Skyline Views

Jacoby Sets Sights on Former Ford Plant in Norfolk

ATLANTA (Jan. 28, 2010) - Jim Jacoby, who is leading the charge to redevelop the former Ford Atlanta Assembly Plant into an "aerotropolis," wants to redevelop the shuttered Ford Assembly Plant in Norfolk, Va., as well.

Earlier this week, Jacoby told me his company plans to buy the former Ford plant in Norfolk and develop a mixed-use project laden with alternative energy devises and uses. These would include solar panels, wind turbine production and perhaps a wind farm off the coast.

Jacoby, a former retail strip center developer, now is best known for leading the redevelopment of the former Atlantic Steel plant along Atlanta's Downtown Connector, into the mixed-use gem known as Atlantic Station (home of WNS headquarters).

The Ford Assembly Plant site on Indian River Road in Norfolk encompasses 109 acres of land zoned for industrial use and is served by, naturally, Norfolk Southern rail. More than 2.6 million square feet of manufacturing facilities remains on the site, which fronts the Eastern Branch of the Elizabeth River, according to CB Richard Ellis, which is marketing the site for sale. Ford closed the plant in June 2007.

Jacoby's connection with Ford probably positions him well in his effort to acquire the Norfolk plant. In June 2008, Jacoby bought the 122-acre Atlanta plant from Ford and announced plans for a mixed-use development near Hartsfield-Jackson Atlanta International Airport. A press release announcing the sale described the "aerotropolis" as "an aviation-intense business district that is expected to include office, retail, restaurants, hotel and airport parking."

It will be interesting to see if Jacoby, above right, does buy the Norfolk plant, and if so, how his plans for an alternative-energy intensive mixed-use development turn out.

Atlanta Developer Rips Lender, Bemoans Lack of Commercial Financing

ATLANTA (Jan. 27, 2010) - Developer Hal Barry, whose vision for the Allen Plaza mixed-use development is in jeopardy because of a foreclosure proceeding, told a Congressional Oversight Hearing in Atlanta that finding funding - even for U.S. General Service Administration projects - has been terribly frustrating, according to an article on ajc.com.

 Barry's company had landed deals with U.S. government agencies for new buildings in Nashville, St. Louis and other cities, but he had trouble financing them. Here's what Barry, a real estate legend in Atlanta, had to say.

"Finding a lender to finance these buildings has been a real joke," Barry told the panel overseeing the Troubled Asset Relief Program (TARP). The panel held its hearing today at Georgia Tech. He is shown in the photo with "Deltalina" at a party celebrating the opening of the helipad above the W Hotel and Residences at Allen Plaza.

According to The Atlanta Journal-Constitution, Barry let the panel know about the difficulties he had working with BB&T, a bank that advertised foreclosure proceedings of land where Barry wants to build an office tower as part of his Allen Plaza project.

"The recession has hit us hard," Barry said. Click here to read the full story by the AJC's Gertha Coffee.

AJC Wants Commercial Real Estate Reporter Who Breaks News, Spots Trends

ATLANTA (Jan. 26, 2010) - The Atlanta Journal-Constitution has posted its opening for commercial real estate reporter. Here's the word:

 The Atlanta Journal-Constitution is seeking an experienced business reporter to cover real estate - particularly commercial real estate - in a metro area that has been one of the fastest growing in the nation but now faces a steep fall off from the boom. The terrain is rich with new and proposed buildings, stalled projects and, now, a wave of foreclosures. Then there are all the people behind the projects: Developers who made big bets. Land speculators who gambled too far. Building investors and managers who are trying to cope with the fall off. Investors looking for salvation or deals. Businesses loving the falling rents. The beat includes office, industrial and some retail real estate. 

Particular value is put on breaking important news and unveiling intriguing trends. We are seeking an aggressive reporter, particularly one who knows and understands the real estate industry and can jump into the beat quickly. As a beat reporter, he/she must demonstrate a highly developed capacity to use various Web resources as a reporting tool. Source development also is key to this position as the reporter will be tasked with developing a robust database of sources within the commercial real estate industry statewide and nationally. Additionally, he/she must be able to break news often for ajc.com while quickly turning well-reported dailies and substantial enterprise for Page One of the daily and Sunday newspapers.

Five years of professional newspaper or news organization experience required. Bachelor's degree preferred.

To apply:

Send cover letter, resume, references and 3 best relevant clips to:

Barbara Senftleber, newsroom development editor, email: AJCNewsroomJobs@ajc.com

Jekyll Island Needs New Full-Service Hotel

JEKYLL ISLAND, Ga. (Jan. 25, 2010) - C. Jones Hooks, executive director of the Jekyll Island Authority, couldn't be more right when he says Jekyll Island needs a full-service hotel as part of the island's redevelopment. He told me as much during lunch at a local island eatery last week, saying attracting a developer to build a full-service is Priority No. 1.

You see, Jekyll Island will get a new 128,000-square-foot convention center in 2012. And it needs a full-service hotel to open around the same time. People who attend conventions want a choice of hotels ranging from economy to full-service, and not offering a full-service hotel could cost the island some business.

(The island does have a brand-new Hampton Inn & Suites Resort, shown in photo below, that offers many services and will nicely meet the needs of future conventioneers. But Hampton Inns typically are categorized as limited-service hotels.)

I met with Hooks, whom I worked with when I was reporter at The Albany Herald, just before the Jekyll Island Authority kicked off its Developer's Day event designed to gauge interest in building on the island. It was held about a month after the authority suspended its development agreement with Mercer Reynolds and his company, Linger Longer Communities. (Note, while at Edelman, I briefly represented Linger Longer at Jekyll Island.) 

Linger Longer's redevelopment plans drew the ire of local residents, who argued that contract terms were too favorable for the developer. With Reynolds' company no longer lingering, the Jekyll Island Authority has another chance. Based on the attendance at Developer's Day, when some 70 developers from 50 companies attended, interest is high despite the tough commercial real estate climate.

"Prospective developers like Jekyll Island Authority's plans," read the headline of The Atlanta Journal-Constitution's story about Developer's Day. The headline was a win for Hooks and the authority. Most previous articles in the AJC, Georgia's most-influential daily, were perceived as negative by JIA.

Tom Powers of Peachtree Real Estate Advisors told the Florida Times-Union that Jekyll Island has enough positives, such as the beach, to pique the interest of developers. Powers said the current real estate market is challenging but that it's time to look ahead. 

Now it's up to Hooks and the Jekyll Island Authority to work to sign developers and a hotel flag. Having witnessed Hooks' work in helping saving the Marine base in Albany more than 15 years ago, I'm betting he succeeds again. 

The authority expects to issue its first request for proposals next month. A second RFP is expected to be issued to retail developers interested in replacing the aging strip center near the existing convention center that will be replaced by the new facility.

On more note: Jekyll Island will replace its lone gas station, which has closed, with a new convenience center and Dairy Queen.

Streets of Buckhead Belatedly Back in Business

ATLANTA (Jan. 21, 2010) - Atlanta's most-watched on-and-off again real estate development is back in the news. Developer Ben Carter this week told The Wall Street Journal and The Atlanta Journal-Constitution that he is in discussions with money sources to raise $200 million that would enable him to finish the project.

 Carter did not identify the potential funding sources, but he told AJC retail reporter Rachel Ramos he expects to select the new investor and have new agreements with his lenders within 30 days. The Streets of Buckhead's largest lender, Bank of America, is negotiating to write off a portion of its $160 million loan on the ultra-luxury retail-dominated mixed-use project, according to the WSJ article by Carrick Mollenkamp and Lingling Wei.

The Streets of Buckhead was started after Ben Carter Properties acquired and razed several of Buckhead's most-popular bars. The project virtually wiped out Buckhead's bar district with the promise to luxury retail never before seen in Buckhead. So far, though, Buckhead residents have been treated to a huge hole covering a couple city blocks. 

Ben Carter now hopes to open a scaled-down 375,000-square-foot The Streets of Buckhead in the spring of 2011, according to the AJC article.

AJC Seeks New Commercial Real Estate Reporter

ATLANTA (Jan. 18, 2010) - The best business beat at The Atlanta Journal-Constitution is about to be open again.

An AJC editor called Friday to say the paper has launched a search for a new commercial real estate reporter to replace Gertha Coffee, who will be moving to a position on the paper's Metro desk. Coffee's move is part of the paper's plan to place a larger emphasis on suburban coverage, where a lot of metro Atlanta's growth is occurring. (Of course, the paper itself is leaving downtown Atlanta for the suburb of Dunwoody in April.)

The AJC desires someone who knows Atlanta and has an understanding of the commercial real estate industry.

Commercial real estate is the business story in 2010. The paper has played prominently recent commercial real estate stories.

While residential real estate dominated last year's news, it's time for the commercial counterpart to be in the spotlight, though for mostly negative reasons. That said, commercial real estate is the paper's best business beat. I should know, I did it for several years at the AJC.

No business can relocate to or expand in metro Atlanta without first figuring out where to do it - and that involves commercial real estate. As I like to say, "Atlanta business - it all starts with real estate."

I'll miss working with Gertha. She was a great reporter and always nice to work with. I wish her well on her new beat. She likely will remain on the CRE beat until a replacement starts.

Readers interested in discussing the commercial real estate opening at the AJC should e-mail Matt Kempner, the AJC's daily assignment editor for Business, at mkempner@ajc.com.

Carter Pilots Office Day Cleaning Program

ATLANTA (Jan. 14, 2010)—Carter, one of the country’s leading full-service commercial real estate firms since 1958, has kicked off a day cleaning pilot program in Atlanta designed to reduce electricity use and costs while providing better service to owners and tenants.

 Carter initiated its day cleaning pilot program at its headquarters building at 171 17^th Street in the Atlantic Station mixed-use development in Midtown Atlanta. The office tower owner, an affiliate of JP Morgan, has endorsed the pilot and is strongly supportive. If successful, Carter plans to work with other owners to roll out the program at other Carter-managed properties across the country. (In above photo, Cassandra Reid cleans an office during work hours.)

The potential impact is large because Carter manages approximately 25 million square feet of property across the country. Earlier this month, Carter’s Property and Facility Management Group was ranked No. 4 on Atlanta Business Chronicle’s List of Atlanta’s Top 25 Commercial Property Management Companies.

Like most property management companies, associates on Carter’s cleaning crew traditionally have cleaned tenant offices in Carter-managed buildings after work hours. This requires several additional hours of office lighting and climate control and a reliance on workers who typically come to work after finishing another job.

Now, cleaning crews at 171 17^th Street work in two shifts: 7 a.m. to 3 p.m. and 11 a.m. to 7 p.m. Initial indications show the switch to day cleaning will reduce energy consumption by at least 20 percent.

“The day cleaning program is part of Carter’s overall strategy to help our clients reduce energy use at the buildings we manage for them,” said Holly Hughes, chief administrative officer and head of Carter’s Property and Facility Management Group. “We want to stay on the leading edge of ways to incorporate greener cleaning methods, and day cleaning is an ideal way.”

So far, response from tenants has been very positive. The switch to day cleaning allows crew members to build a rapport with workers in the offices. The crews come to learn the tenants’ schedules and preferences.

“Overall, the day cleaning program has been very well received. We even had one tenant e-mail to let us know how happy she is with the day cleaning program,” said Rutledge Beacham, vice president of Property and Facility Management. “This is a culture change – tenants are getting used to people cleaning their work areas during the day.”

Kathryn M. Stephens, who works at Jacoby Development, a tenant in 171 17^th Street, sent Carter’s management office an e-mail to let the team know how pleased she is with the switch to day cleaning.

“[The associate assigned to clean our offices] is pleasant and thorough, keeps it very low key and really seems to care,” Stephens writes in the e-mail. “I told him … how much we appreciate his efforts.”

The cleaning company Carter has retained at the 171 17^th Street tower, ICS Contract Services, takes several steps to be as unobtrusive as possible. These include using battery-powered vacuums and making sure not to enter an office when the occupant is on the phone or in a meeting.

In addition to energy savings, day cleaning has created savings in staffing at 171 17^th Street. Before the switch to day cleaning, a crew of 25 part-time workers had been cleaning the tower. After the switch, a crew of 11 full-time cleaners is used at the building. The full-time staff has exhibited more energy because cleaning the tower is their main job as opposed to a second job in the evening. Moreover, the cleaning staff receives higher wages and receives benefits associated with full-time employment. 

(Note: Wilbert News Strategies LLC issued this news on behalf of Carter, a client.)

Atlantic Station Co-Developer Thinks Big Box Industrial at Mega South Atlanta Project

ATLANTA (Jan. 13, 2010) - Charlie Brown, one of the pioneering forces behind Atlanta's signature Atlantic Station mixed-use development, clearly is paying attention to the big industrial deals being completed in south Fulton County.

Brown's company, CRB Realty Associates Inc., appears to have tweaked plans for Parkway South, a 465-ace mixed use project proposed for land in Union City, about 10 minutes from Hartsfield-Jackson Atlanta International Airport. According to plans posted on a state of Georgia web site this week, CRB Realty now plans to develop as many as 2.5 million square feet of industrial property at Stonewall Tell Corporate Center, a component of Parkway South. 

This would include a mega-bigbox industrial building of between 1 million and 1.6 million square feet, according to plans forwarded to the state by Union City. I bet the recent decision by Kraft Foods Inc. to build a 950,000-square-foot distribution center at Majestic Airport Center III in Union City caught the eyes of Charlie, his son Scott and Debbie Bender, CRB Realty's director of operations and the contact on the project. You see, Kraft will join another well-known consumer products company, Newell Rubbermaid, which consolidated industrial properties at Majestic Airport Center II in 2008.

The state filing gives no indication of when the first phase or overall Parkway South project will be completed. Ornstein-Schuler Capital Partners, LLC of Buckhead is listed as the property owner. We tried to get some information from the Ornstein-Schuler Realty Co. Web site, but it's password-protected.

Alan Joel, Dan Granot Form New Firm

(Editor's Note: Wilbert News Strategies issued this news on behalf of Joel & Granot Commercial Real Estate, a client.)

ATLANTA (Jan. 11, 2010)—Alan Joel and Dan Granot have merged their successful commercial real estate firms to create Joel & Granot Commercial Real Estate.

 The new company, which officially opened for business Jan. 4, is a boutique brokerage firm providing services such as tenant representation, investment sales, land sales and property management for clients of any size. Joel & Granot Commercial Real Estate’s two principals will be involved in each transaction, offering clients direct access and expertise not typically found at mega-brokerages and one-man shops.

 “Dan and I are of the same mindset that every client, regardless of size, is important,” said Joel, who appears on the right in above photo. “The philosophy of Joel & Granot Commercial Real Estate is customer driven, and every transaction Joel & Granot is involved in will get both principals’ attention.”

Granot agreed: “Real estate is a relationship business, and at Joel & Granot, we’ll use our extensive networks to ensure our clients receive the best professional representation in each deal,” Granot said. “Clients rely upon brokers they trust for vital market information and advice, and that is what we will deliver.

“This is especially important given the uncertain economic times,” Granot added. “Alan and I can help clients navigate these challenging times using our combined experience.”

Combined, Alan Joel and Dan Granot have more than 40 years of experience representing tenants and closing complex real estate transactions. Their combination of experience, skills, talents and relationships throughout the country can provide unparalleled opportunities for clients who prefer veteran real estate brokers.

Joel started Alan Joel Partners, a commercial real estate brokerage and investment firm, 14 years ago after being the top producer at a national firm for five consecutive years. Joel grew Alan Joel Partners into one of Atlanta’s most-respected commercial real estate firms. In the past two years, Joel has closed more than 100 transactions totaling over 200,000 square feet. In December, Joel was installed as 2010 president of the Atlanta Commercial Board of Realtors (the largest Commercial Realtor organization in the country with almost 3,000 members).

Granot began his career in commercial real estate in 1989 with a focus on tenant representation and his clients’ financial objectives. In 2007, Granot founded Dan Granot & Company, a full-service commercial real estate firm specializing in tenant representation. Prior to starting his own firm, he served as executive of GVA Advantis, where he ranked as the Atlanta office’s top producer in 2005.

Joel & Granot is part of CORFAC International, an organization of independently owned commercial real estate services firms with local and regional expertise throughout the Americas and Asia.

“CORFAC International’s interests in the commercial office market in Atlanta have been represented by Alan Joel’s firm since 2003. His merger with Dan Granot’s practice only strengthens our corporate and tenant services in the market and will create greater transactional opportunities for our 150 affiliated offices around the globe,” said Owen Rouse, Jr., 2010 President of CORFAC International, who is also a senior vice president and partner with Manekin LLC/CORFAC International, based in Columbia Md.

About Joel & Granot Commercial Real Estate

Founded by two of Atlanta’s top commercial Realtors, Joel & Granot Commercial Real Estate is a full-service commercial real estate services firm that focuses on small- to mid-sized clients. Joel & Granot Commercial Real Estate has nine brokers in a production role. Its two principals, Alan Joel and Dan Granot, are committed to providing trusted advice to their clients. They review every transaction in which the company is involved and make sure they are done to the client’s satisfaction. Joel & Granot headquarters is located at 962 Howell Mill Road in Atlanta.

About CORFAC International

CORFAC International is one of the largest commercial real estate services organizations in the world and celebrated its 20^th year in 2009. U.S.-based CORFAC is comprised of privately held entrepreneurial firms serving more than 150 markets in The Americas and internationally through alliances with UK-based King Sturge, BDI in Mexico, Rios Commercial in Puerto Rico and Panama-based Latin American Corporate Property Services. In recent years, CORFAC firms completed over 9,000 commercial real estate transactions annually, encompassing more than 300 million square feet and valued each year in excess of $30 billion.  For more information on CORFAC contact 954-923-6160, info@corfac.com or visit www.corfac.com.

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Media Contact:

Tony Wilbert

Wilbert News Strategies LLC

404-888-3091 office/404-405-3656 cell

twilbert@wilbertnewsstrategies.com