Daily Archives: October 20, 2012

Crescent Resources to Develop $68 Million Community in Tampa, Fla.

By Jessica Fiur, News Editor – MultiHousingNews.com

Tampa, Fla.—Crescent Resources LLC, a Charlotte, N.C.-based real estate development company, announced that it is starting work on a $68 million community in Tampa, Fla.

The community, called Circle Bayshore, will have eight stories and 367 units, including studio, and one-, two- and three-bedroom apartments. Each unit will include high ceilings, walk-in closets and separate linen closets. Kitchens will be built with granite countertops, a prep island and stainless steel appliances. The bathrooms will also have granite countertops, as well as custom wood cabinetry.

Building amenities will include a two-story health club and fitness center, swimming pool, outdoor area with grilling stations and fire pit, business center and a club room. Additionally, a parking garage will be available for residents and their guests.

Circle Bayshore will also feature many green and sustainable elements. The community is being designed to meet LEED certification requirements.

The community was designed by MSA Architects of Miami. It is being financed by an equity investment from Crescent Resources, construction financing from Capital One and mezzanine financing from Nationwide Real Estate Investments.

“This extraordinary location is ideal for multifamily residential with its close proximity to the water, entertainment and dining venues,” Brian Natwick, president of crescent Resources’ multifamily division, said in a press statement. “Circle Bayshore will offer its residents a unique lifestyle in an uncommon location with amazing amenities, first-class programming and high-quality interiors.”

Circle Bayshore’s first apartments are expected to be completed in the first quarter of 2014.

Boynton Beach Multifamily Development Ready to Open $1M Green-Friendly Clubhouse

By Keith Loria, Contributing Writer – MultiHousingNews.com

Boynton Beach, Fla.—Seabourn Cove, a gated community of 456 townhomes and garden apartments in Boynton Beach, Fla., is opening a $1 million, 6,204 square-foot, green-designed clubhouse.

The development is on track to become the nation’s largest sustainable community of multifamily homes

“Seabourn Cove incorporates cutting-edge green designs, materials and processes,” Rick Lococo, Seabourn Cove’s managing partner, tells MHN. “In today’s economy, people want to know how much can they save in the community. I tell them an estimated 40 percent on electricity and 25 percent on their water bill.”

Seabourn Cove units range in size from 888 to 1,718 square feet and are comprised of one-, two- and three-bedroom residences with one to 2.5 baths. Units include single-story flats as well as two- and three-story townhomes.undefined

“In planning of the project, we looked to the National Green Building Standard gold rated design,” Lococo says. “We’ve used Energy Star appliances, reclaimed and recycled materials throughout, all low-flow water faucets (for a 20 percent reduction in water bills) and high quality windows with enhanced insulation.”

Seabourn Cove encompasses nearly 23 acres near the Intracoastal Waterway, and the clubhouse is situated inside the main entrance on Federal Highway, between U.S. 1 and Old Dixie Highway.

The clubhouse will act as a centerpiece of the community’s casual, active lifestyle, offering resort-style amenities including a racquetball/sports court, fully equipped gym, men’s and women’s saunas and a computer room. A clubroom includes a large flat-screen television, lounge seating and adjoining café with a bar for socializing and private gatherings.

“In the clubhouse we have hot spots so there’s free wi-fi for all the residents, a conference room, and a 1,100-square-foot professional grade business center with state of the art equipment,” Lococo says. “We have a resort-style pool with a 15,000 square foot shell deck with a gazebo in the back. You feel like you are in the islands back there.”

The clubhouse’s Mediterranean design is crowned by a barrel-tile roof, and accented with ironwork, tile floors and 14-foot-high ceilings.

A second clubhouse is being planned for the community and will boast similar sustainability features, which are the same aesthetic, techniques and materials found in its rental homes

Accented by hundreds of indigenous trees and plants, this community was created by developers Charles Funk, Jeff Meehan and Lococo in cooperation with the City of Boynton Beach as part of its drive to be the epicenter of sustainable living in Florida.

“On the outside, we touched on every energy-savings component that we actually could, as well as adding solar power roof heads,” Lococo says. “We have a dog walk, a kid’s playground and also the first eco-walk in the city of Boynton Beach.”

CNL Healthcare Makes Acquisitions in Florida and Iowa

By Dees Stribling, Contributing Editor – MultiHousingNews.com

Orlando—CNL Healthcare Trust Inc., a seniors housing and healthcare real estate specialist, is investing $21.6 million in an assisted living and memory care development project in Florida, and acquiring three senior housing properties in Iowa for about $18.8 million.

In Florida, the company is buying, in its entirety, HarborChase of Villages Crossing in the town of Lady Lake. Upon completion, the project will consist of a two-story building containing 96 units and totaling about 91,000 square feet. The property is immediately adjacent to the Villages, the largest retirement community in the country and one of the fastest-growing small urban markets in the country, according to the U.S. Census Bureau.

Harbor Retirement Associates is the developer of the project, and when it’s finished Harbor will provide management under a long-term contract. The company has developed or renovated more than 1,400 seniors housing units across the country, and currently manages 1,411 units in 17 senior housing properties.

CNL Healthcare Trust has also acquired a 75 percent interest in three Windsor Manor senior housing properties in Iowa through a joint venture with GCI Development LLC. The properties are Windsor Manor of Vinton, a 36-unit assisted living and memory care center in Vinton; Windsor Manor of Webster City, a 46-unit assisted living and memory care facility in Webster City; and Windsor Manor of Nevada, a 40-unit assisted living and memory care property in Nevada, Iowa. The JV has entered into a long-term agreement with Provision Living LLC to operate these facilities.

CNL Healthcare Trust is a relative newcomer in the seniors housing arena, formed in the summer of 2011. Since then, however, it has grown rapidly, acquiring interests in seniors housing assets valued at more than $350 million. In June 2012, the company entered into a JV with Sunrise Senior Living to acquire seven senior housing communities for about $226 million.

North American Properties Begins Construction on a $35M Multifamily Development

By Keith Loria, Contributing Writer – MultiHousingNews.com

Atlanta—North American Properties has begun construction on BOHO, a 260-unit luxury multifamily residential project in Atlanta’s Historic Fourth Ward, which illustrates the company’s focus on building communities in walkable, urban neighborhoods.

“BOHO has the unique pleasure of being at the front steps of the newly completed Historic Fourth Ward Park and adjacent to Atlanta’s Beltline Eastside Trail,” Richard Munger, North American Properties’ partner and vice president of development, tells MHN. “The Old Fourth Ward neighborhood has shown strong rental and occupancy growth over the last few years responding to the influx of new restaurants and entertainment options complimenting the spectacular recreational uses available in the Historic Fourth Ward Park.”

Additionally, BOHO’s residents will have a short walk to the Ponce de Leon Whole Foods and the two million-square-foot mixed-use redevelopment transformation of City Hall East into Ponce City Market. BOHO has a Walk Score of 82, a number that measures the walkability of an address.

“NAP is focusing its efforts to create communities in walkable, urban neighborhoods with a ‘cool factor’ within walking distance of good restaurants, parks, coffee shops and other amenities,” Munger says. “On a macro level, the metro Atlanta area grew by leaps and bounds in the latter part of the 20th century, but the city of Atlanta was stuck in a steady decline. That trend has reversed itself as the population of Generation Y residents in Atlanta has grown every year for the last decade, and they are seeking more walkable urban communities.”

Units inside the $35 million project will contain granite and solid surface countertop, designer cabinets, laminated wood plank flooring, oversized walk-in closets, large windows maximizing light and views, tile backsplashes and upgraded appliances.

Community-wide amenities include a resort-style saltwater swimming pool overlooking Historic Fourth Ward Park, a state-of-the-art fitness canter and yoga room, a cyber café, outdoor grilling and dining area, a pet grooming station, art studio and covered parking.

“We are seeing a shift in our industry focusing more attention towards the needs of Gen Y. No longer content to live the lifestyle of their parents, with a half-acre lot, 2.5 kids and two SUVs, Gen Y seeks interaction beyond the four walls of a suburban home,” Munger says. “They seek activity and crave diversity of experience. In a word, they are attracted to energy. Energy created by putting feet on the street, residents walking to and from their homes in communities with a rich retail, restaurant, cultural and recreational offering.”

Other examples of NAP’s “walkable” multifamily strategy include the construction of ParkCentral, an eight-story, 200-unit luxury rental community located in Nashville, Tenn., directly across the street from the 132-acre Centennial Park and within walking distance of the amenities in Nashville’s West End; and Avalon, a four-story, 250-unit luxury rental community located in Alpharetta, Ga., which is slated to open in 2014.

278-Unit Multifamily Development Proposed in Dorchester

By Veronica Grecu, Associate Editor – MultiHousingNews Online

undefinedSynergy Investments, a Boston development company, has filed a letter of intent with the Boston Redevelopment Authority (BRA) and is seeking approval to create a residential community on a vacant parcel located at 25 Morrissey Boulevard in Dorchester.

The 2.35-acre lot between JFK/UMass MBTA station and the Shaw’s Supermarket was purchased by the developer in 2007 for $30 million, along with the adjacent supermarket and the Greater Boston Media facility. As revealed by the Dorchester Reporter, the Residences at Morrissey Boulevard project represents Phase I of a more extensive revitalization plan that would span over the next 20 years along the Morrissey Boulevard under BRA’s guidance.

If approved by the City, construction at the site would begin in 2013 and the first residents could move in starting fall 2014. The $60 million complex will include two buildings—five-and-a-half stories each—totaling 278 rental apartments ranging from studios and lofts to three-bedrooms and priced from $1,200 to $1,800 per month in order to attract young professionals and families in this rather isolated area.

According to the news source, this phase does not include retail spaces because the area has yet to prove that is has commercial potential. However, the developer stated that a new market and retail/office facilities could be developed during Phase II of the project.

With vacancy rate trends spiraling down in Boston, as pictured in this chart fromMarcus & Millichap,  Synergy Investment’s new construction project will try to balance out the lack of housing inventory, at least in this area of Dorchester.

For a more detailed report on Boston vacancy rates, please click here.

Rendering of “Residences at Morrissey Boulevard” courtesy of Synergy Investments
Chart credits to Marcus & Millichap

Atlanta office sector rebounds, but downtown struggles

 – Commercial Real Estate Editor-Atlanta Business Chronicle – MultiHousingNews.com

Atlanta’s office market is posting its best absorption rate in more than five years.

That’s an important trend for an Atlanta market that still has a long road back to recovery.

Building owners use the absorption rate to measure the change in total space that their office tenants occupy. The higher the number, the healthier the office market.

Atlanta’s office market is on pace to absorb almost 3 million square feet this year, according to estimates from Jones Lang LaSalle Inc. (NYSE: JLL).

That’s the best performance since 2006, when Atlanta posted 2.8 million square feet in absorption. In 2007, it reported 2.1 million square feet.

Year-to-date, Atlanta has seen more than 2.5 million square feet of absorption, according to Jones Lang LaSalle.

The improvement is fueled by companies that are either consolidating regional office space in Atlanta, or expanding their existing presence here.

In Dunwoody, State Farm Insurance is opening a roughly 400,000-square-foot customer service center near Perimeter Mall. It’s moving into the formerly vacant 64 Perimeter Center East and 66 Perimeter Center East buildings.

In Buckhead, Boston-based technology services company Sapient Corp. (Nasdaq: SAPE) says it will expand to a full floor at the 3630 Peachtree tower. The company believes it could add 150 jobs over the next few years.

In Alpharetta, health care information technology company Athena Health will expand by almost half a floor of office space at the Northwinds development.

Atlanta building owners would be quick to caution against too much optimism.

The metro region has about 140 million square feet of class A and B space, or the top quality offices that corporate tenants prefer.

More than 26 million square feet of that type of space remains vacant.

That’s enough to fill Atlanta’s tallest skyscraper, the 50-story Bank of America Plaza, more than 20 times over.

Atlanta’s vacancy rate stands at 20 percent, down from its historic high of 22.5 percent in 2010, said Sarah Dasher, research manager with Jones Lang LaSalle Americas Inc.

Atlanta could use a few years in a row of absorption ranging from 3 million to 6 million square feet.

It did that in the late 1990s and early 2000s, Dasher said.

“We’ve not reached that again since the dotcom collapse, even during the housing bubble,” she said.

The reason is that developers continued adding spec office buildings, though that pipeline shut down after the last wave of office towers between 2007 and 2009.

Some “micro” office markets within Atlanta have rebounded well.

Buckhead is the best example. Vacancy was almost 30 percent in 2010 after the spec office buildings 3630 Peachtree, Two Alliance Center, Terminus 200 and Phipps Tower were completed.

Building owners offered huge concessions including free rent, free parking and tenant improvement allowances that induced several companies in northern Atlanta to relocate to Buckhead.

Now its vacancy sits at 16 percent.

Other parts of the region, such as downtown Atlanta, are struggling.

While Buckhead has posted more than 903,000 square feet of absorption this year and Midtown has seen more than 800,000, downtown’s absorption is negative by almost 100,000 square feet, according to Jones Lang LaSalle.

Buckhead and Midtown building owners have done a better job of landing tenants in recent years that have sought to upgrade their space to newer towers, a trend known as the “flight to quality.”

Some downtown tenants have relocated operations to other parts of the city, including SunTrust Banks.

Another challenge comes from the government and nonprofit sectors, which are big occupiers of downtown space. Neither have not been expanding.

The Northlake office market on the east Perimeter is also losing ground. Northlake has posted more than 375,000 square feet in negative absorption this year, according to Jones Lang LaSalle.

Is Atlanta retail on the move?

 By Bill Brown – Atlanta Business Chronicle – MultiHousingNews.com

The ICSC Southeast Conference was held this week at the Cobb Galleria Centre in Atlanta, titled “Retail is on the Move.”

But is Atlanta-area retail truly “on the move” or not? We’ll know more after seeing the level of activity at the conference, an annual event held by the International Council of Shopping Centers to facilitate knowledge sharing and deal making.

Some signs that we may expect more activity this year than in recent years:

• More banks are talking about lending for retail deals. We continue to hear from more lenders who want to talk about possible deals. This is after 3-4 years when there simply wasn’t any activity to speak of.

• A number of retailers are doing well, which helps drive activity. Retailers selling exercise wear and outdoor equipment, restaurants offering “fast-casual” fare, and urgent-care centers, to name a few, are aggressively looking for new locations.

• More troubled properties are changing hands, which leads to more leasing activity. After a distressed center is sold at today’s sales prices, the new owner has a lower basis, allowing the landlord to offer leases at competitive rates. This breeds activity.

• For the first time in years, tenants have an opportunity to look at new space, as a limited number of new developments are getting off the ground around the Southeast.

Of course, the true measure of whether things are really looking up will be how many deals actually happen, after being talked about at the ICSC conference.

Polk Medical Center plans $40M replacement hospital

 – Staff Writer- Atlanta Business Chronicle – MultiHousingNews.com

Polk Medical Center plans to seek regulatory approval to to build a nearly $40 million replacement hospital west of Metro Atlanta.

The proposed facility will replace an existing 25-bed hospital in Cedartown, in Polk County.

The replacement hospital is expected to be built by 2016 and will include two operating rooms and an adjoining medical office building.

“Our goal is to improve the overall patient experience while providing additional services,” the hospital said on its website.

Polk Medical Center offers several services including cardiology, orthopedics, diagnostic radiology and rehabilitation.

Before Polk can start work on the replacement hospital, it must first go through the state’s certificate-of-need (CON) process, where health regulators need to be convinced, among other things, that the planned project is necessary.

Wal-Mart to hire 150, break ground for Atlanta store

By Arielle Kass – The Atlanta Journal-Constitution – MultiHousingNews.com

A Wal-Mart store in Atlanta’s Vine City area is hiring about 150 people.

Beginning Monday, the company will be interviewing job-seekers at a hiring center near the store. Interviews will be held until the full- and part-time positions are filled. The store will open in January.

The hiring center, at 825 Martin Luther King Jr. Drive Suite B in Atlanta, will be open from 8:30 a.m. to 4:30 p.m. Monday through Friday. Applicants can apply in person at kiosks or online at walmart.com. Their applications will be screened before in-person interviews are granted at the center.

Benefits include health care options, discounts on groceries and a 401(k) match.

Wal-Mart is also breaking ground Monday on a Cascade Road store in Atlanta that will employ 300 people and open in mid-2013.

The Wal-Mart store’s design will adhere to requirements of a local overlay district, including a requirement for trees and a restriction on outdoor signs.

The company is seeking to build more intown stores in Atlanta. Wal-Mart spokesman Bill Wertz said the company “would like to have as many as we can” inside the Perimeter, but that it was too soon to give specifics about where other stores would be.

Earlier this month, a vote to change land use rules in Buckhead to allow a Wal-Mart to build fell short by one vote in Atlanta’s city council.

Carter’s to move operations to Georgia

By JEFF MARTIN – The Associated Press – MultiHousingNews.com

ATLANTA —

A clothing manufacturer plans to consolidate its operations in a move that’s expected to bring about 200 jobs to Georgia, Gov. Nathan Deal said.

Carter’s Inc. on Thursday announced the plans, which involve merging work now done in Connecticut with the company’s Atlanta headquarters operation.

“Carter’s is well-acquainted with the competitive benefits our business climate can provide for headquarters operations, and we look forward to helping the company continue to thrive here,” Deal said in a statement Thursday.

The children’s clothing retailer said it expects to complete the move by the end of 2013.

“We have a long and successful history of doing business in Georgia,” said Michael Casey, chairman and chief executive officer of Carter’s.

“Atlanta is a very compelling place to live and work,” Casey said. “We look forward to bringing our Connecticut-based operations to Atlanta, which will strengthen our collaboration and ability to provide consumers with the best value and experience in young children’s apparel.”

In April, the company announced that it planned to open a one-million-square-foot distribution center in Braselton for its e-commerce, retail and wholesale businesses.

“Carter’s is one of the top providers of clothing and products for babies and young children in the nation, and we’re proud the company calls the city of Atlanta home,” Atlanta Mayor Kasim Reedsaid in a statement.

The new positions in Atlanta are mostly in the areas of retail merchandising and store operations, finance and information technology, state officials said. The company already employs about 1,200 people in the Atlanta metro area.

A company spokesman said he couldn’t comment on how many jobs would be eliminated by the closing of the Shelton, Conn., facility.

Carter’s Inc. calls itself the nation’s largest branded marketer of apparel and related products exclusively for babies and young children.

Copyright The Associated Press