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