Georgia

From Perimeter to Peachtree, Atlanta’s Office Market is Gaining Momentum

by Alex Tostado July 15, 2019

8West. Star Metals. Coda. These are the some of the names of Atlanta’s biggest office developments and the city’s largest undertakings. Measuring more than 1 million square feet of Class A office space between them, Midtown Atlanta’s skyscraper scene is about to be drastically altered. The gravity of these major mixed-use properties, along with the allure of top talent at nearby universities like Georgia Tech, gives the Midtown submarket an increase in both developer activity and price-per-square-foot rates. The Midtown/Perishing Point Class A office space average is $35 per square foot, higher than the Atlanta-area average of $29.79 per square foot. However, buildings like Star Metals and Coda are not designed with just any tenant in mind. Speculative developments in the Atlanta market have come to a standing halt as most offices in the region are now built to fit a specific company’s needs, rather than spaces built with the hope the right tenant will come along. Most larger new developments are either a build-to-suit for a specific tenant or are anchored by a tenant that is taking up the majority of the space. Additionally, with lower required returns from REITs and the private sector, finding capital is not nearly …

July 15, 2019

Development Georgia Industrial Southeast

Seefried Industrial to Build 700,000 SF Amazon Fulfillment Center in Metro Atlanta

by Alex Tostado July 12, 2019

STONE MOUNTAIN, GA. — Seefried Industrial Properties will develop a 700,000-square-foot Amazon fulfillment center in Stone Mountain on the Gwinnett-DeKalb county line. Previously dubbed “Project Rocket,” the center will house 1,000 Amazon employees, who will pick, pack and ship customer orders. Jobs will include human resources, operations management, safety, security, finance and information technology. According to the Atlanta Journal-Constitution, Amazon could spend up to $200 million on the project. A timeline for completion was not disclosed.

July 12, 2019

Development Georgia Industrial Southeast

Kroger, Ocado to Bring $55M Customer Fulfillment Center to Metro Atlanta

by Alex Tostado July 12, 2019

FOREST PARK, GA. — The Kroger Co. and Ocado, an online grocery retailer based in the United Kingdom, will build a $55 million customer fulfillment center in Forest Park that will create 400 jobs. According to Georgia’s governor’s office, the two companies could invest upwards of $121 million in the center. The announcement of the center, which will be an automated warehouse facility with digital and robotic capabilities, comes on the heels of Kroger and Ocado breaking ground on their first fulfillment center in Monroe, Ohio. The two companies have committed to build 20 centers across the country. This is the second announced center in the Southeast, following a center in Central Florida. The Forest Park customer fulfillment center will be located at 2000 Anvil Block Road within the Gillem Logistics Center and will occupy 375,000 square feet. Kroger already occupies a 1.3 million-square-foot warehouse within the same industrial park. A ground breaking is scheduled for later this year with completion slated for 2021.

July 12, 2019

Georgia Leasing Activity Office Southeast

WeWork Leases Total of 150,000 SF of Space in Metro Atlanta

by Alex Tostado July 11, 2019

ATLANTA — WeWork has signed three office leases in metro Atlanta totaling 150,000 square feet. In the first lease, WeWork will occupy 35,000 square feet and all three stories of office space within a mixed-use project located at 120 W. Trinity Place in downtown Decatur. The space will accommodate 540 members. Atlanta-based Cousins Properties is developing the project, which will include 18,000 square feet of retail and restaurant space, 329 residential units and a parking deck, in addition to WeWork’s office space. Construction is expected for the first half of 2020. WeWork’s second lease is in Atlanta’s Central Perimeter district in Sandy Springs. The coworking company will lease 70,000 square feet of office space at 1155 Perimeter Center W. WeWork will occupy three floors and will accommodate 1,200 members. The space is expected to open in early 2020. WeWork also signed a 45,000-square-foot lease spanning two floors along the Atlanta BeltLine’s Eastside Trail near Ponce City Market. WeWork will occupy the space within the 725 Ponce project by the end of this year. Developer New City Properties plans to open 725 Ponce this fall. The project will comprise 370,000 square feet of office space and include an urban prototype Kroger …

July 11, 2019

Development Georgia Hospitality Southeast

WRS to Bring 351-Room Yotel to Underground Atlanta

by Alex Tostado July 10, 2019

ATLANTA — WRS Inc. will bring a 351-room Yotel-branded hotel to Underground Atlanta, a four-block redevelopment in south downtown Atlanta. The hotel will offer 234 rooms for short-stay guests and 117 rooms, known as YotelPad, for long-stay guests. Construction is slated to begin in summer 2020 with delivery scheduled for fall 2022. The new Yotel will offer a grab-and-go café, swimming pool, rooftop terrace and bar, self-check-in kiosks and SmartBeds. When complete, Underground Atlanta will have more than 400,000 square feet of retail, restaurant, entertainment, office and residential space, according to WRS.

July 10, 2019

Acquisitions Georgia Retail Southeast

Marcus & Millichap Arranges $2M Sale of Savannah Store Leased to Dollar General

by Alex Tostado July 10, 2019

SAVANNAH, GA. — Marcus & Millichap has arranged the $2 million sale of a Dollar General-occupied building in Savannah. The property sold at a 5.9 percent cap rate, which is a record rate in the state of Georgia, according to Marcus & Millichap. Don McMinn of Marcus & Millichap’s Taylor McMinn Retail Group represented the seller, Teramore Development, in the transaction. Elizabeth Randall of Randall Commercial Group LLC represented the buyer, Parker Tractor & Implement Co. Inc.

July 10, 2019

Georgia Industrial Market Reports Southeast Southeast Market Reports

Atlanta’s Industrial Market Reaches All-Time Low Vacancy, Despite Strong Pipeline

by Alex Tostado July 8, 2019

The industrial market in Atlanta continues to surge, benefitting not only from its role as a key regional distribution hub, but also from the rapid growth in the metropolitan area itself. Atlanta is the economic engine of the Southeast, which also happens to be the fastest growing region in the country. The Atlanta industrial market recorded just over 18 million square feet of net absorption in 2018, the second highest total on record following the 21 million square feet absorbed in 2017. The market has experienced 30 consecutive quarters of positive net absorption resulting in an all-time low vacancy rate of 5.7 percent, even though the market delivered more than 13.4 million square feet in 2018. The first quarter of 2019 recorded net absorption of slightly over 1 million square feet, not as impressive as prior quarters over the last several years. So has the market peaked or demand stopped in Atlanta? Not by a long shot. According to research from JLL, there are 5.7 million square feet of signed deals that have yet to commence and companies have yet to move into their new space. This absorption will be picked up throughout 2019. Further, JLL is tracking an additional …

July 8, 2019

Acquisitions Georgia Multifamily Seniors Housing Southeast

SLIB Negotiates $13.2M Sale of Seniors Housing Community in Savannah

by Alex Tostado July 5, 2019

SAVANNAH, GA. — Senior Living Investment Brokerage (SLIB) has arranged the sale of Savannah Commons, an independent living, assisted living and memory care community in Savannah. A partnership between Equus Development and Thrive Senior Living purchased the community for $13.2 million. The property offers 209 units approximately eight miles southwest of the city’s historic downtown district. The majority of the units — 149 — are designated for independent living. All the assisted living areas were recently converted from a personal care license to an assisted living license, giving the new owner flexibility to adapt to different acuity levels. The 178,281-square-foot facility was built in 1986 and renovated most recently in 1998. The new owners plan to make physical plant upgrades to the property. Savannah Commons was 74 percent occupied at the time of closing. The price translates to $63,271 per unit and a capitalization rate of 6.1 percent. Bradley Clousing of SLIB represented the seller, a limited liability company controlled by HJ Sims, in the transaction.

July 5, 2019

Georgia Multifamily Seniors Housing Southeast

Monarch Private Capital Invests in $20M Affordable Seniors Housing Complex Near Atlanta

by Alex Tostado July 3, 2019

COVINGTON, GA. — Monarch Private Capital (MPC) has invested an undisclosed amount of equity in Harmony at Covington Apartments, a 122-unit affordable seniors housing community in Covington, through the low-income housing tax credit (LIHTC) program. The complex will be situated at the corner of Covington Bypass and Ga. Highway 36, two miles south of downtown Covington and 35 miles east of downtown Atlanta. MPC is partnering with Hill Tide Development, Timshel Development, CRN Development and Gateway Development Corp. to build the project, which is slated for completion in late 2020. According to MPC, the current vacancy rate for affordable, elderly targeted multifamily housing in Newton County is below 1 percent.

July 3, 2019

Georgia Industrial Leasing Activity Southeast

Elite Comfort Solutions Expands in Former Kmart Distribution Center in Metro Atlanta by 130,028 SF

by Alex Tostado July 3, 2019

NEWNAN, GA. — Elite Comfort Solutions has leased an additional 130,028 square feet of industrial space in Newnan, bringing its total to 484,382 square feet within a former Kmart distribution center. The center spans almost 2 million square feet and is now fully leased. The property is situated 30 miles southwest of Hartsfield-Jackson Atlanta International Airport and 36 miles southwest of downtown Atlanta. Agellan Capital acquired the building in late 2017 and invested in upgraded sprinklers, loading doors and office space. Ray Stache, Lisa Pittman and Courtney Oldenburg of Cushman & Wakefield represented Agellan Capital and Hove Street, the landlords, in the lease negotiations.

July 3, 2019

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