Southeast

PRP Plans $81M Office-to-Residential Conversion in Alexandria, Virginia

by Alex Tostado January 2, 2020

ALEXANDRIA, VA. — Washington, D.C.-based developer and investment manager PRP is converting its 12-story, 209,000-square-foot office building at 4900 Seminary Road in Alexandria into apartments. PRP is financing the $81 million project using equity raised through Crowdstreet, a crowdfunded real estate investing platform, as well as $53 million loan from Pacific West Bank. The $27 million in crowdfunded equity was raised through 450 investors and represents the largest individual commercial real estate project equity raised online to date, according to Crowdstreet. The office building at 4900 Seminary Road is adjacent to Mark Center and Interstate 95 and is less than 10 miles from the Pentagon, Amazon’s future HQ2 site and downtown Washington, D.C. Located within an Opportunity Zone, PRP is planning the project to hold 213 apartments, featuring studios and one- and two-bedroom layouts. The planned building will feature a package room, lounge, library, screening room, firepits and a deck. Construction on the office-to-residential conversion is scheduled to begin in March, with initial occupancy expected in the fourth quarter of 2021.

January 2, 2020

Georgia Leasing Activity Office Southeast

Dilweg Inks Leases with 10 Companies for Downtown Atlanta’s 101 Marietta Street Office Tower

by Alex Tostado January 2, 2020

ATLANTA — The Dilweg Cos. has signed new leases or extensions with CIM Group and nine other companies at 101 Marietta Street, a 36-story downtown Atlanta office tower adjacent to The Gulch district. California-based CIM will occupy two of the new spec suites in the office building. Formerly known as Centennial Tower, the well-known chevron-marked building overlooks CIM’s future Centennial Yards, a mixed-use development in The Gulch. Existing office tower tenants DeLong, Caldwell, Bridgers, Fitzpatrick, & Benjamin LLC; Atlanta Dream; Amadeus and The VGM Group have all renewed their respective leases. Softgiving Inc, The Dennis Law Firm LLC, Volkert Inc., IVITA and BlackiNation have signed new leases. Located near Mercedes-Benz Stadium, State Farm Arena, Centennial Olympic Park, Georgia Aquarium, the CNN Center and three MARTA stations, 101 Marietta Street offers 650,000 square feet of space, as well as a conference center with training rooms, fitness center, Revelator Coffee in the lobby and tenant lounge with TVs, pool tables and a kitchen. Construction for another round of spec suites at 101 Marietta Street will commence this month. CBRE is handling the leasing assignment on behalf of Dilweg.

January 2, 2020

Development Hospitality Maryland Southeast

Costello Construction Breaks Ground on $25M Hotel Redevelopment Project in Columbia, Maryland

by Alex Tostado January 2, 2020

COLUMBIA, MD. — Costello Construction has entered the construction phase of the $25 million Sheraton Columbia Town Center Hotel renovation and redevelopment project. The 290-room hotel is located on the shores of Lake Kittamaqundi in downtown Columbia. Locally based Costello Construction has owned the property since December 2017. The renovation plans include a complete exterior improvement, two new structural additions to add 76 guest rooms, remodeling of all tower rooms and the addition of terraces to lakefront units. Once complete, the hotel will comprise 212 modern guest rooms and join Marriott’s Autograph Collection. The hotel will feature rooftop pool, restaurant, café, fitness center, rooftop bar and lounge and more than 10,000 square feet of indoor/outdoor event space. Costello Construction will self-perform the site work and concrete work on the project.

January 2, 2020

District of Columbia Market Reports Multifamily Southeast Southeast Market Reports

D.C. a Hotspot for Multifamily Investors, Lenders as Absorption Ticks Up

by Alex Tostado December 30, 2019

Driven by increasing high-paying jobs, billions of dollars in public and private investment and healthy population growth, the Washington, D.C., metro area boasts a dynamic multifamily market with rebounding rent growth and stabilizing occupancy rates. Washington, D.C., gained 20,500 jobs in June and another 13,000 jobs in July, according to the District of Columbia Department of Employment Services. Additionally, D.C.’s population topped 700,000 for the first time since 1975. The Washington metropolitan area’s total population has climbed to more than 6 million, and more households mean more demand for apartments. These strong fundamentals have led to increased rent growth in the apartment sector. D.C.’s average net asking rate is $1,990 — up 1.7 percent, making it the sixth-fastest rent growth in the United States, according to Reis. The net asking rate increased for 10 consecutive quarters. Between now and year-end 2020, asking rents are expected to climb 2.5 percent and 3.6 percent by year-end 2021, Reis notes. The District’s apartment occupancy rate is currently 94 percent. In nearby suburban Maryland, rents rose 1.2 percent, and in Northern Virginia, 1.4 percent. Demand, supply in balance Although there was concern over an influx of new construction, multifamily product has been well-absorbed. The …

December 30, 2019

Acquisitions District of Columbia Office Southeast

Skanska Sells Office Building in D.C. to Polinger Development for $163M

by Alex Tostado December 24, 2019

WASHINGTON, D.C. — The U.S. affiliate of Swedish construction and development company Skanska AB has sold the 99M office building in Washington, D.C., to Chevy Chase, Md.-based Polinger Development Co. for $163 million. The transfer of the property is expected to close in the first quarter of 2020. Located at 99 M St. SE in D.C.’s Navy Yard neighborhood, the 11-story office building spans 234,000 square feet and is LEED Gold-certified. Built in 2018, 99M is 87 percent leased to tenants including PYXERA Global, an international trade and development nonprofit organization, and GiveCampus, a digital fundraising and volunteer management platform for educational institutions. In addition to ground floor retail, the building offers a rooftop terrace, fitness facility and a secured bike room.

December 24, 2019

Development North Carolina Office Southeast

East West Partners, Northridge Capital Open Crabtree Terrace in Raleigh’s Brookside Village Area

by Alex Tostado December 24, 2019

RALEIGH, N.C. — Developer East West Partners and equity partner Northridge Capital LLC have opened Crabtree Terrace in the Brookside Village neighborhood of North Raleigh. Located at 4950 Creedmoor Road, the 173,468-square-foot office and retail project was completed earlier this month and tenants are expected to occupy the building in January 2020. The tenant roster includes coworking company Spaces, JLL, Longleaf Law Partners and Perry’s Steakhouse & Grille. Designed by Gensler and Kimley-Horn, Crabtree Terrace has floor-to-ceiling glass throughout, as well as covered parking. The building offers nearby access to U.S. Routes 50 and 70 and the Capital Area Greenway trail system. In addition to the ground-floor retail, a fitness facility with showers is planned in the building. Brasfield & Gorrie served as general contractor, and CBRE | Raleigh’s Advisory & Transaction Services | Investor Leasing group and Retail Services group are handling the office and retail leasing for Crabtree Terrace.

December 24, 2019

Florida Loans Multifamily Southeast

JLL Arranges $127.5M Financing for EON at Flagler Village Apartments in Fort Lauderdale

by Alex Tostado December 24, 2019

FORT LAUDERDALE, FLA. — JLL has arranged $127.5 million in financing for EON at Flagler Village, a two-phase multifamily complex in Fort Lauderdale. JLL worked on behalf of the developer and borrower, Alta Developers LLC, to secure the three-year, floating-rate loan through Mack Real Estate Credit Strategies LP. Loan proceeds will be used to pay the existing construction loan on Phase I and will fund the construction of Phase II. Brian Gaswirth and Reid Carleton of JLL’s Capital Markets team represented Alta in the transaction. EON at Flagler Village is within walking distance of the new Virgin (formerly Brightline) train station in Fort Lauderdale. Phase I of EON at Flagler Village was completed in May 2019 and consists of 206 residential units and 3,320 square feet of retail. Amenities include a pool, outdoor grilling stations, fitness center and yoga room, pet facilities, a game room and lounges. Phase II, which is currently under construction, will consist of 270 residential units and 2,400 square feet of retail space. The second phase is anticipated to open by spring 2021.

December 24, 2019

Acquisitions Georgia Multifamily Southeast

Cortland Acquires 287-Unit Multifamily Complex in Atlanta’s Pill Hill Neighborhood

by Alex Tostado December 24, 2019

SANDY SPRINGS, GA. — Atlanta-based Cortland has purchased The Hill, a 287-unit multifamily complex in Sandy Springs, a suburb of Atlanta in the city’s Central Perimeter submarket. Cincinnati-based developer North American Properties Inc. (NAP) sold the property at 1160 Johnson Ferry Road NE to Cortland for an undisclosed amount. The complex, which will be rebranded as Cortland at the Hill, features a fitness center with free group fitness classes, a dog park, pool area, grilling stations and a fire pit. The apartment complex is adjacent to the MARTA Medical Center station and near to both Ga. Highway 400 and Interstate 285, as well as a cluster of hospitals giving the neighborhood the nickname of “Pill Hill.” The property was 81 percent occupied at the time of sale. With this acquisition, Cortland now owns 37 assets and more than 11,900 units in metro Atlanta.

December 24, 2019

Acquisitions Industrial Southeast Tennessee

Gladstone Acquires 241,000 SF Warehouse in Jackson, Tennessee

by Alex Tostado December 24, 2019

JACKSON, TENN. — Gladstone Commercial Corp. has acquired a 241,000-square-foot industrial facility in Jackson, approximately 80 miles northeast of Memphis, for $9 million. The facility is a build-to-suit industrial warehouse that is 100 percent leased to Berry Global Inc, a plastic packaging manufacturer. Buchanan Realty Group assisted seller FirstcChoice Property & Development in the sale. Completed in August 2019, Berry utilizes the warehouse primarily for the storage and distribution of products manufactured at its adjacent production facility. The building is located near Interstate 40 and U.S. Highway 412.

December 24, 2019

Acquisitions Development North Carolina Office Southeast Top Stories

Childress Klein, CGA Capital Acquire Duke Energy’s Office Tower Underway in Uptown Charlotte

by John Nelson December 24, 2019

CHARLOTTE, N.C. — Childress Klein and CGA Capital have partnered to purchase the Uptown Charlotte site for Duke Energy’s future office tower. Located at 525 S. Tryon St., the 40-story Charlotte Metro Tower project is set for a 2022 completion. Construction is currently underway. Charlotte-based Childress Klein and Baltimore County-based CGA Capital have agreed to fully fund the development and construction of the project, which could total up to $675 million as per the purchase agreement with seller and future tenant Duke Energy (NYSE: DUK), an energy holding company based in Charlotte. “We look forward to working with Childress Klein and its team to fund the creation of a dynamic office tower and a terrific new addition to the city skyline,” says Kyle Gore, managing director and principal of CGA Capital. As part of the sale-leaseback agreement, the new ownership will enter into a long-term lease with Duke Energy at the tower upon completion. The development will span 1 million square feet of office and retail space and include a 1,100-space parking garage. Nuveen, a TIAA Company, is leading a debt investment group to help fund the development. The project team includes general contractor Batson-Cook Co. and architect tvsdesign, which …

December 24, 2019

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