Pembroke Mall's transformation into Pembroke Square includes a new hotel, restaurants, and entertainment venues, such as a comedy club, opening soon.

VIRGINIA BEACH, Va. — Once a retail landmark in Hampton Roads, Pembroke Mall is undergoing a dramatic transformation. The site, which made history in 1966 as the region’s first shopping mall, is being redeveloped into the vibrant, mixed-use Pembroke Square.

Demolition of the old structure began in March 2024, and developers are now unveiling a lineup of new businesses and developments aimed at reshaping the area’s skyline and community offerings.

A major highlight of the new project is the 7-story "Tempo by Hilton" hotel, which will add a fresh architectural presence to the landscape. Also making its debut at Pembroke Square is Fogo de Chão, a popular Brazilian steakhouse. The Virginia Beach location, expected to open by the end of May, will be the fourth in Virginia, joining others in Richmond, Tysons, and Reston.

In the entertainment realm, the Funny Bone Comedy Club is relocating from Town Center to Pembroke Square. The move will allow the club to expand its seating capacity to 450 — an increase of 150 seats compared to its current venue.

Plans for residential development are also in motion. "The Pembroke," a 7-story apartment complex with a 600-space parking garage, is scheduled to break ground in early 2026.

Already completed is the Aviva Pembroke senior living facility, which opened in December. It features independent living apartments, assisted living units, a rooftop terrace, a fitness center, and an indoor pool, offering a modern, comfortable environment for senior residents.

Despite the ongoing construction, many surrounding businesses remain open, including Bath & Body Works, Coastal Edge, Old Navy, The Fresh Market, and Target.

The redevelopment of Pembroke Mall into Pembroke Square marks a new era for Virginia Beach, blending dining, entertainment, housing, and hospitality into a modern destination for locals and visitors alike.

VIRGINIA BEACH, Va. — The Virginia Beach School Board passed a resolution last night aimed at suspending diversity, equity, and inclusion (DEI) policies across the division.

This decision comes in the wake of an executive order from the Trump administration earlier this year, which threatens to cut federal funding for schools that do not eliminate programs centered around DEI.

“When that was completely disregarded, that was a true gut punch,” Elizabeth Schur, a former Virginia Beach teacher who was at Tuesday's meeting, said.

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Schur highlighted her disappointment about the resolution to suspend DEI policies being brought forward for a vote without public comment.

“One of the tenets of our school board is to receive stakeholder input on anything that affects our schools, our students, and our staff," Heather Sipe, with the Virginia Beach Education Association, said. "They were not allowed to provide input on this.”

The resolution follows a directive from the Trump administration requiring schools to certify compliance with civil rights laws and to eliminate DEI programs.

This move is intended to ensure the city school division secures its full $74 million in federal funding.

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The resolution includes changing the name of the Department of Diversity, Equity, and Inclusion to the Department of Opportunity and Achievement.

As well as suspending components such as the school division’s equity plan and equity dashboard.

“It is absolutely a concern because now, again, everything is essentially stopped and on hold,” Sipe stated.

While the total impact of these changes remains unclear, an extension on the deadline to certify compliance led some school board members to request that the vote be postponed later this month.

“I think a policy of this weight deserved more time and a deeper dive into its impact," School Board Member Matt Cummings, said.

Despite those concerns, the resolution passed Tuesday evening with a 6-3 vote.

watch related: Costco DEI policy deemed unlawful by attorneys general

In a statement, the school division indicated that Dr. Donald Robertson and his staff are now working to meet the directive.

On Tuesday when asked about potential impacts, Superintendent Robertson said, “In terms of clubs and activities, unfortunately, I think there could be a case that some of the planned activities may be in conflict with this.”

Kathleen Brown, the school board chair indicated the community would have an opportunity for public input when certain policies are reviewed again.

However, the renaming of the Department of Diversity, Equity, and Inclusion will not return for further discussion.

This friendly town on the Chesapeake Bay feels a bit like Mayberry. Here on the southern end of Virginia's Eastern Shore, kids shuffle down the pier with fishing poles and Cokes, wispy-haired men swap stories outside the hardware store, and the whole place seems to tuck in for the night not long after the sun goes down. But Cape Charles is decidedly more cosmopolitan than Andy Griffith's stomping grounds. The town is known for its 1828 lighthouse, fishing industry, and fresh seafood. It's also worth visiting for its range of activities, from browsing the walkable shopping district to exploring its unspoiled waters.

Once the economic hub of the Eastern Shore, Cape Charles settled into a sleepier routine with the decline of the railroad industry and the opening of the Chesapeake Bay Bridge-Tunnel. But more than 50 years later, the salty little hamlet has officially made a comeback, holding tight to its small-town character even as it welcomes a new and growing crowd of beach lovers. Cape Charles has fewer crowds in the off-season, so visiting during late spring or early fall is the best way to enjoy all the town's scenery and activities. The town's public beach is often less crowded during this time as well. Now meet the folks ushering Cape Charles into its most exciting chapter yet, and find out things to do on your visit.

The 20 Most Beautiful Places In Virginia, According To A Local

Where To Eat

Swing by family-owned Mason Avenue Bakery for warm pastries and picnic-perfect sandwiches. Bakers use local ingredients and traditional methods to make artisan breads and handcrafted pastries. Order a sandwich on a fresh-baked baguette and head to the beach. Indulge in a cookie or brownie to finish it off.

masonavenuebakery.com, 236 Mason Avenue, Cape Charles, VA 23310

Settle into Ambrogia Caffe & Enoteca for homemade pasta, fresh seafood, and beautiful desserts. The restaurant focuses on local foods and slow, family-style dining. Start with small plates or a charcuterie board, featuring Italian cheeses, vegetables, and cured meats.

ambrogiacc.com, 321 Mason Avenue, Cape Charles, VA 23310

Slurp local oysters and catch the sunset from the deck at Shanty restaurant. Committed to sustainable seafood and the community, the waterfront restaurant has a loyal local following, as well as beautiful views. Clams, mussels, and lobster rolls will satisfy your seafood craving. The menu also offers tacos, burgers, and salads.

shantyseafood.com, 33 Marina Road, Cape Charles, VA 23310

PHOTO: Robbie Caponetto PHOTO: Robbie Caponetto

The Brown Dog Ice Cream owner, Miriam Wagner, never planned to have a scoop shop. While visiting Virginia Beach, she found Cape Charles, a quiet bayside haven. Smitten with this place, she and her then-husband closed on a house just 15 days later—something Miriam says is not altogether unusual for the area. "That's the story of so many people who live here," she says. "They come, they fall in love with it, and they buy something."

In 2012, she opened something a beach town really needs—Brown Dog Ice Cream, where the tasty flavors are determined by what's in season and available just down the road. "The old adage, 'A rising tide lifts all boats,' is very true here," says Miriam. "To make our coffee ice cream, we source from the local roaster. All the farmers come and bring me the produce that is freshest to use. If I find myself needing more peaches, they will let me go pick them."

While the menu (which features coffee and doughnuts in addition to its inventive ice creams) changes daily, the welcoming atmosphere at the shop and across Cape Charles, in general, remains a constant. "There is a sense of community here, even if you're just visiting this area," says Miriam. "People will come and stay for a week. By the second day, we've talked to them and know who they are. And by the end of the week, they will come in and tell us, 'We're really sorry that it's our last day, but we'll be back next year.' "

browndogicecream.com, 203 Mason Avenue, Cape Charles, VA 23310

Drunken Clams, a special menu item at Cape Charles Brewing Company. PHOTO: Robbie Caponetto PHOTO: Robbie Caponetto

Where To Drink

"We wanted to create a true destination: a place where you could have a great craft beer, eat good food, and listen to music," says Mark Marshall, co-owner of Cape Charles Brewing Company with his brother Chris Marshall.

For Chris, the proof that they had done just that was parked right outside. He pulled into the brewery parking lot one day to find license plates from all over: Pennsylvania, New Jersey, and New York. "You have this pristine piece of geography here," says Mark. "It's a little slice of paradise that everybody is finding out about and coming down to discover."

capecharlesbrewing.com, 2198 Stone Road, Cape Charles, VA 23310

Where To Stay

Just east of the hardware store is Hotel Cape Charles, a sleek boutique stay that offers complimentary beach cruisers for guests. Hotel Cape Charles makes sunny days out on the sand a breeze. Guests at this hotel can help themselves to complimentary bicycles, beach chairs, and towels. Vrbo and Airbnb also have plenty of good options for visitors who want a little more space.

hotelcapecharles.com, 235 Mason Avenue, Cape Charles, VA 23310

These tiny homes may be small in size, but they’re big on comfort. The restored 1930s homes once made up the Esso Park Auto Court. Now a colorful tiny house hotel, each one offers the comforts of home to Cape Charles visitors. Inside, guests will find a queen-size bed, kitchenette, and private bath. The front porch is the perfect spot to see the sunrise.

capecharlestinylivin.com, 22102 South Bayside Road, Cape Charles, VA 23310

What To Do

Families will love Cape Charles Beach, as the waters of the Chesapeake Bay are calm and shallow at this vast public stretch of shoreline. Rental company Southeast Expeditions offers stand-up paddle boards, kayaks, and guided excursions. Paddle to a wine tasting on their Chatham Vineyards tour.

southeastexpeditions.com, 7 Strawberry Street, Cape Charles, VA 23310

The Cape Charles Natural Area Preserve covers 29 acres of forested natural communities. Stroll two boardwalks along freshwater wetlands and a rare maritime dune woodland. The trail ends with views from a bluff overlooking the Chesapeake Bay. The preserve is a habitat for the northeastern beach tiger beetle, a federally threatened species. It’s also a good place for birding year-round and more than 240 species of birds have been observed there, including migratory birds and waterfowl.

dcr.virginia.gov/natural-heritage/natural-area-preserves/capecharles, 301 Patrick Henry Avenue, Cape Charles, VA 23310

Shop the length of Mason Avenue for unique souvenirs. Pop into Moonrise Jewelry for accessories crafted from fish leather—eco-friendly leather made from byproducts of the Icelandic fishing industry—or stop by Gull Hummock Gourmet Market to sample local wines and snacks.

moonrisejewelry.com, 325 Mason Avenue, Cape Charles, VA 23310

facebook.com/profile.php?id=100057602201149, 115 Mason Avenue, Cape Charles, VA 23310

The Sabo sisters, Carol and Beth Ann, are not very good at retirement. They already had second jobs (Beth Ann trains dogs, and Carol owns Machipongo Trading Company up the road) when they retired from full-time careers and needed something to fill the time. They did that with coffee, bagels, and gently used books.

In November 2018, they opened Peach Street Books in a light-filled 1930s building that had been a Pure Oil station and then a garage. "We knew from the plans what it would look like but not what it would feel like—welcoming and cheery. It has historic angles but is still modern, which is very much like Cape Charles itself," says Beth Ann. For the sisters, the bookstore is a means of connecting with everyone who meanders to this Eastern Shore. "When you go into a town and see that there are other people who love books and reading or writing, it just gives you a good feeling of community," she says.

machipongotradingcompany.com, 13037 Lankford Highway, Machipongo, VA 23405

peachstreetbooks.com, 401 Mason Avenue, Cape Charles, VA 23310

Frequently Asked Questions

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VIRGINIA BEACH, Va. — The Pembroke Square redevelopment project is making progress, developers say.

Watch: Flythrough of Pembroke Square redevelopment

Details have been shared with News 3 about the new amenities that will be built at the site of the former Pembroke Mall:

Watch related coverage: Parking garages with $22M price tag proposed in VB's Pembroke Square development

“These additions further our goal of developing a new vision for the former Pembroke Mall while preserving its legacy,” said Ramsay Smith, president of Pembroke Realty Group and asset manager of Pembroke Square. “We remain committed to bringing new and rewarding opportunities to the community and transforming Pembroke Square into a vibrant, central lifestyle destination.”

The $200 million redevelopment project for Pembroke Square first started in Nov. 2021.

In some of the renderings, there's a pedestrian bridge attached to the hotel. It would provide a safe travel option over Virginia Beach Boulevard; however, Smith said that has not been decided.

"We still hope that that makes sense to the city, but we don’t exactly know where the funding is coming from and whether the city will do that or not," Smith stated.

The president of Landmark Hotel Group described Tempo by Hilton as an upscale, boutique-style hotel. Akhil Jain says it will have an open-air courtyard, restaurants, and a robust fitness center as well as another unique amenity. "Rooms with Peloton bikes in the rooms, so you don’t have to come to the fitness center to get your workout in. You can do it right from your own room," Jain described.

Tempo will be located just across the entrance to Pembroke Square, near Fogo de Chao.

"It's a very popular destination for both leisure travelers coming to the beach that want to stay off the beach, but also business travelers, military travelers. It’s really at the heart of, between Virginia Beach and Norfolk. It’s a great, central location with a lot of amenities," Jain commented.

Crews are expected to break ground on the hotel in 30-45 days.

Fogo de Chao is expected to be open by the end of May. The new 6,590-square-foot restaurant will be the fourth Fogo de Chão to open in Virginia, joining locations in Richmond, Tysons, and Reston.

Funny Bone is expected to open in October at its new location in Pembroke Square, along with DraftCade.

VIRGINIA BEACH, Va. — A potential boat tax proposed by Virginia Beach city leaders is being met with criticism by many boat owners.

At Wednesday’s city council meeting, about a dozen speakers voiced concerns about the boat tax included in the city’s proposed budget for FY 2025-26.

The proposed boat tax entails imposing a $1.50 per $100 assessed value on “privately owned pleasure boats” 18 feet and above. The rate is the same boat tax city leaders eliminated in FY 2001-02, except back then, it applied to all boats regardless of size.

The proposal is a sharp increase from the current boat tax rate of $0.000001 per $100 of assessed value. Many boat owners at Wednesday's meeting said the proposed tax coupled with the costs of maintaining a boat isn't a reality for them financially.

The tax at $1.50 amounts to an approximate 149 million percent increase. Practically, that means an owner with a boat valued at $100,000 who currently pays less than 1 cent would now pay $1,500.

"My boat's over 20 years old. Maintaining it fuel repairs cost me plenty already. I don't store it off site. It's on a lift above the water at my place, a $15,000 assessment," Virginia Beach resident Ryan Davidson said at the meeting. "This new $1.50 per 100 boat tax means a $225 bill. That's steep when I'm barely keeping it afloat financially. I know the city wants revenue, but this tax punishes boat ownership."

One speaker highlighted the potential economic impact if the tax drives people to move their boats out of Virginia Beach to neighboring cities with lower tax rates.

"Hampton has [the boat tax rate] you currently have now, which is basically nil... Chesapeake, they're at $0.09. Portsmouth, they're at $0.50," said resident Russ Kostinas. "If these boats leave, the marina operators are certainly going to have empty slips... The folks that leave are not going to eat at your restaurants. Their friends aren't going to come into here at the city, and then all the related boat activities."

The boat tax revenue would generate about $4.3 million, the proposal says. The revenue would support the Coastal section of the city’s Capital Improvement Projects (CIP). These projects include dredging both the Western and Eastern branches of the Lynnhaven River, as well as another project that aims to support dredge maintenance and equipment.

The proposal explains why the tax would apply to boats 18 feet and over, saying, “Larger boats typically draw more water driving more of the necessity for frequent dredgings to maintain navigable waterways.”

The proposed budget will not be finalized until May 13. However, during Tuesday's informal session, city leaders said they were already aware of backlash from the community, and indicated that they may be looking at alternative ways to support the Coastal CIP.