Skyline Views

Atlanta's Mayor Knows Importance of #CRE to City

ATLANTA (Dec. 19, 2011) - If there's a major-city mayor who's worked better with the city's commercial real estate market than Atlanta's Kasim Reed, I'd like to meet him or her.

Mayor Reed has emerged as a critical figure in the city's attempt to resurrect its CRE market, and that's important. Commercial real estate built Atlanta, figuratively and literally. Some say commercial real estate is to Atlanta what cars are (were) to Detroit.

The long list of developers who made Atlanta an international city is long and includes John Portman, Tom Cousins, Frank Carter and Don Childress.

Last week, the Atlanta Commercial Board of Realtors honored Reed's efforts. The influential industry group awarded its Henry H. Robinson Award to the mayor at its annual business luncheon. (In photo at left, Mayor Reed, center, accepts the award from 2011 Awards Chair Billy Hobbs, left, and Board President John Ferguson of CBRE.)

The award goes to people outside CRE who make an "outstanding contribution to the real estate industry."

Reed's contrubtions are highly visible. He oversaw two key CRE transactions in the city in the past 14 months.

In July, Reed celebrated the sale of City Hall East, the humongous former Sears warehouse on Ponce de Leon, to hometown firm Jamestown. The 2 million-square-foot hodgepodhge of buildings sat mostly vacant after another CRE group failed in its attempt to redevelopment the property.

In Jamestown, Reed helped the city find a well-financed partner led by a Morningside resident who wanted to get Jamestown involved in its hometown after a 10-year development absence.

In November 2010, the mayor accepted from Cox Enterprises, on the city's behalf, the donation of the former Atlanta Journal-Constitution building at 72 Marietta St. downtown. The city will house employees in the building that had been the anchor of Marietta Street for three decades. An empty AJC building would have pulled down the Marietta corridor, which is showing signs a couple blocks away.

It clearly took vision and persuasion on Reed'd part to get Cox to give the city a building valued at $50 million (the tax writeoff notwithstanding).

Moving forward, I'm sure we'll see more CRE activity from the mayor's office that benefits city residents. (Disclosure: I served on the communications committee of Kasim Reed for Mayor, Inc.)

 

Streets of Buckhead Name Hard to Remove

ATLANTA (July 20, 2011) - New owner OliverMcMillan will have a tough time getting people to start calling The Streets of Buckhead development "Buckhead Atlanta." Apparently the firm will have a tough time removing all signs of the former name, too.

A "Streets of Buckhead" banner continues to fly several stories in the sky. The sign is attached to one of the several cranes that have been mostly idle for more than two years. It's no easy task climbing up there and replacing the sign.

For that matter, some Buckhead residents say they're still waiting for OliverMcMillan to erect new, prominent signage with the Buckhead Atlanta name.

The new name has received mixed reviews since OliverMcMillan made it big rebranding announcement in May at ICSC's RECon show in Las Vegas. 

Late last month, Studley tenant rep Clark Dean discussed the new name in a blog titled "Lost in Buckhead" for Atlanta Business Chronicle's Real Talk blog series. In his blog post, Dean says a good name establishes context and promotes distinction. "And 'Buckhead Atlanta,' the new name for the “Streets of Buckhead” development doesn’t seem to do either very well," he writes.

Word is, Dean's blog post set a record for overall number of hits by a single post on Real Talk. So, interest in the mostly retail project's name is sky high. Problem is, so is the sign with the old name.

Dewberry Picks Up Prime Peachtree Property

ATLANTA (July 6, 2011) - John Dewberry has picked up another prime Peachtree property in Midtown. 

An affiliate of his Dewberry Capital Corp. acquired the grassy field at the northwest quadrant of Peachtree & 17th streets for $6 million. In mid-June, Bisnow Atlanta broke the news that Dewberry had the property under contract, and Atlanta Business Chronicle reported over the weekend that the transaction closed June 27.

A mixed-use development dubbed 1400 Peachtree had been designed for the 1.7-acre tract, but the real estate recession ruined those plans.

With the deal, Dewberry adds a key north Midtown parcel to his collection. Dewberry stunned real estate watchers last year when he acquired Campanile at Peachtree & 14th. He also owns Peachtree Pointe, the Dewberry Ansley development site and Rhodes Center in the Pershing Point area of Midtown.

Dewberry Capital is working to rebrand the area as "Uptown" Atlanta.

 

Facebook Building Out Midtown Atlanta Office, Patch reports

ATLANTA (July 2, 2011) - Most Atlantans consider the West Midtown area to be a high-tech hotbed. News breaking this evening that Facebook, which dubs itself "the largest social networking site on the planet," is building out an office at Brickworks in West Midtown will solidy the area as King of Office Cool. This, according to a Patch.com story from contributor Caleb Spivak.

Last week, the day before the AJC hosted Mashable's Social Media Day Atlanta at Five Seasons in the Brickworks development, Facebook filed plans with the city of Atlanta for "office renovations" and tenant improvements. Facebook is building out Suite 134 at 1000 Marietta St., Spivak reports. Skyline Views confirmed this information on the city of Atlanta's website, which includes the building permit (shown above).

Richard Martin and George Rohrig attempted to position West Midtown as Atlanta's tech center in 1999, as the dot-com bubble filled with air. More than 10 years later, it's back.

It won't be Facebook's first Atlanta office, but it should create some buzz and leave no doubt West Midtown is the place for social networking/social media companies.  

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.

 

CMA: Jamestown Looks to Recapitalize New York's Chelsea Market

ATLANTA (May 27, 2011) - Jamestown, which is working to secure historic preservation tax credits and close on its acquisition of City Hall East in Atlanta, is seeking to recapitalize one of its well-known holdings in New York.

Atlanta-based Jamestown is seeking a 10-year, fixed-rate loan of up to $400 million on Chelsea Market, a 1.2 million-square-foot mixed-use development that covers a city block in Manhattan, according to the May 27 edition of Commercial Mortgage Alert. The newsletter quotes "market players" as the source of the information.

Jamestown is hitting the debt market after announcing plans to acuire the 25 percent of Chelsea Market it aleady does not own for $225 million. The German syndicate also has announced new plans to build new office space and a hotel atop the former Oreo Cookie factory.

The occupancy rate of Chelsea Market's 975,000 square feet of office and 225,000 square feet of retail was 95 percent at year end 2010, according to Commercial Mortgage Alert. Tenants include Google and Oxygen Media.

Though the credit markets remain somewhat tight, we expect Matt Bronfman and Co. at Jamestown to complete the funding task - a favorable rates.

 

 

As ICSC Kicks Off, Spotlight Shines Spotlight on "Turnaround Artist"

LAS VEGAS (May 22, 2011) - This year's ICSC RECon will be bigger than usual for Mark Toro. Managing partner of North American Properties, he comes to the large retail real estate convention as new owner of Atlantic Station's Town Center in Atlanta.

On New Year's Eve 2010, Cincinnati-based North American teamed with CB Richard Ellis Investors to acquire the retail center for a deep discount - $78.5 million. Though the center was 88 percent occupied at the time, several retailers were said to be paying discounted rents.

At 534,000 square feet, Atlantic Station's Town Center is the heart of the mini-city that rose from the ashes of a former steel plant. It's also the most-watched component fo the development, and it's achieved mixed results at best. 

But Toro has a plan to revitalize the young retail center. He leveraged the power of Twitter, Facebook and ULI-sponsored charette-style meet up to help form ideas. And Toro's bold plans landed him on the cover of the May edition of National Real Estate Investor. The cover features a large photo of Mark standing at Atantic Station with the words "Turnaround Artist."

It's great timing for Toro because the issue will be the one read by thousands of RECon attendees.

Toro, who took to Twitter to talk about his trip to Vegas, is feeling pretty good about the market these days. "After years in the abyss, it feels great to be headed to #Vegas with a smile on our faces," he said on Twitter yesterday.

As for Atlantic Station, Toro continues to tell the story of how North American will "unmall" the Town Center. "It tried to be all things to all people," Toro told NREI writer Ben Johnson. "It wanted to be a mall, but it's not a mall."

 For more on Toro, check out this Q-and-A from WNS client Hartman Simons' blog.

Stars of Atlanta Commercial Real Estate Fill Downtown Development Day Panels

ATLANTA (Oct. 13, 2010) - Central Atlanta Progress, in partnership with Commercial Real Estate Women (CREW) of Atlanta, has set the line ups for the breakout panels at CAP’s Eighth Annual 2010 Downtown Development Day, which will take place Nov. 4 at AmericasMart Building 2 WestWing. Experts from Cousins Properties, Forest City Enterprises, Bank of America Merrill Lynch, Atlanta Development Authority and other esteemed companies will offer their knowledge and insight into what’s happening in Downtown. The panels will run concurrently from 10:45 a.m.-12 noon.

Panel 1 will discuss how to attract retail and residential development to Downtown. Panelists include Jim Borders, CEO, Novare Group; Michael I. Cohn, executive vice president retail investments, leasing and asset management, Cousins Properties; Sarah Kirsch, senior principal, RCLCO; and Harvey Rudy, senior director of development, Barry Real Estate Cos. The panel will be moderated by Herman H. Howard, vice president - Atlanta regional practice leader, HOK.

Panel 2, “Land of Opportunity: Underutilized Parcels in Downtown,” will look into the available land downtown and what might be developed there. Panelists are Jennifer Ball, vice president of planning, Central Atlanta Progress; Emerick J. Corsi, executive vice president of development, Forest City Enterprises; Tyrone Rachal, senior development manager of tax allocation districts (TADs) and NMTC programs, Atlanta Development Authority; and Jeffrey L. Warwick, market executive, Bank Of America Merrill Lynch. Tony Wilbert, president, Wilbert News Strategies, will moderate the panel.

Panel 3 will discuss how to boost Downtown’s economy in 2011 through hospitality, tourism and nightlife. The panelists will be William Pate, president and CEO, ACVB; Erica Qualls, general manager, Atlanta Marriott Marquis and chair of Atlanta Hotel Council; Matt Ruppert, proprietor, Noni’s Italian Bar & Deli; and R. Mark Woodworth, executive vice president, Colliers PKF Consulting USA. Tony Conway, president and owner, A Legendary Event, will moderate this panel.

 

Preceding the panels, Bernie Marcus, chairman of The Marcus Foundation, will give the keynote address where he will discuss the economic impact of the Georgia Aquarium on the city and state and how the attraction has created a destination to inspire visitors to visit and stay Downtown. Marcus is well known for funding the Georgia Aquarium in downtown Atlanta. Early next year, the aquarium open its new $110 million dolphin exhibit expansion that he also funded.

Central Atlanta Progress President A.J. Robinson will provide updates on Downtown’s newest developments and those in the planning stages. He’ll also discuss how Downtown is on the cutting edge of new technology, upgrading its infrastructure and becoming a preferred destination for Atlanta’s young and hip residents.

“Downtown is emerging as the place to live, go to college and do business in Atlanta,” Robinson said. “Downtown Development Day gives us the opportunity to spotlight what’s occurring and share our success stories.”

At the event, Robinson will present the Downtown Atlanta Economic Impact Award, and Atlanta magazine Publisher Sean McGinnis will present the Atlanta Downtown Design Excellence Award.

Following the program, attendees will have the opportunity to take an optional bus and walking tour of Downtown Atlanta. The tour will allow Atlanta’s real estate community and Downtown stakeholders interested in the area’s future the opportunity to discover the city’s new and exciting changes.

The event will also feature an expo to showcase new and planned real estate projects as well as Downtown-focused initiatives. The expo provides a great opportunity to network within the industry and business community.

Event sponsors include: Gold: Lanier Parking and AmericasMart; Silver: Barry Real Estate Companies, Georgia Power, Reznick Group, Richard Bowers & Co. and Cousins Properties; Bronze: Atlanta Development Authority, Walter P. Moore and Associates, EpsteinBeckerGreen, Stites and Harbision, PLLC, and Wilbert News Strategies.

To purchase tickets or a sponsorship, go online or contact Tahmida Shamsuddin at 404-658-5982 or tahmida@atlantadowntown.com with any questions.

About Central Atlanta Progress:

Founded in 1941, Central Atlanta Progress is a private nonprofit community development organization providing leadership, programs and services to preserve and strengthen the economic vitality of Downtown Atlanta. With a board of directors of Downtown’s top business leaders, CAP is funded through the investment of businesses and institutions.

 

 

As Acquisitions Slow, Multifamily Companies to Focus on Development

By Tony Wilbert, WNS PR

ATLANTA (Sept. 29, 2010) - As multifamily acquisition opportunities begin to dry up, apartment development will return in select cities, a panel of top multifamily experts said today.

"The acquisition window was a lot shorter than we all thought," Post Properties CEO Dave Stockert said. "We think we have a window in the next couple years" on the development front.

At Amli Residential Partners, "My job changed from acquisition to development in about a week," CEO Greg Mutz said, half-joking. 

Stockert and Mutz joined Gables Residential President and CEO David Fitch and Wood Partners CFO and COO Joe Keough to discuss the multifamily market at a Bisnow Atlanta panel at the W Hotel in Midtown. Some 500 people packed hip hotel's Great Room to hear the panel, moderated by King & Spalding real estate partner Clayton Howell.

When Post does start developing again, don't look for the public REIT to jump at the chance to be part of additional mixed-use developments. Stockert said it's difficult to match up the residential and retail cycles to ensure the project works as well as planned.

"We're trying to look at some of our existing projects and make them a little more simple," he said. While not specifically mentioning Allen Plaza, Stockert's comments seemed to put in doubt its commitment to the struggling mixed-use project in downtown Atlanta.

Post Allen Plaza initially was scheduled to open in 2009. The project has not been started.

Though multifamily companies will shift their focus to new product, Stockert doesn't expect new development to ramp up too quickly, thanks to tighter debt markets. "I don't think it will be anything like 0-60 [mph] because I think the debt markets will hold things back."

And those companies such as Post that can access debt through lines of credit will be paying a higher price for it, the Post CEO said. "We're going to pay a lot bigger spread than we paid before."

Having a tougher time financing new product "will blessedly, at least for the next little bit, slow things down," Mutz added.

As for the overall industry, Mutz said demand for rentals is going up, and that's leading to higher rents. However, the lack of new job creation is a concern. "We could end up stalling a bit. Unless we sart getting job recovery, [the multifamily rebound] will stall at some point," he said.