This week in the Southeast saw strong submarket activity across the board as investors continue looking for strategic deals outside the core. We also saw a significant retirement and a torch passed this week.
BY THE NUMBERS
Metro Atlanta experienced nearly 6.4 million square feet of positive industrial absorption, the highest amount ever recorded in Atlanta's history. The previous record of 6.15 square feet was set in the fourth quarter of 2014. The Interstate 20/Fulton Industrial submarket saw the highest level of absorption with 2.6 million square feet of overall net absorption. (Source: Cushman & Wakefield)
Overall industrial asking rents jumped from $4.20 per square foot to $4.31 per square foot quarter-over-quarter, the highest since the second quarter of 2003 when asking rents reached $4.35 per square foot. (Source: Cushman & Wakefield)
NEWS & NOTABLES
JACKSON—George C. Gunn has retired as executive vice president and real estate banking manager of Trustmark National Bank. Monica A. Day is now in his post. Day has 26 years of credit and commercial and real estate lending experience at Trustmark.
ATLANTA—William N. Hearn, senior vice president of CBRE Atlanta's Business Location Consulting Group, has been named special advisor to the Site Selectors Guild Board. As a founding member of the Site Selectors Guild, which is a national association of site selection professionals, he has been with the organization since its inception in 2010. In addition to his role as a founding member of SSG, Hearn has served as an SSG advisor to states and regions, addressing economic development and investment policy. In 2008 and 2010, Hearn led consulting engagements at The World Bank and USAID to support transitioning economies in Eastern Europe, which resulted in the creation of nine Special Economic Zones (SEZs).
DEAL TRACKER
ATLANTA—Omni Hotels & Resorts announced acquired Time Warner's 50% interest in the Omni Atlanta Hotel at CNN Center, and now has full ownership and management of the property. Omni partnered with Turner Broadcasting in 2000 to acquire the hotel's south tower and build the 600-room north tower, which opened in 2003. Located in the heart of Downtown Atlanta, the hotel connects to the CNN Center, Georgia World Congress Center, and the College Football Hall of Fame. The property features 1,059 guest rooms and suites and 45 meeting rooms with more than 120,000 square feet of function space, including a 19,864-square-foot Grand Ballroom.
BIRMINGHAM—AdCare Health Systems acquired an assisted living and memory care facility with 106 operational beds located in Alabama for $5.5 million. The company also signed a long-term lease to operate the facility to an affiliate of C.Ross Management, LLC. C.Ross, AdCare's largest operator, operates 22 facilities in Georgia and Alabama through its affiliates. The terms of the long-term lease agreement, include a 13-year term with initial annual cash rent of $450,000 in the first year and a 2% annual rent escalator.
SAVANNAH, GA—Olympus Property acquired Carrington Square in Savannah. The community will undergo a name change effective immediately to Olympus Carrington. This is the first multifamily community to be added to Olympus Property's seventh fund, WW Olympus Property VII, LLC. Olympus Carrington is a 288-unit class A multifamily community built in 2007. Located within the Savannah Quarters submarket, the upscale community includes the Savannah Quarters Country Club featuring a Greg Norman Signature golf course.
NASHVILLE—Compass Auctions & Real Estate is set to auction two large tracts of land in downtown Nashville on behalf of the State of Tennessee. The auction is for the properties located at 450-460 James Robertson Parkway and will take place Wednesday, June 21, at 2 p.m. CDT, at the nearby Hermitage Hotel. The Downtown Nashville properties include two-plus acres located on the north side of James Robertson Parkway and Gay Street, with frontage on the south side of Fourth Avenue North.
ALPHARETTA, GA—CBRE Global Investors and German investment company Universal-Investment have acquired North Point MarketCenter, a 427,053-square-foot class A regional retail center located in Alpharetta. The acquisition was made on behalf of Bayerische Versorgungskammer (BVK), one of Germany's largest institutional investors. The asset is 97% leased. North Point MarketCenter is at the corner of North Point Parkway and Haynes Bridge Road. The center features several segment-leading national retailers occupying a significant majority of the net rentable area, positioning it as the dominant retail center in the trade area.
CUMMING, GA—HFF brokered the sale of Castleberry Southard, a dominant 80,018-square-foot, Publix-anchored neighborhood retail center in the affluent Atlanta submarket of Cumming. HFF represented the seller, TA Realty. New Market Properties purchased the asset free and clear of existing debt. Located at 5475 Bethelview Road in Cumming, Castleberry Southard is situated at the “main and main” intersection of Castleberry and Bethelview Roads in one of the most affluent and fastest-growing submarkets in the Atlanta area.
BUILDING BLOCKS
BIRMINGHAM—Merion Residential re-launch of the property located at 801 Cahaba Forest Cove in Birmingham as The Trails at Cahaba River Apartment Homes. The rental community recently underwent a $6 million-dollar capital improvements campaign. The 400 multifamily units now feature new kitchen and bathroom finishes, eco-friendly wood-inspired plank flooring, walk-in closets, built-in book shelves, stainless steel appliances built-in wood burning fireplaces, spacious patios or balconies with storage closets and smart touches like LED lighting and USB outlets. Monthly rents start at $875 ranging up to $1,230 depending on square footage and configuration.
This week in the Southeast saw strong submarket activity across the board as investors continue looking for strategic deals outside the core. We also saw a significant retirement and a torch passed this week.
BY THE NUMBERS
Metro Atlanta experienced nearly 6.4 million square feet of positive industrial absorption, the highest amount ever recorded in Atlanta's history. The previous record of 6.15 square feet was set in the fourth quarter of 2014. The Interstate 20/Fulton Industrial submarket saw the highest level of absorption with 2.6 million square feet of overall net absorption. (Source: Cushman & Wakefield)
Overall industrial asking rents jumped from $4.20 per square foot to $4.31 per square foot quarter-over-quarter, the highest since the second quarter of 2003 when asking rents reached $4.35 per square foot. (Source: Cushman & Wakefield)
NEWS & NOTABLES
JACKSON—George C. Gunn has retired as executive vice president and real estate banking manager of Trustmark National Bank. Monica A. Day is now in his post. Day has 26 years of credit and commercial and real estate lending experience at Trustmark.
ATLANTA—William N. Hearn, senior vice president of CBRE Atlanta's Business Location Consulting Group, has been named special advisor to the Site Selectors Guild Board. As a founding member of the Site Selectors Guild, which is a national association of site selection professionals, he has been with the organization since its inception in 2010. In addition to his role as a founding member of SSG, Hearn has served as an SSG advisor to states and regions, addressing economic development and investment policy. In 2008 and 2010, Hearn led consulting engagements at The World Bank and USAID to support transitioning economies in Eastern Europe, which resulted in the creation of nine Special Economic Zones (SEZs).
DEAL TRACKER
ATLANTA—Omni Hotels & Resorts announced acquired Time Warner's 50% interest in the Omni Atlanta Hotel at CNN Center, and now has full ownership and management of the property. Omni partnered with Turner Broadcasting in 2000 to acquire the hotel's south tower and build the 600-room north tower, which opened in 2003. Located in the heart of Downtown Atlanta, the hotel connects to the CNN Center, Georgia World Congress Center, and the College Football Hall of Fame. The property features 1,059 guest rooms and suites and 45 meeting rooms with more than 120,000 square feet of function space, including a 19,864-square-foot Grand Ballroom.
BIRMINGHAM—AdCare Health Systems acquired an assisted living and memory care facility with 106 operational beds located in Alabama for $5.5 million. The company also signed a long-term lease to operate the facility to an affiliate of C.Ross Management, LLC. C.Ross, AdCare's largest operator, operates 22 facilities in Georgia and Alabama through its affiliates. The terms of the long-term lease agreement, include a 13-year term with initial annual cash rent of $450,000 in the first year and a 2% annual rent escalator.
SAVANNAH, GA—Olympus Property acquired Carrington Square in Savannah. The community will undergo a name change effective immediately to Olympus Carrington. This is the first multifamily community to be added to Olympus Property's seventh fund, WW Olympus Property VII, LLC. Olympus Carrington is a 288-unit class A multifamily community built in 2007. Located within the Savannah Quarters submarket, the upscale community includes the Savannah Quarters Country Club featuring a Greg Norman Signature golf course.
NASHVILLE—Compass Auctions & Real Estate is set to auction two large tracts of land in downtown Nashville on behalf of the State of Tennessee. The auction is for the properties located at 450-460
ALPHARETTA, GA—CBRE Global Investors and German investment company Universal-Investment have acquired North Point MarketCenter, a 427,053-square-foot class A regional retail center located in Alpharetta. The acquisition was made on behalf of Bayerische Versorgungskammer (BVK), one of Germany's largest institutional investors. The asset is 97% leased. North Point MarketCenter is at the corner of North Point Parkway and Haynes Bridge Road. The center features several segment-leading national retailers occupying a significant majority of the net rentable area, positioning it as the dominant retail center in the trade area.
CUMMING, GA—HFF brokered the sale of Castleberry Southard, a dominant 80,018-square-foot, Publix-anchored neighborhood retail center in the affluent Atlanta submarket of Cumming. HFF represented the seller, TA Realty. New Market Properties purchased the asset free and clear of existing debt. Located at 5475 Bethelview Road in Cumming, Castleberry Southard is situated at the “main and main” intersection of Castleberry and Bethelview Roads in one of the most affluent and fastest-growing submarkets in the Atlanta area.
BUILDING BLOCKS
BIRMINGHAM—Merion Residential re-launch of the property located at 801 Cahaba Forest Cove in Birmingham as The Trails at Cahaba River Apartment Homes. The rental community recently underwent a $6 million-dollar capital improvements campaign. The 400 multifamily units now feature new kitchen and bathroom finishes, eco-friendly wood-inspired plank flooring, walk-in closets, built-in book shelves, stainless steel appliances built-in wood burning fireplaces, spacious patios or balconies with storage closets and smart touches like LED lighting and USB outlets. Monthly rents start at $875 ranging up to $1,230 depending on square footage and configuration.
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