ATLANTA MARKET OVERVIEW AND TRENDS ANALYSIS

Transcription

1 ATLANTA MARKET OVERVIEW AND TRENDS ANALYSIS SEPTEMBER 17

2 DEVELOPMENT PIPELINE - ACWORTH N. FULTON Wrap units Garden - 1,0 units ROSWELL ALPHARETTA NORTH FULTON 19 1 MARIETTA SANDY SPRINGS 400 PERIMETER Wrap - 2,481 units 278 DOUGLASVILLE POWDER SPRINGS 78 CUMBERLAND Wrap - 1,386 units Garden units MABLETON SMYRNA CUMBERLAND (COBB COUNTY) BUCKHEAD Tower - 3,805 units Midrise - 1,228 units 75 WEST MIDTOWN W. MIDTOWN Wrap units MIDTOWN Tower - 5,460 units Midrise - 1,165 units 41 ATLANTA PERIMETER BUCKHEAD BUCKHEAD MIDTOWN OLD FOURTH WARD GRANT PARK GLENWOOD PARK DOWNTOWN BROOKHAVEN LINDBERGH Wrap units 236 EMORY/ CDC 410 EMORY/ DECATUR INMAN PARK EAST SIDE 154 Tower - 7 units Wrap units CAMBELLTON UNION CITY MORROW

3 MAJOR BUSINESS DISTRICTS HOSCHTON 211 JOHNS CREEK AUBURN WINDER 29 RUSSELL GWINNETT COUNTY LAWRENCEVILLE GWINNETT Garden - 2,272 units BETHLEHEM 29 GRAYSON 81 SNELLVILLE 8 OUTER BURBS Garden - 3,306 units LOGANVILLE STONE MOUNTAIN EMORY/DECATUR Wrap - 1,754 units 78 MONROE LITHONIA JERSEY SOCIAL CIRCLE 155 COVINGTON ATLANTA MARKET OVERVIEW AND TRENDS ANALYSIS 9

4 CUMBERLAND / VININGS Historic Vinings is part of the greater Cumberland Community Improvement District (CID), a self-taxing district covering 5.5 square miles (including the intersections of I-75, I- and U.S. Highway 41). Cumberland was Georgia s first CID, formed by business leaders interested in improving access to the highways for Atlanta s emerging northwest business market. Commercial property owners within the Cumberland area fund the Cumberland CID by paying an additional five mils of property taxes. Cobb County collects the taxes and distributes those funds to the CID, which in turn provides funding to start the necessary planning process for roads, streetscapes, trails and other infrastructure improvements, while federal, state and county dollars pay for the bulk of project construction. The CID also includes the new SunTrust Park, the future home of the Atlanta Braves. SunTrust Park is located less than one mile north of Venue Vinings. CORPORATE RELOCATIONS The Cumberland office submarket is hot. With nearly 30 million square feet of office space, it is Atlanta s fifth-largest CBD. Cumberland had the second highest amount of office space absorbed in 16, behind only Midtown. Genuine Parts move into its new building accounted for 150,000 square feet. Elsewhere, Wellstar and Lincoln Financial were major contributors to 16 s positive absorption. Additionally, DS Services, a $1 billion beverage company, recently chose Cobb County s Wildwood Center to relocate its 58,000 square foot headquarters. AllState Insurance, Vonage Solutions, Greenway Medical and Birch Communications are other major companies recently committing to this market. Cumberland s overall office vacancy rate declined 1.3% between mid-year 16 and mid-year 17, and the submarket s Class A vacancy rate dropped 2.5% year-over-year; accounting for the second largest annual vacancy decrease in the overall Atlanta office market. SUNTRUST PARK The 60-acre, $1B Braves mixed-use development is the first project of its kind in the U.S., where both a mixed-use community and a Major League Baseball stadium are under construction at the same time within the middle of an established office market (and between two major interstates). The development of the mixed-use Battery Atlanta around SunTrust Park promises to bring numerous benefits to Cumberland (and the rest of Cobb County) as it creates a year-round destination to accompany other attractions in Cobb. The restaurant/retail component of Battery Atlanta, being completed by Brave s development partner Fuqua Development, leads off with a roster of restaurants that include Antico Pizza, Cru Food and Wine Bar, Tomahawk Taproom (featuring Fox Bros. Bar-B-Q), a Superica Mex-Tex concept by chef Ford Fry, and a steakhouse concept with chef Linton Hopkins. An additional 350,000 square feet of retail is also on tap. The Braves are teaming with Live Nation to develop and operate a 53,000-square-foot entertainment venue dubbed The Roxy Theatre. With a standing room only capacity of 4,000, it will feature approximately 40 music and/or comedy shows annually, mostly on non-game days; it will also be used for private 14 and special events throughout the year. In the hospitality arena, Braves and Omni Hotels & Resorts are partnering to develop The Omni Atlanta Hotel at SunTrust Park, a full-service, 260-room hotel accompanied by approximately 12,500 square feet of meeting space, a signature restaurant, and an elevated pool deck and bar overlooking the plaza and ballpark. Other elements of Battery Atlanta include the 250,000-square-foot One Ballpark Center office building, housing Comcast s regional office headquarters, developed in partnership with Pope & Land Enterprises Inc.; and 531 apartment units (Home at The Battery) developed by Pollack Shores. The economic benefits from the new ballpark will ripple throughout the Vinings/Cumberland region. Construction of SunTrust Park and Battery Atlanta has supported more than 5,0 jobs, generating $235M in earnings. Once fully operational, annual earnings for the more than 3,000 employees needed to staff the Braves organization will total $35.8M. Visitor spending - resulting in 873 jobs - will provide $25M in earnings. Cumberland already boasts four major interchanges that provide unparalleled access to the market. In addition, it also has one of the best circulator road systems of any Atlanta submarket. A billion dollar public/private road improvement project will further enhance this submarket s access and vehicular circulation especially on Braves game days. The Northwest Corridor express lanes project makes up a majority of the billion dollar price tag. This managed lane project will add almost 30 miles of toll lanes along 1-75 and along Additional roadwork projects currently under construction within the CID include: 1. Improvements on U.S. Highway 41 (Cobb Parkway), 2. Continued work on the Akers Mill bike and walk trail, 3. Design and construction of the five-mile Bob Callan trail (which connects the Chattahoochee National Recreation Area at US 41 north to Terrell Mill), 4. Various improvements to Cumberland Boulevard (Venue Vinings s primary artery), including nearly 250 new street and pedestrian lights as well as decorative mast arms at key intersections installed, design and construction for improvements to the Cumberland Parkway corridor behind the mall, and design and construction of a new bridgescape design for Cumberland Blvd. at I Design and construction of streetscape improvements along Riverwood Parkway from Cumberland Boulevard to US Highway 41/Cobb Parkway. 6. Road widening and Diverging Diamond Interchange on the Windy Hill Road Corridor

5 The Battery at SunTrust Park Northwest Corridor Reversible Lanes Project U.S. 41 (Cobb Parkway) Improvements ATLANTA MARKET OVERVIEW AND TRENDS ANALYSIS 15

6 ATLANTA MARKET OVERVIEW AND TRENDS ANALYSIS 25

7 MORAN & CO SOUTHEAST SEAN P. HENRY - MANAGING PARTNER- SOUTHEAST REGION Sean is responsible for managing all marketing assignments and client relationships in the Southeastern Region. Sean and his team are based in Atlanta and will cover assignments from the Carolina s to Florida. Sean has a strong record of accomplishment in the commercial real estate industry dating back to His background includes appraisal, acquisitions, dispositions and brokerage. As an acquisitions officer for both Lend Lease and General Investment and Development Company, Sean was responsible for sourcing, negotiating, managing due diligence and ultimately closing $1.5 Billion in multifamily acquisitions in states. Prior to joining Moran & Company, Sean was a multifamily broker for ARA for 10 years. During his tenure at ARA, Sean successfully closed $6 Billion in multifamily transactions with many of the top public and private pension plans, REITs, private capital and commingled discretionary funds. For the past years, Sean has been focused exclusively on the multifamily transaction business. Sean graduated from Georgia Southern University in 1990 with a, B.B.A. in Finance. He has been an active participant in the Urban Land Institute (ULI) and the National Multi Housing Council (NMHC). CURTIS W. WALKER - PARTNER - SOUTHEAST REGION Curtis Walker is a Partner in the Southeast office and is responsible for brokerage activities in that region s major MSA s, including Atlanta, Charlotte, Raleigh, Nashville, Charleston, Birmingham, Mobile, Orlando, Tampa and Jacksonville. Prior to joining the Moran team, Curtis was in charge of all acquisition activities for the Eastern Region of Wood Partners, where he directed the acquisition of approximately $750 million of multifamily investments. Prior to joining Wood Partners, he was the Senior Vice President of Trammell Crow Company, handling the development of multifamily in the Southeastern region. Over his 24 years of multifamily experience, Curtis has been involved with more than $4 billion in transactions including 40,000+ multifamily units. Curtis graduated from University of North Texas in 1980 with a B.B.A. He is an active participant in the National Multi Housing Council (NMHC) and Apartment Life. JOEL K. SASSER DIRECTOR SOUTHEAST REGION Joel joined Moran & Company as a Director in the Southeast office in June 13, where he is assisting with the expansion of Moran s brokerage operations in this important region of the country. Joel s extensive real estate experience encompasses more than $3 billion in the development, construction and disposition of class A multifamily projects throughout the Southeast and Texas. In his previous role with The Worthing Companies, Joel was responsible for the origination of new developments, market and financial analysis, and other development-related activities including pre-construction, design specification, zoning, entitlement procurement and pre-construction marketing. His specific areas of market expertise include Atlanta, Raleigh-Durham, Houston, Austin, Nashville and Charleston. Prior to his role as Development Director, Joel was the Regional Operations Manager for Worthing, responsible for procuring new fee management assignments and overseeing due diligence and property takeovers. Joel is a 1999 graduate of the University of North Carolina at Chapel Hill, with a B.A. in Journalism and Mass Communication. Joel is a Certified Commercial Investment Member (CCIM). 26

8 MORAN & CO. NATIONAL RESOURCES The partners at Moran & Company are a unique set of very skilled real estate professionals, each of whom has worked at the highest levels of the principal side of the multifamily industry. This group s collective experience in disposition, capitalization and advisory services provides a deep understanding of the needs of both sellers and buyers of core-quality real estate. The multifamily industry recognizes Moran & Company s unparalleled client advocacy and wisdom, and frequently calls upon Moran & Company for industry leadership. The National Multifamily Housing Council and Mortgage Bankers Association rely upon Tom Moran to frequently testify before Congress on behalf of the NMHC PAC, and to represent the interests of the entire multifamily industry. Mary Ann King is a former Chairman of the NMHC and current Urban Land Institute Trustee. Additional Moran & Company partners are also represented on not one, but three ULI leadership councils. These industry leadership roles provide all of the partners at Moran & Company with direct access to the top decision-makers in the multifamily space. THOMAS F. MORAN - MANAGING PARTNER Thomas F. Moran is Moran & Company s Managing Partner. He assists in structuring all joint venture and pre-sale opportunities marketed by Moran & Company as well as in the client contact for all major assignments. Tom received a BS from Marquette University in 1959 and a law degree from Georgetown University in Between 1963 and 1969, he worked for Arthur Andersen in Chicago as a member of the tax staff. From , he served as a tax manager. In 1969, Tom left Arthur Andersen to work for Walston & Company as an investment banker. There he worked in the Corporate Finance area specializing in the analysis of oil and gas, cattle feeding, and real estate. In 1971, Tom left Walston & Company to form his own firm, Moran & Company. Tom received his C.P.A. from the State of Illinois in 1967 and passed the Illinois Bar in He sits on the Executive Board of the National Multifamily Housing Council. He is a member of the Illinois Bar Association and the American Institute of Certified Public Accountants. He is a licensed broker in Illinois, California, Kansas, Minnesota, Tennessee, Texas, and Georgia. MARY ANN KING - MANAGING PARTNER - WEST COAST REGION Mary Ann King is President of Moran & Company and is based in Moran & Company s West Coast office. Mary Ann received a BA in Urban Studies in 1975 from Middlebury College in Middlebury, Vermont. She received a Masters Degree in City and Regional Planning with a specialization in Housing Development from Harvard University in Cambridge, Massachusetts in 1977 and a Masters of Management (MBA) with a major in Finance from Northwestern University in Evanston, Illinois in From , she worked in the Real Estate Department of Continental Bank. She was made an officer in 1979, an AVP in 1981 and a VP in From , she had responsibility for managing a team of lenders involved in underwriting condominium conversion loans nationwide. In 1983, Mary Ann joined Moran & Company in Chicago as its Vice President of Acquisitions and Finance. From , she was responsible for identifying and financing joint venture development opportunities for Moran & Company s investor clientele. In 1994, in response to demand from Moran & Company s institutional clientele, Ms. King, became licensed as a broker and sold the first property ever listed by Moran & Company s newly formed brokerage division. Mary Ann was instrumental in managing the underwriting and developing the collateral materials that have given Moran & Company its unsurpassed reputation in the sale of institutional quality apartment properties nationwide. Mary Ann is the Vice Chairman of the National Multi Housing Council and a member of its Executive Committee. She is also the Vice Chair at large for the Urban Land Institute s blue Multifamily Council. ATLANTA MARKET OVERVIEW AND TRENDS ANALYSIS 27

9 SOUTHEAST 3414 Peachtree Road NE, Suite 475 Atlanta, GA Phone ATLANTA CHICAGO DALLAS DENVER HOUSTON IRVINE PHOENIX SEATTLE WASHINGTON DC