ATLANTA — Ready Capital Structured Finance, a commercial real estate bridge and mezzanine lender, has closed on a $7.9 million, interest-only loan for Pharr Manor Residences, a Class B, 48-unit condominium property in Atlanta’s Buckhead district. The undisclosed borrower will use the financing to acquire Pharr Manor and convert the asset into a rental property. Ready Capital Structured Finance closed the non-recourse loan that features a two-year term with one extension option, flexible pre-payment and a facility to provide future funding for capital expenditures, interest and carry reserves.
EAST POINT, GA. — The Atlanta office of Duke Realty Corp. has signed Armada Warehouse Solutions to a long-term lease for a new 447,606-square-foot, build-to-suit industrial facility at 3707 N. Commerce Drive in East Point, a southern suburb of Atlanta. Duke Realty had been designing its next speculative building on the site prior to inking the lease with Armada. The building will be located within Camp Creek Business Center, Duke Realty’s 400-acre, mixed-use business park situated 3.3 miles from Hartsfield-Jackson Atlanta International Airport. Armada’s new warehouse will be located near the north entrance of Camp Creek Business Center at the intersection of Camp Creek Parkway and North Commerce Drive just off I-285. The cross-dock building will feature 36-foot clear heights and include 82 dock doors, 100 automobile parking spaces and 87 trailer spaces. Additionally, the space will contain approximately 107,700 square feet of freezer/cooler space inside the building. Kris Bjorson, Chris Watts and Alan Clayton of JLL represented Armada in the lease deal, while Wes Hardy represented Duke Realty internally. Construction is expected to start this month with an expected delivery in July 2017.
DULUTH, GA. — Biscayne Atlantic, a South Florida-based real estate investment group, has sold the Gwinnett Commerce Center, a 213,600-square-foot, 10-story office building located in the Atlanta suburb of Duluth, for $26.8 million. The name of the buyer was undisclosed. The Class A office building’s tenant roster includes The College Board, Mutual of Omaha, Department of Veteran Affairs, Penske Truck Leasing, Faith & Freedom Coalition, Federal Energy Regulatory Commission and Travelsky. Biscayne Atlantic purchased the Gwinnett Commerce Center in July 2013 for $20 million and invested approximately $1 million in capital improvements to upgrade the building’s operations and modernize the lobby and common areas. During Biscayne Atlantic’s ownership of the property, occupancy increased from 73 percent to 85 percent and NOI jumped by 25 percent.
ATLANTA — The RADCO Cos., a private multifamily investor based in Atlanta, has purchased Bell Cheshire Bridge, a 318-unit, Class A apartment community located in Atlanta’s Lindbergh neighborhood. RADCO has renamed the asset Radius Cheshire Bridge and plans to invest $4.5 million on capital improvements to modernize the property, including upgrades for the amenities and unit interiors. RADCO financed the purchase using a $44.4 million Freddie Mac loan and $18.7 million in private capital. RADCO Residential will manage the property, which is RADCO’s 13th acquisition in 2016. Built in 2001, Radius Cheshire Bridge features a leasing office and clubhouse with a fitness center, resident lounges and a billiards room that overlooks the swimming pool. Other amenities include a nature trail, dog park, car wash, surface parking, detached car garages and a parking deck.
GAINESVILLE, GA. — Franklin Street has brokered the $11 million sale of Robson Crossing, a Publix-anchored shopping center located at 3446 Winder Highway in Gainesville, roughly 40 miles northeast of Atlanta and minutes from Lake Lanier. Since opening in 1998, Robson Crossing has maintained an occupancy rate at or above 90 percent. The 99,170-square-foot center’s current tenant roster includes GNC, The UPS Store, Ace Hardware, O’Reilly Automotive, Sonic and Chick-fil-A. John Tennant and Bryan Belk of Franklin Street’s Atlanta office represented the Gainesville-based seller, Robson Crossing LLC, in the transaction. The buyer, Ontario, Canada-based SUSO 3 Lovingston LP, plans to upgrade the center and extend the lease with Publix.
ATLANTA — Preferred Apartment Communities Inc. has agreed to purchase Three Ravinia, an 813,748-square-foot trophy office building located at 3 Ravinia Drive in Atlanta’s Central Perimeter office submarket. Built in 1991 by Hines, the 31-story office building was 98 percent leased at the time of sale to tenants such as InterContinental Hotels Group (IHG) and State Farm, with an average remaining lease term of approximately 10 years. Last summer IHG renewed its lease to keep its corporate headquarters at Three Ravinia. PAC’s operating partnership, Preferred Apartment Communities Operating Partnership LP, committed to acquire Three Ravinia pursuant to a signed agreement of purchase and sale with the current owner, SPUS6 Three Ravinia LP. The sales price was undisclosed, but the property traded for $145 million in 2013, according to media reports. PAC plans to fund the transaction using a combination of cash on hand, borrowings from its senior secured credit facility with KeyBank NA, proceeds from stock issuances and proceeds from selling other assets. PAC also applied for a non-recourse loan with John Hancock for 55 percent of the purchase price.
GRIFFIN, GA. — Randolph Williamson, a real estate construction, development and management firm based in Peachtree City, Ga., has delivered a 53,970-square-foot medical facility located adjacent to Spalding Regional Hospital in Griffin. Developed by Group VI Development, the project broke ground in 2014. Other members of the project team for the new facility include WM2A Architects and Medical Management Associates Inc. The building includes 72 exam rooms, new labs and an enclosed pedestrian bridge to Spalding Regional.
ATLANTA — Atlanta-based Selig Enterprises Inc. has launched a new division known as Selig Development Corp., whose first development will be a $400 million mixed-use project located at 1105 W. Peachtree St. in Midtown Atlanta. The project will feature 645,000 square feet of Class A office space, 80 residential units and a 150-room boutique hotel, along with street-level retail space. The 32-story office tower leads the project, encompassing an entire city block. Totaling more than 3.5 acres between the 10th Street and Art Center MARTA train stations, the site is situated across from the new Northside Hospital Medical Office and a Whole Foods Market currently under construction. Selig Development expects to begin construction on the project in mid-2017. The office portion is expected to be ready for occupancy beginning in the fourth quarter of 2019. Selig Development is in discussions with several tenants for the new office tower, and plans open nearly 50 percent pre-leased. The boutique hotel will feature an outdoor pool, pool bar and event space within a 38,000-square-foot, deck-top plaza. The 80 residential units will start above the hotel rooms in the same tower and feature two- and three-bedroom units. The residential portion will have access to hotel amenities, …
ATLANTA — PCCP LLC and Carter have leased more than 62,000 square feet of office space to Honeywell International Inc., a global technology company with ties to the aerospace and homebuilding industries, at the 715 Peachtree building in Midtown Atlanta. Honeywell expects to grow to more than 700 employees at the building over the next five years. The firm is investing roughly $19 million into the new office space, which will house the company’s Home and Building Technologies headquarters. The 10-story, 318,000-square-foot office building is situated adjacent to Fox Theatre. The property was originally constructed as the regional headquarters for J.C. Penney.
The multifamily industry has entered a phase in the development cycle where the velocity of starts and completions is decreasing. Through the first 10 months of 2016, multifamily starts nationally are down 1.8 percent year-over-year, according to the U.S. Census Bureau and the Department of Housing and Urban Development. Completions are down 3.1 percent during the same period. One of the governors on construction today is the ample supply of existing multifamily product in the top markets nationally, according to the development panel at the seventh-annual InterFace Multifamily Southeast conference. Alan Dean, region president of multifamily development firm Terwilliger Pappas Multifamily Partners, cited Nashville as an example of an overheated market. “Nashville delivered a record 5,300 units in the past 12 months. Next year, they’re going to deliver 10,000 units,” said Dean at the conference, which was held on Thursday, Dec. 1 at the Westin Buckhead in Atlanta. “Nashville in large part has been redlined by the financing community because of those supply numbers. Looking at it, it’s probably a healthy thing that the pipeline is slowing down and banks are pulling back.” Michael Blair, managing director of development at Atlanta-based Pollack Shores Real Estate Group, doesn’t believe overbuilding is …