Speculative industrial commercial real estate completions so far this year are at 9.1 million square feet, while build-to-suit completions are at 1.9 million square feet. This brings the overall construction completion total to 11 million square feet, which indicates Atlanta is on pace to shatter the previous delivery record of 14.8 million square feet set in 2000. (Source: Cushman & Wakefield)

NEWS & NOTABLES

MEMPHIS—Tennessee Bank is partnering with national nonprofit Operation HOPE to assist residents affected by the recent wildfires in East Tennessee. Starting Dec. 5, First Tennessee will staff its branch at 300 East Main Street in Sevierville, TN, with financial wellbeing coaches from HOPE Coalition America, Operation HOPE's national emergency preparedness and financial recovery division. Services will include financial counseling, small business recovery, help obtaining destroyed documents and assistance with insurance claims and home inspection and repair contracts. First Tennessee is supporting relief efforts in other ways, too, including accepting donations on behalf of the Red Cross and matching contributions up to $50,000, making loans to customers in Sevier County wildfire areas, and its own Employee Relief Fund.

NEW ORLEANS—Bellwether Enterprise Real Estate Capital announced the appointment of real estate private equity veteran Todd Johnson as director of equity products. Johnson will be based in Bellwether Enterprise's New Orleans office. Prior to joining Bellwether, Johnson was the founding and managing partner of Brush Island Capital, a boutique, private equity real estate firm specializing in arranging institutional joint venture equity for real estate transactions and real estate operators throughout all markets. Johnson's work primarily focused on transactions pertaining to multifamily developments, acquisitions, and recapitalizations. Before founding Brush Island Capital, Mr. Johnson worked for MINERVA Real Estate Investments where he led urban, condominium development. He holds a B.B.A. in business administration from Millsaps College.

DEAL TRACKER

CAROLLTON, GA—Wheeler Real Estate Investment Trust acquired Riverbridge Shopping Center, a 91,200 square foot Ingles Markets grocery store anchored center located in Carrollton. Ingles expects to add a fuel center in the future and will extend their lease term by six years until 2026 with the addition. As of November 15, 2016, the center was 98.5% leased and occupied.

SPRING HILL, TN—Chad Owens, vice president of NorthMarq Capital's Houston-based regional office arranged acquisition financing of $24.845 million for The Crossings of Spring Hill, a 219,905-square-foot retail property located at 1001-1041 Crossing Boulevard and 1017-2020 Crossing Circle in Spring Hill. The transaction was structured with a 10-year term with three-years of interest only on a 30-year amortization schedule. NorthMarq arranged financing for the borrower, TCSH, an entity controlled by Azad Commercial Realty Services, through its relationship with a CMBS lender. “We have found great values in the growing suburbs of strong MSAs throughout the southeast; we will continue to be an active buyer for these deals,” says the borrower's sponsor, Dr. Hardam S. Azad.

LAWRENCEVILLE, GA—Heritage Zetabid Realty & Auction Services, a division of Heritage Global, announced the sale at public auction of a fully leased medical office building in Gwinnett County 30 minutes East of Atlanta, GA. The 14,688-square-foot building was built in 2001 and is located at 545 Old Norcross Road. The online sealed bid auction is scheduled to take place December 12-15, 2016 and will be conducted at www.zetabid.com. The starting bid is $900,000 or $61 per square foot. The property was listed previously at $1.3 million. “This prime medical office building is being sold by order of the lender/special servicer and represents an outstanding investment opportunity to acquire a fully leased and ideally located medical building complete with 60-car parking at below replacement cost. At the starting bid price, the net operating income for the facility produces a cap rate of over 13%,” says Michael Davin, managing director of Heritage Zetabid.

ROYSTON, GA—Wheeler Real Estate Investment Trust acquired Tri-County Plaza located in Royston, GA. Tri-County Plaza was built in 1986 and is a 67,577 square foot BiLo-anchored community center with 91% occupancy as of November 10, 2016. Tenants include Maxway, Shoe Show and Snap Fitness. BiLo recently executed an early five-year lease extension as part of a planned interior renovation.

BUILDING BLOCKS

ATLANTA—Mill Creek Residential, a multifamily investor and operator specializing in premier apartment communities across the US, just started pre-leasing its Midtown community. The 29-story community, the first high-rise building of Mill Creek's Atlanta residences, will house 435 apartment homes. Midtown is one of the fastest growing sections of the bustling Atlanta city center, with the upcoming NCR headquarters and several other sites under construction near the Modera by Mill Creek – Midtown community. Sitting just blocks from a Publix supermarket, the Midtown MARTA station and the Georgia Tech campus, Modera by Mill Creek – Midtown will offer residents a walkability. The community will feature a variety of amenities, concentrated on two amenities decks on the seventh and 26th floors of the high rise.

ATLANTA—Atlanta's industrial market is strong and getting stronger. Tennessee banks are showing their concern for the community in the midst of deadly wildfires. And Wheeler is wheeling and dealing in Georgia.

BY THE NUMBERS

Third quarter 2016 statistics revealed that the Atlanta industrial market is experiencing the most under construction activity ever recorded in Atlanta's history. With 18.9 million square feet under construction, Atlanta is ranked third in the nation behind Dallas and Chicago. (Source: Cushman & Wakefield)

Out of the 18.9 million square feet of industrial space currently under construction, an estimated 11 million square feet is expected to deliver in the fourth quarter of 2016. (Source: Cushman & Wakefield)

Speculative industrial commercial real estate completions so far this year are at 9.1 million square feet, while build-to-suit completions are at 1.9 million square feet. This brings the overall construction completion total to 11 million square feet, which indicates Atlanta is on pace to shatter the previous delivery record of 14.8 million square feet set in 2000. (Source: Cushman & Wakefield)

NEWS & NOTABLES

MEMPHIS—Tennessee Bank is partnering with national nonprofit Operation HOPE to assist residents affected by the recent wildfires in East Tennessee. Starting Dec. 5, First Tennessee will staff its branch at 300 East Main Street in Sevierville, TN, with financial wellbeing coaches from HOPE Coalition America, Operation HOPE's national emergency preparedness and financial recovery division. Services will include financial counseling, small business recovery, help obtaining destroyed documents and assistance with insurance claims and home inspection and repair contracts. First Tennessee is supporting relief efforts in other ways, too, including accepting donations on behalf of the Red Cross and matching contributions up to $50,000, making loans to customers in Sevier County wildfire areas, and its own Employee Relief Fund.

NEW ORLEANS—Bellwether Enterprise Real Estate Capital announced the appointment of real estate private equity veteran Todd Johnson as director of equity products. Johnson will be based in Bellwether Enterprise's New Orleans office. Prior to joining Bellwether, Johnson was the founding and managing partner of Brush Island Capital, a boutique, private equity real estate firm specializing in arranging institutional joint venture equity for real estate transactions and real estate operators throughout all markets. Johnson's work primarily focused on transactions pertaining to multifamily developments, acquisitions, and recapitalizations. Before founding Brush Island Capital, Mr. Johnson worked for MINERVA Real Estate Investments where he led urban, condominium development. He holds a B.B.A. in business administration from Millsaps College.

DEAL TRACKER

CAROLLTON, GA—Wheeler Real Estate Investment Trust acquired Riverbridge Shopping Center, a 91,200 square foot Ingles Markets grocery store anchored center located in Carrollton. Ingles expects to add a fuel center in the future and will extend their lease term by six years until 2026 with the addition. As of November 15, 2016, the center was 98.5% leased and occupied.

SPRING HILL, TN—Chad Owens, vice president of NorthMarq Capital's Houston-based regional office arranged acquisition financing of $24.845 million for The Crossings of Spring Hill, a 219,905-square-foot retail property located at 1001-1041 Crossing Boulevard and 1017-2020 Crossing Circle in Spring Hill. The transaction was structured with a 10-year term with three-years of interest only on a 30-year amortization schedule. NorthMarq arranged financing for the borrower, TCSH, an entity controlled by Azad Commercial Realty Services, through its relationship with a CMBS lender. “We have found great values in the growing suburbs of strong MSAs throughout the southeast; we will continue to be an active buyer for these deals,” says the borrower's sponsor, Dr. Hardam S. Azad.

LAWRENCEVILLE, GA—Heritage Zetabid Realty & Auction Services, a division of Heritage Global, announced the sale at public auction of a fully leased medical office building in Gwinnett County 30 minutes East of Atlanta, GA. The 14,688-square-foot building was built in 2001 and is located at 545 Old Norcross Road. The online sealed bid auction is scheduled to take place December 12-15, 2016 and will be conducted at www.zetabid.com. The starting bid is $900,000 or $61 per square foot. The property was listed previously at $1.3 million. “This prime medical office building is being sold by order of the lender/special servicer and represents an outstanding investment opportunity to acquire a fully leased and ideally located medical building complete with 60-car parking at below replacement cost. At the starting bid price, the net operating income for the facility produces a cap rate of over 13%,” says Michael Davin, managing director of Heritage Zetabid.

ROYSTON, GA—Wheeler Real Estate Investment Trust acquired Tri-County Plaza located in Royston, GA. Tri-County Plaza was built in 1986 and is a 67,577 square foot BiLo-anchored community center with 91% occupancy as of November 10, 2016. Tenants include Maxway, Shoe Show and Snap Fitness. BiLo recently executed an early five-year lease extension as part of a planned interior renovation.

BUILDING BLOCKS

ATLANTA—Mill Creek Residential, a multifamily investor and operator specializing in premier apartment communities across the US, just started pre-leasing its Midtown community. The 29-story community, the first high-rise building of Mill Creek's Atlanta residences, will house 435 apartment homes. Midtown is one of the fastest growing sections of the bustling Atlanta city center, with the upcoming NCR headquarters and several other sites under construction near the Modera by Mill Creek – Midtown community. Sitting just blocks from a Publix supermarket, the Midtown MARTA station and the Georgia Tech campus, Modera by Mill Creek – Midtown will offer residents a walkability. The community will feature a variety of amenities, concentrated on two amenities decks on the seventh and 26th floors of the high rise.