ATLANTA—Some consider it one of the most ambitious projects in the Atlanta's history. It is certainly one that is seeking to transform the industry by focusing on the human experience rather than just the buildings. Avalon is a 2.3-million square foot mixed-use project in Atlanta's Alpharetta, GA submarket.
Cincinnati-based North American Properties (NAP) snapped up a 106-acre site in 2011 to execute its unique vision. Crews broke ground on Avalon in January 2014. The first phase of this massive $600 million project alone includes 400,000 square feet of retail, 106,000 square feet of class A office, 101 single-family homes, and 250 multifamily units.
It didn't take long for NAP to prove demand for its ambitious mixed-use concept. On Oct. 30, 2014 Avalon celebrated its grand opening. Thousands flocked to the corner of Old Milton Parkway and GA 400 to experience the new destination.
At launch, Avalon had with 50 retailers and 10 restaurants—including 10 first-to-market brands and seven chief-driven eateries. Tenants include Whole Foods Market, Regal Cinemas, Gap, Crate & Barrel, and J. Crew. Consumer anticipation was so strong that 15 tenants broke company-wide opening day sales records at their Avalon location.
"There are countless moving parts in a development like Avalon," Matt Simon, vice president and senior general manager of Avalon, tells GlobeSt.com. "I know how to make a property run smoothly, and I know how to create a positive and memorable experience for the guest. Additionally, I have substantial experience with retailers and restaurateurs and am well aware of the importance of developing strong tenant relations."
Avalon is certainly unique in the commercial real estate industry and, given its early success, may foreshadow developments to come. Indeed, NAP has positioned Avalon as more than just office space, apartments or retail. What sets Avalon apart isn't the bocce court, dog park, skating rink or gigabit Wi-Fi. It is how it all works together that creates what NAP describes as the “Avalon experience.”
Avalon has made its mark on metro Atlanta in more ways than one. First, it demonstrated exceptional retail success and highlights the region's strong retail recovery. Avalon's retail component opened 98% leased with 60 tenants. Technology wise, the project also stands out as home to the first all-fiber optic network in Georgia, offering Internet speeds of 1 Gbps.
Avalon is also winning big on the residential side of the market. The project's single-family sales top the market at 100% over competitors and multifamily rents are eclipsing all suburban properties. Avalon's office rents are also commanding significant premium. Beyond the success of the project is its impact on the local economy. Avalon has created about 4,500 new jobs and is expected to generate $21 million in annual sales tax revenue.
Phase II opens on Oct. 27, 2016 and includes 80,000 square feet of retail, 550,000 square feet of office, 276 multifamily units, a 325-room hotel, and a 45,000 square-foot conference center. A decade from now, NAP expects Avalon to achieve full market acceptance as a standout destination in the Southeastern United States, ultimately putting the Alpharetta submarket on the map.
A big part of that future is the $100 Hotel Avalon and its accompanying 45,000-square-foot conference center. NAP is building a hub of activity for businesses, specifically those with a tech focus, that will further positioning Alpharetta as a technology city of the south.
NAP also envisions signature events—such as weekly yoga in the park and weekend concerts—and a tenant mix that stays fresh and up-to-speed with target market demand. NAP predicts Avalon will continue to spur development in the surrounding region, which could include the extension of MARTA, Atlanta's public transit system, into the North metro Atlanta area.
Find out more about what Simon has to say regarding Avalon in these articles:
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