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

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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.

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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