This week in the Southeast saw more news and notables and new planned developments than significant acquisitions deals in the headlines. From self-storage to hotels, the markets were active on one front or another as we head toward the finish line of the first quarter of 2017.

BY THE NUMBERS

In contrast to prior cycles, office landlords have successfully kept new construction in check. The tables have turned a bit from 2003 or 2009 when chronic overbuilding forced landlords to compete with one another for the top tenants. Back then, lower construction costs also enabled owners to pursue a “build and poach” approach to securing anchor tenants. (Source: Savills Studley)

In the current office market, supply is not keeping up with demand from larger tenants. In turn, anchor tenants are running into smaller concession packages and reduced flexibility. Smaller tenants are feeling the pinch as well. (Source: Savills Studley)

NEWS & NOTABLES

ATLANTA—In 2016, Hotel Equities' hotels posted record performance in all key measurable areas. At the conference, the firm presented awards for excellence in both leadership and results. The Fairfield Inn & Suites by Marriott Gainesville, GA earned the Hotel of the Year award. The SpringHill Suites by Marriott Pensacola Beach earned the Revenue Generation Hotel of the Year. Individual honors went to Brooke Stall, Fairfield Inn & Suites by Marriott Perimeter Center, Atlanta, general manager of the Year and Mary Johnson, TownePlace Suites by Marriott Kennesaw and Hampton Inn by Hilton Dalton, GA, director of Sales of the Year. The Chairman's Award went to Becky Aleman, general manager of the Fairfield Inn & Suites by Marriott Lynchburg, VA.

ATLANTA—Berkshire Hathaway HomeServices Georgia Properties's Luxury Collection marketing campaign won the 2017 MAX Award (Marketing for Excellence Award) by Georgia State University's Robinson College of Business and the Atlanta Business Chronicle. The MAX Awards began in 1992 to recognize companies for their marketing innovation, outstanding marketing support and marketplace success. Past winners include the Coca-Cola Company, Georgia-Pacific, UPS, Equifax, Delta Air Lines, The Home Depot, the Atlanta Falcons, and the Atlanta Braves. No real estate company has ever been nominated or won this award.

ATLANTA—Federal Home Loan Bank of Atlanta appointed three new members to its Affordable Housing Advisory Council: Fred Dodson, Jr. is COO and executive vice president of Charlotte-Mecklenburg Housing Partnership; Marcia J. Griffin is founder and president of HomeFree-USA; Laura D. Lafayette is the CEO of the Richmond Association of REALTORS and the Central Virginia Regional Multiple Listing Service—two organizations that serve the over 5,000 REALTORS in Central Virginia.

DEAL TRACKER

STOCKBRIDGE, GA—Robbins Electra acquired three multifamily properties in Georgia and Florida: Marbella Place, located in Stockbridge, GA.; Vue at Baymeadows in Jacksonville, FL; and Palm Trace, located in Jacksonville, FL. Robbins Electra's portfolio now includes more than 22,400 multifamily units totaling over $2.5 billion in value. “Our investment team continues to pursue strategic value-add investments in the southeastern U.S., where job and population growth supports attractive risk-adjusted returns in the multifamily space,” says Joe Lubeck, CEO of Robbins Electra. “These three acquisitions exemplify this approach, with which we have had a 25-year track record of success.”

ATLANTA—G.S. Wilcox & Co. completed $15.8 million in financing for a 12-building industrial portfolio located in Atlanta. Gretchen S. Wilcox, president, and Al Raymond, principal, arranged the financing. The firm represented Hartz Mountain Industries for the transaction which was financed by Advantus Capital. Located in Atlanta's premier infill industrial submarket, the portfolio was 92% leased providing stable cash flow for the new owner.

ATLANTA—Despite a nationwide Internet outage during a new simulcast bidding system, John Dixon & Associates sold scores of properties around the Southeast for more than $5 million. “We had just upgraded to a new system for broadcasting our auctions and taking bids, and after a lot of test runs, we took it live for the first time—just as nationwide outage of Amazon Web Services hit,” Dixon says. “Even so, about half our bidders were watching and bidding online, and about a third of the properties sold to those bidders. The outage affected the chat functions and video quality, but we worked around those issues, and the online bidders were a major part of a very successful auction that went well over $5 million, even with some sellers still deciding whether to accept bids on reserve properties.”

BUILDING BLOCKS

VALDOSTA, GA—Four Corners Development has partnered with IDP Housing on this family housing project, Freedom Heights. Freedom Heights will be new construction consisting of 88 multifamily units. There will be 12 one-bedroom units, 52 two-bedroom units and 24 three-bedroom units. Triumph Management Group will manage the multifamily property. Valdosta was named one of six America's Friendliest Cities by Rand McNally and USA Today's Best of the Road contest in 2011. With Moody Air Force Base located right down the road from the site, we anticipate providing qualified military families housing at Freedom Heights.

METAIRIE, LA—Jernigan Capital is proposing a $12.5 million multi-story climate-controlled 1,000-unit self-storage facility a suburb of New Orleans. The proposed 90,000-net-rentable square foot facility will be a ground-up project located in a high-end shopping area near the junction of Interstate 10 and North Causeway Boulevard served by retailers and restaurant chains such as Whole Foods, Macy's, Restoration Hardware, Ruth's Chris Steak House and P.F. Chang's. Construction is expected to begin in May 2017 and be completed in the second quarter 2018. Abrams Construction Group is the developer of the proposed project. This is the first self-storage development in which the company and Abrams Construction Group have co-invested.

ATLANTA—Jernigan Capital is proposing a $17.5 million multi-story climate-controlled 1,104-unit self-storage facility in the Buckhead submarket of Atlanta. The proposed 85,000-net-rentable-square-foot facility will be a ground-up project in one of Atlanta's most affluent submarkets and will be located just off Peachtree Road, Northeast near the junction of Interstate 75 and Interstate 85. Construction is expected to begin in August 2017 and be completed in the third quarter 2018. Storage Development Partners is the developer of the proposed project. This is the first self-storage development in which the company and Storage Development Partners have co-invested.

This week in the Southeast saw more news and notables and new planned developments than significant acquisitions deals in the headlines. From self-storage to hotels, the markets were active on one front or another as we head toward the finish line of the first quarter of 2017.

BY THE NUMBERS

In contrast to prior cycles, office landlords have successfully kept new construction in check. The tables have turned a bit from 2003 or 2009 when chronic overbuilding forced landlords to compete with one another for the top tenants. Back then, lower construction costs also enabled owners to pursue a “build and poach” approach to securing anchor tenants. (Source: Savills Studley)

In the current office market, supply is not keeping up with demand from larger tenants. In turn, anchor tenants are running into smaller concession packages and reduced flexibility. Smaller tenants are feeling the pinch as well. (Source: Savills Studley)

NEWS & NOTABLES

ATLANTA—In 2016, Hotel Equities' hotels posted record performance in all key measurable areas. At the conference, the firm presented awards for excellence in both leadership and results. The Fairfield Inn & Suites by Marriott Gainesville, GA earned the Hotel of the Year award. The SpringHill Suites by Marriott Pensacola Beach earned the Revenue Generation Hotel of the Year. Individual honors went to Brooke Stall, Fairfield Inn & Suites by Marriott Perimeter Center, Atlanta, general manager of the Year and Mary Johnson, TownePlace Suites by Marriott Kennesaw and Hampton Inn by Hilton Dalton, GA, director of Sales of the Year. The Chairman's Award went to Becky Aleman, general manager of the Fairfield Inn & Suites by Marriott Lynchburg, VA.

ATLANTA—Berkshire Hathaway HomeServices Georgia Properties's Luxury Collection marketing campaign won the 2017 MAX Award (Marketing for Excellence Award) by Georgia State University's Robinson College of Business and the Atlanta Business Chronicle. The MAX Awards began in 1992 to recognize companies for their marketing innovation, outstanding marketing support and marketplace success. Past winners include the Coca-Cola Company, Georgia-Pacific, UPS, Equifax, Delta Air Lines, The Home Depot, the Atlanta Falcons, and the Atlanta Braves. No real estate company has ever been nominated or won this award.

ATLANTA—Federal Home Loan Bank of Atlanta appointed three new members to its Affordable Housing Advisory Council: Fred Dodson, Jr. is COO and executive vice president of Charlotte-Mecklenburg Housing Partnership; Marcia J. Griffin is founder and president of HomeFree-USA; Laura D. Lafayette is the CEO of the Richmond Association of REALTORS and the Central Virginia Regional Multiple Listing Service—two organizations that serve the over 5,000 REALTORS in Central Virginia.

DEAL TRACKER

STOCKBRIDGE, GA—Robbins Electra acquired three multifamily properties in Georgia and Florida: Marbella Place, located in Stockbridge, GA.; Vue at Baymeadows in Jacksonville, FL; and Palm Trace, located in Jacksonville, FL. Robbins Electra's portfolio now includes more than 22,400 multifamily units totaling over $2.5 billion in value. “Our investment team continues to pursue strategic value-add investments in the southeastern U.S., where job and population growth supports attractive risk-adjusted returns in the multifamily space,” says Joe Lubeck, CEO of Robbins Electra. “These three acquisitions exemplify this approach, with which we have had a 25-year track record of success.”

ATLANTA—G.S. Wilcox & Co. completed $15.8 million in financing for a 12-building industrial portfolio located in Atlanta. Gretchen S. Wilcox, president, and Al Raymond, principal, arranged the financing. The firm represented Hartz Mountain Industries for the transaction which was financed by Advantus Capital. Located in Atlanta's premier infill industrial submarket, the portfolio was 92% leased providing stable cash flow for the new owner.

ATLANTA—Despite a nationwide Internet outage during a new simulcast bidding system, John Dixon & Associates sold scores of properties around the Southeast for more than $5 million. “We had just upgraded to a new system for broadcasting our auctions and taking bids, and after a lot of test runs, we took it live for the first time—just as nationwide outage of Amazon Web Services hit,” Dixon says. “Even so, about half our bidders were watching and bidding online, and about a third of the properties sold to those bidders. The outage affected the chat functions and video quality, but we worked around those issues, and the online bidders were a major part of a very successful auction that went well over $5 million, even with some sellers still deciding whether to accept bids on reserve properties.”

BUILDING BLOCKS

VALDOSTA, GA—Four Corners Development has partnered with IDP Housing on this family housing project, Freedom Heights. Freedom Heights will be new construction consisting of 88 multifamily units. There will be 12 one-bedroom units, 52 two-bedroom units and 24 three-bedroom units. Triumph Management Group will manage the multifamily property. Valdosta was named one of six America's Friendliest Cities by Rand McNally and USA Today's Best of the Road contest in 2011. With Moody Air Force Base located right down the road from the site, we anticipate providing qualified military families housing at Freedom Heights.

METAIRIE, LA—Jernigan Capital is proposing a $12.5 million multi-story climate-controlled 1,000-unit self-storage facility a suburb of New Orleans. The proposed 90,000-net-rentable square foot facility will be a ground-up project located in a high-end shopping area near the junction of Interstate 10 and North Causeway Boulevard served by retailers and restaurant chains such as Whole Foods, Macy's, Restoration Hardware, Ruth's Chris Steak House and P.F. Chang's. Construction is expected to begin in May 2017 and be completed in the second quarter 2018. Abrams Construction Group is the developer of the proposed project. This is the first self-storage development in which the company and Abrams Construction Group have co-invested.

ATLANTA—Jernigan Capital is proposing a $17.5 million multi-story climate-controlled 1,104-unit self-storage facility in the Buckhead submarket of Atlanta. The proposed 85,000-net-rentable-square-foot facility will be a ground-up project in one of Atlanta's most affluent submarkets and will be located just off Peachtree Road, Northeast near the junction of Interstate 75 and Interstate 85. Construction is expected to begin in August 2017 and be completed in the third quarter 2018. Storage Development Partners is the developer of the proposed project. This is the first self-storage development in which the company and Storage Development Partners have co-invested.