Parkway Announces Shopping Spree, Eyes Atlanta’s Tower Place 200

By Georgiana Mihaila, Associate Editor

Parkway Properties, Inc. will soon own three towers clustered together at Peachtree and Tower Place, as the company has announced entering into a purchase and sale agreement to buy the Tower Place 200 office building for $56 million.

The company already owns the 50-story 3344 Peachtree building—which shares a parking garage with Tower Place 200—and the neighboring One Capital City Plaza.

The 13-story, Class A Tower Place 200 was built in 1998; its prime Buckhead location provides direct access to Georgia 400 and is within walking distance to Buckhead MARTA station. Currently 81 percent leased, with an average in place gross rent per square foot of $26.37, the tower is expected to generate a 2013 estimated cash net operating income yield of approximately 5.9 percent. According to an official company statement, Parkway will own 100 percent of the asset and does not plan to place secured financing on the property at this time. The $56 million price tag equates to $216 per square foot.

After recently closing on the purchase of Westshore Corporate Center—a 170,000-square-foot office tower located in the Westshore submarket of Tampa, Florida—for $22.5 million, Parkway Properties plans on paying $124.5 million for the LEED Gold-certified Phoenix Tower in Houston, Texas, and $47.4 million for the 406,000-square-foot 525 North Tryon office tower located in the central business district of Charlotte, North Carolina.  Parkway estimates that the acquisitions of Tower Place 200, Phoenix Tower and 525 North Tryon will close by the end of the fourth quarter of 2012.

Referring to Parkway’s recent shopping spree, James R. Heistand, Parkway’s president and chief executive officer, stated that “These three acquisition opportunities fit well within our investment strategy of acquiring high-quality assets in our targeted submarkets.  We believe these three investments continue our portfolio transformation, as we strive to become the leading operator of office properties in our Sunbelt markets.”

Image via Livable Atlanta

ADT Moves to Camp Creek Business Center; Brennan Investment Group Buys Ball Ground Industrial Facility

By Georgiana Mihaila, Associate Editor 

ADT Security Services—a provider of electronic security and monitoring systems—will soon move into Duke Realty’s 17-building Camp Creek Business Center located in the Atlanta Airport submarket. ADT recently signed a lease for 58,080 square feet that it plans on occupying in the first quarter of 2013.

Camp Creek Business Center is a 2.8 million-square-foot business park located in East Point, three miles west of Hartsfield-Jackson International Airport; the 454-acre site includes 17 buildings, one of which is the 212,940-square-foot, Class-A warehouse/distribution building at 4800 North Commerce Drive that will serve as both office and distribution center for ADT.

ADT’s space will feature 6,700 square feet of office space as well as 51,380 square feet of warehouse and distribution space, where the company will install material handling systems for parts used in its security products. ADT’s decision to occupy space at Camp Creek Business Center follows the company’s announcement in October that it had completed its spin-off from Tyco International to launch an independent public company.

“We’re pleased to provide ADT flexible, Class-A space to accommodate the company’s ongoing business growth,” said Chris Brown, senior vice president, Georgia Operations in Duke Realty’s Atlanta office. “Attracting another quality tenant such as ADT further validates Camp Creek Business Center as a corporate distribution and office environment and brings 4800 North Commerce Drive building to 100 percent occupancy.”

Brennan Investment Group, LLC is also showing interest in the Atlanta industrial market; the private real estate investment firm recently acquired a 364,000 square-foot, Class A industrial facility in Ball Ground, Ga., part of Atlanta’s Northwest Industrial submarket. The property, located at 1000 Evenflo Drive, is 100 percent leased to SMB Machinery Systems and Meyn America. The building also serves as the North American headquarters of Meyn—a global leader in the poultry processing solutions business, recently acquired by CTB, Inc., a wholly owned subsidiary of Berkshire Hathaway.

The company attributed the purchase to the belief that Atlanta remains an important industrial market, with over 605 million square feet, demonstrating its role as the transportation hub of the Southeastern United States.

Kevin Markwordt of Transwestern in Atlanta represented the seller in the transaction. No financial details have been disclosed.

 Image of 4800 North Commerce Drive courtesy of Duke Realty

National Retailer Opens 220,000-Sq. Ft. Store at Atlanta’s Perimeter Mall

By Georgiana Mihaila, Associate Editor

Von Maur Department Store opened its second Georgia store and one of the company’s largest national locations at Atlanta’s Perimeter Mall on November 10.

The 140-year-old retailer celebrated the grand opening with live music, children’s entertainment and in-store giveaways, including two $1,000 shopping sprees, as well as guest appearances by Miss USA Oliva Culpo on behalf of Chinese Laundry Shoes and fashion industry veteran Daniel Dolce, founder of men’s fashion label Daniel Dolce Italy.

Located at the mall’s former Bloomingdale’s location, the new store went through a complete renovation in order to feature Von Maur’s exterior brick façade and signature residential ambiance. Partnering with 50 local subcontractors, Von Maur created approximately 165 jobs over the course of the renovation.

Known for its broad selection of brand name and specialty apparel, shoes, accessories and gifts, the new store features products from leading brands such as Eileen Fisher, Free People, Coach, Joe’s Jeans and Tommy Bahama, among many others. Anchoring the mall’s Northwest wing, the three-level Von Maur store features antiques, original artwork, open-floor plan and music from the store’s grand piano, and is expected to employ 275 to 325 associates—the majority of which will be full-time.

“We’re excited to open our newest location in Georgia at Perimeter Mall and are thrilled with the reception we’ve received since we broke into the market last year,” said Jim von Maur, president of Von Maur. “It is clear that shoppers in Atlanta have a deep desire for the quality, style, selection and service specifically offered by Von Maur, and we look forward to continuing to provide them with a unique experience every time they step foot in our stores.”

Von Maur’s first Georgia location—at North Point Mall in Alpharetta—opened one year ago, in November 2011; along with the Perimeter Mall location, the company now operates 27 stores in 11 states.

Image courtesy of Von Maur

Admiral Fund Joins Wood Partners in Buckhead Multifamily Deal

By Georgiana Mihaila, Associate Editor

A newly formed joint venture between San Antonio-based Admiral Capital Real Estate and Wood Partners of Atlanta recently acquired 209 apartments within The Brookhaven high-rise in Buckhead.  

The property, a broken condominium project built in 1985, is located on the northern perimeter of Atlanta’s prestigious Buckhead neighborhood at 3833 Peachtree Road—less than two blocks from Buckhead’s center, and three blocks from a MARTA rapid transit station.

While The Brookhaven underwent renovation work in 2008, when its interiors were modernized to feature hardwood floors, custom cabinetry and enclosed sunrooms, the new owners have disclosed plans of further improvements on the property; the Wood Partners acquisition team plans to enhance the 17-story building common areas with expanded parking, a state-of-the-art fitness center and a resort-style amenity deck with a water feature, outdoor bar and bocce ball court. This will complement the existing amenities package which includes a heated pool, men’s and women’s saunas and a lighted tennis court.

The Brookhaven acquisition represents Admiral Capital Real Estate Fund’s second Atlanta investment, following the September acquisition of a 160,000-square-foot Class A office property in the Central Perimeter submarket in partnership with SDM Partners. This is also the fund’s first investment in the multifamily sector.

“We are very excited to make our second Admiral investment in Atlanta and our first in the multifamily sector,” Admiral Capital Group founder David Robinson said. “This is consistent with our overall fund approach to identify assets that need capital and repositioning and partner with best-in-class operators like Wood Partners to execute that strategy.”

The broker on the acquisition was Jones Lang LaSalle’s Capital Markets, a full-service global provider of capital solutions for real estate investors and occupiers, led by Managing Directors David Gutting and Derrick Bloom.

Image via The Brookhaven brochure, courtesy of Jones Lang LaSalle

Paces Cumberland Trades Hands, Awaits Renovation

By Georgiana Mihaila, Associate Editor

Locally based real estate investment firm Atlanta Property Group has added yet another property to its portfolio by closing on the acquisition of Paces Cumberland—an office building located in the Vinings section of the Cumberland/Galleria submarket.

Following this recent transaction, Atlanta Property Group has now acquired six properties since mid-2010 totaling nearly 900,000 square feet. Huston Green, Dennis Mitchell, and Hayes Swann of Colliers International represented the seller. Terms of the transaction were not disclosed.

At Paces Cumberland, Atlanta Property Group plans to invest more than $300,000 into common area renovations to increase the aesthetic appeal of the building during its first year of ownership. Additionally, APG will invest more than $450,000 on systems upgrades.

“Paces Cumberland fits perfectly into Atlanta Property Group’s portfolio,” said Jonathan Rodbell, a partner at Atlanta Property Group. “We were able to acquire it at an attractive price, it’s very well located and its existing floor plans function well for cost-conscious small business owners and entrepreneurs in the area.”

The four-story, 70,000-square-foot Paces Cumberland is located at 2675 Paces Ferry Road near its intersection with I-285, benefitting from ease of access to I-75; the location also places the property within close distance to both Buckhead and Midtown. Built in 1981, Paces Cumberland is currently 53 percent leased with 13 tenants.

This acquisition of Paces Cumberland puts Atlanta Property Group’s total portfolio at 2.2 million square feet in 14 properties. The other five Atlanta Property Group has acquired in the past two years are the 280 Interstate North in the Cumberland/Galleria submarket; 1200 Ashwood and The Park at Perimeter Center East in the Central Perimeter submarket; as well as 2801 Buford Highway and 1190 West Druid Hills, both in the Druid Chase office park.

Image courtesy of Wilbert News Strategies

CoStar Moves to Buckhead; Highwoods Signs Two New Tenants at 2800 Century Center

By Georgiana Mihaila, Associate Editor

CoStar Group, Inc. will soon be headed to Buckhead, as the commercial real estate services provider recently signed a lease for 26,800 square feet at Phipps Tower.

Cassidy Turley’s Senior Managing Director Kirk Diamond, Managing Director Bradley Fulkerson and Associate April Hawkinson represented CoStar in the 11-year lease of a full floor at Phipps Tower, located at 3438 Peachtree Road in Atlanta’s premier Buckhead market.

CoStar’s criteria for space included convenient access, prominent signage and proximity to amenities. With the help of Diamond, Fulkerson and Hawkinson, CoStar was able to secure all three criteria including a coveted spot on Phipps Tower’s new digital LED sign.

Highwoods Properties, Inc. has also managed to find two new tenants for its 221,000-square-foot 2800 Century Center. The company has signed two long-term leases totaling 26,000 square feet with two customers; these transactions include a 16,000 square foot lease with a healthcare company and a 10,000 square foot lease with an accounting/financial services-oriented professional firm.

Ed Fritsch, president and CEO of Highwoods, stated, “We are pleased with the continued leasing activity at 2800 Century Center. In less than a year, we have backfilled almost half of this property and we have solid prospects for a substantial portion of the remaining space. Our leasing efforts have been strengthened by $3 million of recently completed aesthetic improvements, and we continue to leverage the property’s excellent central location inside the I-285 perimeter and its visibility from I-85.”

The 2800 Century Center is now 42 percent leased, and is headed toward a slow recovery after telecom giant AT&T—which leased the entire building—vacated the property in April 2011.

Image: Phipps Tower via Wilbert News Strategies

Greystar and PREI Break Ground on Westside Luxury Community

By Georgiana Mihaila, Associate Editor

Greystar and Prudential Real Estate Investors recently celebrated the groundbreaking of their newest Atlanta luxury apartment community, soon to rise in the exclusive Westside Provisions District. The groundbreaking ceremony was held October 9 at the White Provision Event Space.

The new community will be called Elan Westside and will offer 197 luxury loft-style apartment homes; interiors will have “industrial chic” finishes including polished concrete floors, sleek cabinetry, granite countertops and brushed nickel plumbing fixtures. Community amenities will include a resort-style pool, outdoor kitchen area, fire pits, fitness center and club room. The apartment community will also incorporate sustainable design elements in accordance with the National Green Building standard.

The mixed-use development will also include approximately 11,000 square feet of retail space, which will be developed and managed by Westbridge Partners. The design and ambiance will be consistent with White Provision. Early plans call for a restaurant and boutique retail space, and a completion date has been set for late summer 2013.

The Westside Provisions District is the premier shopping and fine dining destination in west Midtown Atlanta. It is home to White Provision and Westside Urban Market, which includes a mix of Class A office, luxury residential and some of the finest boutique retailers and restaurants in the country. Greystar is working closely with White Provision’s developer, Westbridge Partners, to create a unique living experience at Elan Westside. The community will feature loft-style apartment homes with studio, one-, and two-bedroom floor plans.

“We are pleased to partner with PREI on this project,” said Todd Wigfield, managing director of development for Greystar. “Elan Westside will offer residents the exclusive lifestyle that can only be found at the Westside Provisions District.”

Images via Elan Westside Facebook

High-Profile Acquisitions Worth Over $400M Spice Up the Atlanta Office Market

By Georgiana Mihaila, Associate Editor

In what seems to be a thriving week for Atlanta’s commercial real estate market, two major transactions brought new owners to both the Concourse Corporate Center—home to the “King and Queen” buildings—and Buckhead’s Prominence building. The seller of both properties is TIAA-CREF, a national financial services organization with $481 billion in combined assets under management, in partnership with Equity Office Partners.

Atlanta-based Regent Partners LLC has reportedly paid more than $300 million for the Concourse, widely regarded as the premier office and mixed-use environment in the Central Perimeter submarket. For the acquisition, Regent Partners partnered with affiliates of GEM Realty Capital and Equity Group Investments.

The 2.1-million-square-foot Concourse Corporate Center, located at the intersection of I-285 and GA 400, consists of two iconic high-rise office towers, three mid-rise office buildings, a Westin Hotel, the Concourse Athletic Club and the KinderCare Child Learning Center. Currently 83 percent occupied, the new ownership is confident that vacancy will decrease along with MARTA access and the upgrades brought to the Hammond Half-Diamond Interchange.

Owners TIAA-CREF and Equity Office Partners placed the property on the market earlier this year, grabbing Regent Partners’ attention in early July, when the company first announced its intent of buying the Concourse Corporate Center. CBRE Inc. brokered the sale.

Another notable purchase was closed by Boca Raton, Fl.-based Crocker Partners as the company has added the Class A Prominence office tower in Atlanta’s Buckhead submarket to its growing portfolio. The private real estate investment company acquired the 18-story, 432,000-square-foot Prominence building and an adjacent 6.4-acre land parcel for $105 million.

Conveniently located along the Buckhead shuttle route at 3475 Piedmont Road, the 18-story ENERGY STAR building is the only building in Buckhead with 12 acres of green space. Cushman & Wakefield represented sellers TIAA-CREF and Equity Office.

For Crocker Partners, the Prominence purchase was the latest in a series of acquisitions totaling approximately $700 million and 3.1 million square feet in the past 20 months. As part of a strategy of pursuing additional Class A office properties and targeting growth markets in the Southeast and Southwest, Crocker Partners was also the buyer in one of Miami’s largest office building transactions since 2008—the purchase of Miami Center for 262.5 million, which took place in June.

Image: Concourse Corporate Center via http://www.concourseofficepark.com/

NAP Breaks Ground on 276-Unit Gen Y Community in Historic Fourth Ward

By Georgiana Mihaila, Associate Editor

October 3 marked the official groundbreaking for Atlanta’s newest luxury multifamily project—North American Properties’ $35 million BOHO development.

BOHO—a 276-unit multi-rise that will front Atlanta’s Historic Fourth Ward Park—illustrates North American Properties’ new multifamily strategy of creating communities in walkable, urban neighborhoods destined to appeal to the unique needs and wants of Gen Y.

NAP is focusing its efforts on walkable locations that have a “cool factor” because sites are within walking distance of good restaurants, parks, coffee shops and other amenities. NAP is committed to designing and operating multifamily projects that provide a special experience for residents, who will take part in outdoor yoga, concerts and movies on the lawn and a number of other planned activities. NAP’s multifamily teams are borrowing from its retail operations, creating an experience similar to the one provided at Town Center at Atlantic Station and planned for Avalon, a $600 million mixed-use development underway in Alpharetta.

Located steps away from Atlanta Beltline’s Eastside Trail and a short walk from the future Ponce City Market mixed-use development, BOHO has a Walk Score of 82—a number that measures the walkability of an address, giving it a score of “very walkable.” BOHO will be set to welcome its first residents in fall 2013.

“This is one of the best apartment sites in the city of Atlanta,” said Richard Munger, vice president of development at NAP, who oversees the multifamily platform in the Southeast. “It is exciting to now see BOHO—and the overall strategy—come out of the ground.”

North American Properties, a privately held, multi-regional real estate company, has developed more than 13,000 units. NAP recently completed projects in Austin and Cincinnati and has more than 3,000 units in the pipeline in Dallas, Nashville, Atlanta, Alpharetta, Ga. and Tallahassee, Fla.

Images Courtesy of BOHO Twitter

Highwoods Buys Trophy Buckhead Office Tower in $147M Deal

By Georgiana Mihaila, Associate Editor

Following a $146.7 deal, Highwoods Properties is now the owner of Atlanta’s iconic Two Alliance Center office building.

The price was determined by deducting $6.4 million of closing credits received from the seller, consisting of $5.3 million for free rent and $1.1 million for committed future tenant improvements under certain existing leases, from the $152.3 million ($310 per square foot) gross price stated in the contract. The acquisition was funded with proceeds from its ATM programs, borrowings under its revolving credit facility and available cash.

Ed Fritsch, president and chief executive officer of Highwoods, stated, “This investment garners us one of the best Class A office buildings in the southeast, a new building with a well-diversified rent roll that we acquired at a 10 percent discount to replacement cost. The building has an average remaining lease term of 10 years and no lease expirations until 2017, when less than 24,000 square feet is scheduled to expire.”

The 29-story, class A Two Alliance Center encompasses 492,000 square feet and is serviced by a structured parking facility. Located in the heart of Atlanta’s Buckhead submarket, it offers a significant competitive advantage due to its easy access to Georgia 400 and Peachtree Road. It is also less than a half-mile walk from a MARTA Rail Station, and a publicly funded pedestrian bridge will cut this distance in half upon its projected completion in late 2013.

The building offers a number of amenities including conference facilities, a fitness center and a full-service bistro. In addition, Two Alliance Center is within walking distance to both Phipps Plaza and Lenox Square Mall, two upscale malls, as well as a number of luxury hotels, including the Ritz-Carlton and the Mandarin Oriental. According to Atlanta Business Chronicle, former owner Tishman Speyer leased up the tower during a period of aggressive concessions in the past few years, as it and several other developers were trying to fill five new office towers during the worst of the economic downturn.

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Cassidy Turley Adds Four New Georgia Properties to its Property Management Portfolio

By Georgiana Mihaila, Associate Editor

Cassidy Turley continues to expand its property management division with the recent addition of four Georgia properties.

According to an official release, Flagstar Bank selected Cassidy Turley to provide property management services for Holcomb Center and Mulberry Centre. Holcomb Center is a 87,564-square-foot retail property in Roswell, while Mulberry Centre is a 13,400-square-foot retail property located in Braselton.

Cassidy Turley has also been hired to manage a 106,000 square-foot office building in the Lake at Northpoint office park in Roswell, and 1382 Peachtree Street in Atlanta’s CBD for Big Brothers Big Sisters.

“Cassidy Turley is thrilled that we’ve been selected to serve these new clients,” said Holly Hughes, senior managing director of Cassidy Turley’s property management group. “Our commitment to client service and our property management expertise has enabled us to quickly grow the Cassidy Turley brand and portfolio in Atlanta.”

In other local company news, as of August, Cassidy Turley’s Atlanta office has added Chris White—former senior director of Cushman & Wakefield’s Transaction division—to head the local tenant representation group. White has been involved in more than 2.5 million square feet of real estate transactions in the past four years. Representative clients include The Coca-Cola Company, AT&T, Kimberly-Clark, Delta Air Lines, Siemens, ARRIS and Primerica, among many others.

Cassidy Turley manages more than 455 million square feet both domestically and internationally. It has been instrumental in the turn-around of many properties in its Atlanta office and nationwide. The firm completed transactions valued at $22 billion in 2011, manages 455 million square feet on behalf of institutional, corporate and private clients and supports more than 28,000 domestic corporate services locations.

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Leasing Activity Heats Up at 55 Allen Plaza

By Georgiana Mihaila, Associate Editor

Less than a week after an official announcement that Cushman & Wakefield is joining Lincoln Property Co. Southeast in leasing the 55 Allen Plaza tower, the Class A office building landed two new leases.

Afterburner—a business consulting and teambuilding services firm—signed a lease expansion to occupy a total of 8,784 square feet. Lincoln Property represented the landlord, while the tenant was represented by Greg Baxendale of Transwestern.

The Fogle Law Firm, which focuses on immigration issues, signed a five-year lease for 4,285 square feet of space. The law firm currently has its offices in The Grant Building downtown and wanted to stay in the area. Lincoln’s Sabrina Altenbach represented the tenant, which is scheduled to move in this fall, and Leigh Braswell of Lincoln Property represented the landlord.

“These are two important leases,” said Braswell, a vice president with Lincoln Property Co. Southeast. “Afterburner has been an outstanding tenant for 55 Allen Plaza, and we are pleased to be able to accommodate the firm’s growth needs. The Fogle Law Firm is a growing business as well, and the firm will be a welcome addition to 55 Allen Plaza’s roster of first-class tenants.” Prominent tenants in the building, which was opened in 2007, also include Ernst & Young, Skanska and the design firm ASD.

According to another company announcement, The Bread Box, a café that will serve breakfast, lunch and Starbucks coffee and also feature fresh-baked bread, will open in the building in October. Carlyle’s Catering, a well-known Atlanta-based firm, will operate the café.

Overlooking the Downtown Connector on downtown Atlanta’s northern edge, the 350,000-square-foot, Class A office tower provides tenants with easy access to all of Atlanta’s sub-markets, and, as part of the Allen Plaza mixed-use development, the building is surrounded by amenities including restaurants, the W-Atlanta Downtown Hotel & Residences, retail and Centennial Olympic Park. 55 Allen Plaza recently achieved LEED Gold certification.

Image Courtesy of Wilbert News Strategies

Duke Realty Expands Atlanta Industrial Portfolio with Hartman Business Center Purchase

By Georgiana Mihaila, Associate Editor

Duke Realty Corp. recently added a 569,674-square-foot warehouse-distribution building in Hartman Business Center to its portfolio, as part of its recent focus on increasing investments in quality industrial assets.

The property, located approximately six miles outside of I-285, marks Duke Realty’s first acquisition in Atlanta’s suburban I-20 West corridor. The warehouse distribution center—Hartman Business Center V—is part of the Hartman Business Center, a 150-acre, master-planned development located just south of I-20 at Riverside Parkway in Austell.

Completed in 2008, the facility is 100 percent occupied under a long-term lease with Czarnowski, a Chicago-based exhibit and event firm with more than 38 locations across North America. Hartman Business Center V is located approximately 14 miles northwest of Camp Creek Business Center, Duke Realty’s 400-acre, mixed-use business park at I-285 and Camp Creek Parkway, approximately three miles from Hartsfield-Jackson International Airport.

“The acquisition of this top-quality building is consistent with Duke Realty’s increased focus on industrial assets in Atlanta and the other markets we serve,” said Chris Brown, senior vice president of Duke Realty’s Georgia operations. “It also reflects our preference for top-quality properties located in strong industrial submarkets, such as Atlanta’s suburban I-20 West corridor.”

The seller, Hartman Business Center developer Opus Group, was represented by Chris Riley, Frank Fallon and Brian Budnick of CBRE. The purchase price was undisclosed.

Duke Realty owns and operates approximately 138.9 million rentable square feet of industrial and office assets, including medical offices, in 18 major U.S. cities. This latest purchase brings Duke Realty’s Atlanta-area holdings to 10.6 million square feet. The company will also be developing a new 211,000-square-foot, built-to-suit office and logistics facility in Camp Creek for Kuehne + Nagel.

Duke Realty’s move is consistent with the local industrial market’s steady recovery pace; according to a recent Marcus & Millichap report, investors continue to step up the pace of dealmaking, as multi-tenant warehouse and distribution properties measuring up to 200,000 square feet posted more than 2.9 million square feet of net absorption last year and will maintain momentum in 2012.

Image courtesy of The Opus Group official website

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Integra, L2C and Brandmovers, All Move to New Digs

By Georgiana Mihaila, Associate Editor

Within the past week, Atlanta’s commercial real estate market was marked by three relocations, as both Integra Realty Resources and L2C, Inc signed new leases, while Brandmovers has finished its new Northside Drive headquarters.

Integra Realty Resources will be moving to its new space—6,352 square feet at 1100 Peachtree Street—in September. The company will be leaving its home for five years, 1718 Peachtree Street, for the Cassidy Turley-managed building. 1100 Peachtree, located near the intersection of Peachtree Street and 12^th Street in the Midtown area, encompasses over 500,000 square feet and is 28 stories tall.

L2C, Inc.—a consumer scoring and analytics company—has also just signed a lease for 10,000 square feet at Tower Place 200, a 260,000-square-foot, Class A office tower in Buckhead. The tenant was represented by Bennett Gottlieb of CBRE’s Atlanta Brokerage Services, while landlord CW Capital was represented by Dean Giordano and Zack Wooten of PM Realty Group.

Atlanta-based Brandmovers will also be relocating to a new 10,000-square-foot headquarters at 1575 Northside Drive. The firm, which specializes in working with brands to build consumer relationships across interactive channels, has added 10 employees over the past three months and has managed to double its size over the past year. A similar growth is projected over the next year, growth that prompted Brandmovers’ decision to leave its current Midtown location.

As reported by Citybizlist, Brandmovers began in the Fulton County Business Incubator in 2003 and now also has offices in London and Mumbai, India. The company’s move to the new headquarters will be celebrated in September, during a ribbon-cutting ceremony attended by Mayor Reed.

Image 1100 Peachtree St. courtesy of Atlantacitizen via Wikimedia Commons

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Midtown Block Trades Hands, Soon to House 321 Luxury Units

By Georgiana Mihaila, Associate Editor

A 2.5-acre site, located at the very core of Midtown Atlanta at 131 Ponce de Leon Ave., recently changed hands for $6.5 million.

The property, consisting of nearly an entire city block, includes famed architect I. M. Pei’s first office building. Bound by Ponce De Leon Avenue, North Avenue, Piedmont Avenue and Juniper Street, the site includes the entire block except for St. Paul’s church, which was once home to the well-known Abbey restaurant.

The buyer—a joint venture between Sereo Group and Faison Enterprises Inc.—plans to develop a new mixed-use project consisting of 321 luxury apartments and 8,600 square feet of retail space. The site has already been zoned for a 1.4 million-square-foot mixed-use development, as previous owner Thirty Third Latitude Properties had a major project centered on sustainability in mind for the 2.5-acre property. The SPI-16 zoning allows versatile uses including office, retail, medical, hotel, multifamily, assisted living, or student housing.

Three existing buildings totaling in excess of 75,000 square feet have been included in the sale.

The sale has been brokered by Daniel Latshaw, partner with Bull Realty. “There was tremendous interest with 10 competing offers,” said Michael Bull, president of Bull Realty and host of the Commercial Real Estate Show. “The lenders, United Bank and Synovus Bank, were able to maximize their recovery by cooperating with the original developer to market the property. When you add the cost of demolition to the just-over-$59-per-square-foot land price, it’s a good sign for the commercial real estate recovery.”

According to an official statement, Latshaw is particularly excited about the new buyer’s plans to tie the old to the new. “The concept not only preserves the façade of the Pei building, but makes it a centerpiece of the design and celebrates Pei’s architecture and legacy”.

Image Courtesy of Wilbert News Strategies

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Cranes Move, Construction Begins at Buckhead Atlanta

By Georgiana Mihaila, Associate Editor

Lifeless cranes will no longer stand watch over the luxury mixed-use development formerly known as Streets of Buckhead; developer OliverMcMillan, who took over the project in May 2011, has reportedly restarted work on the 1.5-million-square-foot mixed-use project now entitled Buckhead Atlanta.

The Atlanta Business Chronicle reports that the San Diego-based developer has recently started clearing construction debris on a land parcel located between Buckhead Avenue and East Paces Ferry Road; the parcel is meant to house approximately 85,000 square feet of stores and restaurants, including French luxury retailer Hermes, as well as two 12-story apartment towers, 15,000 square feet of office space, and a large parking deck. According to the publication, this is meant to form the core of the Buckhead Atlanta project, with a completion date set for the fourth quarter of 2013.

OliverMcMillan acquired the project in May 2011, backed by up to $300 million from the Boston hedge fund. Prior to this, previous developer Ben Carter had already invested nearly $400 million in the development. Carter started the project in 2006, spending nearly $170 million on assembling land parcels in Buckhead Village; by early 2009, when the economy tanked and the luxury real estate market collapsed, he encountered difficulties in finding the $200 million financing he needed to finish the six-block luxury community he had envisioned.

On Buckhead Atlanta’s official Facebook page, construction start was celebrated heavily and included a statement from Atlanta Mayor Kasim Reed: “For years, we have anticipated the start of construction on the transformative Buckhead Atlanta, which, when completed, will be a sign of Atlanta’s resilience and innovation. A rejuvenated Buckhead will not only attract the nation’s top developers and retailers but thousands of new consumers and residents. I congratulate OliverMcMillan and everyone involved and wish them well on this project.”

Located on eight acres across six city blocks, Buckhead Atlanta is designed as a completely walkable community that will connect two main arteries of Atlanta at Peachtree and West Paces where local residents and bustling life collide. Developer OliverMcMillan has referred to it several times as “the Rodeo Drive of the South.”

Images courtesy of Buckhead Atlanta official Facebook page

Meritex Expands Joint Venture Holdings in Atlanta with New Acquisition

By Georgiana Mihaila, Associate Editor

In a move to further expand its joint venture holdings in the Atlanta area, Meritex has recently acquired a 106,945-square-foot office/ warehouse project in Norcross. Resource Real Estate Partners, LLC represented Meritex in the acquisition and has been retained as the leasing agent for the property.

The multi-tenant, value-add property—located at 5965 Peachtree Corners East—is currently 70 percent occupied by nine tenants. “We are excited about this addition to our portfolio in Atlanta. Its location in the vibrant and close-in Norcross-Technology Park submarket will appeal to a wide range of businesses and our Atlanta team looks forward to serving them,” commented Dan Ward, director of investments for Meritex in Atlanta.

While the property is well-located and highly functional, it has suffered from deferred maintenance. Accordingly, Meritex plans on repositioning the asset by investing capital to enhance landscaping, install a new roof, and renovate suite interiors.

Meritex—a private real estate investment and management company that acquires, develops, owns and operates commercial real estate (primarily institutional grade, multi-tenant industrial properties)—has now expanded its joint venture relationship with a major institutional investor by increasing its holdings in Atlanta to more than 1,000,000 square feet following this latest purchase.

A recent Marcus & Millichap report on the local office market shows that a second consecutive year of improvement in the Atlanta office market is at hand as space demand grows and developers sit on the sidelines. The firm predicts that new buyers will enter the Atlanta market this year, primarily targeting lender-owned assets offered at prices low enough to enable investors to realize a gain in value over a three- to five-year period. Additional opportunities will likely emerge as banks and life companies move troubled assets off balance sheets.

Image Courtesy of Meritex

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MAA Buys Second Buckhead Community: 349-Unit Allure at Brookwood

By Georgiana Mihaila, Associate Editor

Memphis, Tenn.-based MAA, a multifamily real estate investment trust, recently added the 349-unit Allure at Brookwood community to its portfolio of over 49,000 apartment units spread throughout the Sunbelt region of the U.S.

The high-end urban multifamily apartment community, located in the Buckhead submarket of Atlanta, is strategically positioned between several of Atlanta’s largest office submarkets: Midtown, Buckhead and Central Perimeter—home to some of Atlanta’s biggest employers. In addition, the property is located in very close proximity to several major medical employment centers within the Piedmont Medical Center, including the Shepherd Center, a nationally recognized rehabilitation center.

Built in 2008, Allure at Brookwood consists of two six-story mid-rise buildings and a five-level structured parking deck. The property offers residents a wide range of amenities including a resort-style pool with cascading fountains, a 50-meter lap pool, outdoor stone terrace with grill and an expansive fitness facility and business center. The apartment homes boast nine-foot ceilings with deluxe crown molding, cherry cabinetry, arched doorways and stainless steel appliances.

“We are pleased with this high-quality addition to our Atlanta portfolio and we expect this new investment will provide attractive long-term value for our shareholders,” said MAA EVP and CFO, Al Campbell. No financial details have been disclosed.

The Allure at Brookwood purchase is the second recent Buckhead acquisition for MAA as in mid-May the company bought the 230-unit Allure in Buckhead Village. This came as a surprise at the time, as MAA has several Atlanta-area properties on the market, but company officials have shared that their strategy includes selling several properties in order to recycle capital by investing in high-end properties in good locations.

According to a Marcus & Millichap market report for Q3, demand for Atlanta-area multifamily assets will remain intense as the pool of local investors and out-of-state buyers grows larger. The Buckhead submarket is targeted by investors due to its low vacancy rate and higher rents than all other Atlanta submarkets.

Chart Courtesy of Marcus & Millichap

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Trophy Tower 999 Peachtree Hits the Market

 By Georgiana Mihaila, Associate Editor

Jamestown Properties, the company that bought the former First Union Plaza in 2007 for approximately $127 million, is now seeking a buyer for the iconic 28-story Midtown tower.

A year after the purchase, owner Jamestown Properties had hired Atlanta-based Cousins Properties to manage, lease and enhance the 999 Peachtree Street building; on top of enlarging the retail portion—prominently located along the Midtown Mile—the companies have implemented various sustainability initiatives, such as water reclamation systems, a bike-share program and a partnership with a local community-sponsored agriculture program.

As a result, the building has been awarded the U.S. Environmental Protection Agency’s ENERGY STAR designation, as well as LEED Silver for existing buildings.

The building’s occupancy has also experienced significant improvement; in February 2007, when Jamestown acquired 999 Peachtree from Childress Klein Properties, the 621,000-square-foot tower was 83 percent leased, while currently occupancy is up at 94 percent. Atlanta-based law firm Sutherland Asbill and Brennan LLP is still the anchor tenant, but Jamestown has added new tenants such as Gensler and Oxford Industries, as well as retail brands Clothing Warehouse and En Paris.

The building is also home to the exclusive Peachtree Club and the Empire State South restaurant, run by award-winning chef Hugh Acheson. Other amenities include a state-of-the-art conference center fitness center, dry cleaning, banking, and car care service. 999 Peachtree is served by a nine-story parking garage connected to the building by a covered walkway.

According to the Atlanta Business Chronicle, Jamestown is seeking a target sale price north of $160 million, with a price per square foot in the mid $200s. Eastdil Securities has been selected by the owner to market the building.

Image Courtesy of 999peachtree.com

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ARA Closes Sale of 204-Unit Old Fourth Ward Apartment Community; Lincoln Property Brokers Three Major Atlanta Leases

By Georgiana Mihaila, Associate Editor

ARA—a privately held, full-service investment advisory brokerage firm specializing in the multifamily industry—recently announced the sale of its 626 DeKalb 204-unit apartment community.

Buyer Mesa Capital Partners, an apartment acquisition and development firm, paid $21 million for the Old Fourth Ward apartment community. Mesa Capital Partners specializes in the creation of world-class multifamily communities and plans to implement a common areas enhancement program to better position the community; in the future, the company intends to leverage the community’s location as part of the currently under construction Atlanta Belt Line project—the most comprehensive revitalization effort ever undertaken in the City of Atlanta and among the largest, most wide-ranging urban redevelopment and mobility projects currently underway in the United States.

Upon completion, the project will provide a network of public parks, multi-use trails and transit by re-using 22-miles of historic railroad corridors circling downtown and connecting 45 neighborhoods, including The Old Fourth Ward, directly to each other.

ARA Atlanta-based principals Sean Henry and John Weber represented an institutional advisor in the $21 million sale.  According to ARA’s Sean Henry “Jeff Tucker /Mesa Capital Partners capitalized on an opportunity to acquire a quality community well below replacement cost for this construction type in a market that continues to attract renters desiring an in town, pedestrian friendly environment.”

In other real estate news, Lincoln Property Company Southeast has brokered three leases totaling 144,357 square feet in Atlanta’s North Fulton office market. Michael Howell and Hunter Henritze, both vice presidents of office leasing for Lincoln Property Company Southeast, represented the landlord, Equity Office, in the transactions. The leases included the following deals: RedPrairie signed a direct lease for 80,314 square feet in Radiant II, located at 3905 Brookside Parkway in Alpharetta; Select Management Resources renewed its lease for 40,347-square-feet at Preston Ridge IV, located at 3440 Preston Ridge Road in Alpharetta; Athena Health expanded its offices at Northwinds Pointe, located at 2550 Northwinds Parkway in Alpharetta, to a total of 23,696square feet.