ATLANTA | Development Thread V

[cokezero]

Originally Posted by ChadK

Yeah, I think the Apple rumor is just that. But I would love to see them build one of their glass cube stores on the former Houlihan's site at Colony Square. I think it would benefit both the street level and underground areas of Colony Square itself. But that's just me dreaming.

Colony Square retail will likely remain in its current underwhelming form for many years to come. There should be an announcement coming in early 2013, but the non-performing debt on the office and retail component is in the process of being sold to a private equity firm whose main strategy to realize value is by pursuing the borrowers on non-performing debt rather than improving the asset.

[simms3_redux]

^^^I think I know which announcement you are referring to...to me, big whoop. Great for lawyers who work in the area and such, but won't be an impact to the average resident or visitor to the area at all.

I think there is one more space to lease up in 1010 next to BOA and the former Drew Lewis space at Metropolis and the space at Viewpoint, and that's about it. Ironically everything else is leased right now! What is that 20,000 SF total to lease up? Space at Skyhouse doesn't count since it's so far off the beaten path (resident services tenants at best, my prediction).

I think retailers have surprised themselves with their sales in intown sprout-up neighborhoods like the westside and Inman Park, so with the demographics in Midtown you have to think retailers are thinking that's the next frontier. I think NNN rents in the westside and Inman Park are $25-$35, still lower than the rates I have seen for most of Peachtree...so if their sales are good in these surrounding neighborhoods and they won't be any better (perhaps worse) along Peachtree, why would they trade those rents for the higher Peachtree rents that only restaurants can afford right now? (I've seen miscellaneous quotes, TI packages being the same the NNN rents in Midtown are higher and I'm sure the NNNs are considerably higher, and parking more difficult/not free).

Westside can only go so far and Inman Park is about to be built out and only offers so much space. In 5 years all new retail will concentrate in Midtown along Peachtree. It's going to happen. Restaurants will be rolling off of their leases and retailers will want in (perhaps rates will have inflated to the point where restaurants/cafes in prominent spaces now can be bought out...Cafe Intermezzo has a nice buildout in progress, but will it have expensive and sophisticated venting like La Comida would? Doubtfully).

And Jamestown has 300,000+ SF coming on-line in 2014, but I doubt we're talking mall retailers or even the same caliber en masse as those that have located and are looking at their White Provisions development. If it's anything like Chelsea Market, it is more "market" and restaurant than retail oriented. CM has Anthropologie and the Ferry Building in SF has Sur La Table (so does Pike Place Market), the rest being independent vendors/operators.

Back to the Midtown Mile we go then.

[Slog]

There is no way Whole Foods is signing in Viewpoint. They have strict guidelines and Viewpoint doesn't meet any of those. Wholefoods follows a model of signing on to be the anchor tenant of new developments (think DC, Portland, etc). Every developer in Midtown is drooling over a Whole Foods to anchor their development. I could see Savi moving into the vacant space.

Greystar is currently seeking land in Midtown/Inman to do a 250-350 unit development and has contacted local brokers to find them a site. And I don't understand the comment that Inman Park has been built out. There is a ton of raw land and old industrial offices near Krog and Irwin.

And Anthro/Urban is looking for a new location in intown Atlanta since the sales on the Westside have been much much higher than expected.

[nature's calling]

Is there not already a Whole Foods right next to Ponce City Market? That's only a mile or so away.

[simms3_redux]

Originally Posted by Slog

There is no way Whole Foods is signing in Viewpoint. They have strict guidelines and Viewpoint doesn't meet any of those. Wholefoods follows a model of signing on to be the anchor tenant of new developments (think DC, Portland, etc). Every developer in Midtown is drooling over a Whole Foods to anchor their development. I could see Savi moving into the vacant space.

Greystar is currently seeking land in Midtown/Inman to do a 250-350 unit development and has contacted local brokers to find them a site. And I don't understand the comment that Inman Park has been built out. There is a ton of raw land and old industrial offices near Krog and Irwin.

And Anthro/Urban is looking for a new location in intown Atlanta since the sales on the Westside have been much much higher than expected.

I don't think anyone believes WF would even consider Viewpoint. They took away the window covers so now you can see inside. 3 bays including the old ISCS space, none of which are suitable even for an urban concept. Yes, they anchor new developments, which is why developers are courting them (I can think of 2 in particular...though I think Midtown is still a long way out from this).

The old Tyler Perry studios at Krog/Irwin are already being redeveloped. I saw the latest rendering this week via Atlanta Real Estate News email blast...I think I remember them specifying a January start date. There's really not that much land around there and fewer redevelopment opportunities as most have been realized. The Village will be done/full after Jarel Portman and crew finish their controversial development that has proven to be difficult to get off the ground. You pretty much can't do anything in Inman Park unless you can prove to all of the locals that you have ties to their neighborhood and have their best interest at heart (which is a fair request). Definitely one of the toughest submarkets in the metro (the other being the nearby Sweet Auburn district now that the locals there have appealed to government/nazi historic preservation guidelines and you can't even fix most buildings up for higher and better uses..and this is where the streetcar is going, LoL).

Due to its working relationship with Jamestown, I wouldn't be surprised to see Anthro go into PCM. Jamestown has multiple leases going with Anthro, including one at Chelsea Market, the conceptual model for PCM. Urban is already at North Highland and Free People also has a working relationship with Jamestown since it's at White Provision. You have to wonder if there are radius restrictions with the leases at Westside and at Lenox. That would essentially kill their chances of opening in Midtown, maybe even at Ponce City Market, too (or maybe that would force them into PCM, another JT property, depending on how the radius restriction is set up if it's outside of a 5 mile from Lenox).

Either way, UI doesn't have anything for me (Anthro? Free People? Urban Outfitters has some hipsterish male clothing...not for me). Would be more excited for new brands that are affordable (you can have Billy Reid, Jack Spade, Sid Mashburn, Gant, etc all you want...I'll take Calvin Klein or J Crew or Banana Republic any day).

And Ligne Roset back in Atlanta? $1500 for a bar stool that literally looks the same as a $200 bar stool from CB2. I'm glad there are richies in Atlanta willing to shell out the money so we can have retail there, but I'm also glad as hell CB2 is in Midtown and Ikea is not too far!

[simms3_redux]

Originally Posted by nature's calling

Is there not already a Whole Foods right next to Ponce City Market? That's only a mile or so away.

Yea that's the "Midtown" WF (hence Midtown Place Shopping Center). Midtown has a strong enough draw/definition now that I'm sure even the landlords know they're no longer kidding anyone. When Ponce City Market opens in 2014, it will make sense for WF to stay right across the street for a critical mass effect, but there will be a time soon enough where there will be demand for either a strong local urban grocer or a WF right in Midtown, as well. That area will have a stronger identity not as "Midtown" but as Poncey Highland/O4W when all the new apartments fill up and PCM is complete. Hopefully with those additions the crime will go away because it really sucks in that area.

[BlueSangha]

In other news... The apartment building 3380 Peachtree Road has been urged to make some modifications to their plans. Some details are rather disappointing, like "The back of the parking deck will be 'greened' using plant materials that grow up the structure from the ground level." Blah.[/QUOTE]

This building makes me ill on so many levels. Mainly bc it's 10 stories on peachtree, the garage is visible and it's position does nothing but make the building look shorter, and it sounds like the developers are trying to be cheap and do the least bit possible to get this up. I am glad the committee is leaning on them to do more, it's lux, on peachtree, make it worth it.

[Harry Cane]

Along these line, has anyone heard rumors about Dean and DeLuca scouting Atlanta for locations? Heard from someone that they were concentrating on Ponce City Market or the Inman Park redevelopment.

[Zanarkand A East]

Originally Posted by simms3_redux

Yea that's the "Midtown" WF (hence Midtown Place Shopping Center). Midtown has a strong enough draw/definition now that I'm sure even the landlords know they're no longer kidding anyone.

This reminds me of when the Best Buy in Edgewood Retail District was the "Midtown" branch. Out-of-towners are amusing

[Zanarkand A East]

Originally Posted by cokezero

Colony Square retail will likely remain in its current underwhelming form for many years to come. There should be an announcement coming in early 2013, but the non-performing debt on the office and retail component is in the process of being sold to a private equity firm whose main strategy to realize value is by pursuing the borrowers on non-performing debt rather than improving the asset.

I work on 14th and Ptree and the lunch selection here is God-awful except for Food Truck Thursdays. Tin Drum seems to have a steady flow of customers, but there's little else there. And going to JR Crickets when they opened in Colony Square reminded me why I hadn't been there in decades.

[Zanarkand A East]

Originally Posted by simms3_redux

^^^I think I know which announcement you are referring to...to me, big whoop. Great for lawyers who work in the area and such, but won't be an impact to the average resident or visitor to the area at all.

That's disappointing (and I'm a lawyer!) article14 and Olmsted were nice additions to the area, but I'd like something more accessible around here. Will there ever be restaurant options in Proscenium or Campanile? The absense of Hoolihan's is really being felt lately, especially before and after nights at Woodruff Arts when I don't feel like parking twice.

[micropundit]

The Atlanta Business Chronicle is reporting that a number of new projects ,including the addition of 14,000 square feet to the Westside Marketplace, are slated to hit the Howell Mill corridor soon:

It’s going to be difficult to get into the market a year from today,” said Tim Holdroyd, principal of City Realty Advisors LLC, which has property in the area.

Two developments recently broke ground.

In September, work began on a mixed-use project at Howell Mill Road and 14th Street, across the street from the circa-1910 White Provision building. White Provision is a former meatpacking facility that today houses luxury retailers such as Room & Board, as well as Class A office space.

Called Elan Westside, the project will include 197 luxury apartments and 11,000 square feet of retail space when it’s complete in late summer or fall 2013.

Westbridge Partners, the original developers of White Provision, began the initial design but recently sold the residential component to a joint venture between Greystar and Prudential Real Estate Investors. Westbridge will own and operate the retail portion.

The tenant mix will be “very similar” to White Provision, said Chris Faussemagne, a principal of Westbridge Partners. “There will definitely be a restaurant component.”

Nearby, at the intersection of Huff Road and Foster Street, Walton Communities broke ground last month on another apartment project. The development sits near the Goat Farm Arts Center, a converted industrial complex that today hosts many of Atlanta’s underground art, theater and dance events.

A host of other projects are being planned.

Perennial Properties is proposing a mixed-use development along Howell Mill near The Optimist, a restaurant from Chef Ford Fry that Esquire magazine recently picked as its “Best New Restaurant of the Year.” The project would include about 230 apartments and 9,000 square feet of retail.

Jamestown has filed plans to expand its Westside Provisions District. The shopping district includes Bacchanalia, named Atlanta’s top restaurant for 18 years by the Zagat Survey. The plan is to demolish the freestanding Osteria del Figo restaurant and rebuild new retail space fronting Howell Mill Road. About 14,000 square feet of space will be added.

Holdroyd of City Realty Advisors is planning to redevelop a two-story, circa-1925 brick building with 18,000 square feet at 907 Marietta Street. The goal is to get a restaurant tenant in the building.

Rohrig of Cartel Properties — which began picking up property in the area about 10 years ago — is looking to acquire and redevelop two buildings at the corner of Marietta Street and Howell Mill Road.

“We’re looking for a really hip restaurant,” Rohrig said.

Westbridge Partners just closed on a 34,000-square-foot industrial building at 1071 Howell Mill Road, near the iconic blues bar Northside Tavern. One day, it could house office or retail space.






http://www.bizjournals.com/atlanta/print...ment-wave-hits-howell-mill.html?page=all

[Artemis]

When I mentioned that Apple showed interest in Viewpoint in earlier post I meant to say that Apple submitted application for review. This is what I heard from someone who works at Viewpoint. I see no reason why the developer would say, "no". If anything they should go all out to make it a reality. Apple submitting application is significant.

I find it hard to believe that no one really has clue as to what's being developed at the current site of Starbucks on 7th street and the Neel Reid building being demolished. Anybody heard anything?

[simms3_redux]

How many restaurants are they planning on adding to the westside. It seems scary that everyone is looking for a "hip new restaurant" or proclaiming that a "restaurant concept will definitely be part of the retail". Anyone else find this a little amusing that the past wave of restaurant openings has every developer drooling to find more and more...all these restaurants are starting to taste the same now!

I'm ready for more ethnic restaurants that are cheap! And actual soft good retail moreso than anything!

[ATLaffinity]

Originally Posted by simms3_redux

How many restaurants are they planning on adding to the westside. It seems scary that everyone is looking for a "hip new restaurant" or proclaiming that a "restaurant concept will definitely be part of the retail". Anyone else find this a little amusing that the past wave of restaurant openings has every developer drooling to find more and more...all these restaurants are starting to taste the same now!

I'm ready for more ethnic restaurants that are cheap! And actual soft good retail moreso than anything!

Yeah, I was thinking the last thing Westside needed was some "hip" restaurant.

And how can all of Midtown/VaHi/Westside/VaHi have ZERO bookstores. Independent bookstores actually did well in 2012. Amazing that we have zero besides the GT B&N in the center of ATL.

[clexmond]

Originally Posted by Zanarkand A East

I work on 14th and Ptree and the lunch selection here is God-awful except for Food Truck Thursdays. Tin Drum seems to have a steady flow of customers, but there's little else there. And going to JR Crickets when they opened in Colony Square reminded me why I hadn't been there in decades.

Do you mean that one specific intersection? Because there are tons of restaurants around 14th / Peachtree. Between all the places on Crescent and the new restaurants that have opened in 12th & Midtown I'd think you'd be able to rotate out lunches for months.

[L.ARCH]

http://www.ajc.com/news/business/another-apartment-tower-to-rise-in-midtown/nTcjM/


By Greg Bluestein

Another apartment tower is slated to rise in Midtown.


Novare Group and Batson-Cook Development Company said they plan to begin building a $63 million 23-story luxury high-rise apartment community in January that is expected to be complete by late 2013.

The property at 100 6th Street will feature 320 apartment units, and five percent of those will be affordable housing. It’s the team’s second apartment tower in the neighborhood, following the nearby SkyHouse Midtown building that will open next month.

“We are all pleased to be continuing to add to the Atlanta skyline, in this instance with an affordable component that we hope will attract police officers, firefighters, and teachers to the mix,” said Jim Borders, the president of Novare Group.

The decision came after Invest Atlanta, the city’s economic development arm, approved tax abatements worth about $3 million for the project.

Brian McGowan, the agency’s head, said it’s an “example of a great public-private partnership supporting job creation, providing affordable housing and bringing incremental property tax revenue to the city.”

[ChadK]

Is it just me, or does it feel like a lot of today's "news" was initially discussed 6 months ago?

The development on Howell Mill near The Optimist was fresh though. There are a lot of places on that stretch that need to be bulldozed... Howell Mill also needs to be widened in that area but I doubt that's going to happen.

[Tuckerman]

Yes, the Novare (copy of the W Peachtree one) has been discussed for sometime. I guess this is just a little more specific on exact dates. Our concern was always with the parking garage component.

[simms3_redux]

Well with Buckhead Atlanta above ground now and cranes in the ground and apartments being put up all over the place around Atlanta...there's A LOT to discuss. I'd call intown construction a frenzy at this point.

Zanarkand...I work in Vinings, want to trade offices? You have a lot of options to be thankful for down there; I don't have anything...literally.