Student Art Plays Key Role in 100 Peachtree Restoration Strategy

By Georgiana Mihaila, Associate Editor

Owner America’s Capital Partners has sought the help of a rather unusual group to assist in the $14 million restoration efforts and marketing strategy of the former Equitable Building in downtown Atlanta.

Committed to both restoring the property and contributing to the revitalization of downtown, ACP reached out to Georgia State University’s Earnest G. Welch School of Art and Design, forming a collaborative partnership that led to the creation of the 100 x 100 Project. The name, which was derived from the name of the building, 100 Peachtree, is also meant to celebrate GSU’s 100^th anniversary.

Students in the undergraduate program participated in a design competition titled “Identity 100: Rebranding 100 Peachtree” that resulted in over 40 original pieces of graphic art, fine art and animated video focused on the number 100. The winner of the competition received a MacBook Pro and pieces were displayed at various locations in downtown Atlanta. The spring curriculum for graduate students in the Interior and Graphic Design Studio included creating an exhibit for the building’s 31st floor that expressed not only the building’s history but also its evolution. The “Inspired Change” exhibit opened with a private reception on May 9. All graduate students received an Apple iPad Mini in appreciation of their work, plus ACP and Five Miles are establishing a $28,000 grant for future students attending the graduate program that will be funded over a period of three years.

“This is an exciting relationship for us,” stated Michael White, director of the Welch School of Art and Design. “Providing our students with real world experience is invaluable. Not only will they have the opportunity to assist in rebranding a landmark example of the mid-century “international style” of commercial architecture, but students will also be working directly with leaders in the business community. “

The 32-story 100 Peachtree office building—work of the renowned American architectural and engineering firm Skidmore, Owings and Merrill—dates back to 1968. The building is currently undergoing a comprehensive restoration process estimated at $14 million; planned capital improvements include new energy efficient dual-pane windows, a complete renovation of the lobby and a newly landscaped café and retail plaza. New modern amenities already completed include a mock courtroom, conference facilities, a fitness center and state-of-the-art security.

Images courtesy of America’s Capital Partners

For more market data on Atlanta, click here.

As Opening Nears, The Outlet Shoppes at Atlanta Adds 38 New Stores

By Georgiana Mihaila, Associate Editor

The Outlet Shoppes at Atlanta, a 370,000 square-foot retail center currently under development at the newly-constructed exit off I-575 at Ridgewalk Parkway in Woodstock, has recently added 38 stores to its already impressive list of tenants.

Horizon Group Properties—in charge of leasing and managing the center—has now brought the number of stores up to 89 by signing tenants such as Adidas, American Eagle, Auntie Anne’s, GH Bass & Co., Calphalon, Chico’s, Crocs, Fossil, Fragrance Outlet, Kate Spade, Skechers, Papaya, Tommy Hilfiger, The Children’s Place and many more. Existing tenants include Nike, Saks Fifth Avenue OFF 5TH, Bose, Brooks Brothers, Columbia Sportswear, True Religion, Cole Haan, White House|Black Market, Guess, Fossil, Michael Kors, Under Armour, and Talbots.

“The Outlet Shoppes at Atlanta continues to attract the highest caliber retail names,” said Michael Lebovitz, executive vice president of development for CBL. “With the center opening on July 18th at more than 95 percent leased, we are looking forward to building on the momentum of a tremendous opening.”

Originally scheduled to open in August, the official opening date has now been set for July 18, 2013, with co-developers CBL & Associates Properties, Inc. and Horizon Group Properties, Inc. also planning a private preview event to benefit Elm Street Cultural Arts Center on July 17.

Designed in a shopper-friendly configuration, the center will feature covered walkways and landscaped courtyards to maximize the comfort and convenience of shoppers. Its design blends traditional architecture with lively features including a children’s play area. A center court complete with fountains and a fireplace will create a festive atmosphere for shoppers and visitors. The site can accommodate an additional 30,000 square feet of outlet shops and also features seven parcels for restaurants, service businesses and other retail uses.

When completed, the center is projected to generate more than $130 million in annual sales and $3 million in sales and property taxes for the City of Woodstock. The development and operation of the center is expected to generate a total of $34 million in taxes for the City of Woodstock, Cherokee County and its school district over the next ten years. The developers estimate that the center’s convenient location and its proximity to Interstates 75, 85 and 20 will draw over four million visitors annually from a three-state area.

Images via CBL & Associates Properties, Inc.

For more market data on Atlanta, click here.

Trophy AT&T Office Campus in Midtown Atlanta Trades for $225M

By Georgiana Mihaila, Associate Editor

A partnership between private real estate investment sponsor Macfarlan Capital Partners and an entity associated with Cole Real Estate Investments recently paid $225 million for a Class A trophy office campus leased to AT&T located in Midtown Atlanta.

The campus, originally a build-to-suit for AT&T in 2001 and 2002, spreads over 7.22 acres and is home to the 16-story Midtown I and the eight-story Midtown II—the two buildings totaling 794,110 square feet of space. The Midtown I office tower boasts 512,101 square feet of office space, whereas the mid-rise Midtown II 282,009 square feet. Both buildings are currently 100 percent occupied.

During due diligence, Macfarlan negotiated to extend the remaining AT&T lease term from 4.5 years to 11 years and enhanced the credit backing the lease. Bryan Larson, firm partner for Macfarlan, highlighted the long-term AT&T lease and strategic location in Atlanta’s Midtown submarket, as well as the importance of the firm’s first joint venture with Cole in acquiring the trophy office campus. “The Midtown I and II acquisition represents a great opportunity for Macfarlan to provide its investors with a strong current yield from a trophy asset backed by outstanding credit,” he noted. “We are really excited about the opportunity to partner with Cole on this transaction and look forward to working with them on other transactions in the future.”

Chuck Vogel, senior vice president for real estate joint ventures, represented Cole Real Estate Investments in the transaction, while Chris Marshall of Jones Lang LaSalle Atlanta represented the seller. Mark West, Brandon Chavoya and Coler Yoakam with HFF’s Dallas office represented Macfarlan in arranging debt financing with RBS (Royal Bank of Scotland).

This is the second big investment in metro Atlanta for Cole Real Estate Investments, as the company also purchased Canton Marketplace, a 352,350-square-foot regional shopping center in Canton, GA for $61 million. The deal went through less than two weeks ago, and it was part of a larger transaction that included a 509,614-square-foot regional shopping center in San Jose, CA, acquired by Cole for $203 million.

 Image courtesy of Macfarlan Capital Partners

Meritex, Transwestern Find Buyers for Metro Atlanta Industrial Properties

By Georgiana Mihaila, Associate Editor

Meritex was the first to announce this week that it has found a buyer for two of its office/industrial properties located in Kennesaw, Georgia.

The two buildings, 2120 and 2124 Barrett Park Drive, have been a part of Meritex’s portfolio since December 2010, when the company acquired them in a ten-building, 750,000-square-foot portfolio deal. Totaling 151,665 square feet, the two buildings are currently 100 percent occupied by tenants Alorica, Inc. and Knapp Logistics Automation, Inc.

Daniel Williams, chief investment officer for Meritex commented, “This transaction was significant for Meritex because it once again demonstrates our ability to adeptly execute a value-add investment strategy and to realize the value created through successful disposition.”

CBRE brokers, Tom Shafer and John Hinson, and Nathan Pramik of TPA Group, represented Meritex in the sale of the properties.

Transwestern’s Atlanta office has also found a buyer for a 122,880-square-foot industrial warehouse on behalf of Stockbridge Capital Group—which served as the adviser to the real estate pension fund that sold the property. Briggs Equipment, a leading provider of materials handling equipment, paid $5.9 million for the facility located in the Airport South industrial submarket.

The 4695 Aviation Parkway building is the largest warehouse facility located within International Airport Park, a master-planned industrial campus totaling nine buildings and 523,592 square feet. Built in 1987, the state-of-the-art facility features a 24-foot clear height, 31 dock-high doors, more than 215 parking spaces and above-market trailer storage areas. Briggs will occupy 100 percent of the firm’s new facility once the build-out is completed.

Stockbridge Capital Group will remain the adviser for the other eight International Airport Park buildings.

Image courtesy of Meritex

JLL, Transwestern Find Buyers for Three Metro Atlanta Apartment Communities

By Georgiana Mihaila, Associate Editor

In what seems to be an eventful week for the metro Atlanta multifamily market, three apartment communities are now under new ownership.

Jones Lang LaSalle’s Capital Markets was responsible for the successful sale of two such properties. Working on behalf of owner American Realty Advisors, managing directors David Gutting and Derrick Bloom closed on the sale of ALARA State Bridge and ALARA Highland Park, properties that were placed on the market less than four months ago. No financial terms of the transaction have been disclosed.

ALARA State Bridge is a 224-unit apartment community located at 10840 State Bridge Road in Johns Creek, GA. Built in 1998, the community features modern architecture and luxury amenities, and it is destined to cater to families looking for top-rated schools and proximity to high-tech employment.

The 188-unit ALARA Highland Park, located at 100 Highland Park Trail in Sandy Springs, GA is a wooded Williamsburg-inspired community. Built in 1995, the apartment asset aims to attract young professionals as it is set within proximity to the entertainment and nightlife venues of Downtown Roswell, Dunwoody Village and the Central Perimeter Office submarket.

Transwestern’s Atlanta office also closed on the sale of a 305-unit multifamily community this week; PointOne Holdings LLC, a South Florida investor of single- and multifamily properties, bought Steeple Chase Apartments at 5940 Singleton Road in Norcross, GA.for approximately $13.3 million, or $43,525 per unit. Transwestern’s managing directors Mike McGaughy and Jon Kleinberg represented the seller, Cortland Partners.

“The Atlanta multifamily market is continuing to strengthen,” said McGaughy, Transwestern’s multifamily specialist. “The addition of new jobs and a lack of any meaningful suburban development have pushed up property values 20 to 25 percent over where they were trading just two years ago. We believe these trends will continue not only in Atlanta, but throughout the Southeast.”

Image: ALARA State Bridge via Facebook

Chart via Marcus & Millichap

CBRE Brokers $19M Outpatient Campus Sale, 400K SF Industrial Lease

By Georgiana Mihaila, Associate Editor

A three-building outpatient campus located in Marietta recently traded in a $19.2 million deal brokered by CBRE’s U.S. Healthcare Capital Markets Group.

The Northside/East Cobb Medical Campus, totaling 69,341 square feet, is nearly 97 percent occupied by high-profile, long-term tenants such as Northside Hospital—Atlanta’s largest Gastroenterology group, one of Atlanta’s leading women’s health and pediatrics group, a top orthopedic clinic, and one of the largest OB/GYN groups in the Southeast.

The three-building campus is anchored by the Northside Hospital, widely regarded as one of Atlanta’s largest and most respected health care systems; on-site services include primary care and an imaging center.

Lee Asher and Chris Bodnar with CBRE’s U.S. Healthcare Capital Markets Group represented the seller in the transaction.

CBRE was also the broker in a recent lease renewal and expansion on behalf of national supplier of doors, windows, frames and building hardware, American Building Supply. The company has renewed its lease for 330,000 square feet at 4475 South Fulton Parkway, in the Airport submarket of Atlanta. Due to the company’s recent growth, American Building Supply has leased an extra 100,000 square feet in an adjacent building that was recently vacated.

Both the renewal and the extension have been signed for a ten-year period, with CBRE’s senior vice president David Nixon and first vice president Chad Burd representing the tenant.

Image: Northside/East Cobb Medical Campus via Ackerman & Co.

149-Room HYATT house Atlanta/Cobb Galleria Opens

By Georgiana Mihaila, Associate Editor

Atlanta is now home to the first HYATT house hotel in Georgia, following this week’s opening of the 149-room HYATT house Atlanta/Cobb Galleria.

The result of a joint effort between Hyatt Hotels Corporation, Noble Investment Group and Interstate Hotels & Resorts, the HYATT house Atlanta/Cobb Galleria is located in Atlanta’s Northwest Corridor at the intersection of Interstate-75 and Interstate-285 in the Cobb Galleria. This places it near the global headquarters of Home Depot and the Atlanta offices of IBM, Manhattan Associates, General Electric, SITA and Lockheed Martin. The hotel is right across from One Overton Park Galleria and is a short drive to Saint Joseph Hospital, Northside Hospital and Kennestone Hospital.

The HYATT house Atlanta/Cobb Galleria consists of 149 residentially inspired upscale king guestrooms, studio, one- and two-bedroom Kitchen Suites—featuring fully operational kitchens with refrigerators, icemakers, convection microwave ovens, dishwashers, stoves, small appliances and utensils, topped by comfortable living space and bedrooms with walk-in showers.

The hotel has also been equipped with nearly 2,000 square feet of flexible, high-tech meeting/function space for business or social gatherings, an H BAR featuring HYATT house’s new Sip+Savor Menu and a 24/7 Guest Market, plus complimentary grocery shopping available to extended-stay guests.

“Every signature element at HYATT house departs from the traditional extended-stay experience to meet the needs of today’s consumers, in particular those frequent travelers looking for a strong community environment,” said Ben Brunt, principal, Noble Investment Group.

HYATT house, a brand of Hyatt Hotels Corporation, offers more than 50 locations throughout the United States. The concept has recently earned the top spot in the upscale extended stay category in Business Travel News’ 2012 Hotel Chain Survey, based on a survey of corporate travel buyers. Additionally, the brand was named one of the 10 Best Hotel Chains for Families by Parents Magazine.

 Image via HYATT house Atlanta/Cobb Galleria official website

Alternative Apparel Extends Norcross Lease to 131,000 Sq. Ft.

By Georgiana Mihaila, Associate Editor

Clothing brand Alternative Apparel has chosen to consolidate and expand its headquarters at Indian Brooks business park in Norcross, Ga., having recently signed a long-term, 131,000-square-foot lease renewal.

As of May 1, Alternative Apparel will start occupying the new space and will vacate the 85,000 square feet it holds in two industrial buildings within the office park. The company will consolidate its operations under one roof at 1650 Indian Brook Way. The expanded space will serve as the hub for distribution of Alternative Apparel’s casual clothing lines to its domestic and international customers, as well as provide office space for customer support, operations, finance and other administrative functions. Alternative Apparel currently employs 120 workers in Norcross and a total of 170 employees companywide.

Alternative Apparel CEO Evan Toporek is confident that the consolidated space will ensure the company’s ability to maintain optimum inventory levels as it carries out its growth plans. The company currently has two other office locations, one in Los Angeles and one in New York. It also currently operates two retail stores in Los Angeles and plans on opening a new retail store each quarter over the next three years in key cities across the United States.

In other commercial real estate news, Jamestown has reportedly agreed to sell its 28-story 999 Peachtree to Franklin Street Properties for $158 million. While no official statement has been made, sources familiar with the deal say Eastdil Secured has brokered the transaction, expected to close on July 1, 2013. Current seller Jamestown had purchased the building in February 2007 from the original developer, Childress Klein Properties, for $127 million.

Image 999 Peachtree, courtesy of Jamestown

Metro Atlanta Successfully Attracting Corporate Expansions and Relocations

By Georgiana Mihaila, Associate Editor

Recent leases and expansions stand as clear proof of the increasing attractiveness of the metro Atlanta area for both national and foreign companies.

Outsourcing giant Infosys recently disclosed an expansion strategy for its Cumberland location in Cobb County that involves adding approximately 200 new jobs in the next fiscal year. Moreover, the company is considering additional expansion in the metro Atlanta area over the next two years. The upcoming expansion will involve adding more space at the company’s 30,000-square-foot office in the Wildwood office park in Cobb County for its business process outsourcing (BPO) unit; Infosys is also occupying 40,000 square feet in the Powers Ferry Landing office complex, employing about 300 people in the Atlanta area.

“Infosys is an integral part of metro Atlanta’s technology community and we are pleased that it has decided to expand operations here following the opening of their new business center last year,” said Hans Gant, senior vice president of Economic Development at Metro Atlanta Chamber. “Maintaining our close ties with India and companies like Infosys is central to our growth strategy for the region and it is through collaboration with our partners that these success stories continue to happen.”

Orlando-based Bitcoin payment processor BitPay will soon be relocating its headquarters to Buckhead. According to the Atlanta Business Chronicle, BitPay plans to open a software development center at Atlanta Tech Village—a 100,000-square-foot office building on track to being converted into a tech company hub.

Eye care provider Thomas Eye Group is also planning a $9 million expansion that will significantly increase its Atlanta footprint. The company’s current St. Joseph Clinic and Ambulatory Surgery Center will be relocated to a newly purchased building at the corner of Barfield Road and Hammond Drive. The project scope will include a renovation of the exterior, the addition of a drop-off canopy and a complete build-out of the interior. Working with project partners Denver-based Marasco & Associates and Atlanta-based Wakefield Beasley Associates, construction is scheduled to begin next month and will be completed by November 2013.

In addition to the Atlanta office relocation, Thomas Eye Group’s existing Roswell Clinic will add nearly 3,000 square feet of space with a complete renovation of the interior allowing for a third eye care provider.

Good things may also be in store for the 376,351-square-foot Cobalt Center office development on Windward Parkway, currently competing for a company that would relocate its nearly 400,000-square-foot operations to metro Atlanta. While the name of the potential tenant has not yet been disclosed, the Atlanta location will be competing with others in Illinois, Ohio, North Carolina and Texas for the deal.

Image courtesy of Thomas Eye Group

Lincoln Property Co. Tapped to Lease 332 K SF Metro Atlanta Portfolio

By Georgiana Mihaila, Associate Editor

OA Development—an Atlanta-based company that specializes in the acquisition, development, management and brokering of commercial properties—has awarded leasing assignments for an additional 332,000 square feet of space to Lincoln Property Company Southeast.

The assignments include the three-building Peachtree Corners Technology Center, in Norcross, Ga., which features 162,000 square feet of office/flex space; and the six-building Royal Phoenix Business Park in College Park, Ga., which features 160,000 square feet of office/flex space. OA Development owns and manages the properties.

Following these new assignments, Lincoln Property Company Southeast is now leasing a total of 770,000 square feet of properties in metro Atlanta for OA Development. Lincoln  has hired Jeff Henson, previously with Resource Real Estate Partners, to join Hunter Henritze and Michael Howell, both vice presidents of office leasing for Lincoln.

“We are pleased that OA Development has chosen to expand our relationship and it has given us an opportunity to grow our team in an effort to provide expanded leasing coverage,” said Tony Bartlett, senior vice president of Lincoln. “The addition of Jeff Henson will make this strong team even stronger. Jeff is an aggressive, hard-working self-starter who will be a powerful addition to the Howell-Henritze team.”

The metro Atlanta office market is showing clear signs of improvement, gaining more than 1.1 million square feet of new tenancy during calendar year 2012, a level not achieved since 2007. According to CBRE, the occupancy gains follow four consecutive years of overall negative or negligible absorption, and helped to drive overall vacancy down to 22.3 percent.

Chart courtesy of CBRE

Transwestern to Lease Platinum Tower; Parmenter Scores Two TOBY Awards

By Georgiana Mihaila, Associate Editor

Platinum Tower

Beacon Investment Properties has recently named Transwestern’s Atlanta office as the exclusive leasing agent for its 312,500-square-foot Platinum Tower. This new leasing project is a significant addition to Transwestern’s leasing and property management portfolio, totaling more than 32 million square feet of commercial properties managed out of the Atlanta office.

Owner Beacon Investment Properties  purchased the property last month from CBRE Global Investors Strategic Partners fund in a $48 million deal.

Located at 400 Interstate North Parkway in metro Atlanta’s Cumberland/Galleria submarket, the 17-story building is both LEED certified and ENERGY STAR labeled. Platinum Tower’s exterior features alternating bands of granite and black reflective glass and is accented by stainless steel trim. An attached glass-clad parking structure provides 1,280 parking spaces that are directly accessible to both the lobby and the first four floors.

Currently 94.4 percent occupied, the building has 25,000 square feet of available space. Greg Frankum, Transwestern’s director of agency leasing, along with Matt Spickard and Emily Dickerson will be handling the leasing efforts.

“Beyond its core location and diverse amenities, Platinum Tower leads its class in terms of operational excellence and sustainability,” said Frankum. “Historically, the property has performed very well, maintaining above average occupancy rates by attracting a diverse tenant base including regional headquarters and local branches for firms in the financial, real estate and manufacturing sectors.”

Buckhead Tower at Lenox Square

In other commercial real estate news, Parmenter Realty Partners has earned three BOMA Georgia distinctions, with two of its buildings winning The Outstanding Building of the Year (TOBY) Awards, and Christina Pearson being named 2013 Property Manager of the Year.

The two winning buildings were Buckhead Tower at Lenox Square—a Class A, 348,152-square-foot office building that won the local TOBY in the 250,000-499,999-square-foot category—and 160 Clairemont, a 121,686 SF Class A office building, winner in the Renovated Building category. With these two wins, Miami-based Parmenter Realty Partners now has a total of 45 TOBY Awards.

Images courtesy of CBRE Global Investors and  Parmenter Realty

Construction Underway at @1377, Hines’ First Atlanta Apartment Project

By Georgiana Mihaila, Associate Editor

A new luxury apartment complex currently underway in Brookhaven, developed by international real estate firm Hines’s Multifamily Division, will add 215 units to the desirable neighborhood.

Dubbed @1377, the multifamily community will take shape on Dresden Drive, only a short walk from some of Atlanta’s best home-grown restaurants and bars, as well as the Brookhaven MARTA station on Peachtree Road. Designed by The Preston Partnership of Atlanta, @1377′s architecture evokes a transitional style with buildings clad in brick, with stucco accents, large windows, wrap-around corner balconies and ground-level unit entry stoops at the sidewalk.

The development will include 215 luxury urban-style residences in a four-story building with an attached multi-level parking garage. The project will include studios, one- and two-bedroom units ranging in size from 468 to 1,537 square feet. The developer promises high-quality finishes that include stained-wood cabinetry and ceramic tile surrounds, as well as 9′ ceilings throughout the project, with top-floor “penthouse” units having 10′ ceilings, 8′ doors and 42″ cabinetry.

The @1377 project represents the international developer’s entry into the Atlanta residential market. Hines’ multifamily division, formed in January 2011, currently has more than 5,000 units in projects in various stages of development, located in several U.S. cities including: Cambridge, MA; Chicago; Denver; Houston; Miami; Minneapolis; Pasadena, CA; Phoenix; Rockville, MD; and St. Petersburg, FL. Just last month Hines broke ground on another luxury multifamily complex, the 308-unit Azure Residences in St. Petersburg, Florida.

Alan Patton, senior managing director in charge of the firm’s Multifamily Division, said, “Hines’ multifamily platform is focused on delivering high-quality for-rent residential projects in all of our domestic markets. We are committed to delivering a superior product with our @1377 project and are excited about its one-of-a-kind location within Atlanta’s well-known Brookhaven submarket.”

Urban Oaks Builders will serve as general contractor for the project. The company expects to see the first residents move in by October 2013, with final completion set for December 2013.

Image Courtesy of Hines

Duke Realty Closes Multiple Industrial Leases in Northeast Atlanta

By Georgiana Mihaila, Associate Editor

In what seems to be a thriving week for Duke Realty’s Atlanta office, four companies have signed leases totaling 365,180 square feet at business parks in the northeast submarket of Atlanta.

Birmingham, Ala.-based Pinnacle Data Systems—provider of business critical documents for Fortune 500 companies—will move from its current space in the Gwinnett Park business complex into 72,274 square feet at Duke Realty’s Horizon Business Center, a 3.4-million-square-foot, Class-A industrial park located off I-85 in Suwannee, Ga. Significant tenant improvements will be made to accommodate the company, including work on air conditioning, printing and power needs.

Sprinkler systems and fire protection services provider Century Fire will be consolidating its Atlanta operations by moving from its corporate headquarters at Duke Realty’s Pinebrook business park and from another office location in Duluth into a single facility. The company has chosen a stand-alone 68,400-square-foot warehouse and distribution building located at 2450 Meadowbrook Parkway in Duluth. The move will increase Century Fire Protection’s footprint in Georgia by 40,000 square feet. The company plans to move into the Meadowbrook building in first-quarter 2013.

Video communication company AVI-SPL signed a lease for 18,806 square feet of space at 3079 Premiere Parkway, bringing the building’s occupancy to 100 percent. 3079 Premiere Parkway is a 101,600-square-foot building at the Business Park at Sugarloaf in Duluth.

Anixter Inc., a Chicago-based provider of communication products, has renewed its 205,700-square-foot lease at 250 Horizon Drive, a 267,600-square-foot distribution building in Horizon Business Center which it shares with only one other tenant, Best Buy.

“Duke Realty is pleased to accommodate the business needs of these four successful businesses,” said Chris Brown, Senior Vice President, Georgia Operations in Duke Realty’s Atlanta office. “Anixter and Century Fire Protection have been valued tenants for many years, and we’re glad to retain both companies. We also welcome Pinnacle Data Systems and AVI-SPL Holdings to our portfolio and look forward to providing them with flexible, high-quality space to accommodate their continued growth.”

Image: 3079 Premiere Parkway via DukeRealty.com

NAP Breaks Ground on $600M Avalon Mixed-Use Development in Alpharetta

By Georgiana Mihaila, Associate Editor

Nine months after the ambitious Avalon mixed-use development finally got the approval of the Alpharetta City Council, developer North American Properties is now one step closer to deliver what it fondly calls “the Southeast’s preeminent experiential development.”

Celebrating the groundbreaking of the 86-acre, resort-inspired Avalon development on January 28, NAP Managing Partner Mark Toro said, “Today is the culmination of a lot of hard work and countless wins during the past six months.” He added, “We are excited to share all our progress today and to start demolition and construction. I know the residents of Alpharetta are as eager as we are to begin moving dirt. The wait is over.”

Located in the heart of Alpharetta, the Avalon mixed-use development is being marketed as a place where specialty retail, entertainment, restaurant, residential, office, hotel and public spaces come together to create a unique destination. Designed with sustainability in mind, the 86-acre development will consist of 500,000 square feet of retail, a 14-screen theater, four-star boutique hotel, Class A office, single-family residences and luxury rental homes.

Avalon is now 50 percent leased with another 30 percent in negotiations. The leasing team has recent commitments from Pinkberry, Dry Bar, C. Wonder, lululemon, Luxury Nail Spa, Kona Grill, Mitchell Gold + Bob Williams, L’Occitane, Fly Wheel, Savor Boulanger (a new concept from restaurateur Chris Sedgwick), Destination Maternity, Gap and White House Black Market. These brands join already announced tenants including Regal Cinemas, Whole Foods, Anthropologie, Marlow’s Tavern, Orvis, Ted’s Montana Grill, Fab’rik, Athleta, Arhaus, Paper Source, Banana Republic, Cru Wine Bar, a concept from chef Ford Fry, Yeah! Burger, Van Michael Salon and Marmi Shoes.

Construction, development and leasing partners list Wakefield Beasley as the principal architect and Site Solutions as the landscape architect. Hoar Construction has been named the project’s general contractor while Greenstone Properties has been engaged to lease the professional office lofts. NAP has also signed an agreement with Monte Hewett Homes to build 101 luxury homes and townhomes in a community designed by Lew Oliver Inc.

Image courtesy of North American Properties

Palisades Office Park’s Green Efforts Rewarded with LEED Gold Certification

By Georgiana Mihaila, Associate Editor

Palisades Office Park, Shorenstein Properties’ Class A complex located in Atlanta’s dynamic Central Perimeter, recently received LEED certification at the Gold level, Existing Building Operations and Maintenance (EBOM).

LEED for Existing Buildings: Operations & Maintenance addresses energy efficiency, whole-building cleaning and maintenance issues (including chemical use), recycling programs, exterior maintenance programs, and systems upgrades.

Palisades Office Park’s sustainability program includes: a parking deck retrofit using 32-watt spring lamps instead of 175-watt HID, and the addition of photo cells to control outer row lights during daylight hours; a water heater retrofit resulting in a 50 percent reduction in electricity use; conversion of lobby lights and all outside lighting to LED; use of lake water for irrigation; electronic monitoring of all cooling tower water usage; motion sensors in offices to control lighting; low flow fixtures in restrooms; new waste management practices resulting in a 58 percent diversion rate; and a program to recycle batteries, computers, and other electronic equipment for tenants and management.

Palisades is a four-building complex comprising approximately 640,000 rentable square feet. The property consists of three interconnected mid-rise buildings (five to six stories each) and one 11-story building. The property wraps around a four-acre lake, while amenities include a conference facility, fitness center, two-hole putting green and a café.  The buildings carry an ENERGY STAR rating of 84.

The office park is now the 23^rd Shorenstein-owned or managed property to achieve LEED certification at the Silver level or higher. Nineteen properties currently owned by the company are LEED certified, 15 of which are at the Gold level. The company is reportedly currently in the formal process of pursuing LEED certification for four additional properties.

Image via http://palisadesofficepark.info

Undisclosed Buyer Pays $293M for Metro Atlanta’s Largest Hotel

Atlanta Marriott Marquis

By Georgiana Mihaila, Associate Editor

The 1,663-room Atlanta Marriott Marquis recently traded owners, but no investor has yet claimed responsibility for the $293 million acquisition. Seller Host Hotels & Resorts announced that the sale went through on January 11, but has been reluctant to provide extra information.

The $293 price tag is considerably smaller than the approximately $400 million estimated when the property hit the market, in June 2012. The hotel had only traded once before, when Host Hotels & Resorts purchased it for $229.5 million in January 1998.

According to the Atlanta Business Chronicle, Robert Webster and Tim Southard of Jones Lang LaSalle’s Hotels & Hospitality Group brokered the deal on behalf of Host Hotels.

In an official release, the Maryland-based company said it will use the proceeds to fund future acquisitions, pay down debt or for general company purposes.

“I am excited to report our continued success in executing our asset sale strategy.  In the past 12 months, we have sold four hotels for approximately $450 million.  This sale meaningfully reduces our overall market presence in Atlanta, which now represents approximately 3 percent of our total revenues,” said Gregory J. Larson, executive vice president, corporate strategy, Host Hotels & Resorts.

The 1,663-unit Atlanta Marriott Marquis, metro Atlanta’s largest hotel, has been around since 1985. It holds 1,569 rooms, 94 suites, 61 meeting rooms and more than 28,000 square feet of exhibit space. Host Hotels & Resorts paid approximately $140 million for an extensive renovation of the Marquis in the summer of 2008.

Atlanta Marriott Marquis atrium

The John Portman-designed building is the 14^th tallest skyscraper in the city, rising 52 stories (554 ft.). The Marriott Marquis’ defining feature is its large atrium—spanning over the entire height of the building and consisting of two vertical chambers divided by elevator shafts and bridges; it held the record of largest atrium in the world for many years, a record broken by Burj Al-Arab in Dubai. The hotel has also served as location for filming scene parts of the recent Denzel Washington movie, “Flight,” and the upcoming “Hunger Games” sequel, “Catching Fire,” according to The Atlanta Journal-Constitution. The hotel is subject to a long-term management agreement with Marriott International, Inc.

Images via Marriott Official Website

Retrofitted Kennesaw Facility to Serve as Novelis’ New Global R&D Center

By Georgiana Mihaila, Associate Editor

Rolled aluminum and aluminum are two key materials for recycling giant Novelis and its new 160,000-square-foot Global Research & Technology Center in Kennesaw.

The facility, located just 25 miles from the company’s corporate headquarters in Atlanta, previously served as office and warehouse space for a chemical manufacturer. Novelis hired architecture firm Lord, Aeck & Sargent (LAS) to retrofit the office space, design a new public entry, and build out the empty warehouse space.

The building’s public entrance, formerly pedimented precast concrete and glass, has been completely reimagined and now features a 38-foot-long cantilevered aluminum-clad steel and glass canopy and updated landscaping that reaches out to welcome visitors. The design incorporates a dramatic structure and a playful use of scuppers and rain chains that direct water into the new planted areas that frame the arrival sequence. The exterior entry area also features a large aluminum ingot cast into the sidewalk.

“Novelis asked us to design a facility that emphasized cohesiveness with the company’s corporate headquarters in Atlanta, so we created a modern, open, light-filled work environment with similar finishes, and we took the design a step beyond,” said Barry Abrams, a senior associate with LAS. “We created numerous ways to incorporate the company’s aluminum into the design.”

The building is one story with a mechanical mezzanine in the high-bay area to optimize the use of space. The warehouse build-out made way for a variety of materials development and testing laboratories, along with a 30-foot-tall high-bay space housing a 16,000-square-foot pilot beverage can production line, an industrial lab with two overhead cranes, and storage space. Approximately 35,000 square feet remains for future expansion, with plans for a small scale aluminum rolling mill and heat treatment capabilities for finishing automotive aluminum sheet.

DPR served as construction manager for the facility, AHA Consulting Engineers as MEP/FP engineer, while idea|span assisted Lord, Aeck & Sargent on interior design work.

Crescent Ready to Kick-Start $67M Luxury Development in Buckhead

By Georgiana Mihaila, Associate Editor

Following the purchase of a three-acre site within Cousins Properties’ Terminus development, Crescent Resources, LLC is now set to begin construction on the $67 million Circle Terminus community.

“This site has all the ingredients for a very successful luxury apartment community,” said Ben Collins, regional director for Crescent Resources. “Its location in the heart of Buckhead is ideal. And, with its existing world-class office space, luxury condominiums, outstanding public art, five-star dining and street level retail, Circle Terminus will offer a unique lifestyle that allows residents an opportunity to work, play and live all within easy walking distances.”

Crescent and Cousins have been working together for more than a year planning for the newest addition to Terminus. According to a press statement, Circle Terminus is being financed by an equity investment from Crescent Resources and the construction lender is JPMorgan Chase & Co.

The 355-unit Circle Terminus will consist of three eight-story buildings, with the first three of parking topped by five stories of apartment homes. The completion date for the first units has been set for spring 2014.

Amenities will include a salt-water resort-style pool, roof-top terraces with dramatic skyline views, a wine bar and tavern, an extensive fitness center, a dog walk park, an art gallery and a business center. The apartments will feature granite countertops, stainless steel appliances, faux hardwood flooring and a custom lighting package.

Circle Terminus is designed to meet LEED requirements from the U.S. Green Building Council. Lord Aeck & Sargent of Atlanta is the project architect, while Southern Civil Engineers of Atlanta serves as the civil engineer. LandDesign of Charlotte is the land planner and landscape architect and Hardin Construction of Atlanta has been named the general contractor. Greystar will serve as the property manager.

Taking its inspiration from the existing contemporary buildings in the development, Circle Terminus will complement the existing Terminus 100 and Terminus 200.

Image courtesy of Cousins Properties

CNL Affiliates Seek to Invest in Metro Atlanta Senior Housing

By Georgiana Mihaila,Associate Editor

Two different branches of CNL Financial Group have shown interest in senior housing development in the Atlanta metro area.

CNL Healthcare Trust will invest $21 million in the development of Dogwood Forest of Acworth, a senior housing community planned for Acworth, Ga., about 30 miles northwest of Atlanta. Solomon Senior Living Holdings, LLC has been selected as developer, while Solomon’s affiliated management company—Trinity Lifestyles Management—will manage the community under a long-term agreement with CNL Healthcare Trust.

Dogwood Forest of Acworth, CNL Healthcare’s second senior housing development project, will be a three-story building totaling nearly 85,000 square feet. The 92-unit community will contain 46 assisted living units and 46 memory care units.

Twenty-two of the 46 memory care units will be designated for residents in the earlier stages of Alzheimer’s disease, with the remaining 24 units serving residents requiring specialized memory care. The senior housing community will feature a bistro, barber/salon and media room, along with a dining room, common area living room and sitting areas located throughout the facility.

CNL Lifestyle Properties has also added an Atlanta-area senior housing community to its portfolio, as the REIT has acquired Laurel Creek Manor in Cumming, Ga. for $7.5 million. This property will also be added to the Dogwood Forest family of four senior living properties acquired by CNL Lifestyle Properties in the Atlanta area in May and will be renamed Dogwood Forest of Cumming.

Laurel Creek Manor is a “needs-based” community with a total of 48 units, including 36 assisted living units and 12 memory care units. As of Oct. 31, the community was 100 percent occupied. Opened in 2009, the senior housing community is approximately 35 miles northeast of downtown Atlanta.

The community will also be managed by Trinity Lifestyles Management, which manages four other senior living facilities owned by CNL Lifestyle Properties in the Atlanta area. In May, the company purchased these communities, which are located in Alpharetta, Ga., Stockbridge, Ga., Fayetteville, Ga., and Gainesville, Ga., for $79.8 million.

Image: Laurel Creek Manor

Dual-Branded Hilton Opens in Midtown; Imperial Hotel Renovation Eyes LEED Gold Certification

By Georgiana Mihaila, Associate Editor

Midtown Atlanta is now home to Georgia’s first dual-branded hotel, as Hilton Worldwide recently celebrated the opening of its newest hotel, Hilton Garden Inn and Homewood Suites by Hilton.

The 12-story property is located at 97 10^th Street, within a two-mile radius of a number of multi-national businesses such as Coca Cola and Turner Broadcasting. Owned and managed by North Point Hospitality Group, Inc., the hotel boasts 136 Hilton Garden Inn rooms and suites, and 92 Homewood studio and one-bedroom suites. The hotel splits its lobby between the brands offering two separate check-in desks and lodging/dining areas—each catering to the needs of their respective customers. Communal areas include meeting rooms, business center, pool, and fitness center. It also features five meeting rooms offering more than 3,500 square feet of flexible space and an on-site guest laundry facility.

“We are excited to once again partner with Hilton Worldwide on the first dual branded hotel in Georgia,” said S. Jay Patel, president and CEO of North Point Hospitality Group, Inc. “We look forward to being part of the dynamic Atlanta Midtown market with the opening of these two industry leading brands.”

As the new Hilton Garden Inn and Homewood Suites by Hilton claims ground, the historic Imperial Hotel heads for renovation. Columbia Residential and National Church Residences have recently closed on construction and permanent financing for the 102-year-old downtown hotel, enabling renovation and construction work on the property.

With a completion date set for late 2013, the Imperial Hotel will re-open as a permanent housing facility serving low- to moderate-income residents exiting homelessness and others with special needs. Consisting of 90 fully renovated units, the building is expected to achieve LEED Gold certification. The renovation project includes improved floor plan configuration, fully updated leasing and management offices, resident amenities and onsite security.

Historic renovation will follow guidelines of the City of Atlanta Landmarks Commission as well as the National Parks Service.

Image: Hilton Garden Inn® and Homewood Suites by Hilton via skyscrapercity.com