Southeast Real Estate Business

OCT 2016

Southeast Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Southeast United States.

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Page 44 of 56

44 • October 2016 • Southeast Real Estate Business INWARD FOCUS FOR ATLANTA developments are components of mixed-use projects, and save for a few exceptions, almost all (85 percent) are situated north of I-20, the unofficial equator of metro Atlanta. It's not just retailers and developers that are responding to the northward trend in metro Atlanta. In a decision to be located nearer to its season ticket holders, the Atlanta Braves made the decision in November 2013 to move its ballpark and operations from Turn- er Field just south of downtown At- lanta to SunTrust Park, a 41,500-seat ballpark in Cobb County that is set to debut in time for Opening Day in April 2017. Surrounding SunTrust Park will be The Battery Atlanta, a 1.5 million- square-foot mixed-use development that will open concurrently with the new Braves stadium. In addition to an Omni Hotel, build-to-suit Com- cast office tower and The Coca-Cola Roxy Theatre, The Battery Atlanta will house several retailers and restau- rants. The Braves and development partner Fuqua Development recently revealed eight retail, dining and en- tertainment concepts coming to the project. These include Wahlburgers, a chef- driven burger concept from Mark, Donnie and Paul Wahlberg; Kings Bowl, a retro bowling and entertain- ment destination; Live!, a dining and entertainment destination developed by The Cordish Cos. and designed by Jeffrey Beers International; Goldbergs Bagel Co. & Deli, an Atlanta-based bagel and sandwich shop; Mountain High Outfitters, an outdoor specialty store; Sugarboo Designs, a household items and gifts retailer; DressUp, a women's fashion boutique retailer; and a retail-only Harley-Davidson store. The Battery Atlanta will be situated just outside of I-285, or as locals refer to it "outside the perimeter," or simply "OTP." The northern suburbs of At- lanta are seeing renewed interest from developers for large-scale retail desti- nations, the best example being North American Properties (NAP) develop- ing the $600 million Avalon mixed-use development in Alpharetta. NAP recently announced nine re- tailers coming to Phase II of Avalon, which is set to open in spring 2017. The new merchants include Hop City and The Spotted Trotter, which will work together to form a beer garden; Rumi's Kitchen; Brine Fish House; The Boardroom Salon for Men; Lucky Brand; Brooks Brothers; Levi's; and Urban Outfitters. In addition to the retailers, Phase II will include 550,000 square feet of office space, 276 multifamily units, a 330-key hotel and a 74,000-square-foot conference center. NAP recently land- ed Tesla, AYA Med Spa, Farm to Ladle, Parisian Nail Salon and Café Inter- mezzo in Phase I of Avalon, which is now fully leased, according to NAP. NAP is also active inside the perim- eter (ITP). Shaking up Midtown At- lanta's retail landscape is NAP's lat- est investment, Colony Square, which the developer purchased recently for nearly $170 million. Located at the intersection of 14th and Peachtree streets, Colony Square features 700,000 square feet of office space, the W Atlanta-Midtown (not included in the sale),140,000 square feet of retail space and a 2,000-stall, covered park- ing garage. NAP and its capital partner pur- chased the project from Tishman Speyer and Rialto Capital Manage- ment, according to media reports. NAP is reimagining Colony Square's retail space to be more inviting to the public, making the retail plaza more of an open-air layout, according to the latest renderings unveiled by NAP. Restaurant 5Church also plans to open a rooftop patio as part of Colony Square's new look. Another rooftop concept in a high- profile development is The Regent Cocktail Club, an indoor/outdoor bar concept that sits atop the Ameri- can Cut steakhouse. Owned by LDV Hospitality, the two venues opened in September in The Shops Buck- head Atlanta, which OliverMcMillan opened in late 2014. The three-story restaurant/bar duo is situated near high-end retailers such as Tom Ford, Hermes, Christian Louboutin, Dior and Jimmy Choo. Other eateries at The Shops Buckhead Atlanta include Shake Shack, Corso Coffee, Gypsy Kitchen and Fado Irish Pub. Ponce City Market, which opened in 2015, and Krog Street Market, which opened in late 2014, are two develop- ments along the Atlanta Beltline, a pe- destrian-bike transportation corridor that has aided gentrification of many of Atlanta's intown neighborhoods. Growth in areas such as Inman Park, Sweet Auburn, Poncey-Highland and the Old Fourth Ward — home to many of the city's most popular new restau- rants — are booming in part because of their proximity to the Beltline. Healthy Malls Atlanta's regional mall atmosphere has always been one of the healthier ones in the nation, led by the vener- able Lenox Square and Phipps Plaza, both owned by Simon. Phipps Plaza completed a renovation earlier this year, which brings the high-end center a modern look. Additionally, a new AC Hotel and a high-rise multifam- ily complex were additions to the pe- riphery of the center. Together, Lenox and Phipps, with surrounding office, multifamily and ancillary retail have created a large live-work-play envi- ronment in Buckhead. In the Dunwoody-Sandy Springs area around I-285, more commonly known as the Perimeter submarket, Perimeter Mall continues to serve as the main retail hub. Operated by Gen- eral Growth, the Macy's, Nordstrom, Dillard's and Von Maur-anchored center continues to add leading retail- ers and restaurants. General Growth also operates Cumberland Mall, which may face competition from the new Battery At- lanta project that will be part of the new Braves stadium complex. GGP also operates North Point Mall in Al- pharetta. North Point has strong re- tailers, like AMC Theaters, Apple and H&M, but also brings a competitive edge in the market with its Ameri- can Girl store attracting visitors from the entire Southeast. Simon's Mall of Georgia in Buford also serves as a re- gional destination and continues to be a top center in the market. Four of Atlanta's regional centers have short- or long-term plans for re- development. Southlake Mall, located in the south suburbs and owned by Los Angeles-based Vintage Real Es- tate, has righted itself by leasing an empty department store to a call cen- ter — bringing jobs — and by deliver- ing needed retail and restaurants to an underserved market. Northlake Mall in the northeastern suburb of Tucker was purchased earlier this year by Dallas-based Corinth Properties, who has plans to revitalize and redevelop the center, possibly into an open-air format. In Decatur, Lennar and The Sterling Organization own North Dekalb Mall, which suffered the loss of its Macy's store, the center's last large anchor. Local media report that the mall's owners have said that they will reinvent the center in the future. Further north, Moonbeam Capital In- vestments has plans long-range plans to redevelop Gwinnett Place Mall. Georgia now ranks third in the world in movie and television pro- duction. That booming industry has seen a lot of large real estate parcels in the Atlanta area being converted to movie studio space, among that the former Shannon Mall. That center was razed in 2015 to become a movie ATLANTA from page 1 The Battery Atlanta is a massive mixed-use development opening with the new ballpark for the Atlanta Braves, SunTrust Park. Retail will comprise 400,000 square feet. Colony Square will offer 140,000 square feet of retail space in the heart of Midtown Atlanta, the intersection of 14th and Peachtree streets.

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