Skyline Views

APS Will Raze Part of IBM Complex for New Buckhead High School

ATLANTA (Dec. 23, 2011) - Plans for the new high school in north Atlanta, a.k.a. "Buckhead High," are starting to crystalize.

Today, plans were revealed that show Atlanta Public Schools plans to redevelop the existing IBM campus on Northside Parkside into the new high school. That much has been known for a while. (Photo courtesy of IBM.com.)

What's new is this:

"Site will be redeveloped by removing one office building and approximately 1400 parking spaces to construct a new assembly building and athletic fields," according to a Development of Regional Impact (DRI) filing made public today.

The project size will be 475,000 square feet and accommodate 1,800 to 2,200 students, the filing states. The new high school at 4111 Northside Parkway will be completed in 2013.

In February, Atlanta school board members voted to acquire the 56-acre site for more than $56 million, The Atlanta Journal-Constitition reported.

The two buildings comprise 785,000 square feet of office and traning space built in 1978. Current tenant IBM is scouting new locations for a consolidated regional office. Jamestown acquired the campus in 2003.

Since the February vote, Buckhead residents have speculated about whether both IBM building would be razed or one or both would be used to house the new Buckhead high school. Today's DRI filing sheds some light.

The school system will tear down one builing and incoporate the other. Let's deem it a half-adaptive-reuse project.

Watershed Moving to The Brookwood

ATLANTA (Nov. 14, 2011) - The piece of Peachtree Street that borders Brookwood Hills might have lost out on a 24-hour barber shop (darn), but it's getting a monumental place for fried chicken.

Traci Buch, who works for Liz Lapidus Public Relations, just issued a press release saying Watershed (that of the kick-ass fried chicken) will open at The Brookwood Condominium next spring. The Brookwood's original developer - Mark Riley of Urban Realty Partners - said the building's prime restaurant space would attract a great restaurant. Though it took some time, Riley ultimately was right.

"It's a new day in the neighborhood for the Atlanta family and foodie community and I am thrilled to be a part of it," said co-owner and Indigo Girl Emily Saliers. “I can't wait to bring family and friends out to the new location to taste Chef Truex’s new menu.” 

Here's the release.

ATLANTA (November 14, 2011) Watershed restaurant, an award-winning Southern-inspired eatery that pioneered the Decatur dining scene when it hung its shingle on a converted gas station 13 years ago, is re-locating to The Brookwood, a 219-unit, mixed-use condominium community located on Peachtree Street in the heart of the historic Brookwood neighborhood.

The move will empower owners Ross Jones, Indigo Girls’ Emily Saliers and Chef Joe Truex to realize their dream of growing the business with private dining, a patio and a wealth of parking. They plan to maintain the integrity of the Watershed brand, including the inspired cuisine of acclaimed Chef Truex, while updating it with a modern sensibility reflective of the new location. Diners can expect to see General Manager Jones on the floor and Chef Truex in the kitchen of this Smith Hanes-designed 175-seat jewel.

"It's a new day in the neighborhood for the Atlanta family and foodie community and I am thrilled to be a part of it," said Saliers. “I can't wait to bring family and friends out to the new location to taste Chef Truex’s new menu.” 

With the new location – set to open in Spring 2012 – comes a refined editing of the menu. Truex plans to update Watershed’s Southern-inspired cuisine with flavors from the Georgia Coast to the Louisiana Bayou and everything in between including the diverse ethnic flavors found throughout the South. The restaurant will continue to boast an expansive wine program – including the monthly wine club tastings – and bring back Fried Chicken Night with a twist.

The toque was tapped to Truex in 2010 with the departure of long-time chef Scott Peacock. A Louisiana native, Truex came to Watershed after closing his award-winning eatery, Repast. With a degree from the Culinary Institute of America his career has taken him from New Orleans to New York and Basel, Switzerland. He came to Atlanta as executive chef of the Swissôtel and later Château Élan Winery and Resort in Braselton, before opening Repast in 2005. 

An in-town estate with magnificent floor plans and striking interiors, The Brookwood rises 18 stories above street level in one of the city’s most desirable and walkable neighborhoods, just seconds from Midtown to the south and Buckhead’s Peachtree Battle to the north.  A truly unexpected retreat in the city, The Brookwood boasts stunning interiors and exceptional amenities and services.  Built green for both healthy living and energy conservation, The Brookwood is Atlanta’s only LEED certified high-rise condominium community.

 

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24/7 Barber Shop Filling Vacant Huey's Spot in Buckhead

By Tony Wilbert, Wilbert News Strategies

ATLANTA (Sept. 26, 2011) - Things are getting a little hairy on the strip of Peachtree Street that runs along Atlanta's Brookwood micro-submarket.

The hair care industry is filling a lot of vacant retail space in this 'tweener market. The latest is Ernesto's Cuts, a 24/7 barber shop setting up shop at the former Huey's location at 1816 Peachtree Road. The structure, built in 1946, is a mere 1,622 square feet inside. The Trilogy Group represents the landlord.

Ernesto's is moving from its old location in the Citgo center next to the Shepherd Center that could one day be home to a key Atlanta BeltLine hub. The new location is right next to the new, "Eco-Gorgeous" Brookwood condo building.

In addition to Ernesto's, a Sunny's Hair & Wigs outlet opened recently is a shuttered Sage clothing location, and hair care giant Aveda is close to opening an Aveda Institute training center and salon at the former Border's Books location at Peachtree and Deering. Henry James Salon, where you can get hair extensions and skin care, also recently opened on Peachtree in the Brookwood micromarket (brick building in background of photo).

It's anyone's guess about why so many hair care places are opening in outlets that used ot house restaurants and book stores. But like health care, you need to get your hair cut, hair done or hair elongated even in a double-dip recession.

As for Ernesto's opening in the neighborhood, I have mixed feelings. The former restaurant space at one time was slated to be a new Pig N Chick location, and that I love barbecue. As for haircuts, I'll stick with Tommy's. On the positive side, it's nice to see a too-long-vacant space about to be filled with a tenant.

On Sunday, workers used Bobcats and shovels to remove the shrubbery from the site along Peachtree.

The landlord at 1816 Peachtree, listed in Fulton County property records as MCS Realty Co. of McLean, Va., must be happy to have a new tenant. 

Hope they provide plenty of parking for the tight spot.

 

 

Loan on Two Alliance Center Hits Market

ATLANTA (July 8, 2011) - Bank of America, advised by CB Richard Ellis, is marketing the $117.5 million (performing) loan to Tishman Speyer that's secured by Two Alliance Center in Buckhead. That's the scoop from today's edition of Commercial Mortgage Alert newsletter.

The floating-rate loan, scheduled to mature next year, was originated in 2007 to replace the construction loan on the 30-story, 493,000-square-foot office tower on Lenox Road, CMA reports.

More than 80 percent leased, thanks to Tishman Speyer landlord reps Peter Kasian and Chris Ahrenkiel, Two Alliance Center has been one of the success stories emerging from the Buckhead office mini-boomlet. Over the past couple years, developers erected several half-million-square-foot office towers within a six-block radius, leading ULI's 2009 Emerging Trends report to predict, "a bloodbath is coming to Buckhead."

Two Alliance Center's stability - none of the leases there expires before 2018 - Commercial Mortgage Alert expects Bank of America's offering to appeal to investors looking for a safe, short-term bet.

CBRE will take bids on the BofA loan the week of July 18, CMA says.

Retail Shows Some Resiliency on Midtown/Buckhead Border

By Tony Wilbert, Wilbert News Strategies

ATLANTA (June 9, 2011) - Losing two anchor tenants within six months usually isn't a good sign for a retail strip center. But that's exactly what's happening at the Brookwood Place retail center on the Midtown/Buckhead border.

Yestderday, Kroger Co. announced it would close its Brookwood location July 8. The announcement came less than six months after Borders announced it would close its Brookwood Place outlet. 

So, where's the positive side of this news? Both spaces will be quickly backfilled. In fact, the same day Kroger made its announcement, a company spokesman said art supply store Sam Flax had reached a tenantive agreement to lease the 36,000-square-foot space. (Given Brookwood Place's proximity to SCAD Atlanta, Sam Flax's likely move from Northside Drive makes sense.)

And hair products company Aveda leased the Borders space for its Atlanta Aveda Institute, currently located on Piedmont near Atlanta Business Chronicle's offices.

That both large retail spaces were taken off the market almost as soon as their tenants announced plans to leave is a good sign. Retail's resiliency could point to a rebound for the hardest-hit commercial property type. Now we'll see whether this trend makes its way up Peachtree to the former Pier 1 store. It's been closed for a while, and the owner recently hired a new broker to find a replacment tenant.

 

Buckhead's Regent Partners Secures Position for Potential 3344 Peachtree Encore

ATLANTA (June 1, 2011) - Regent Partners has put itself in position to replicate its success with 3344 Peachtree just across the street.

The Atlanta developer and Pope & Land Enterprises have contracted to buy the five-story building at 3330  Peachtree Road, according to an article this week by Bisnow reporter Jarred Schenke. The mid-rise building is the former home of American InterContinental University's Buckhead campus.

Regent Partners' David Tennery tells Bisnow that Regent will redevelop the property as an office-centric mixed-use development by either using the existing structure or tearing down the mid-rise. (Our money is on Regent razing the building and created a twin to 3344 Peachtree, which set a new price-per-square-foot record when Regent sold the building to Parkway Properties early this year.

Skyline Views speculated as much when we reported about a year ago that Grubb & Ellis' Tom Miller had just listed the 60,000-square-foot building at 3330 Peachtree for sale. The building is listed as available on Tower Place 100's web site. Tower Place is one of Regent's signature developments in Atlanta.

Could this be the start of the next building boomlet in Buckhead? Probably not. But if Regent and Pope & Land redevelop the site, they could be first to market again when demand once again creates the need for a new office high-rise in Buckhead - whenever that occurs.

 

Leaving Las Vegas, Again, After Successful Trip

By Tony Wilbert, Wilbert News Strategies

LAS VEGAS (May 23, 2011) - As 30,000 people pack up and head to McCarran International Airport for flights home, it's time to reflect on ICSC's huge RECon show.

First, the overall mood proved to be much more upbeat in recent years. One developer from Oklahoma City, Okla., said he nearly canceled his trip this year because he had deals to close. Atlanta developer Jim Jacoby was in a great mood, celebrating his new deal with Porsche, which has committed to moving its North American headquarters to Jacoby's Aerotropolis mixed-use development adjacent to Hartsfield-Jackson Atlanta International Airport.

While in Vegas, a group issued an open letter calling for Porsche to consider leaving Georgia altogether because of just-signed illegal imigration law. Smartly, the automaker said, "Nein" and will continue with plans for the $100 million HQ at Aerotropolis.

As for Jacoby, he told ICSC revelers that the Federal Aviation Administration really likes Aerotropolis as a potential home to a 650,000-square-foot regional headquarters/training center. That will be another big win if Jacoby makes it happen.

Second, OliverMcMillan, new owners of the erstwhile Streets of Buckhead, used retail real estate's largest stage to announce a new name and whittled-down plans for the project. The new name "Buckhead Atlanta" didn't inspire too many people, so we've come up with some suggestions:

Peachtree at Buckhead (actual intersection of development); The Shoppes at Tony Buckhead; The Peachtree at Buckhead Avenue (Cousins Properties might have a little issue again of the project went the Avenue route).

Last, the Atlanta party of the year had to be Hartman Simons' 10th annual RECon bash. Yes, the law firm is a client, and no wasn't as glitzy as Hendon Rocks, but the party still raged at midnight. Even a fancy New York City marketer (Karen Fluharty) commented that the Hartman Simons party might be the social event of ICSC.

See you there next year.

Parkway's Purchase of 3344 Peachtree Will Set New Buckhead Record

By Tony Wilbert, Wilbert News Strategies

ATLANTA (Dec. 23, 2010) - Wow. We figured 3344 Peachtree would trade for an incredible number, and it looks like it's going to.

Yesterday, Mississippi REIT Parkway Properties officially announced it planned to purchase the office portion of 3344 Peachtree for a whopping $167.3 million. With 482,699 square feet of space, that puts the sales price at more than $346 a foot, eclipsing the previous Buckhead record of $343 a foot set by the Pinnacle at Peachtree and Lenox roads.

In October, we predicted 3344 Peachtree would fetch at least $15o million. Regent Partners and Jones Lang LaSalle have to be ecstatic about the price they're getting for the 482,699-square-foot tower. 3344 Peachtree is the office portion of the $250 million mixed-use project developed by Regent Partners. The condo portion is referred to as Sovereign, where there are 82 condos now starting at $799,000.

Picking up the 2-year-old trophy asset at 3344 Peachtree is a good move for Parkway, too, which doesn't get the respect it deserves in Atlanta as a substantial owner despite owing several office buildings, including One Capital City Plaza right next door to 3344 Peachtree. Buying 3344 Peachtree - the acquisition is expected to close in late January - immediately will catapult Parkway to a major player in Atlanta.

It would have done the same for North Carolina REIT Highwoods Properties, which apparently was in the runner-up in the 3344 Peachtree sweepstakes.

For the record, here's what Parkway's CEO says about the acquisition.

Steven G. Rogers, president and chief executive officer at Parkway, stated, "We are proud of the prospect of adding an asset of the stature of 3344 Peachtree to our portfolio.  We are very familiar with the Buckhead market given our long-term investment in One Capital City Plaza directly next door to this Property, and we are confident that our team will maintain the highest level of operational excellence that the current owners have established.  At 93% leased and with an average remaining lease term of over seven years, this investment is expected to provide steady cash flows toFund II and will improve the profile of Parkway's Atlanta portfolio."

 

 

Buckhead Office Tower Could Fetch $150 Million

ATLANTA (Oct. 22, 2010) - Finally, it's Atlanta's turn to get into the rarified air of potential record pricing for a local trophy office tower.

Regent Partners has brought 3344 Peachtree to the market. The developer/owner hired Chris Marshall of Jones Lang LaSalle to market the 469,921-square-foot office component of the mixed-use tower that also contain Sovereign, the luxury condo. Fewer than 25,000 square feet remain for lease in the building's office portion.

Jarred Schenke of Bisnow Atlanta broke the news of the building coming to market. The tower is shown at left, rising high above Atlanta Financial Center.

Given investors' appetite for well-stabilized core assets, 3344 Peachtree should attract interest from several well-capitalized bidders. This could apply upward pressure on pricing and lead to an incredible price and price-per-square-foot not seen around here in several years. 

This phenomenon has occurred in 24-hour cities across the country this year. In Chicago, 300 North LaSalle sold for a record price of $655 million, or $500 a square foot this summer. The buyer was KBS of Newport Beach, Calif.

No one in Atlanta expects any tower, even a new trophy asset, to attract $500 a square foot. But 3344 Peachtree's price could top $300 a square foot and even flirt with the $343 a foot Cousins got when it sold Pinnacle in Buckhead six years ago.

If Regent can get $320 a foot, 3344 Peachtree would sell for more than $150 million. 

With the Campanile deal done, 3344 Peachtree now is the office sale to watch.

 

Tug-of-War Likely as Atlanta Public Schools Eyes Apartment Complex for new Buckhead High

ATLANTA (Oct. 18, 2010) - Atlanta Public Schools' search for a site for a new "Buckhead High School" has sparked controversy and a potential tug-of-war with a well-known developer.

According to reports in The Atlanta Journal-Constitution and Creative Loafing, APS has its sights set on The Paces Apartments (left) for the new high school. This garden-style apartment complex has been talked about as a potential site for months, and APS confirmed its interest in a letter threatening its owner with condemnation through eminent domain, according to the AJC and CL.

The Paces Apartments was officially identified as a coveted site by NPU-B member Sally Silver, who told AJC reporter Kristina Torres that Paces Apartments owner John W. Grant asked her for help after he received a letter "suggesting the system may try to seize the property through eminent domain."

That's where the controversy comes in. The idea of eminent domain has been a hot topic since the U.S. Supreme Court's ruling in Kelo v. City of New London (Conn.). Some residents doesn't like the idea of the government telling them whom they can sell their property to, or being forced to sell it against their will - even if it's for the public good or to further economic development.

And here's the rub from the commercial real estate aspect. The Grant family has hired CB Richard Ellis multifamily power brokers Malcolm McComb, Paul Berry and Kevin Geiger to sell the apartment complex, and they have a very interested buyer.

While the potential buyer has not been identified, we hear it's former Post Properties CIO Tom Senkbeil. He's a major player in commercial real estate, and a sale to a Senkbeil-led team probably would bring a higher price than a sale to the public school system.

The Paces Apartments site seems like a good one for Buckhead High, but it might not be worth the fight.