Three CRE Deals That Benefit Atlanta Long-Term

ATLANTA—The great recession of 2008 left the entire US real estate market in disarray—and Atlanta was slow to recover on many fronts. Now, the Atlanta real estate market is experiencing a rapid incline, and major real estate transactions confirm Atlanta's emergence.

William Montgomery, a shareholder and chair of the Commercial Real Estate Practice Group at Chamberlain Hrdlicka in Atlanta, points to several major transactions that have helped to generate positive economic development and long-term benefit to the city. Those deals are Pinewood Atlanta Studios, the acquisition of Mount Vernon Baptist Church, and, of course, the Mercedes-Benz deal.

In the spring of 2013, 288 acres of pasture land within the City of Fayetteville was sold to a joint venture between Dan Cathy, Chick-fil-A entrepreneur and Pinewood Studios, headquartered in London, England. This transaction brings industry-related businesses that serve the movie and TV production business to Fayette County, which adds to the already rapidly growing presence of movie and TV series productions in Georgia.

“The movie and TV production occurring at the expanding Pinewood Atlanta Studios Project has a substantial indirect impact on Atlanta,” Montgomery tells GlobeSt.com. “If fully developed, the ambitious project will encompass 75,000 square feet of mixed-use retail, 100,500 square feet of mixed-use office and retail, over 700 single-family homes, 324 multifamily units, and also include two boutique hotels with 200 total rooms.”

Located to the north of the Piedmont Fayette Hospital complex that fronts Highway 54, Pinewood Forest is expected to be an economic catalyst for the City's west side. The project envisions a central park with water features, a community center, a modest size chapel and amphitheater and other green space.

“Clearly, The Pinewood Joint Venture is confident of the long term economic benefits to the City of Fayetteville which the Pinewood Atlanta Studios will achieve,” says Montgomery. “Pinewood has another 143 acres—owned by another one of my clients—under contract contiguous to the studios on the west side of Veterans Parkway, scheduled for acquisition in early May 2015.”

Mount Vernon Baptist Church just celebrated its 100th year anniversary, and the acquisition and renovation of its new church home located at 785 Lynhurst Drive in Atlanta. Significant revitalization is being spawned around the church's former home, which is the site of the new Atlanta Falcons stadium. Construction is well underway. An $850 million construction loan for the new stadium that will close in May, 2015.

“Other significant projects are anticipated in the area where the Mount Vernon Baptist Church congregation previously served the nearby Vine City and English Avenue neighborhoods,” says Montgomery. “The Georgia World Congress Center Authority is seeking proposals for the development of an 800 to 1,000 room four-star hotel on the site next to the new stadium once the Georgia Dome is demolished.”

A 116,000-square-foot trade show expansion of the existing GWCCA convention center is also being contemplated. And the Atlanta Housing Authority and Invest Atlanta is seeking development proposals for the 12-acre site of the former Herndon Homes, located approximately one mile north of the new stadium.

Finally, Ashton Atlanta Residential filed a petition to rezone the 75 acres from R-1 to MIX in April 2015 with the City of Sandy Springs. The proposed project will consist of a two-phase 460,000 square foot office component—235,000 square feet in phase one—located on the 12 acres at the southwest corner of Abernathy Road and Barfield Road. This site will be the corporate campus and headquarters for Mercedes Benz USA.

“The remainder of the project will include 659 fee simple attached and detached Townhomes and stacked flats, 399 apartments in a single building on the south tract and 36,401 square feet of neighborhood commercial use,” says Montgomery. “The scope of the project triggers a Development of Regional Impact review, which will assess the impact on streets and transportation resources.”

The south tract is in the Living Working Neighborhood designation of the City's Comprehensive Land Use Plan. The site plan is designed to provide a transition from the more intensive uses existing and proposed on the east to Georgia 400 and the single family homes to the west, and uses the topography and national features to enhance the development and minimize the impact on existing natural resources.