Atlanta Market Overview and Trends Analysis September 2017 Development Pipeline - Major Business Districts
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ATLANTA MARKET OVERVIEW AND TRENDS ANALYSIS SEPTEMBER 2017 DEVELOPMENT PIPELINE - MAJOR BUSINESS DISTRICTS 92 ALPHARETTA 985 85 HOSCHTON ACWORTH 275 75 211 N. FULTON NORTH Wrap - 444 units FULTON Garden - 1,020 units JOHNS CREEK ROSWELL AUBURN 19 WINDER 29 RUSSELL 400 MARIETTA PERIMETER LAWRENCEVILLE 120 GWINNETT Wrap - 2,481 units COUNTY SANDY SPRINGS BETHLEHEM 285 PERIMETER CUMBERLAND 29 CUMBERLAND GRAYSON Wrap - 1,386 units SMYRNA(COBB COUNTY) 278 Garden - 266 units 81 BROOKHAVEN 13 85 285 POWDER SPRINGS SNELLVILLE BUCKHEAD BUCKHEADBUCKHEAD LINDBERGH Tower - 3,805 units 85 236 LOGANVILLE 75 Wrap - 682 units 78 Midrise - 1,228 units MABLETON WEST EMORY/ STONE MONROE MIDTOWN CDC MOUNTAIN 78 23 410 20 41 EMORY/ 78 DECATUR W. MIDTOWN MIDTOWN 8 Wrap - 470 units OLD FOURTH WARD DOUGLASVILLE ATLANTA INMAN 20 PARK 20 EAST SIDE154 285 GRANT Tower - 207 units MIDTOWN PARK 285 DOWNTOWNGLENWOOD Wrap - 865 units 278 138 Tower - 5,460 units PARK LITHONIA JERSEY Midrise - 1,165 units 20 11 6 23 85 SOCIAL CAMBELLTON 285 155 CIRCLE 285 70 20 155 COVINGTON UNION CITY MORROW 8 FAIRBURN 41 29 85 STOCKBRIDGE 81 NEWBORN PALMETTO 11 JONESBORO DEVELOPMENT PIPELINE - MAJOR BUSINESS DISTRICTS 92 ALPHARETTA 985 85 HOSCHTON ACWORTH 275 75 211 NORTH FULTON JOHNS CREEK ROSWELL AUBURN 19 WINDER 29 RUSSELL 400 MARIETTA LAWRENCEVILLE 120 GWINNETT GWINNETT COUNTY SANDY SPRINGS Garden - 2,272 units BETHLEHEM 285 PERIMETER 29 CUMBERLAND GRAYSON SMYRNA 278 81 BROOKHAVEN 13 85 285 POWDER SPRINGS SNELLVILLE BUCKHEADBUCKHEAD 85 236 OUTER BURBSLOGANVILLE 75 78 Garden - 3,306 units MABLETON WEST EMORY/ STONE MONROE MIDTOWN CDC MOUNTAIN 78 23 410 20 41 EMORY/ EMORY/DECATUR 78 DECATUR Wrap - 1,754 units MIDTOWN 8 OLD FOURTH WARD DOUGLASVILLE ATLANTA INMAN 20 PARK 20 154 285 GRANT PARK 285 GLENWOOD 278 DOWNTOWNPARK 138 LITHONIA JERSEY 20 11 6 23 85 SOCIAL CAMBELLTON 285 155 CIRCLE 285 70 20 155 COVINGTON UNION CITY MORROW ATLANTA MARKET OVERVIEW AND TRENDS ANALYSIS 9 FAIRBURN 41 29 85 STOCKBRIDGE 81 NEWBORN PALMETTO 11 JONESBORO W. MIDTOWN / ATLANTIC STATION Atlantic Station can be viewed as the eastern node of West Midtown, or as the western-most piece of the greater Midtown business district. Either way, the 138-acre Atlantic Station commands its own, very unique sense of place, acting almost like a mini-city. Prior to its redevelopment in 2005, Atlantic Station was the largest brownfield site in the U.S., having previously been the home of the Atlantic Steel Mill (which closed in the 1970s). As both an entertainment district, as well as a mini-office hub, Atlantic Station has continued to gain traction since North American Properties and CBRE Global Investors acquired the campus in 2010. In early Q4 2015, the main retail portion of Atlantic Station was sold for $200M to an investment fund managed by Hines Interests. This sale did not include the existing office, hotel, or big box retailers (Target, Ikea, Publix and 1 Dillard’s). The overall campus contains several additional development sites that have remained available until recent months. In 2016, AMLI purchased the 2.3 acre parcel on the far north side of the greater campus, with plans for 360 additional multifamily units. Historically, this parcel has been home to several temporary uses, including Cirque du Soleil and the BB&T Atlanta Open tennis tournament. In May 2017, Hines and Invesco announced a partnership to fund T3 West Midtown and Atlantic Yards (captions 1 &2). Both projects, totaling 700,000 square feet, would fill existing holes in Atlantic Station’s current walkable layout: • T3 West Midtown is the smaller of the projects, and will rise on the north side of 17th Street at State Street. This seven-story, wood-framed building would include nearly 200,000 square feet of office space. • Atlantic Yards, meanwhile, is proposed for the most eastern edge of Atlantic 2 Station. This larger development will sit between Market Street and The Connector, on the southern side of 17th Street. It would include two brick, glass, and steel buildings divided by a large park. A rooftop garden would occupy the 12th floor of the taller building, providing panoramic views of the Midtown skyline. Construction on both T3 and Atlantic Yards is expected within the next year. • In April 2017, Amazon announced that it would be taking a floor within the existing 271 17th Street tower, with plans for a $2M build-out and 150 employees added to the area. Just west of Atlantic Station, at the intersection of 17th Street and Northside Drive, Fuqua Development is planning a mixed-use development, which will be anchored by a large Kroger grocery store (caption 3). The 12.5-acre site would host a mix of retail and office space, adjacent to the existing IKEA. The Ardent 3 Companies is Fuqua’s partner in the deal. From Atlantic Station, local residents can then easily move into the other nodes of West Midtown: • Westside Provisions (caption 4) and the adjacent shopping pockets along Howell Mill Road (south of I-75) comprise the central portion of West Midtown. Jamestown and Clarion Partners purchased the 261K SF Westside Provisions District in October 2016 for $130 million. Westside Provisions has been the primary catalyst for the evolution of the Howell Mill corridor from an aging industrial area to a draw for foodies and boutique shoppers. Westside Provisions features a pedestrian bridge unifying both sides of the development, and is known for popular restaurants, home furnishings stores, national retailers and local boutiques including Lululemon, J. Crew and 4 Design Within Reach. 20 • Just south of Westside Provisions, Paces Properties (the team behind Krog Street Market), is redeveloping two former industrial sites at 11th Street on either side of Howell Mill. The projects will be called Star Metals Residences and Star Metals Offices (caption 5). Renderings show the 12-story office stack with offset floors, providing tenants with large balconies (some featuring trees) and sweeping views of the city skyline. The large base level will be filled with retail. Topping off the development will be a large rooftop deck, potentially with a bar and restaurant, boasting potential views that could be among Atlanta’s most panoramic. The apartment building will contain more than 400 units in a nine-story tower. While earlier iterations had the building wrapped in what appeared to be stone, plans now call for corrugated metal to lend an industrial vibe (and likely lower construction costs). 5 • Moving further south, Howell Mill Road merges with West Marietta Street, and the two combine to become Marietta Street as traffic starts to blend toward Downtown. This southernmost portion of West Midtown boasts Ford Fry’s very- well-reviewed seafood outpost The Optimist (caption 6), as well as several other popular dining and nightlife spots, including 5 Seasons Brewery, Bocado, Le Fat, BarTaco, Octane Coffee and Public School 404. • As locals generally concur that the southern section of West Midtown ends where Northside Drive merges into Marietta Street, area residents are also very familiar with the restaurants and retail options that are available driving back north (toward I-75) on Northside Drive. This pocket is most well known as a heavy Georgia Tech hang-out area, and for the ‘Little Italia’ cluster of restaurants (located off Hemphill Avenue, just west of Northside Drive). Driven by the astronomical success of his first restaurant - Antico Pizza,owner 6 Giovanni Di Palma (caption 7) has created a mini empire with three additional offerings - Gio’s Chicken, Caffe Antico, and Bar Amalfi. • The emerging corridor of the western section of West Midtown (Huff Road / Ellsworth Industrial Blvd. / Chattahoochee Avenue), has seen a pop of recent development, which has been mostly driven by the addition of Top Golf (caption 8) at the intersection of Ellsworth and Chattahoochee. This incredibly popular entertainment venue has revitalized this node of West Midtown, spurring the build-out of larger restaurant space for Bacchanalia (formerly located at Westside Provisions and a perennial winner of Atlanta’s best restaurants), and additional retail pockets. Ultimately, additional attractions and housing will push further west, in line with the planned redevelopment the 300 acres around Bellwood Quarry (caption 9); a popular film site for both movies and TV shows including THE WALKING DEAD and THE HUNGER GAMES). The land around 7 the quarry is expected to be transformed into a ‘central park’ experience that would be even larger than Piedmont Park. 8 9 ATLANTA MARKET OVERVIEW AND TRENDS ANALYSIS 21 MIDTOWN JOB GROWTH NEWS Historically, Midtown has been home Atlanta’s large law, accounting, and media firms. Midtown’s quoted rental rates increased 1.2% during Q2 2017, and the submarket includes the highest office price per square foot ever in Atlanta, as Ponce City Market is charging office tenants as high as $55 PSF. Midtown’s focal point is the expansive greenspace of Piedmont Park (caption 1), which underwent a major expansion in 2011. The park is surrounded by the Midtown business district to its west, Ansley Park to its northwest, the BeltLine, Morningside, and Virginia Highland to its east, and the Midtown Historic District to its south. The Atlanta Botanical Garden adjoins Piedmont Park. The BeltLine’s Eastside trail (which is currently the only, fully-built-out section of the greater 1 BeltLine Trail), connects Piedmont Park (at the intersection of 10th and Monroe) to the Inman Park MARTA station at DeKalb Avenue. Midtown is marked by its cultural attractions, noteworthy architecture, and urban layout. The district is the center of the city’s arts scene that includes the Ferst Center for the Arts, Fox Theatre, Woodruff Arts Center, the High Museum of Art, the Museum of Design Atlanta, the Atlanta Symphony Orchestra, the Center for Puppetry Arts, and the 14th Street Playhouse.