March 7, 2014
Buckhead Atlanta, Ponce City Market Sign Big Deals
Atlanta Business Chronicle
By Martin Sinderman, Contributing Writer A diverse set of deals announced at Buckhead Atlanta, and a burst of office leasing at Ponce City Market, helped make these ambitious projects co-winners of the Mixed-Use/Special-Use category in Atlanta Business Chronicle’s 2013 Best in Atlanta Real Estate Awards. Last year activity shifted into high gear at Buckhead Atlanta, San Diego-based developer OliverMcMillan’s destination-creating redo of the six blocks/8 acres comprising the former Buckhead Village and, more recently,Ben Carter’s Streets of Buckhead. Connecting Peachtree and East Paces Ferry roads, Buckhead Atlanta is designed to be a walkable, multi-use community. At full build-out, it will total some 1.5 million square feet of developed space, composed of 300,000 square feet of upscale retail stores, restaurants and cafés, 125,000 square feet of custom office space and 370 luxury high-rise apartments. Major indicators of this ambitious project quickly coming into its own include the agreement with women’s undergarment giant Spanx Inc. to establish a custom-designed and expanded world headquarters, initially leasing 86,000 square feet of office space with an option to expand to 112,000 square feet. Spanx has also agreed to open a flagship retail store in Buckhead Atlanta, joining French high-fashion design house Hermes in an ever-expanding retail lineup. Even more good news followed with the announcement that OliverMcMillan had secured a $167 million syndicated construction loan, led by PNC Capital Markets LLC. And the year ended in fine fashion with the addition of 10 restaurants. In 2014, Buckhead Atlanta will transform a construction site into a retail, office and residential district, Hunter Richardson, OliverMcMillan’s managing director of development, said. Between July and November, OliverMcMillan is delivering 225,000 square feet of retail, 125,000 square feet of office and 370 luxury apartments, according to Richardson. Look for more announcements of more retailers in the coming year. Ponce City Market is Atlanta-based developer Jamestown’s more than $200 million redevelopment of 1.1 million square feet of the former Sears Roebuck & Co. distribution center, originally built in 1925, into 475,000 square feet of office space, 330,000 square feet of retail and restaurants, 475,000 square feet of office space and 259 apartment units in the Flats, the residential component of the project. The big news of 2013 was in the project’s office component, which at the end of the year was 70 percent leased, reports Jamestown CEO Matt Bronfman. “We have been pleasantly surprised by the velocity that office space is being leased at Ponce City Market,” Bronfman said. “We had an initial premise that a variety of companies would embrace class A loft office space, similar to those in other metropolitan areas such as New York’s Meatpacking District,” he said, “and judging by the rate spaces are being leased, our hopes have been confirmed.” Office leases completed here during 2013 included those by Cardlytics Inc. for 79,427 square feet; and athenahealth Inc. for 74,901 square feet. Email marketing service MailChimp inked a deal for 115,603 square feet, encompassing a portion of the fourth and the entire fifth floor; architectural firm Surber, Barber, Choate & Hertlein (SBCH) signed on for 4,472 square feet.