MAY 2007 At The Heart Of Midtown The mixed-use 12th & Midtown project will be the cornerstone of ’s , including about 300,000 square feet of flagship retail. Randall Shearin big change is coming to . More than 1 million Asquare feet of retail is anticipat- ed to be open along a 1-mile stretch of over the next 8 years. One development, 12th & Midtown, will host the largest congruent mass of that retail. The area will change the way Atlanta — a city where people love malls — shops. The mile-long district, which already contains millions of square feet of office space and thousands of condominiums and apart- ments, is being marketed toward high end retailers and restaurants to create a Mag- nificent Mile for Atlanta. Shopping Center Business recently met with representatives from the developers of 12th & Midtown. Attending the meeting were Steve Baile, senior vice president of Atlanta operations for Daniel Corporation Selig Enterprises and Daniel Corp. are developing 12th & Midtown. and Shirley Gouffon, senior vice president The first phase of retail will contain 50,000 square feet of retail, and of Selig Enterprises. subsequent phases will create up to 300,000 square feet of retail space. To handle the retail aspects of its mixed- next project in Atlanta. The company first One Project Launches Another use projects, Daniel created a joint venture acquired a parcel at 12th and Peachtree Selig and Daniel came together to work with one of Atlanta’s top intown retail Streets. Soon, it acquired other parcels on 12th & Midtown in an interesting way. owners, Selig Enterprises. Selig handles on both sides of Peachtree Street. Now, it Both had the common interests of the the retail development aspects of the owns 1 block on the west side of Peachtree district at heart. Birmingham, Alabama- property, while Daniel specializes in the Street at 12th Street, and two blocks on based Daniel Corporation made a com- office and multifamily components. Dan- the east side of Peachtree Street. mitment to reinvest in Atlanta real estate iel was attracted to Selig because of the Daniel and Selig plan to build a mas- in 2001. The company had not owned level of detail at Selig’s Brookwood Place sive mixed-use project on the land over anything in Atlanta since the 1980s. The mixed-use center, about 1 mile from Plaza the next 5 years. Called 12th & Midtown, company began scouting for property for Midtown. Under the joint venture, both the project will consist of a number of new developments in the area. It pieced companies own 50 percent of the projects uses, including residential, hotel and together property at West Peachtree and they co-develop. about 300,000 square feet of high-end 8th Streets in Midtown and planned to Atlanta has become a big market for retail and restaurants. While the project develop a mixed-use project called Plaza Daniel Corporation. is separated by the street, the companies Midtown. That project, which opened in “Within months after starting Plaza named the project 12th & Midtown to tie 2006, consists of two condominium tow- Midtown we knew that this was a market everything together and create a brand for ers with grocery-anchored retail below. that we were going focus on,” says Baile. marketing. “While we were developing Plaza Mid- “Combining Selig’s retail expertise with “Each component of the project will town, it became evident to us that mixed- Daniel’s office and residential expertise has have its own character, but we wanted to use was the future of these large-scale ur- enabled us to develop large-scale mixed- tie them all together under one brand to ban developments,” says Baile. “The one use projects such as 12th & Midtown.” market as one project,” says Baile. area that we didn’t feel comfortable with The first phase of 12th & Midtown, a was retail. We were already branching into The Next Venture condominium and retail building on the a new market, and didn’t want to further When Plaza Midtown was just out of west side of Peachtree Street called 1010 extend ourselves by branching into a new the ground, Daniel began looking for its Midtown, began construction in Septem- property type.” ber 2006. has 443 con- Alpharetta to come to Midtown,” says A Larger View dominium units and 50,000 square feet Gouffon. “We want to bring in world 12th & Midtown is part of a larger of retail. The condominiums will sell in recognized labels. We’ve been incredibly initiative to extend retail and restaurants the range of $225,000 to $900,000. The pleased with the reception that 12th & down Peachtree Street from North Avenue condominiums are geared to the broaden- Midtown is getting from these exciting to the . Dubbed the ing buyer market. Their residents will be retail tenants.” Midtown Mile, there will be an estimated a mix of people new to the area, as well Phase III of the project will have a 1 million square feet of retail completed as empty nesters moving from houses in 500,000-square-foot office component along the strip of Peachtree Street by the suburbs. The first condo units will be and a smaller, high-end boutique hotel. 2015. occupied starting in fall 2008. There will also be almost 60,000 square “That rivals any major regional mall in Phase II will consist of a 415-room four- feet of street-level retail. the area as far as density and square foot- star hotel, a 725,000-square-foot class A Because parking is an issue in Atlanta, age,” says Gouffon. “We are the developer office building, and 60,000 square feet of Daniel and Selig are making an effort to who will control the biggest chunk of re- on-street retail. The hotel will also have have plenty of it for 12th & Midtown. tail, and we’re the first out of the block. about 50 residential condominiums on the Residential codes require 1 space per What we do will set the tone for the rest upper floors that will sell for more than bedroom. Parking for the condo units will of the Midtown Mile.” $1 million. The hotel was a necessary be separated from that of the retail and The Midtown Mile is an initiative by component for the retail, as well as the office aspects of the project. The project the Midtown Alliance, a cooperation of office tower that Selig and Daniel plan to is planned to accommodate three park- businesses, volunteers, residents and con- build as part of Phase II. The office build- ing spaces per 1,000 square feet of retail. sultants that has guided the area since ing will be built on spec, but Daniel has Retailers will not pay for parking, but the 1978. identified a number of tenants looking to developers are looking at a validation sys- “There is already an incredible base of relocate around the time the building is commerce and activity in Midtown,” says complete. Baile. “The museum, cultural events and “Being on Peachtree Street gives us the city’s largest park are major attractions an advantage, being part of a mixed-use to residents and tourists.” project gives the leasing for an office build- In Midtown, all the other components ing an advantage, and of course, having exist except for a critical presence by re- a hotel component is a huge advantage,” tailers. There are 22 million square feet says Baile. of office space and there are more than Because of the high land costs, 12th & 30,000 residents living within a 5-minute Midtown will maximize its floor to area walk of the Midtown Mile, with an an- ratio, using space as smartly and efficiently ticipated 52,000 residents by 2010. More as possible. than 6 million visitors come to Midtown Selig’s strategy for the retail is to go every year. The Midtown Alliance has Phase II of 12th & Midtown will high end. The company wants to bring consist of a 415-room four-star hotel, formed a retail advisory council for the in world class retail that is unique to the a 725,000-square-foot class A office Midtown Mile that is tasked with grow- Atlanta market. This is not an easy task, building, and 60,000 square feet of ing the area responsibly and so that it is considering two of the top malls in the on-street retail. visually appealing. Southeast are about 5 miles away. Gouf- “The Midtown Mile is going to come fon has done a study of all top tenants in tem for shoppers. together very well,” says Gouffon. “All of the nation and discovered that there are “We are developing the parking so that the developers are interested in sharing the over 150 world-class tenants who are not it is accessible to the retail stores as well,” same vision and working together to bring yet in the market. says Gouffon. “All of the retailers will have quality retail in. We’re not competing. The “A lot of these tenants prefer a street- entrances to the street, as well as to the stage is really set and it is very exciting to front location,” says Gouffon. “A number parking decks.” think about what Midtown is going to look of them are also looking for a major flag- Selig Enterprises and Daniel Corpo- like in 10 years. We’re poised to change ship presence in the Southeast.” ration also have some financial partners Atlanta dramatically.” SCB The retail in the first phase will open on the 12th & Midtown project, includ- in spring 2009. The first phase contains ing Canyon-Johnson Urban Funds and about 50,000 square feet at the base of the MetLife. MetLife will lead the equity 1010 Midtown building. The first phase lending side of Phase II. Atlanta-based will consist of restaurants and significant Rule, Joy, Trammell + Rubio is the project tenants unique to Atlanta. Retail in Phase architect for the 12th & Midtown project. II will open in spring 2010. Birmingham, Alabama-based Brasfield & “There will be a reason for high-end Gorrie is the contractor for the project. shoppers who live in Cobb County or

Reprinted From Shopping Center Business, May 2007 © 2007 France Publications, Inc. Atlanta, GA (404) 832-8262. www.ShoppingCenterBusiness.com