Following a 40-basis-point drop last year, the metrowide vacancy rate will drop 60 basis points to 4.9% in 2016 on nearly 1 million square feet of net absorption. (Source: Marcus & Millichap)

The average asking rent will climb 4.5% to $16.21 per square foot this year. Last year, the metro recorded a jump of 6.1%. (Source: Marcus & Millichap)

Attention is focused on areas surrounding the universities, with investment activity heating up in 12 South and Hillsboro Village. (Source: Marcus & Millichap)

NEWS & NOTABLES

ATLANTA—SunTrust has signed a definitive agreement to acquire substantially all of the assets of the operating subsidiaries of Pillar Financial, including the firm's multifamily lending business. That line includes multifamily affordable housing, healthcare properties, senior housing, and manufactured housing specialty teams. The Pillar team will join the SunTrust Commercial Real Estate (CRE) line of business, which is part of the Wholesale Banking Segment.

The transaction is expected to close before year-end, subject to receiving Agency approvals and satisfying other closing conditions. Financial terms of the transaction were not disclosed.

SAVANNAH, GA—Duke Realty has donated a 100,000-square-foot warehouse building, located at 194 Gulfstream Road in Savannah, to the American Red Cross. The relief organization will use the warehouse to store supplies for use in its shelters and other services it brings to the area. Duke Realty, along with its Savannah partner Northpoint Industrial Realty, has pledged $5,000 to the Red Cross, as well as $2,000 to Operation Feed Savannah. Plans call for the Red Cross to use 194 Gulfstream Road through the end of 2016.

BATON ROUGE—The Watermark Hotel, formerly the Louisiana National Bank, has opened its doors again. Previously the financial and governmental hub of downtown Baton Rouge, hotel is aiming to lead the city's social, arts and culinary scenes, offering specially curated experiences found nowhere else in the capital city. Watermark is a concept of local real estate developer, Mike Wampold, and a member of Marriott's Autograph Collection Hotels. There are 144 guestrooms at the property.

GADSDEN, AL—J. P. King Auction Company promoted Steve Ellis to vice president of the real estate auction marketing firm. Ellis, who has been with the company since 2000 as an Auction Market Specialist, is responsible for over $100 million in luxury real estate sales with J. P. King. Ellis, who lives in Nashville, Tennessee, has received the Auction Marketing Specialist of the Year award eight times in his 16 years with the national company. Ellis replaces Scott King, who, with the family's full support, accepted a CEO position with another firm.

DEALTRACKER

ATLANTA—Lincoln Property Company Southeast brokered the long-term extension and 7,771-square-foot expansion of Select Management Resources' lease at Preston Ridge IV, a class A office building located at 3440 Preston Ridge Road, Alpharetta, GA. With the expansion, Select Management Resources now occupies a total of 54,958 square feet in the building, bringing the occupancy to 99% leased. Hunter Henritze and Michael Howell represented the landlord, Equity Office Properties. Brad Kuehn with Atlanta Office Realty represented the tenant.

AUGUST, GA—Interluxe is offering High Gate Manor for exclusive online auction on October 31. The asset is listed on the National Register of Historic Places and has been featured in Southern Living Magazine, the book Garden History of Georgia, and the Smithsonian Institute.

Built in 1809, High Gate has been lovingly restored and updated with the luxuries of modern living, including a saltwater swimming pool and spa, owner's bedroom with fireplace, and a den with wet bar tucked into the built-in cabinetry.

BUILDING BLOCKS

BATON ROUGE—General Informatics is making a $20 million investment for the new @Highland technology park. The initial capital investment will include a 52,000-square-foot, three-story office building that will house General Informatics along with other business tenants and a boutique restaurant that will be open to the public, with Highland Road access. The project will incorporate ecologically beneficial features, such as wetlands preservation with bioswales, at its 8.5-acre location adjacent to BREC's Bluebonnet Swamp Nature Center.

“Louisiana is becoming the new destination for high-performing technology companies,” Gov. Edwards says. “We have attracted major investments from such companies as IBM, GE, CSRA, CGI and many others.”

Deal flow was slim pickings this week in the Southeast's middle markets. The election fervor could be distracting some investors, as the world waits with baited breath to see who will become the next president of the United States.

Noteworthy, however, is the SunTrust acquisition. The banking giant is clearly betting on the continued strength of multifamily, despite various commercial real estate pundit opinions of where we are in the cycle and how demand will actually shake out.

BY THE NUMBERS

Nashville developers will deliver 371,000 square feet of retail space this year, growing metro inventory 0.4% This is a slowdown from 2015, when 478,000 square feet were completed. (Source: Marcus & Millichap)

Following a 40-basis-point drop last year, the metrowide vacancy rate will drop 60 basis points to 4.9% in 2016 on nearly 1 million square feet of net absorption. (Source: Marcus & Millichap)

The average asking rent will climb 4.5% to $16.21 per square foot this year. Last year, the metro recorded a jump of 6.1%. (Source: Marcus & Millichap)

Attention is focused on areas surrounding the universities, with investment activity heating up in 12 South and Hillsboro Village. (Source: Marcus & Millichap)

NEWS & NOTABLES

ATLANTA—SunTrust has signed a definitive agreement to acquire substantially all of the assets of the operating subsidiaries of Pillar Financial, including the firm's multifamily lending business. That line includes multifamily affordable housing, healthcare properties, senior housing, and manufactured housing specialty teams. The Pillar team will join the SunTrust Commercial Real Estate (CRE) line of business, which is part of the Wholesale Banking Segment.

The transaction is expected to close before year-end, subject to receiving Agency approvals and satisfying other closing conditions. Financial terms of the transaction were not disclosed.

SAVANNAH, GA—Duke Realty has donated a 100,000-square-foot warehouse building, located at 194 Gulfstream Road in Savannah, to the American Red Cross. The relief organization will use the warehouse to store supplies for use in its shelters and other services it brings to the area. Duke Realty, along with its Savannah partner Northpoint Industrial Realty, has pledged $5,000 to the Red Cross, as well as $2,000 to Operation Feed Savannah. Plans call for the Red Cross to use 194 Gulfstream Road through the end of 2016.

BATON ROUGE—The Watermark Hotel, formerly the Louisiana National Bank, has opened its doors again. Previously the financial and governmental hub of downtown Baton Rouge, hotel is aiming to lead the city's social, arts and culinary scenes, offering specially curated experiences found nowhere else in the capital city. Watermark is a concept of local real estate developer, Mike Wampold, and a member of Marriott's Autograph Collection Hotels. There are 144 guestrooms at the property.

GADSDEN, AL—J. P. King Auction Company promoted Steve Ellis to vice president of the real estate auction marketing firm. Ellis, who has been with the company since 2000 as an Auction Market Specialist, is responsible for over $100 million in luxury real estate sales with J. P. King. Ellis, who lives in Nashville, Tennessee, has received the Auction Marketing Specialist of the Year award eight times in his 16 years with the national company. Ellis replaces Scott King, who, with the family's full support, accepted a CEO position with another firm.

DEALTRACKER

ATLANTA—Lincoln Property Company Southeast brokered the long-term extension and 7,771-square-foot expansion of Select Management Resources' lease at Preston Ridge IV, a class A office building located at 3440 Preston Ridge Road, Alpharetta, GA. With the expansion, Select Management Resources now occupies a total of 54,958 square feet in the building, bringing the occupancy to 99% leased. Hunter Henritze and Michael Howell represented the landlord, Equity Office Properties. Brad Kuehn with Atlanta Office Realty represented the tenant.

AUGUST, GA—Interluxe is offering High Gate Manor for exclusive online auction on October 31. The asset is listed on the National Register of Historic Places and has been featured in Southern Living Magazine, the book Garden History of Georgia, and the Smithsonian Institute.

Built in 1809, High Gate has been lovingly restored and updated with the luxuries of modern living, including a saltwater swimming pool and spa, owner's bedroom with fireplace, and a den with wet bar tucked into the built-in cabinetry.

BUILDING BLOCKS

BATON ROUGE—General Informatics is making a $20 million investment for the new @Highland technology park. The initial capital investment will include a 52,000-square-foot, three-story office building that will house General Informatics along with other business tenants and a boutique restaurant that will be open to the public, with Highland Road access. The project will incorporate ecologically beneficial features, such as wetlands preservation with bioswales, at its 8.5-acre location adjacent to BREC's Bluebonnet Swamp Nature Center.

“Louisiana is becoming the new destination for high-performing technology companies,” Gov. Edwards says. “We have attracted major investments from such companies as IBM, GE, CSRA, CGI and many others.”