August 29, 2014
Mixed-Use Project With Condos Planned for North Highland Avenue
Atlanta Business Chronicle
A mixed-use development with up to 124 condos is planned for the Poncey-Highland neighborhood. Joe Laster with Atlanta-based Abraham Properties LLC is looking to redevelop the parcel at 675 North Highland Ave.
The project next to Druid Hills Baptist Church and across from Urban Outfitters would also include 12,500 square feet of retail and restaurants, 7,500 square feet of office and 385 parking spaces.
Laster could not be immediately reached for comment.
The church has been looking to redevelop some of its property. In late July, it filed plans with the city for the mixed-use project, as well as to consolidate 13 parcels into one.
“Although the project will not threaten the main building of the church, it will be replacing the adjoining buildings, including the Montessori school and office space,” said a project spokeswoman.
The Marketing Directors LLC has been hired to market the condos.
Financing could be returning to new condo development for the first time since the Great Recession. Today, the inventory of new condos is at a historical low. At the end of 2013, there were just 306 unsold condos in the intown Atlanta market, according to Haddow & Co.
Just a few new projects are in the works.
Atlanta developer John Wieland hopes to break ground later this year on his long-stalled luxury condo project, One Museum Place. The 45-unit building, with homes ranging from $800,000 to $3.3 million, will sit across from the Woodruff Arts Center.
Atlanta developers Robin Loudermilk and Dwight Bell look to start construction on their upscale condo project Seventh Midtown on Oct. 1. The 20-unit building, with homes starting at $700,000, is at 867 Peachtree St.
State Bank & Trust Co. this summer originated a roughly $12 million construction loan for Seventh Midtown.
New retail for Avalon
Developer North American Properties says it has recently secured commitments for additional retailers at Avalon, a $600 million mixed-use project in Alpharetta. Lilly Pulitzer, Brooks Brothers and Peek Boutique will join 12 more retailers and three restaurants in the project’s second phase. North American recently submitted the rezoning application for Phase II. It will include 90,000 square feet of retail, more than 500,000 square feet of class A office space, 276 luxury rental homes and a 325-key, full-service hotel. The development at Georgia 400 and Old Milton Parkway has been in the works since before the Great Recession, first envisioned as a $750 million development called Prospect Park.
But it stalled when original developer Stan Thomas lost his ability to fund the project during the downturn.
In the Mix
Luxury women’s fashion boutique Intermix will open a new store at Buckhead Atlanta.
Plans were filed Aug. 20 with the city of Atlanta for a new location of Intermix at Buckhead Atlanta, an 8-acre, mixed-use project in the Buckhead Village.
Intermix already has a boutique in Buckhead at luxury mall Phipps Plaza, less than two miles from Buckhead Atlanta. But, as pressures mount from rising e-commerce sales, some mall retailers are scouting street-level locations to boost their brands and revenues.
Buckhead Atlanta, a mix of boutiques and cafés that line cobblestone streets, is set to open Sept. 18.
Atlanta developer Jim Jacoby has taken another big step toward remaking the OFS plant at Interstate 85 and Jimmy Carter Boulevard into a what he calls the largest movie studio campus in the Southeast.
Jacoby, chairman of Jacoby Development Inc., says his company has struck a partnership with Los Angeles-based MBS3. Its television and feature film studio is home to James Cameron's Lightstorm Entertainment and the next three sequels to “Avatar.”
MBS3 will invest in new lighting and equipment; deploy large portions of its inventory to Atlanta; and lease, manage and operate the Atlanta Media Campus. In a presentation to Gwinnett business leaders Aug. 21, Jacoby said, “It is the finest potential operating partner that we could’ve asked to be a part of our project.”
Upon completion, Atlanta Media Campus will have six sound stages and production support space.
Jacoby said the plan is to film at least two films per year there, as well as television shows.
Jacoby is known for large adaptive reuse projects across the United States.
In Georgia, those projects include Atlantic Station, a former steel mill in Midtown, and the new headquarters for Porsche Cars North America Inc. The site was once the Hapeville, Ga. Ford Motor Co. assembly plant.
Bargain for 171
KBS Real Estate Investment Trust III has completed its purchase of the 21-story Atlantic Station office tower 171 17th Street.
KBS paid $132.5 million. JP Morgan was the seller.
The price, about $260 a foot, is roughly what JP Morgan was expecting even though it was well below replacement costs, according to people familiar with the deal. In 2005, JP Morgan bought the building from AIG Global Real Estate Investment Corp., paying $330 a square foot, or about $168 million, according to research by Databank Inc.
JP Morgan was willing to let the tower go because it hasn’t performed up to expectations, people familiar with the sale said.
It remains about 89 percent leased and counts among its tenants Wells Fargo and the law firms Arnall Golden Gregory LLP and Burr & Forman LLP.
KBS has said the building generates aggregate annual effective rent of nearly $10.5 million. The current weighted- average remaining lease term for the tenants is approximately 6.6 years, according to KBS.
Eastdil Secured LLC was marketing the building on behalf of JP Morgan.
The transaction could prove a bargain for KBS if Midtown’s office market continues to see leasing activity ramp up and rents increase.
For now, several buildings, including adjacent towers in Atlantic Station, still have large blocks of office space to fill.