Skyline Views

DeKalb Farmers Market Wants to Quadruple in Size

ATLANTA (April 13, 2012) - Things must be going well at Your DeKalb Farmers Market.

The well-known and beloved purveyor or organic, fresh foods wants to add 518,000 square feet of retail space to its 140,000-square-foot spot at 3000 Ponce de Leon Ave. in Decatur. This, according to a Development of Regional Impact (DRI) filing that DeKalb County made with the state of Georgia.

In addition, DeKalb Farmers Market wants to add a new 718,367-square-foot warehouse and 2,637 new parking spaces. The new parking would increase the number of spaces at the location to 3,400.

DeKalb Farmers Market (pictured above in an ajc.com photo) opened June 2, 1977, with 7,500 square feet of space. The demand for and popularity of organic, fresh foods and farm-to-table restaurants has helped fuel fast-paces growth the farmers market. Today, DeKalb Farmers Market is a "140,000 sq. ft. true world market serving up to 100,000 people per week," accoridng to its website. 

If all goes as planned, DeKalb Farmers Market will be a lot bigger and serve a lot more people when the expansion opens in October 2013.

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.

 

 

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.

 

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.

Midwest Developer Plans Outlet Mall North of Atlanta

ATLANTA (March 24, 2011) - Four years after Cousins Properties filed plans to develop The Avenue Ridgewalk in Woodstock, a Midwest retail firm has filed plans to build a 435,000-square-foot factory outlet center on the site.

Horizon Group Properties of Michigan plans to open the outlet center on Woodstock Parkway near I-575 in May 2013, according to a filing made public by the state of Georgia. In addition to the retail center, the project would contain six outparcels.

Horizon has changed the name of the project from The Avenue Ridgewalk to The Outlet Shoppes at Atlanta. Horizon's website says "the site is highly visible from Interstate I-575" and has daily traffic counts that exceed 94,000 vehicles.

The center would mark Horizon Group's entry into the Southeast. The Cherokee Ledger News broke the story about The Outlet Shoppes yesterday. Bill Butler, CEO of Riverwalk Holdings, LLC, told the Ledger News a major announcement about the development would be made within a couple months.

The Great Recession slammed retail development in Atlanta, especially its suburbs. So it's nice to see plans for something new. Maybe the recession really is over.

 

Word on Streets: Buckhead Retail Project to Start Again in March

ATLANTA (Feb. 18, 2010) - The Streets of Buckhead, the ambitious upscale retail project from native son Ben Carter, is quiet once more today. But that could change next month.

Word on the streets of Buckhead is that construction on the on-and-off-again project will resume next month. Last month, Carter told The Wall Street Journal and The Atlanta Journal-Constitution that he planned to secure $200 million in new funding within 30 days. If so, the money could arrive next week.

This morning, during his "State of Buckhead" address before the Buckhead Business Association, unofficial Buckhead "mayor" Sam Massell, touted Ben Carter's fund-raising ability. Former Atlanta Mayor Massell also offered a litany of good news stories about his beloved Buckhead that have appeared in the past 30 days. Here's his list, courtesy of Atlanta INtown, which published the talk.

"And, if that’s not impressive enough, let me review with you a sample of news stories that appeared in local media JUST DURING THE LAST THIRTY DAYS: Vipel Patel is bringing his U.S. Café concept to Lindbergh Vista Apartments; Retailer of offbeat labels, Bill Hallman Studio has opened in 3400 Around Lenox; Tomo’s Sushi is opening in the Ritz-Carlton Residences on Peachtree; Sovereign sold a 48th-floor penthouse for a record closing price of $4.2 million, and another one for $2.35 million; Just Loaf’’n has opened at 3173 Roswell Road; Turner Construction has signed a 10-year, 30,000-square foot lease in Two Alliance Center; Regent Partners has leased close to 90 percent of its commercial real estate space at its 3344 Peachtree Building; Fidelity Bank reports 4th quarter profit; CariSoul Cuisine has opened in the Darlington; The law firm of McCurdy & Candler will move its headquarters from Decatur to 39,000 square feet in Piedmont Center;

"FranchiseMart of West Palm Beach has opened at 2221 Peachtree; Buckhead is to get a new high school (and second middle school); The Havana Club has opened at 3112 Piedmont Center; Generation Mortgage Co. increased its space in Piedmont Center by over 29,000 square feet; An Athens restaurant operator is opening in old Carbo’s space at 3717 Roswell Road; Global Living furniture store has opened at 3106 Early St.; Investment advisory firm French Wolf & Farr has relocated to the Pinnacle Building in order to double its capacity; Baroni Italian has signed a lease with Selig for the former Wolfgang Puck Express space; Aaron’s reports 4th quarter revenue increased by 6.2%; Cousins Properties reports sales of 50 units in less than three months in 10 Terminus Place, and “Streets of Buckhead” developer Ben Carter reports he is in talks with investors to raise $200 million to resume work on this luxury retail project . . . which, like the cup half full, it’s where I see a building half built.

"That’s over 20 positive news stories, and, I repeat, all of that was reported in the last month!"

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.

Florida Developer Wants to Finish What Actress Kim Basinger Started

By Tony Wilbert, Wilbert News Strategies LLC

ATLANTA (Dec. 28, 2009) - A Florida developer apparently wants to pick up where Georgia beauty Kim Basinger left off.

Halvorsen Development of Boca Raton, Fla., has filed plans for a 1.4 million-square-foot development near Chateau Elan at Ga. 211 and I-85 in Braselton, Ga., according to the Georgia Developments of Regional Impact (DRI) Web site. The proposed project, dubbed "Braselton 1" for now, would comprise 832,960 square feet of retail, a 16-screen movie theater, two hotels, 322,000 square feet of "future" office space, two restaurants and 10 outparcels.

Braselton gained national notoriety in 1989, when actress Kim Basinger joined forces with the Ameritech Pension fund to acquired the town for $20 million. Together, they had big plans for turning the small town into a major tourist attraction, but they never materialized. Since then, Braselton has emerged as a player in the regional distribution center market.

Halvorsen, whose own Web site features photos of Publix-anchored strip centers and Publix shopping carts, has requested that the land be rezoned and annexed, according to the DRI filing. The overall project would be completed by 2014.

Cranes of Buckhead Likely Staying Put

ATLANTA (Nov. 25, 2009) - When Ben Carter Properties initially announced plans for the ultra-high retail development now known as The Streets of Buckhead, the opening date was some time this month (just in time for Black Friday 2009).

But, as we all know, the economy tanked in large part due to the crash in the bundled-mortgage-security industry that fueled much of the growth in real estate market. As a result, some Streets of Buckhead tenants backed out, filed for bankruptcy or asked for delayed opening dates.

The latest information has construction starting again "as late as early next year," or in a couple months. Because restart dates have been announced and extended, it'll be no surprise if the restart date is pushed back again. 

That had led to questions about all the cranes at The Streets of Buckhead - especially why they're still standing if there's no solid estimate about when they might be needed again.

The answer likely lies in the cost of disassembling and transporting the cranes back to from wherever them came. Moreover, demand for cranes is not too high right now, with most commercial construction on the shelf. 

Here's some good information about the costs of cranes from an article at Howstuffworks.com by Marshall Brain:

The typical fee for installation and disassembly runs around $60,000. This price includes shipping the crane to the site, renting the mobile crane used to assemble the tower crane, the cost of the crew that handles the assembly, etc. A typical monthly fee for a 150-foot-tall tower crane is approximately $15,000, with an additional charge to rent the climbing frame and extra mast sections.

The information above likely explains why the cranes at The Streets of Buckhead are staying put for now. Let's hope they're back at work on the retain center soon.