Georgia

Retail Investors View Atlanta as a Looming Gateway Market, but More Affordable

by Alex Tostado December 2, 2019

As we enter the last quarter of 2019, well into the longest economic expansion in history, the Atlanta retail real estate market is healthy and active, with multi-year retail rent and occupancy growth. The city’s retail investment sales volume totaled $2.2 billion in 2018, making it the eighth most active retail investment market in the country. Not a gateway market, yet In my career, Atlanta has always been a “non-institutional” market, and has stayed largely off the radar of deep pools of institutional capital aimed at New York, Boston, San Francisco and other gateway cities with deeper economies, higher rents, lower cap rates and higher values. Nevertheless Atlanta’s population, GDP and growth make it the undisputed capital of the Southeast by a country mile. The metro’s shopping centers have benefitted from this paradox: it has the biggest economy in the South and is among the top metros in the nation for employment and population growth. However, its average rents are lower and its average retail cap rates are higher than almost every one of its peers in the Southeast and the United States at large. Despite the overblown narrative of the retail apocalypse and despite how or when the current …

December 2, 2019

Georgia Market Reports Multifamily Southeast Southeast Market Reports

Forget Atlanta — Capital Cascades into Georgia’s Secondary and Tertiary Markets

by Alex Tostado November 27, 2019

Georgia’s secondary and tertiary multifamily markets continue to demonstrate growing attraction as capital flows from investors leaving the Atlanta metro area in search of higher yield transactions. The greater Georgia market, which spans the state excluding the 29-county Atlanta metro area, has become a destination for investment due to growing capital inflows to the Southeast and cap rate compression in metro Atlanta. Multifamily transaction volume in the Southeast totaled $11.8 billion in second-quarter 2019, up 25 percent year-over-year, allowing more capital to enter Georgia’s secondary and tertiary markets. The trickle-down effect of investment into these markets, boosted by strong job growth and increasing renter households, works to promote a strong renter marketplace with increasing returns in the region. Georgia markets demonstrated tightening fundamentals and noticeable rent gains in recent years, particularly south of Atlanta, due to supply-side pressure and limited new deliveries. According to CoStar Group, metro Atlanta delivered nearly 11,000 units, up 15 percent year-over-year through the second quarter, while Georgia’s secondary and tertiary markets delivered roughly 2,200 in total, down 40 percent. Greater Georgia’s lack of supply has generated pent-up demand in multifamily, resulting in residents who are willing to pay more for higher value assets while landlords …

November 27, 2019

Alabama Georgia Loans Multifamily Retail Southeast

Trillium Arranges Financing for Four Apartment Communities, Walgreens-Leased Store in Columbus, Georgia

by John Nelson November 26, 2019

COLUMBUS, GA. — Columbus-based Trillium Capital Resources has arranged a refinancing package for four Class B and C apartment complexes and a store leased to Walgreens in the greater Columbus area. Scott Taccati of Trillium Capital arranged the approximately $19.7 million financing through a life insurance company on behalf of the borrower, a local real estate developer. The loan package for the apartments was underwritten with a fixed 3.4 percent interest rate and a 15-year amortization schedule. Three of the apartment communities are located in Columbus and one is located in nearby Phenix City, Ala., and the average age of the four communities is 30 years. The Walgreens loan was underwritten at a fixed 3.65 percent interest rate and a 15-year amortization schedule. The Walgreens property was constructed in 2011 in Columbus. Trilium Capital also recently arranged an approximately $26.8 million refinancing for a Class A multifamily complex located in the northern section of Pensacola, Fla. Taccati arranged the loan on behalf of the borrower, an undisclosed Phenix City-based developer, through a regional bank. The 10-year loan features a 3.15 percent interest rate.

November 26, 2019

Development Georgia Industrial Southeast

OmniTRAX, Broe Group Break Ground on $92M Facility for A&R Logistics Near Port of Savannah

by Alex Tostado November 25, 2019

RINCON, GA. — Transportation holding company OmniTRAX Inc. and investment firm The Broe Group have broken ground on a build-to-suit facility within Savannah Gateway Industrial Hub, an industrial park located in Effingham County 12 miles from the Port of Savannah. Denver-based OmniTRAX is the master developer of the 2,700-acre industrial park owned by Effingham County Industrial Development Authority. Louisville, Ky.-based A&R Logistics Inc. has signed a 12-year lease guaranteeing approximately 610,000 square feet of the project with an option to expand to 1 million square feet. Completion of the facility is scheduled for the fourth quarter of 2020. OmniTRAX will construct more than seven miles of park-serving rail infrastructure, a multi-customer OmniTRAX rail yard located nearby and a 200-plus-car dedicated rail yard for A&R. OmniTRAX will spend $92 million constructing the building and railyard where A&R will package and ship plastic pellets, according to the Savannah Morning News. A&R will receive, process and send out shipments internationally from the industrial park via its connection with Class 1 railroads CSX and Norfolk Southern.

November 25, 2019

Civic Development Georgia Retail Southeast

City of College Park Opens 5,000-Seat Gateway Center Arena in South Atlanta

by John Nelson November 22, 2019

COLLEGE PARK, GA. — The City of College Park has opened Gateway Center, a multipurpose sports and entertainment venue that serves as home of the WNBA’s Atlanta Dream team and the College Park Skyhawks, the official NBA G League affiliate of the NBA’s Atlanta Hawks. Designed by Atlanta-based tvsdesign, Gateway Center is located at 2330 Convention Center Concourse in the south Atlanta city of College Park and contains a maximum of 5,000 seats. A partnership between Georgia International Convention Center (GICC) and The Fox Theatre will operate the arena. The 100,000-square-foot property, which has been in progress since February 2018, was funded by the City of College Park and is located next door to the GICC and near Hartsfield-Jackson Atlanta International Airport. In addition to home basketball games, the arena will also be used to host graduations, conferences and conventions. The Fox Theatre will also book a variety of entertainment events including comedy performances, family shows, concerts and lifestyle events at the arena.

November 22, 2019

Acquisitions Georgia Multifamily Southeast

Harbor Group Sells Metro Atlanta Multifamily Property for $75M

by Alex Tostado November 21, 2019

BUFORD, GA. — Harbor Group International LLC (HGI) has sold Preserve at Mill Creek, a 400-unit multifamily property located in Buford, 32 miles northeast of Atlanta, for $75 million. The buyer was not disclosed. The asset is located 1400 Mall of Georgia Blvd. and features one-, two- and three-bedroom apartments, as well as a swimming pool, tennis courts and a fitness center. The property is near Interstate 85 and Ga. Highway 20 and the Mall of Georgia. First Communities manages the property. HGI recently completed a $3.9 million renovation to the community. The Norfolk-based investor also purchased The Cedars at Elm Hill in Nashville earlier this year with plans to make capital improvements.

November 21, 2019

Acquisitions Georgia Industrial Office Southeast

JLL Brokers $71.3M Sale of Industrial Park in Norcross, Georgia

by Alex Tostado November 21, 2019

NORCROSS, GA. — JLL has brokered the $71.3 million sale of Gwinnett Park, a 981,720-square-foot light industrial and business park portfolio composed of 18 buildings in the Atlanta suburb of Norcross. Dennis Mitchell, Matt Wirth and Britton Burdette of JLL marketed the property on behalf of the seller, California-based Sperry Equities. Dogwood Industrial Properties purchased the portfolio. Dogwood, owned by TPG Real Estate Partners, specializes in multi-tenant industrial assets. Gwinnett Park is located at 4405 International Blvd., near Interstate 85 and approximately 20 miles northeast of downtown Atlanta. The business park’s buildings were constructed between 1973 and 1997 and feature 18- to 22-foot clear heights, a combination of shallow bay suites, a mix of grade-level and dock-high doors, parking and office space. The property is approximately 87 percent leased to more than 55 tenants in various sectors, including manufacturing, healthcare, logistics, education, consumer goods, marketing, financial services, engineering and commercial and business services.

November 21, 2019

Features Georgia Retail Southeast

Sports Entertainment Provides a Promising Future for Retail Real Estate

by Jeff Shaw November 21, 2019

ATLANTA — The future of food and beverage retail is…sports? To hear from “The Future of Restaurants & Entertainment” panel at the ICSC Southeast Conference & Deal Making event, sports-centric concepts are a solid bet for retail real estate owners to pursue going forward. Produced by the International Council of Shopping Centers (ICSC), the event was held Nov. 13-15 at the newly renovated Georgia World Congress Center in downtown Atlanta. Justin Amick, president of Painted Hospitality, spoke during the panel about his two venues in Atlanta, The Painted Pin and The Painted Duck. Both locations have an industrial motif and offer an expanded dinner menu, craft beer and cocktails and classic parlor games such as shuffleboard and horseshoes. The differentiator, though, is the boutique bowling alley. Amick said the idea is to attract patrons with the games and provide an experience while making money via food and beverage. “Painted wasn’t the first to invent the high-end bowling concept — the first to do so was probably Lucky Strike — but with our model of gaming, food and beverage, dancing and sports all under one roof, we do it well,” said Amick. His company recently announced a second location of The Painted …

November 21, 2019

Acquisitions Georgia Industrial Southeast

JLL Brokers $12.6M Sale of Pactiv Distribution Center in Covington, Georgia

by John Nelson November 20, 2019

COVINGTON, GA. — JLL has closed the $12.6 million sale of Pactiv Distribution Center, a 300,000-square-foot, warehouse and distribution facility in Covington, approximately 40 miles east of Atlanta. A partnership between Great Point Properties and The RSP Cos. acquired the 16.4-acre asset, located at 1776 Liberty Drive. The recently renovated facility is adjacent to a rail-served concrete terminal and Interstate 20. The distribution center is fully leased to Pactiv LLC, a global manufacturer and distributor of food packaging and foodservice. The building features 24- to 26-foot clear heights, 170-foot truck court depth, 14 dock doors, one drive-in door and office space. Additionally, the property is less than one mile from Covington Airport and about 45 miles from Hartsfield-Jackson Atlanta International Airport. Britton Burdette, Pete Pittroff and Brent Bono of JLL, represented the seller, IAI Covington LP, in the transaction.

November 20, 2019

Development Georgia Southeast Student Housing

Stratus Development Breaks Ground on 286-Bed Student Housing Community Near University of Georgia

by John Nelson November 19, 2019

ATHENS, GA. — Stratus Development Group has broken ground on The Haven of Athens, a 286-bed student housing community located one-and-a-half miles from the University of Georgia’s main campus in Athens. The development will offer two-, three-, four-, five- and six-bedroom, cottage- and townhome-style units with bed-to-bath parity. Shared amenities will include a resort-style swimming pool, study rooms, a fitness center, dog park, hammock park, fire pit and covered parking. The development is scheduled for completion in fall 2020.

November 19, 2019

Newer Posts

Older Posts