Atlanta's multifamily planning pipeline remains robust with significant

Atlanta skyline

increases in the number of permits pulled during the last four quarters. Builders advanced multifamily permit issuance by 60% during this time with more than 20,000 permits. Additionally, about 23,500 single-family permits were pulled, a 17% rise. (Source: Marcus & Millichap)

Builders in Atlanta completed more than 7,900 apartments during the previous 12 months ending at midyear. Of these deliveries, 3,800 were completed during the first half of 2016. During the prior year, more than 7,850 units were built. (Source: Marcus & Millichap)

NEWS & NOTABLES

ATLANTA—Foundry Commercial is expanding its presence in Atlanta with a new, full-service office that will be led by commercial real estate industry veteran Chris Hurd. The move builds on the firm's strategy to serve key markets from DC to Dallas, as well as its mantra for building around capable and passionate leaders. Hurd is a 20-year industry veteran. He comes to Foundry from Cushman & Wakefield in Atlanta, where he led its tenant advisory business and managed over 50 producers. Foundry's expansion into Atlanta comes less than one year after the company acquired former Cushman & Wakefield affiliate, Thalhimer in both Raleigh and Charlotte.

MEMPHIS, TN—The 2016 Dodd-Frank Act stress test shows First Horizon National Corp. and its First Tennessee regional bank would maintain capital well in excess of regulatory “adequate” levels under severely adverse economic and financial conditions. The annual stress tests, which are designed to ensure banks would have enough capital to operate in economically challenging times, are required of national banks and federal savings associations with assets of at least $10 billion. The tests measure capital levels, as required by the regulatory agencies, in the face of hypothetical “severely adverse” events specified by regulators including a greater-than-50% drop in the U.S. stock market, a greater-than-25% drop in US real estate values, a significant and rapid contraction of the U.S. economy, a 10% unemployment rate and negative interest rates on short-term Treasury notes.

DEAL TRACKER

ATLANTA—Will James, vice president of NorthMarq Capital's Atlanta-based regional office, arranged the $22.2 million refinance of Flats at 316, a 240-unit University of West Georgia student housing property located at 316 Columbia Drive in Carrollton, GA. The transaction was structured with a three-year interest-only term. NorthMarq arranged financing for the borrower through its relationship with a bridge lender. “The loan retires existing financing and will provide additional funds to update the clubhouse construct new amenities and reposition the property,” says James. Bruce Foster, senior vice president and managing director, collaborated with James throughout the financing process.

KNOXVILLE, TN—Bloomfield Capital closed $2 million senior bridge loan to refinance and renovate a historic mixed-use property located in Knoxville. Knoxville has seen a recent spike in historic renovations and the adaptive re-use of older industrial buildings. East Tennessee office vacancy rates are hovering around 7%, and no large deliveries of office space are planned for the Knoxville market. Class B space is being absorbed by new businesses and existing tenants alike, which is creating a strong market for affordable and flexible office space in the metro Knoxville area. “Given the flexible layout of this property, and the low tenant improvement requirements to lease space, the Sponsor will have numerous options to re-tenant the building. Bloomfield's flexible bridge loan will allow for a quick repositioning of this unique mixed-use building,” says Brent Truscott, a principal at Bloomfield Capital.

BIRMINGHAM—American Healthcare Investors and Griffin Capital Corporation, the co-sponsors of Griffin-American Healthcare REIT IV, Inc., acquired Iron Medical Office Building Portfolio from Cullman POB Partners and HCP Coosa MOB. The portfolio includes three medical office buildings located in the Birmingham suburbs of Cullman and Sylacauga, Alabama. The three-building Iron Medical Office Building Portfolio totals approximately 204,000 square feet and is approximately 84% leased. “Each of the three buildings in the Iron Medical Office Building Portfolio are of premium quality and are located on the campuses of thriving regional hospitals,” says Danny Prosky, a principal of American Healthcare Investors and president and COO of Griffin-American Healthcare REIT IV. “Additionally, the ownership of the three premier Cullman medical office buildings provides us with significant economies of scale from a management and leasing perspective.”

ATLANTA—More than 320 pieces of real estate—including scores of home sites, waterfront land, office buildings, homes and other properties—will be offered in a series of November auctions in Pensacola and Marietta. John Dixon & Associates is managing the auctions. The properties will be sold in more than 150 offerings from banks, investment trusts, individual investors and other sellers. The events will include properties in Georgia, Florida, Alabama, North Carolina, South Carolina and Tennessee in November. “As the economy strengthens, we're continuing to see more demand from contractors and developers for residential and commercial land, and we have a ton of it in this group of events,” says John Dixon, president of the auction company. “At the same time, we have some very unique opportunities, such as a family entertainment center in Jesup, GA, office buildings in Toccoa and Pensacola, and a home in Marietta.”

BUILDING BLOCKS

NASHVILLE, TN—One of the biggest names in music helped open Alliance Residential Company's Broadstone Germantown, the unique singer/songwriter multifamily community in the historic Nashville neighborhood. Two-time Grammy award winner Jason Isbell performed on the rooftop music venue, called Open Stage, which has a fully equipped preforming arts space, on Oct. 27. The 276-home, seven-story project features studio, one and two-bedroom homes with thoughtfully designed floor-plans, and a sound-proof song writing room. Broadstone Germantown is located close to the Cumberland River, the new Nashville Sounds minor league baseball stadium and Bicentennial Mall State Park, the historic 19-acre park, which is home to the popular Nashville Farmer's Market.