ALPHARETTA, GA. — A joint venture between Hines and Cousins Properties will develop 10000 Avalon, a 251,000-square-foot, Class A office building in Alpharetta, a northern suburb of Atlanta. The new building will be the second and final office building within Avalon, a 2.4 million-square-foot mixed-use development. The total development cost for the building is expected to be $97 million. Cousins has a 90 percent ownership interest in the joint venture and Hines has a 10 percent ownership interest. AXIS Reinsurance Co. will anchor the new building, occupying 76,000 square feet. Sam Holmes of CBRE arranged the 15-year lease on behalf of the insurance company, which is a subsidiary of AXIS Capital Holdings Ltd. Hines and Cousins will start construction on 10000 Avalon this month, with initial occupancy scheduled for early 2020. The building is located adjacent to 8000 Avalon, which Hines and Cousins delivered in June 2017. The building is currently 98 percent leased to tenants such as SAP, Microsoft and coworking operator Spaces.
ATLANTA — Hotel and brand management company Dream Hotel Group, in partnership with Atlanta-based Cartel Properties, has unveiled plans to develop Dream Atlanta, Buckhead. The 200-room hotel will be located near the intersection of Peachtree, Roswell and East Paces Ferry roads in Buckhead Village. In addition to guest suites, Dream Atlanta, Buckhead will feature 90 private residences, a spa and wellness concept and five dining and nightlife venues, including a 17,000-square-foot rooftop pool, bar and lounge. The dual-tower development will also include 80,000 square feet of additional office and retail space. New York-based Dream Hotel Group currently operates 18 hotels, with more than 20 others in various stages of development. Atlanta-based architecture firm Cooper Cary is designing Dream Atlanta, Buckhead, which is scheduled to open in 2021.
GREENSBORO, N.C. — The Fresh Market Inc. announced this week that it will close 15 stores nationwide, including seven in the Southeast. The impacted stores were selected after an analysis of overall growth and long-term financial performance, according to the Greensboro-based grocer. “Over the last eight months, our company has been executing a turnaround plan and we’ve seen great progress,” said Larry Appel, CEO of The Fresh Market, in a statement. “However, for a variety of reasons unique to each retail location, that progress is not evenly distributed and, as a result, we have decided to close these long-term, underperforming stores.” In the Southeast, The Fresh Market will close locations in Atlanta and Snellville, Ga.; Louisville, Ky.; Charlotte, N.C.; Hendersonville, Tenn.; and Winchester and Charlottesville, Va. Other affected locations are located throughout Illinois, Indiana, New Hampshire and Wisconsin. The stores will close over the next two to four weeks.
FORT MYERS, FLA. — Coastal Ridge Real Estate and H. Katz Capital have acquired Coastal Village Apartments, an 800-bed student housing community in Fort Myers, for $44 million. The community is located at 19401 Skidmore Way, less than three miles from Florida Gulf Coast University. Constructed in 2004, Coastal Village Apartments features four-bedroom, fully furnished units with bed-to-bath parity. Community amenities include a lakeside pool, barbecue and picnic areas, clubhouse, fitness center, sand volleyball court and a computer lab. Kevin Larimer, Greg Gonzalez, Jason Stanton and Cole Whitaker of Berkadia arranged the transaction on behalf of the undisclosed seller.
SYKESVILLE, MD. — Warfield Cos. has acquired a 91-acre site in Sykesville, roughly 25 miles northwest of Baltimore, with plans deliver a new mixed-use project. Upon completion, the former site of the Springfield Hospital Center will include 600,000 square feet of office, light industrial and retail space, as well as roughly 180 residential units, a full-service hotel and a 27-acre town park. The site, which will be rebranded “Warfield at Historic Sykesville,” includes 12 buildings that were constructed in the early 20th century. The buildings carry historical designations from the National Park Service and Maryland Historical Trust. Three of the buildings are restored and leased to Nexion Health, Zeteo Tech and The Carroll County Dance Center. The remaining nine buildings will be rehabilitated and repurposed for future users, owners and tenants. Construction and restoration activities are scheduled to begin in a few weeks on the first speculative office building. Groundbreaking for the first phase of new construction, a 145-unit townhome project, is expected to begin this month, with completion slated for early 2019. Elm Street Development is developing the townhome portion of the project. Dennis Boyle of Lee & Associates is handling the leasing assignment for the project’s commercial, retail …
LAS VEGAS — VICI Properties has acquired the 23-story Octavius Tower at Caesars Palace Las Vegas for $507.5 million in cash. Under the terms of an existing ground lease, the REIT will lease the 668-room hotel back to the seller, Caesars Entertainment Corp., which currently operates the property. Caesars’ annual rent payment to VICI will be $35 million. Constructed in 2012, the hotel spans 1.2 million square feet and is located on the Flamingo Avenue side of Caesars Palace Las Vegas. At the time of closing, VICI announced that it will also acquire Harrah’s Philadelphia from Caesars. The original purchase price of $241.5 million will be reduced to $82.5 million to reflect modifications to VICI’s existing leases with Caesars. “These agreements with VICI unlock more than $500 million in value from our real estate assets to support value-adding growth opportunities and reduce the volatility of our future rent payments, demonstrating our commitment to create value for our shareholders while maintaining financial discipline,” says Mark Frissora, president and CEO of Caesars Entertainment. Constructed in 2006, Harrah’s Philadelphia underwent a renovation in 2017. The property spans 2 million square feet and includes 2,450 slot machines, live table games, and several bars, restaurants and parking garages. …
In 2008, the credit crisis had gripped the world and in particular, the Midwest. Lenders, whether CMBS or life insurance companies, had put large “X’s” through Michigan on their maps. And Detroit? South of 8 Mile, you couldn’t get a deal done. Enter entrepreneur businessman Dan Gilbert. Inspired by an intern spurning his then Livonia-based Quicken Loans for a more urban, walkable environment in Chicago, Gilbert made the bold decision to move his entire operation to downtown Detroit. Now in 2018, Ford, GM and Chrysler (and various suppliers) are humming, resulting in a decade-low statewide unemployment rate of 4.8 percent. The central business district (CBD) and Midtown Detroit multifamily occupancy rates are at 95 percent, with office just a touch under that, according to CoStar Group. And in downtown Detroit, which many in the metro area once regarded as a quasi-War Zone, vacant buildings are selling for millions of dollars and millennials in yoga pants dot the streets. Detroit’s resurgence since 2008 has earned it the nickname of “America’s Great Comeback City,” with no better metaphor than Ford Motor Co. recently buying one of the world’s great eyesores, Michigan Central Station, the former train station. However, the city’s renaissance is …
Throughout metro Detroit, employment and population gains are bolstering apartment demand. Following the creation of 40,200 jobs one year ago, employers in the metro area added 22,200 people to payrolls during the past four quarters. The hiring brought the unemployment rate to 4.5 percent in March, down 10 basis points year over year. The tighter rate may make it more difficult for some employers to find qualified workers to fill openings. During the past 12 months, the hospitality sector led hiring with 8,200 additional workers. New hotel openings contributed to the increase. Sustained job growth has helped to boost the metro population by nearly 11,700 people and 6,600 households over the past year. Many of these residents are opting to rent, as rising home prices place homeownership beyond the reach of more households. During the past five years, the median price of a single-family home has soared 68 percent to $177,053 as of March. Highly amenitized homes or properties in desired areas such as downtown Detroit, Troy or Royal Oak, have much higher median prices, making renting a more affordable option in numerous areas of the region. Construction concentrations Multifamily construction is gaining traction in the suburbs. Completions in the …
SAN ANTONIO — Dallas-based Colony Industrial has purchased Enterprise Industrial Park Building III, a 359,251-square-foot warehouse/distribution property located one mile from Interstate 35 in San Antonio. Developed by Atlanta-based Robinson Weeks Partners, the cross-dock building features 32-foot clear heights, 73 trailer spaces, office space and an ESFR sprinkler system. Colony Industrial acquired Buildings I and II in Enterprise Industrial Park in March.
CARROLLTON, TEXAS — Transwestern has brokered the sale of Edentree, a 360-unit multifamily property in Carrollton, a northern suburb of Dallas. Edentree offers one- and two-bedroom units and amenities such as a pool, fitness center, outdoor picnic area, on-site laundry facilities, business center and a children’s play area. Connecticut-based Beachwold Residential LLC sold the property to an undisclosed buyer that utilized a 1031 exchange to complete the transaction.