A shift of focus to college markets in the state, however, may potentially lead investors to assets that are better positioned to maintain steady performance. Elsewhere, flagged hotel deals in Alabama rose over the past year, and many properties offer potential upsides through higher rates and performing brand-imposed upgrades. (Source: Marcus & Millichap)

NEWS & NOTABLES

ATLANTA—CREW Atlanta announced its board members for 2017, including Monetha Cobb of Franklin Street as president. CREW Atlanta exists to influence the success of the commercial real estate industry by advancing the achievements of women. Additional members of the 2017 board of directors include: Karrie Westphal of CREW Atlanta, executive director; Tina Renee McCall of Gemini Rosemont, president elect; Lynne O'Brien of Coca-Cola Company, past president; Sara Silvio of Constructive Ingenuity, treasurer; Jodi Borges of Veenendaal Cave, director; Ann Cone of CBRE, director; Diana Robinson of Colliers International, director; Ellen Smith of Holt Ney Zatcoff & Wasserman, director; and Stephen Wells of Hendrick, director. Cobb's key initiatives for CREW include furthering strategic partnerships with other commercial real estate organizations to gain greater exposure throughout the community. She also aims to oversee the creation of an educational program for both CREW members and non-CREW members in 2017. CREW Atlanta was founded in 1982 and has grown to include more than 425 members. V, Inc., a publicly registered, non-listed REIT sponsored by Cole Capital.

DEAL TRACKER

NASHVILLE—Hickory Trace, a 276-unit multifamily community in Nashville, has won the confidence of investors. Cushman & Wakefield's Atlanta Equity, Debt & Structured Finance Group arranged joint venture equity and senior financing for the recapitalization and refinancing of the multifamily project, which is owned by Peak Capital Partners. The multifamily community is located in the Antioch submarket, which is 12 miles southeast of Downtown Nashville and next to Global Mall at the Crossings and the Ford Ice Center, which is the practice facility for the NHL's Nashville Predators. Working through a GSE correspondent relationship with KeyBank, Cushman & Wakefield procured a seven-year fixed-rate loan with a four-year interest-only period. The joint venture equity was provided by Olayan Group, through a programmatic relationship that the Cushman & Wakefield team helped to establish in 2015.

MURFREESBORO, TN—Carroll Organization completed the sale of four multifamily properties from its investment vehicle Carroll Co-Invest II Fund, along with investment partner NorthStar Realty Finance Corp. The portfolio includes ARIUM Danforth in Jacksonville, FL, ARIUM Grand Lagoon in Panama City, FL, ARIUM Links in Savannah, GA and ARIUM Parkside in Murfreesboro, TN. Carroll originally purchased these communities in April 2013. “We felt good about the value and growth proposition that the basis and rents presented, and we knew we could increase value through amenity and interior renovations,” says M. Patrick Carroll, CEO of Carroll Organization. “Our team was able to successfully implement our business plan, significantly increasing the value of each asset. After three years of ownership, we decided to sell the portfolio and realize the value we created, providing strong returns to our investors.”

SAVANNAH, GA—Northridge Capital closed on its purchase of the Realty Building, a $7.9 million investment in an iconic office building in historic Downtown Savannah, Georgia. Northridge acquired the asset on behalf of one of its off-shore investors. At 10 stories tall, the Realty Building is one of the tallest in Savannah. As one of the most prominent office buildings downtown, the building has achieved 96.98% occupancy to a diverse mix of 18 tenants. Northridge Capital acquired the Realty Building from SCGII-Drayton in December 2015. Ashley Smith from Colliers International brokered the sale. Colliers was retained by Northridge post-sale and currently acts as the building property manager and Marketing and Leasing team. An additional $4.79 million in mortgage-backed financing from The Bankcorp Bank was secured by Northridge for this investment opportunity.

AUSTELL, GA—Shopping Center Group repositioned 25,000 square feet of retail space at East West Commons in Austell, GA. VEREIT, which leases and manages the shopping center on behalf of Cole Capital, worked closely with the leasing team led by Patrick Bentley, senior leasing advisor of TSCG, to develop a leasing strategy to transform a previously vacant storefront into prime retail and restaurant space that addresses the needs of the Austell consumer. “We are converting a former, larger tenant space into two vibrant retail buildings that will re-energize a portion of the shopping center,” says Bentley. “As a result, this new development became attractive to several national tenants due to enhanced visibility and curb appeal along the East-West Connector.” Bentley worked in conjunction with the VEREIT leasing team of Brett Sheets, senior vice president, and Greg Browne, vice president, on the repositioning. “We saw a void in the market for highly visible, street-front retail and a gap that would appeal to several national retailers and fast casual restaurants,” says Sheets. “Because of the new opportunity presented, the redevelopment is already 65% leased before construction begins.” Demolition of the existing space is expected to begin this month.

CLARKSVILLE, TN—Dunkin' Donuts signed of a multi-unit store development agreement with franchisees Ray and Zak Omar and Megan Karim to develop four new restaurants in Clarksville, TN over the next several years. The first restaurant is planned to open in Clarksville in 2018 near Fort Campbell, one of the largest Army bases in the US. Currently, there are over 80 Dunkin' Donuts located throughout Tennessee, and the company is continuing to recruit franchisees in Memphis, Jackson and Smithville. In an effort to keep the brand fresh and competitive, Dunkin' Donuts offers flexible concepts for any real estate format including free-standing restaurants, end caps, in-line sites, gas and convenience, travel plazas, universities, as well as other retail environments.

BUILDING BLOCKS

MEMPHIS—Hotel Equities won the assignment to manage the new Fairfield Inn & Suites by Marriott as part of a development in Downtown Memphis, Tennessee. EPIQ Hotels and MNR Hospitality are the developers of the hotel. With plans to break ground in the first quarter of 2017, the hotel's developers are currently in the final bidding stage of construction with assistance from Hotel Equities. They anticipate an opening in the second quarter of 2018. The latest prototype of the Fairfield Inn & Suites was designed to deliver flexibility—especially in an urban market.

CREW just voted in a new crew and multifamily is the name of the game this week in the Southeast. This week, though, Tennessee saw plenty of deal flow, from multifamily refis, to multifamily sales, to hotel development, to retail franchise expansions.

BY THE NUMBERS

Investors seeking to add geographic diversity to portfolios will increasingly consider assets in the Gulf Coast. Brand names are primary targets for investors. Flagged limited- and select-service inns comprise the greatest share of hotels traded in the region. A decelerating rate of RevPAR growth in each state will support more modest increases in property values over the coming months.

Property owners seeking to unlock the value that has accrued in their Gulf Coast hotels since the recession ended but have deferred listing may act with more urgency in the coming months while equity and debt remain abundant. Transparency on property values have likely maintained buyers' and sellers' expectations in rather close alignment, though due diligence in Louisiana may lengthen as investors assess exposures to the energy sector.

A shift of focus to college markets in the state, however, may potentially lead investors to assets that are better positioned to maintain steady performance. Elsewhere, flagged hotel deals in Alabama rose over the past year, and many properties offer potential upsides through higher rates and performing brand-imposed upgrades. (Source: Marcus & Millichap)

NEWS & NOTABLES

ATLANTA—CREW Atlanta announced its board members for 2017, including Monetha Cobb of Franklin Street as president. CREW Atlanta exists to influence the success of the commercial real estate industry by advancing the achievements of women. Additional members of the 2017 board of directors include: Karrie Westphal of CREW Atlanta, executive director; Tina Renee McCall of Gemini Rosemont, president elect; Lynne O'Brien of Coca-Cola Company, past president; Sara Silvio of Constructive Ingenuity, treasurer; Jodi Borges of Veenendaal Cave, director; Ann Cone of CBRE, director; Diana Robinson of Colliers International, director; Ellen Smith of Holt Ney Zatcoff & Wasserman, director; and Stephen Wells of Hendrick, director. Cobb's key initiatives for CREW include furthering strategic partnerships with other commercial real estate organizations to gain greater exposure throughout the community. She also aims to oversee the creation of an educational program for both CREW members and non-CREW members in 2017. CREW Atlanta was founded in 1982 and has grown to include more than 425 members. V, Inc., a publicly registered, non-listed REIT sponsored by Cole Capital.

DEAL TRACKER

NASHVILLE—Hickory Trace, a 276-unit multifamily community in Nashville, has won the confidence of investors. Cushman & Wakefield's Atlanta Equity, Debt & Structured Finance Group arranged joint venture equity and senior financing for the recapitalization and refinancing of the multifamily project, which is owned by Peak Capital Partners. The multifamily community is located in the Antioch submarket, which is 12 miles southeast of Downtown Nashville and next to Global Mall at the Crossings and the Ford Ice Center, which is the practice facility for the NHL's Nashville Predators. Working through a GSE correspondent relationship with KeyBank, Cushman & Wakefield procured a seven-year fixed-rate loan with a four-year interest-only period. The joint venture equity was provided by Olayan Group, through a programmatic relationship that the Cushman & Wakefield team helped to establish in 2015.

MURFREESBORO, TN—Carroll Organization completed the sale of four multifamily properties from its investment vehicle Carroll Co-Invest II Fund, along with investment partner NorthStar Realty Finance Corp. The portfolio includes ARIUM Danforth in Jacksonville, FL, ARIUM Grand Lagoon in Panama City, FL, ARIUM Links in Savannah, GA and ARIUM Parkside in Murfreesboro, TN. Carroll originally purchased these communities in April 2013. “We felt good about the value and growth proposition that the basis and rents presented, and we knew we could increase value through amenity and interior renovations,” says M. Patrick Carroll, CEO of Carroll Organization. “Our team was able to successfully implement our business plan, significantly increasing the value of each asset. After three years of ownership, we decided to sell the portfolio and realize the value we created, providing strong returns to our investors.”

SAVANNAH, GA—Northridge Capital closed on its purchase of the Realty Building, a $7.9 million investment in an iconic office building in historic Downtown Savannah, Georgia. Northridge acquired the asset on behalf of one of its off-shore investors. At 10 stories tall, the Realty Building is one of the tallest in Savannah. As one of the most prominent office buildings downtown, the building has achieved 96.98% occupancy to a diverse mix of 18 tenants. Northridge Capital acquired the Realty Building from SCGII-Drayton in December 2015. Ashley Smith from Colliers International brokered the sale. Colliers was retained by Northridge post-sale and currently acts as the building property manager and Marketing and Leasing team. An additional $4.79 million in mortgage-backed financing from The Bankcorp Bank was secured by Northridge for this investment opportunity.

AUSTELL, GA—Shopping Center Group repositioned 25,000 square feet of retail space at East West Commons in Austell, GA. VEREIT, which leases and manages the shopping center on behalf of Cole Capital, worked closely with the leasing team led by Patrick Bentley, senior leasing advisor of TSCG, to develop a leasing strategy to transform a previously vacant storefront into prime retail and restaurant space that addresses the needs of the Austell consumer. “We are converting a former, larger tenant space into two vibrant retail buildings that will re-energize a portion of the shopping center,” says Bentley. “As a result, this new development became attractive to several national tenants due to enhanced visibility and curb appeal along the East-West Connector.” Bentley worked in conjunction with the VEREIT leasing team of Brett Sheets, senior vice president, and Greg Browne, vice president, on the repositioning. “We saw a void in the market for highly visible, street-front retail and a gap that would appeal to several national retailers and fast casual restaurants,” says Sheets. “Because of the new opportunity presented, the redevelopment is already 65% leased before construction begins.” Demolition of the existing space is expected to begin this month.

CLARKSVILLE, TN—Dunkin' Donuts signed of a multi-unit store development agreement with franchisees Ray and Zak Omar and Megan Karim to develop four new restaurants in Clarksville, TN over the next several years. The first restaurant is planned to open in Clarksville in 2018 near Fort Campbell, one of the largest Army bases in the US. Currently, there are over 80 Dunkin' Donuts located throughout Tennessee, and the company is continuing to recruit franchisees in Memphis, Jackson and Smithville. In an effort to keep the brand fresh and competitive, Dunkin' Donuts offers flexible concepts for any real estate format including free-standing restaurants, end caps, in-line sites, gas and convenience, travel plazas, universities, as well as other retail environments.

BUILDING BLOCKS

MEMPHIS—Hotel Equities won the assignment to manage the new Fairfield Inn & Suites by Marriott as part of a development in Downtown Memphis, Tennessee. EPIQ Hotels and MNR Hospitality are the developers of the hotel. With plans to break ground in the first quarter of 2017, the hotel's developers are currently in the final bidding stage of construction with assistance from Hotel Equities. They anticipate an opening in the second quarter of 2018. The latest prototype of the Fairfield Inn & Suites was designed to deliver flexibility—especially in an urban market.