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Epic Development
THE EPIC 2016REAL ESTATEREVIEW
Headquarters:Armour Junction
415 Plasters Ave. NE,Suite 200
Atlanta, GA 30324
EpiCity.com770-457-2300
EpicDevelopment.com770-228-2000
The Atlanta commercial real estate market is poised for a healthy 2016. Across the Atlanta Office Market net absorption has increased to a positive 1,254,140 and vacancy rates have decreased to an average of 12.1%. The average quoted rental rates per square foot rose 1.6% over last quarter to $20.70. The average sale price per square foot has grown 8.6% when compared to the 3rd quarter of 2015. Prices rose from $145.93 up to $158.45 per square foot. While rental rates in the Atlanta Office Market as a whole remain lower than the United States Office Market average, (~$24.00) we are seeing a trend toward convergence as Atlanta attracts significant foreign and domestic investment. Notable companies headquartered in Atlanta include The Home Depot, UPS, and most recently, Mercedes-Benz USA, which has relocated from New Jersey.
Buckhead, Central Perimeter, and Midtown Atlanta command the highest average asking rental rates when compared to total office market statistics. Northlake, Central Perimeter, and North Fulton are seeing the lowest vacancy rates. Central Perimeter, Buckhead, and Northwest Atlanta have the most square feet under construction.
At EpiCity, we use the available data, our experience, and our intuition to stay ahead of the constantly evolving Atlanta real estate market. We have had some great successes over the past year, which include our loft office redevelopment in the heart of the Armour District, between Midtown and Buckhead. As the Atlanta BeltLine continues its expansion north, we know the neighboring areas will benefit. In addition, we have targeted a number of opportunities in Buckhead, Memorial Drive, and Downtown. We are looking forward to developing these new assets with our partners in 2016.
Data for this article was attained through CoStar.
State of theAtlanta OfficeMarket
Vacancy & Rental Rates
Copyrighted report licensed to EpiCity Real Estate Services - 421639.3/16/2016
Page 1
2
We eagerly embrace new
partners. If you are interested
in any of our upcoming
opportunities or just want to
better understand what we
do, please reach out to me.
404-995-9595
State of the Atlanta Office Market ········· 2
Three Exciting Areas in Atlanta ·············· 3
State of the Atlanta Housing Market ······· 5
The Village Concept ···························· 6
The Authentic Experience ···················· 7
Closing Remarks / Top Five Blog Articles ·· 9
Data provided by CoStar. *335 buildings surveyed one mile around Armour Junction.
Vacancy & Rental Rates in the Armour District
There are three areas of Atlanta that have caught our attention. What distinguishes them as being ripe for revival? Let’s explore.
This roadway traces its origins back to the Reconstruction Era as a way to link the state capitol to Stone Mountain. It is a 3-mile strip surrounded by strong neighborhoods full of discretionary income. In the words of Atlanta councilwoman Natalyn Archibong, “We’re making Memorial Drive a destination.” Developers, landowners, and Central Atlanta Progress joined together to hire Greg Giuffrida who helped produce the well-regarded Georgia Tech study, envisioning a safer and more walkable Memorial Drive. The team will work with the GDOT to enhance Memorial Drive’s use by motorists, cyclists and pedestrians.
There has been a great deal of research to support the proposition that Millennials, more than other age groups, are in search of authentic, live/work destinations close to Downtown. Attractive Atlanta areas include the Old Fourth Ward, Grant Park, Cabbagetown, and all along the developing Atlanta BeltLine. In addition to the existing residential units, restaurants, and retail there are many high profile redevelopment projects in the planning or construction phase. Projects include:
EpiCity has purchased a select few of properties on Memorial Drive and has other investments in the works.
Three Exciting Areas in Atlanta
Net Absorption
Copyrighted report licensed to EpiCity Real Estate Services - 421639.3/4/2016
Page 1
Memorial Drive
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Data provided by CoStar
Net Absorption Along Stretch of Memorial Drive
• Fuqua Development transforming the Leggett & Platt site into a mixed-use project that maintains the historic appeal of the area.
• Urban Realty Partners building 300 apartments.
• Paces Properties overhauling the post war era Atlanta Dairies/Parmalat building into a bustling home for live music and locally owned businesses.
The Armour District is located in North Atlanta between Buckhead and Midtown. Its proximity to Downtown, the BeltLine corridor, and urban renewal ventures such as the Ponce City Market make it a desirable place for investment. EpiCity’s Armour Junction, a loft-office historic rehabilitation project of old office/industrial product, was purchased in the summer of 2014. Already the property is 95% leased at rates 23% above the initial pro forma, and for good reason. Green spaces link the area between the nearest MARTA stop to the BeltLine corridor just south of Armour Junction.
The Powers Ferry area is about to be completely reimagined. Our Powers Ferry Office Park is less than two miles away from the new location of the Atlanta Braves baseball stadium, SunTrust Park. Another project by Fuqua Development, it is slated to have a mixed-use area called the Battery, which includes 350,000 square feet of retail, a boutique theater, and approximately 20 restaurants and bars.
The redevelopment of this area will make Powers Ferry a destination not only for baseball fans, but anyone looking to enjoy time out on the town.
The Armour District
Powers Ferry
Asking Price Per SF
Copyrighted report licensed to EpiCity Real Estate Services - 421639.4/6/2016
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Data provided by CoStar. Survey of 61 buildings sold between 2012 and 2015 between SunTrust Park and our Powers Ferry Business Park.
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Asking Price Per SF - Powers Ferry
Mason Fine Arts at Armour Junction
Ponce City Market, only three miles south of Armour Junction, is the area’s largest adaptive reuse project, transforming the old Sears, Roebuck & Co. building into a towering home for offices, apartments, retail, and restaurants. Its “Roof,” aka carnival for the young and young at heart, opened in April.
Powers Ferry Business Park
Over 6,300 homes sold in Atlanta during February 2016, leading the nation in total homes sold. This bolsters a 17.4% increase from January and an 8.1% increase year-over-year. Following the national trend, Atlanta has also experienced a surge in demand for new homes while inventory remains low. New home starts are estimated to increase by about 25% in 2016. In February, 8,539 new listings were reported, which is an 8.2% increase from January and a 6.2% increase year-over-year. The median home sale price is for Atlanta is $190,000, which is a 4.4% increase from January and a 5.6% increase year-over-year.
The economy in Atlanta is continuing to grow. On an annual average basis, Atlanta will add 69,600 jobs in 2016, a year-over-year increase of 2.7%, drastically exceeding the 1.4% gain expected for the nation. Atlanta currently has about 450,000 residents living within the city limits and that number is expected to double in the next 15 years. With people trending toward living in walkable communities near their jobs or public transit, much of this growth is expected to take place in the region’s core, including Downtown, Midtown, Buckhead and the surrounding areas. The anticipated population growth and demand shift towards urban living will require new inventory of single-family attached and detached homes.
At Epic Development, we have seen these trends in the Atlanta area and embraced them. The Water Tower Stacks, our signature project located in the Old Fourth Ward, is an attached single-family home development that reached full occupancy before construction started. Our 650 Idlewood project in Sandy Springs (currently in development) is a detached single-family modern prairie style home that will feature six beds, six and a half baths, gourmet kitchen, elevator and three-car garage. These are just a few of our recent projects, in and around the Atlanta area, with more to come in 2016.
State of theAtlanta Housing Market 5
If you are interested in
learning more about our
projects or upcoming
investment opportunities,
please contact Jim LaVallee.
404-847-9080
The Water Tower Stacks
650 Idlewood Drive - Sandy Springs GA
"Live, work, play" is now becoming "live, work, play, eat, and shop." More and more people are gravitating toward this concept of housing, employment, shopping, and restaurants in the same place. We see these communities popping up in metropolitan cities like Atlanta, as well as suburban town centers. Walkability – the ability to be within walking distance to have these needs met - has become a primary consideration, when people choose where to live.
The Water Tower Stacks, Epic Development’s luxury residences located along the BeltLine in the historic Old Fourth Ward, is a great example of live, work, play, eat, and shop. Ten families eagerly joined this community, opting to reside in-town, where they can experience a truly walkable lifestyle. The location is footsteps from amenities including the Atlanta BeltLine, Krog Street Market, Highland Avenue retail district, Historic Forth Ward Park, the King Memorial, Piedmont Park, and the Edgewood retail district. The residents enjoy the beauty and history of the neighborhood, and love being at the forefront of a rapidly changing cityscape.
The Village concept is also alive and well in small towns throughout Georgia. The Georgia Main Street Program is designed to help economic development and business revitalizations prosper in small Georgia towns. This program now serves over 100 communities statewide and as a result, towns such as Greensboro, Rome and Bainbridge have bustling downtown centers where residents live, work, play, eat, and shop. It’s the place where everything happens, people live, work, play, eat, and shop. The walkability to the Main Street of a small town is similar to the village concept of downtown areas like The Water Tower Stacks and other communities in Atlanta. It’s all about community, walkability, and being a part of the neighborhood.
1990-2000 2000-2010 2010-2014*
.8%
5.7%8.6%
Atlanta Density Increase Since 1990
NUMBER OF GEORGIA MAINSTREET COMMUNITIES
NEW HOUSING UNITS ADDEDTO GEORGIA’S DOWNTOWNS
PRIVATE & PUBLICINVESTMENTS IN 2015
COMPLETED BUILDINGREHABILITATION PROJECTS
IN 2015
The VillageConcept 6
Data provided by Georgia Main Street & US Census* Estimated 2014 Census Data
There is an emotional component to building in the Atlanta area and all across the country. An authentic experience, born from the studs of repurposed buildings and materials, is now preferred for both commercial and residential construction. The use of reclaimed materials has grown in popularity. When scarcity or price make the truly authentic unattainable, new products created from recycled materials often with distressed surfaces are substituted. Keeping exposed brick, concrete floors, and open ductwork make for a great commercial loft or townhome in today’s buildings. The Lifecycle Building Center (LBC) in Atlanta was formed in 2010. The goal of the organization is to capture materials being thrown out. Its Executive Director, Shannon Goodman, worked as an architect for over a decade before joining Lifecycle Building Center. Fully embracing the mission of LBC, Epic Development has given the organization full access to its residential demolition sites. There the LBC team processes, for repurpose, all the materials of the demolished improvements. This includes everything from framing lumber, base trim and chair rail, to scrap metal and other resources. Hagar Civilization Training Missionary, located in the historic district of Atlanta, is a nonprofit community housing and economic development organization, that received some of the lumber that Epic Development donated. Learn more about the Lifecycle Building Center at www.LifeCycleBuildingCenter.org.
The AuthenticExperience 7
“One of the benefits
most often cited by
Epic Development
clients is the
commitment, depth,
and diversity of
experiences our team
brings to their project.”
Investment opportunities still exist in EpiCity’s Mellen Lofts, a proposed adaptive reuse, loft office redevelopment located at 126 Renaissance Parkway in Atlanta’s downtown. For more information contactTom Stokes.
Definition 6 at Armour Junction
EpiCity has worked to give its clientele an authentic experience as seen in The Lumberyard and Armour Junction. The Lumberyard is a 68,000 SF office loft project located at 1425 Ellsworth Industrial Drive in the Chattahoochee Industrial Area. It is an adaptive reuse project in which a forty year old warehouse and a light manufacturing facility was converted into an office loft development. The project received an Award of Excellence for Adaptive Use from the Atlanta Urban Design Commission and a Georgia AIA Award of Merit for Adaptive Reuse.
EpiCity’s latest adaptive reuse project is Armour Junction. The Armour Junction office loft campus in the Armour District is a collection of five buildings of office space. One of the businesses located in Armour Junction is Mason Fine Art and Events. Its gallery features three large exhibition spaces that provide for intimate experiences, as well as views of large format two- and three-dimensional works. Like all of Armour Junction, the space was originally an industrial warehouse and much of its original space was kept as it was – clean, with an industrial look. The more than 20,400 square feet Mason Gallery space includes wide open, high ceilings in the “front of the house” for the art gallery and event venue, and the “back of the house” has a catering kitchen, break room, office space, conference room, bridal suite, and general storage. A special feature that was also incorporated into the design was a large opening allowing for large installations or even vehicles to enter for display.
Reclaimed materials and industrial style have found their place in today’s buildings. The authentic experience, which evokes emotion from days gone by, is a trend that’s likely to be here for a while. Everything old is new again!
"EpiCity's experience, record of success, and solid portfolio of properties gives me confidence they'll have opportunities that match my goals."
The Lumberyard Office Lofts
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Mason Fine Arts at Armour Junction
Mason Fine Arts at Armour Junction
Mailing Address:P.O. Box 660066Atlanta, GA 30366-6666
Contact:Tel: (770) 457-2300Fax: (770) 457-2390EpiCity.com
Epic Development
Headquarters:415 Plasters Avenue, Suite 200Atlanta, GA 30324
Contact:Tel: (770) 228-2000Fax: (770) 457-2390EpicDevelopment.com
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494 Plasters Avenue - Atlanta GA
Top 5 Articles on EpiCity.com1. 5 Tips for Marketing Your Commercial Office Space epicity.com/marketing-tips
2. 10 Tips to Improve Your Office Space epicity.com/office-improvements
3. Tin Lizzy’s Cantina Moves to Powers Ferry Business Park epicity.com/tin-lizzys
4. EpiCity’s Team Collaborates with Definition 6 to Create New Space epicity.com/definition6-collaboration
5. 5 Tips for Creating a Modern Office Space epicity.com/modern-office-space
EpiCity and Epic Development are committed to remaining at the forefront of the commercial and residential real estate markets in Atlanta. We are eagerly working to cultivate new development projects and invest in the revitalization happening around the city.
Investing in real estate development is a conscious belief that diversification is a worthwhile opportunity. Furthermore, real estate investments are tangible assets that can increase in value over time, especially when properly managed, maintained, and improved. To learn more about becoming a partner and building wealth with us through real estate, please contact Tom Stokes, Director for Property Management and Commercial Leasing at EpiCity.
