the deeper question is whether new players in the market can disrupt the longstanding supply-and-demand imbalance that keeps many entry-level buyers on the sidelines.

Quarterra, once part of Lennar and now a stand-alone multifamily powerhouse, has been steadily expanding its presence across Virginia. Its projects in Northern Virginia, such as the Lumen development at Tysons Corner, showcase a blend of scale, capital, and design that few local firms can match. And while Quarterra’s portfolio has traditionally been concentrated in larger metro areas, its national strategy and recent property management consolidation with Alfred’s RKW Residential signal an intent to broaden its footprint. For Hampton Roads, this could mean new development energy in cities like Chesapeake and Virginia Beach.

The significance is not only that new buildings would rise on local skylines, but that a company with Quarterra’s resources has the ability to deliver hundreds of units at once. In markets long dominated by a handful of builders, such capacity matters. Local firms often manage growth carefully, limiting inventory to maintain price strength. By contrast, a national multifamily developer is incentivized to build at scale, creating new supply that filters across price points. Even luxury apartments can relieve pressure on the overall market by drawing households upward and opening opportunities in more affordable segments.

This is particularly relevant in Hampton Roads, where buyers and renters alike face constrained options. For many young families, the price of new single-family homes has been pushed beyond reach, as builders hold pricing power in a market short on alternatives. The presence of a national builder with the ability to deliver volume may weaken that grip, easing scarcity and giving buyers relief from what has too often felt like a controlled market.

Still, the implications are complex. Local builders who have long set the terms of development may view Quarterra’s presence as unwelcome competition, especially if land values rise and project standards shift upward. Others may see opportunity in partnership, leveraging Quarterra’s capital and management infrastructure to pursue larger-scale developments together. Either way, the entry of a firm with national reach forces a recalibration of the region’s housing dynamics.

Quarterra’s recent financial moves underscore this potential. The company has engaged in multi-billion-dollar transactions, selling large portfolios to investors such as KKR and QuadReal, while reinvesting in select markets. With a management platform now overseeing more than 50,000 units nationwide, Quarterra has both the balance sheet and the operating infrastructure to scale quickly in regions where demand is strong. If Hampton Roads becomes a focus, local builders and policymakers will need to adapt to an environment where the pace of delivery is no longer set solely by local interests.

For buyers, that adaptation may be long overdue. Housing affordability in Virginia Beach, Chesapeake, and the broader region has become a persistent challenge. Introducing a new supply stream at scale could soften demand pressures, break through price locks, and open doors that have been closed for too many entry-level households. In the end, the presence of Quarterra in Virginia should be viewed less as a threat to established players and more as an opportunity for the market to reset — toward balance, toward competition, and, most importantly, toward relief for the families who simply need a place to call home.

About HRCNN The Hampton Roads Construction News Network (HRCNN) delivers independent, fact-based coverage of development, zoning, and infrastructure issues shaping Virginia. Our reporting provides residents, policymakers, and industry professionals with clear insight into how growth is managed across the region. By highlighting both local builders and national firms, HRCNN is committed to transparency, accountability, and advancing public understanding of the forces that are reshaping Hampton Roads.

Who Pays for Growth? Virginia’s Debate Over Impact Fees

By HRCNN Staff Writer
Hampton Roads Construction News Network

When local governments weigh new development, one unavoidable question lingers: who pays for the infrastructure that growth demands? Roads, schools, utilities, and stormwater systems all must expand to meet the needs of new subdivisions and multifamily communities. Across much of the country, states impose “impact fees” to ensure that new housing and commercial projects contribute their share of those costs.

In Virginia, however, the practice remains rare. Unlike states such as Florida, Texas, or California, where impact fees are a standard tool, Virginia leans heavily on negotiated developer contributions—known as proffers—or on general tax revenues. The result is that the costs of growth often fall on the broader public, rather than being tied directly to the developments that generate new demand. In 2025, House Bill 2683 sought to make impact fee authority more accessible by lowering the population threshold for localities and removing a growth-rate requirement. The bill, however, stalled in committee, leaving the status quo intact.

There is one notable exception. In late 2024, Stafford County revived its transportation impact fee, becoming the only Virginia locality currently using the tool. Beginning in July 2025, Stafford will levy fees on residential, retail, and commercial projects, with revenue projections between $15 million and $20 million annually to fund transportation improvements. This example underscores how limited the practice remains across the Commonwealth.

The debate resonates strongly in Hampton Roads, where population growth continues to strain classrooms, roads, and stormwater systems. At zoning hearings in Chesapeake and Virginia Beach, residents frequently voice concerns about crowded schools and congested roadways. Local officials acknowledge the urgency but, absent a broader impact fee framework, they are left to rely on case-by-case proffers or general funds. For many residents, this feels like subsidizing development with their tax dollars.

Developers counter that Virginia’s existing proffer system already places heavy financial obligations on them. They warn that layering impact fees on top could increase housing costs in a region already grappling with affordability challenges. Supporters, on the other hand, argue that without new revenue mechanisms, infrastructure will continue to lag behind growth—leaving long-term strains on communities and taxpayers alike.

For now, Virginia’s growth is paid for through negotiated contributions and public resources. But as Hampton Roads continues to expand—and as demands on transportation networks, schools, and stormwater systems grow—the question of who pays is unlikely to fade. Whether the Commonwealth eventually embraces broader impact fee authority or clings to its traditional approach, Hampton Roads will remain at the center of the debate.

About HRCNN
Hampton Roads Construction News Network (HRCNN) is the region’s dedicated platform for reporting on development, infrastructure, and policy. By delivering accurate, timely coverage, HRCNN works to keep residents, builders, and decision-makers informed about the forces shaping the future of Hampton Roads.

Where the Water Goes: Rethinking Stormwater in Coastal Virginia

By Earthly Infrastructure® HRCNN Staff Writer
Hampton Roads Construction News Network (HRCNN)

In Hampton Roads, water is more than a geographic feature—it’s a defining force in how we live, build, and plan. As sea levels rise and rainfall events grow more intense, the region’s aging drainage systems and development patterns are being tested in ways never before imagined. For municipalities, engineers, and developers alike, stormwater management has moved from the margins of planning to the forefront of resilience, environmental responsibility, and public infrastructure investment.

Too often, stormwater is invisible—until it’s not. Flooded intersections, overwhelmed outfalls, eroded shorelines, and degraded wetlands are all symptoms of a system pushed past its limits. While reactive measures may be necessary in the short term, they carry steep costs. Increasingly, Virginia’s coastal communities are shifting toward proactive, long-range strategies that anticipate the water’s path—before it becomes a problem.

Nowhere is this transformation more urgent than in Virginia Beach. The city’s low-lying terrain, rapid development, and proximity to the Chesapeake Bay create a perfect storm of environmental responsibility and regulatory complexity. Under mandates like the Municipal Separate Storm Sewer System (MS4) permit program and the Chesapeake Bay Preservation Act, Virginia Beach must meet strict standards for runoff control, nutrient management, and infrastructure maintenance. Yet even full compliance with these regulations may not be enough to protect residents and waterways from the cumulative effects of unchecked growth and outdated systems.

To better understand how policy and infrastructure are aligning at the local level, HRCNN reached out to multiple Virginia Beach city leaders, including Council Member Michael F. Berlucchi and Mayor Bobby Dyer. Their insights shed light on the city’s evolving approach to stormwater management and the political will driving resilience investments.

Councilman Berlucchi, who represents District 3—including neighborhoods severely affected by Hurricane Matthew in 2016—emphasized the importance of both investment and foresight in protecting the city’s future:

“As the Council Member representing the neighborhoods most impacted by Hurricane Matthew in 2016, I’ve seen firsthand the lasting damage that stormwater flooding can cause to lives, property, and public infrastructure. That experience continues to shape my commitment to investing in the systems and safeguards Virginia Beach needs to protect our future.

But infrastructure alone isn’t enough. We also need strong, enforceable stormwater policies—based in science and guided by common sense—that reflect the realities of a growing coastal city and support our long-term resilience.

At the same time, we must foster a strong local economy. Job creation, innovation, and a healthy tax base provide the resources we need to build and maintain critical infrastructure. Smart growth and sound environmental policy are not at odds—they are partners. When aligned, they help ensure Virginia Beach remains a safe, vibrant, and resilient community for everyone who lives, works, and visits here.”
Michael F. Berlucchi, Council Member, District 3

Virginia Beach Mayor Bobby Dyer echoed these concerns and outlined how the City is already taking action through one of the most ambitious resilience initiatives in its history:

“In November 2021, Virginia Beach voters overwhelmingly supported a resiliency package for several key flood protection initiatives to include drainage improvements, tide gates, pump stations and flood barriers throughout the city—and for good reason.

Being a low-lying coastal city, heavy rains, hurricanes and nor’easters have been threatening Virginia Beach year after year. The area has struggled with flooding from record rainfalls, including Hurricane Matthew that impacted over 1,000 homes in 2016.

Additionally, it has seen recorded sea level rise of nearly one foot over the past 50 years. In response, the City has expedited plans to invest in resilience for its vulnerable neighborhoods.

Because of this, City Council understood the immediate gravity of the situation and what our city’s future looked like. Working with Virginia Beach Public Works and consulting engineers, they developed a drainage plan that concentrates on volume of storage and conveyance capacity in the City’s four watersheds—the Atlantic Ocean, the Elizabeth River, the Lynnhaven River, and the Southern Rivers—which are made up of 15 drainage basins.

These projects are a huge step in the right direction. But we have to look further down the road if we are to manage our stormwater efforts effectively and protect our city’s future. This includes maintaining and protecting our long-term investment in these projects; promoting effective stormwater drainage; improving the quality of the stormwater discharged into our waterways; and continuously educating our residents on stormwater issues.”
Mayor Bobby Dyer, City of Virginia Beach

Their remarks underscore a critical point: addressing stormwater is not just about pipes and pumps—it’s about people, planning, and political will.

Across the region, municipalities and private developers are adopting a new generation of solutions. Bioretention areas, bioswales, and rain gardens are appearing in both public rights-of-way and residential subdivisions. Permeable pavements and green roofs are reducing impervious surfaces and increasing onsite water retention. Underground detention systems—once a premium option—are now becoming standard practice even in suburban infill developments.

These approaches are supported by the Virginia Department of Environmental Quality (VDEQ), whose Stormwater BMP Clearinghouse provides technical guidance for post-construction runoff controls. As Virginia strives to meet its Chesapeake Bay Total Maximum Daily Load (TMDL) obligations, developers are not only required to manage runoff—but to do so in a way that supports long-term watershed health.

Responsible stormwater planning must begin at the drawing board. Erosion and sediment control strategies, stormwater pollution prevention plans (SWPPPs), and early-stage BMP integration all play a role in reducing flood risk, improving infrastructure longevity, and safeguarding public and environmental health. Done right, these practices serve as more than regulatory checkboxes—they become pillars of sustainable, cost-effective development.

Perhaps most importantly, stormwater tells a story. It reflects how we’ve zoned, how we’ve permitted, and how seriously we’ve taken our responsibility as stewards of a coastal environment. In Chesapeake Bay Preservation Zones and Resource Protection Areas (RPAs), where sensitive ecosystems meet expanding development, these decisions are magnified. The consequences of poor planning are not just local—they reverberate throughout the region.

As Hampton Roads continues to grow, so must the systems that support it. Local governments must prioritize green infrastructure in their capital improvement plans. Developers need clear guidance and incentives to build with water in mind. And residents must stay engaged—because flood resilience, clean waterways, and safe neighborhoods are shared goals that require collective action.

HRCNN will continue to report on the evolving stormwater landscape across Coastal Virginia. From VDEQ updates and BMP innovations to planning commission votes and watershed investments, we are committed to elevating the conversations that will shape the next generation of responsible development.

To our readers: If you are a stormwater engineer, policy leader, or municipal official with expertise or perspective to share, we invite you to submit a guest article or commentary. Visit www.earthlyinfrastructure.com/contact to connect with the HRCNN editorial team.

Because in Hampton Roads, the future doesn’t just depend on what we build.
It depends on how we manage the water that follows.

Built Safe, Built VA: Building a Stronger Commonwealth from the Ground Up

By Eric S. Cavallo – Licensed Commercial Building Contractor | Member, International Code Council (ICC) | Board Member, Virginia Beach Board of Zoning Appeals | Advisory Committee Member, Virginia DHCD – SB195 Reform | Founder & CEO, Earthly Infrastructure®

Safety has long been one of the defining values of the construction industry. But as our cities grow more complex, our climate more unpredictable, and our housing needs more urgent, the meaning of “building safely” must evolve. Today, it’s no longer enough to focus exclusively on jobsite hazards or regulatory compliance within the fence line. The safety of Virginia’s built environment starts upstream—with land use, planning decisions, infrastructure investment, and the policies that govern them all.

Built Safe, Built VA began as a call to strengthen safety culture across Virginia’s construction sites. From OSHA alignment and VOSH enforcement to job hazard analyses and public interface protocols, the original message was clear: protecting lives and reputations on the job is foundational to ethical construction. But the time has come to expand the campaign’s reach. Safety must also guide how we zone our communities, manage our stormwater, approve our housing stock, and license those who shape our physical environment.

One of the earliest and most overlooked points of impact is zoning. Setbacks, overlays, height restrictions, and access requirements may seem bureaucratic—but they often determine whether emergency vehicles can reach a structure, whether pedestrians and cyclists are safely accommodated, and whether public infrastructure can support private development. As a member of the Virginia Beach Board of Zoning Appeals, I’ve seen firsthand how zoning decisions—good and bad—leave lasting safety consequences. Built Safe means starting at the planning table.

Stormwater management is another critical piece of the safety puzzle. In a coastal region like Hampton Roads, a poorly planned or under-enforced BMP isn’t just an engineering flaw—it’s a public hazard. In next month’s HRCNN feature, Councilman Michael Berlucchi (District 3) offers a civic perspective on how local government can lead in protecting our watersheds and preparing for climate impacts. Erosion, flooding, and sediment runoff don’t stop at property lines. Neither should our commitment to prevention.

Likewise, structural safety must be defended through policy—particularly as we seek to modernize housing. In my role with the Virginia DHCD advisory committee on SB195, I’ve been part of the conversation around single-stair reform in R-2 occupancy structures. This is a question of both affordability and egress. Of innovation and life safety. As we welcome more density in our cities, we must be honest about what safe vertical development looks like—and who bears responsibility when it falls short.

That responsibility should extend to all players in the development chain. In Virginia, contractors must be licensed, tested, insured, and held accountable. But developers—who often initiate, coordinate, and finance the projects that shape our communities—are not subject to the same baseline requirements. This is a regulatory gap that I believe must close. Built Safe, Built VA calls for equal standards across the building lifecycle. If you have the authority to shape a neighborhood, you should carry the license to match.

Public safety also hinges on how construction engages the community during the build. Traffic control plans, signage, fencing, and hazard communication are not superficial details—they are the public’s experience of the construction profession. Whether we're working in a dense urban district or a coastal village, we must treat every project as a public-facing commitment to professionalism. Safety doesn’t end with a passed inspection. It extends to every resident who walks, drives, or lives near our work.

In the months ahead, Built Safe, Built VA will continue spotlighting the people and policies that make Virginia stronger—from jobsite practices and planning board decisions to stormwater initiatives and housing reforms. Through Earthly Infrastructure® and the Hampton Roads Construction News Network, we’re proud to carry this conversation forward—not as critics, but as partners in building a better Commonwealth.

Let’s keep pushing the standard. Because when we build safe, we build trust. We build value. And most importantly, we build Virginia.

Foundations That Last: Helen Dragas and the Blueprint for Building in Coastal Virginia

By Eric S. Cavallo
Virginia Licensed Contractor (Commercial Building); Board Member, Virginia Beach Board of Zoning Appeals; Advisor to the Virginia Department of Housing and Community Development (DHCD) on Single-Stair Exit Code Reform; International Code Council (ICC) Member; Founder & President, Earthly Infrastructure®

Few names in Hampton Roads residential development carry the weight of Helen Dragas. As President and CEO of The Dragas Companies, her influence has helped shape the region’s suburban landscape for decades. What distinguishes Dragas isn’t just her longevity—it’s her measured, community-centered approach to growth. Her legacy isn’t written in speculation or press releases, but in real neighborhoods, lasting craftsmanship, and homes that anchor families across Coastal Virginia.

Recognizing a Builder’s Legacy

On May 31, 2023, Earthly Infrastructure® proudly presented Helen Dragas with a Lifetime Achievement Award, honoring her enduring contributions to the built environment, her commitment to ethical development, and her legacy of leadership across Coastal Virginia

I first met Helen years ago at the Dragas Companies’ annual Christmas party while working on her Spence Crossing development in Virginia Beach. Even in a festive setting, she carried herself with the commanding presence of a public official—measured, composed, and unmistakably in charge. She didn’t just walk into a room; she owned it. There was an air of confidence and competence about her that signaled leadership at every turn. It was immediately clear she was a builder who expected more—not just from the work, but from the people around her.

Her job sites were orderly, her expectations sharp, and her team deeply aligned with the regulatory process. For someone like me, now leading Earthly Infrastructure® and advocating for greater builder accountability statewide, that early exposure to her leadership shaped my view of what responsible development looks like.

Today, Helen Dragas continues to leave her mark—not only through legacy communities but through new projects rising in Chesapeake. Crestfield at Centerville is a forthcoming neighborhood of single-family homes on generous 10,000-square-foot lots, offering thoughtfully designed floorplans priced from the mid $500,000s. Just a few miles away, Grayson Commons is set to break ground in 2025—a mixed-use development that will include two- and three-bedroom townhomes, garages, and lakefront walking trails. These projects speak to the evolution of growth in Hampton Roads: compact, livable, and grounded in long-term neighborhood value.

What makes these projects especially relevant to today’s land use conversations is their procedural integrity. The approval process for Grayson Commons included careful coordination with Chesapeake City Council, addressing infrastructure conditions like turn-lane improvements and internal road connectivity. It’s this attention to transportation impact, drainage, and design that separates Dragas from many operating in today’s increasingly crowded development space. She builds with the future in mind—socially, physically, and civically.

Outside the private sector, Helen Dragas has been a visible force in Virginia’s civic and educational institutions. She served as a member—and eventually rector—of the University of Virginia Board of Visitors, helping steer one of the Commonwealth’s flagship public universities through complex governance challenges. Her board service reflects a belief that leadership in housing must also be matched by stewardship in education, governance, and policy. Few regional developers can claim such a balanced presence across public and private life.

She has also supported initiatives related to housing access, workforce development, and regional economic competitiveness—often without seeking the spotlight. In doing so, she has helped shape not only the built environment, but the broader social infrastructure that makes a city livable. Helen Dragas embodies the idea that true development is as much about people as it is about parcels—and her work continues to influence how Coastal Virginia grows, adapts, and thrives.

In a time when the word “developer” is often used without regard to licensure, liability, or policy fluency, Helen Dragas remains a model of what the title should demand. Her work respects the code. Her teams understand the stakes. And her communities are proof that quality homebuilding and responsible policy alignment are not mutually exclusive. As Virginia continues to confront growth, affordability, and regulatory reform, builders like Helen will be essential to getting it right.