ATLANTA | Development Thread V

[Atlanta3000]

Atlanta Multi-Family Market Update

This reality creates an even stronger demand for multifamily development, which CBRE expects will continue for the next 20 years. The firm predicts Atlanta multifamily will fare well, as it has the second-lowest rent among the top 10 markets and the highest vacancy decrease over the past 12 months among the top 20 markets.

http://www.globest.com/news/12_1170/atla...0543-1.html?zkPrintable=1&nopagination=1

[RATBOYKEV]

Azure on the Park is installing their crane today after some major site/utility work over the past couple months.

[GeorgiaPeanuts]

Originally Posted by Atlanta3000

Not trying to give any inside info here, but we should see plans before year end for a large office (500K - 750K) and hotel project.

Except for NCR, the bulk of the major corporate relocations to Midtown have been to Atlantic Station. Current occupancy rate for the three large commercial buildings is 91% (1.4 Million square feet). This is significant because 3 years ago it was around 75%.

I agree, an article on ABC mentioned in the past that Atlanta would enter a spec office boom even with vacancy above 10% and yet we are getting closer and closer to that and only one large spec building is underway.

But there is still that other mixed use office next to the Marta station, the spec office on North Avenue by PCM and the T3 office in Atlantic Station. Plus the new spec office part of the BA Phase 2 that have been proposed already. All of them would be great to see built

GA is pitching to GE to relocate its HQ to ATL. And ABC hints they might want to be located close to Tech Square http://www.bizjournals.com/atlanta/print-edition/2015/08/07/ga-makes-its-pitch-to-ge.html

[Ant131531]

Originally Posted by Atlanta3000

Atlanta Multi-Family Market Update



http://www.globest.com/news/12_1170/atla...0543-1.html?zkPrintable=1&nopagination=1

20 years is a long time in the future to predict...real estate markets can be so flimsy, thus hard to predict more than 3-5 years in the future. It goes into waves. I do think the rental market will stay strong through 2020...after that, who knows though. Atlanta shockingly isn't overbuilding...it's still under building so you get situations where 2 bedroom rent growth has increased over 20% in the last year.

[Atlanta3000]

Originally Posted by Ant131531

20 years is a long time in the future to predict...real estate markets can be so flimsy, thus hard to predict more than 3-5 years in the future. It goes into waves. I do think the rental market will stay strong through 2020...after that, who knows though. Atlanta shockingly isn't overbuilding...it's still under building so you get situations where 2 bedroom rent growth has increased over 20% in the last year.

Millennials make up 1/3 of the US population (heard today on CNBC). Given more kids are attending college and are saddled with debt and people are marrying later, I don't think this prognostication is off. Multi-family demand is more a function of socioeconomics than traditional development cylces. Just my $0.02 for what is worth.

[GeorgiaPeanuts]

http://www.midtownatl.com/about/midtown-.../august-2015/mid-year-development-update

Midtown = Boomtown update from Midtown Alliance...

It is weird they still do not list Modera Midtown under construction even though it clearly is. Wonder if that makes 17 under construction and 16 in pipeline then.

Also they published the next week's agenda for DRC

5:00 FOLLOW-UP: Mixed-Use at Peachtree and 17th Street – The Simpson Organization
Project Type: Planned as a new mixed-use project on the northeast corner where three existing
commercial buildings and a ‘pocket park’ currently exist. The new development will
include two buildings:
 190,000 sf Office Building with 11,000 sf of street level retail and structured
parking for 650 cars
 Residential/Hotel tower with approximately 206 luxury apartment units and 140
hotel guestrooms, along with various amenity spaces and a street level retail
café on the corner of 17th Street
Applicant(s): Ron Stang, [email protected]
Jessica L. Hill, [email protected]


5:30 FOLLOW-UP: 1400 West Peachtree Street – Greystar
Project Type: Planned as a new mixed-use project at the southwest corner of West Peachtree Street
and 18th Street. The new development will include:
 24 story residential component (323 units) on the southeast portion of the site;
 8 story hotel component (+/- 160 rooms) on the northeast corner of the site;
 approximately 4,000 SF of restaurant space on West Peachtree Street;
 3,000 - 5,000 SF of retail and bike facility space on Spring Street;
 564 parking spaces
Applicant(s): Jessica L. Hill, [email protected]
Lee Rubenstein, [email protected]


6:00 NEW APPLICATION: Dual-branded hotel between 13th and 14th Street – Noble
Project Type: New construction of a dual-branded hotel with approximately 300 hotel rooms and 300
parking spaces, a portion of which (+/- 130 spaces) will be allocated for public use.
There will also be a publically accessible pedestrian connection between 14th Street and
13th Street running along the western edge of the property.
Applicant(s): Jessica L. Hill, [email protected]
Manny Dominguez, [email protected]
The Midtown SPI-16 and Piedmont SPI-17 Development Review Committees (DRC) are the City of Atlanta's advisory committees providing formal
recommendations to the Bureau of Planning on all Special Administrative Permit (SAP) Applications within both zoning districts. The Development
Review Committees are not Midtown Alliance Committees.


6:30 FOLLOW-UP: 1270 Spring Street – Pollack Shores
Project Type: New multifamily residential bounded by Spring Street on the east, 16th Street on the
north, and Williams Street on the west. The project consists of:
 5 levels of leasable apartments (+/- 256 units; 280,000 SF) and resident
amenities;
 3 levels of parking;
 13,500 SF of street-level retail on Spring and 16th Streets;
 2,500 SF of active use on 16th Street
Applicant(s): Tyler Gaines, [email protected]
Neil Weekley, [email protected]


7:00 NEW APPLICATION: 165 6th Street – EpiCity
Project Type: New construction of three townhouses on the south side of 6th Street between Juniper
and Piedmont.
Applicants(s): Michael Gamble, [email protected]

[arjay57]

Originally Posted by GeorgiaPeanuts

[url]
It is weird they still do not list Modera Midtown under construction even though it clearly is. Wonder if that makes 17 under construction and 16 in pipeline then.

New projects are probably starting faster than they can list them.

[Atlanta3000]

For those that had concern about the Buckhead rental market

https://www.bisnow.com/atlanta/news/multifamily/cyan-leasing-twice-atl-average-48881

[jpk1292000]

Originally Posted by GeorgiaPeanuts

http://www.midtownatl.com/about/midtown-.../august-2015/mid-year-development-update

Midtown = Boomtown update from Midtown Alliance...

It is weird they still do not list Modera Midtown under construction even though it clearly is. Wonder if that makes 17 under construction and 16 in pipeline then.

Also they published the next week's agenda for DRC

Phenomenal, really. If it seems that the skyline is full of cranes now, just wait another 3 to 6 months!

[arctk2014]

Originally Posted by arjay57

New projects are probably starting faster than they can list them.

Mill Creek Residential hasn't posted any press releases for construction - though one can see that it is already under construction. But it is odd that that one wasn't updated.

[GeorgiaPeanuts]

http://www.bizjournals.com/atlanta/real_...ce-city-market-to-include-amusement.html

PCM Rooftop is being branded 'The Roof at Ponce City Market' and will include an amusement ride and mini-golf plus leasable space.

[scania]

Originally Posted by arjay57

New projects are probably starting faster than they can list them.

Nah, we are not talking about a hundred different projects about to start within the next week or so...I think it's more of whatever employee that is working the job that keeps the website updated, simply isn't doing their job efficiently. I'm not sure if its a team of people or just one person that handles the website, but for sure if its a full-time job, the employee just isn't on top of the information.

[scania]

Originally Posted by Atlanta3000

For those that had concern about the Buckhead rental market

https://www.bisnow.com/atlanta/news/multifamily/cyan-leasing-twice-atl-average-48881

This is great news for Atlanta. One of the perks of Atlanta is that its so much cheaper than other major cities. It'll be interesting to see how high rates go up in Atlanta. I personally think that if it goes too high, the demand for people and companies migrating to Atlanta will drop.

[bigstick]

Does anyone know of camera sites for the new cranes that went up today. ???

Thanks

[cokezero]

Originally Posted by Atlanta3000

For those that had concern about the Buckhead rental market

https://www.bisnow.com/atlanta/news/multifamily/cyan-leasing-twice-atl-average-48881

I stand very much corrected!!

[Pemgin]

Originally Posted by bigstick

Does anyone know of camera sites for the new cranes that went up today. ???

Thanks

You can see Modera's crane from the 33 Peachtree Place webcam by swiveling it to the right. I thought I saw a webcam set up for Azure several weeks back, but I don't know what happened to it.

[Ant131531]

Originally Posted by scania

This is great news for Atlanta. One of the perks of Atlanta is that its so much cheaper than other major cities. It'll be interesting to see how high rates go up in Atlanta. I personally think that if it goes too high, the demand for people and companies migrating to Atlanta will drop.

Maybe the city itself, but home prices in the entire Atlanta region is barely above 150k for median price. It's far cheaper than most other major cities.

[Martinman]

Originally Posted by GeorgiaPeanuts

http://www.midtownatl.com/about/midtown-.../august-2015/mid-year-development-update

Midtown = Boomtown update from Midtown Alliance...

It is weird they still do not list Modera Midtown under construction even though it clearly is. Wonder if that makes 17 under construction and 16 in pipeline then.

I would say it's still 16 and 17 because Square on 5th is done. Then add the new hotel proposal to the list of projects in the pipeline.

[RocketSurgeon]

Originally Posted by scania

This is great news for Atlanta. One of the perks of Atlanta is that its so much cheaper than other major cities. It'll be interesting to see how high rates go up in Atlanta. I personally think that if it goes too high, the demand for people and companies migrating to Atlanta will drop.

I doubt that. As more people move here it will only get better--more nightlife, bigger industries, more housing options, etc. Being cheap helped it when it didn't have much else to offer but that won't be an issue for long.

[testarossa50]

Originally Posted by Ant131531

Maybe the city itself, but home prices in the entire Atlanta region is barely above 150k for median price. It's far cheaper than most other major cities.

Also, a critical determinant of rental rate is the break even rent for new construction. In Atlanta, but understanding is it's right around $2/SF. At $2.50, developers will continue to build a apartments all day and all night. In the past, when rents were stuck in the $1-$1.50 range for decades, developers had to be creative, build low rise cheap stuff, or build condos.

In DC/SF/Seattle/NYC/Boston/LA there are major hurdles to new construction that push this amount skyward--$3, $4, $5/SF. Atlanta won't develop that sort of land market, ever. Rents should stabilize in the $2-$2.50 range for new, upmarket construction.