NEWS & NOTABLES

ATLANTA—Castell Project, a 501(c)3 nonprofit organization dedicated to accelerating the careers of women professionals in the hospitality industry, just launched. The group will host its first Castell Leadership Program in the second quarter of 2017. The two-pronged program delivers tools tailored for women and implements a custom career development program to move attendees up the leadership ranks. “Have you noticed how few women there are in the upper ranks of the hospitality industry, and how many terrific women work in the industry?” asks Peggy Berg, Castell director. “We recently spent a weekend working out how to set these women up for success, and as we talked, it became obvious that the time is right for this. The industry has a large pool of talented women poised to move up and committed industry executives—both men and women—who want more women in leadership. Tools to accelerate women's careers are available and vetted in other industries, and we are adapting them to hospitality.”

DEAL TRACKER

DECATUR, GA—Capital One provided a $14.4 million HUD 221(d)(4) fixed-rate new construction and permanent loan for Sterling at Candler Village. The 170-unit, affordable, age-restricted rental community is located in Decatur. The developer, Benoit Group, partnered with the Housing Authority of DeKalb County. Senior vice president Carolyn Whatley originated the transaction. Sitting more than 5.5 acres, Sterling at Candler Village will consist of two mid-rise buildings, with one- and two-bedroom units that will be restricted to residents whose head of household is at least 62 years old. Most of the units will be allocated to households earning up to 60% of the area median income (AMI), while the remaining 34 will be reserved for households earning up to 50% of AMI.

ATLANTA—Officials of Peachtree Hotel Group made five hotel acquisitions and undertook five development projects totaling approximately $155 million during the second half of 2016, increasing to its growing portfolio of select- and limited-service hotels nationwide by approximately 1,250 rooms. “While most indicators suggest we are near the peak of the current hospitality cycle, we firmly believe there remain a number of prudent and profitable investment opportunities that provide compelling value,” says Brian Waldman, senior vice president of investments. “As evidenced by our recent acquisitions, Peachtree will continue to focus on value-add hotel investment opportunities in secondary and tertiary markets with high barriers to entry and diverse demand generators.”

CHATANOOGA, TN—RADCO completed its first acquisition of 2017 with the closing of Mountain Creek apartments in Chattanooga. This is RADCO's first property in Tennessee, and the company now operates in 10 states. The 296-unit, class C-plus property has been renamed Radius Mountain Creek. RADCO plans to spend upwards of $6.5 million, or approximately $22,000 a unit, on capital improvements to modernize the community, update its oversized apartments, and reset its economic clock. RADCO financed the acquisition using a $19.8 million Bank of North Georgia loan and over $8 million in private capital. Since August 2011, the Company has raised around $500 million in private capital to fund its acquisitions, making it one of the largest private capital companies of its type in the nation.

BIRMINGHAM—HFF closed the sale of Cahaba Village, a trophy 115,180-square-foot, Whole Foods-anchored retail center in the affluent Birmingham submarket of Mountain Brook, AL. L & B Realty Advisors purchased the asset free and clear of existing debt on behalf of an institutional separate account client. Cahaba Village is a generational asset located in Mountain Brook, one of the most affluent markets in Alabama, and is strategically positioned along US 280, the main retail corridor in Birmingham. Tenants include Whole Foods, Diamonds Direct, Mountain High Outfitters and Bryant Bank. The HFF investment sales team representing the seller was led by senior managing directors Jim Hamilton, Richard Reid and Barry Brown; managing director Ryan Shore and associates Mike Allison and Brad Buchanan.

BUILDING BLOCKS

ATLANTA—Batson-Cook Development is forming a joint venture partnership with Regent Partners to acquire the last remaining parcel in the Buckhead financial district in Atlanta. Regent Partners is spearheading the $400 million office, retail and multifamily project at 3354 and 3356 Peachtree Road. The four-acre parcel is the centerpiece of the Buckhead office market. It is on the future Park400, MARTA heavy rail line and Georgia 400. The development calls for two buildings with more than 550,000 square feet of office and retail space, approximately 60 condominiums and 300 multifamily units. The office submarket boasts the lowest vacancy and highest rental rates in Atlanta. The development-ready land supply in the core of the submarket has been nearly depleted over the prior two development cycles. Buckhead's core office buildings are currently 92.3% occupied. The joint-venture partnership closed on the land January 20, 2017, and the project is expected to get underway in 2018. Any renderings associated with the project are subject to change as it moves forward.

Early this week in the Southeast saw some interesting news on the diversity front. Capital One was active in the affordable housing segment. And one hotel group is making big moves.

BY THE NUMBERS

Atlanta office easing for the year ended on a strong note, totaling 2.1 million square feet in the fourth quarter. Major transactions included Anthem at 600 Peachtree St (148,192 square feet); FEMA at 3005 Chamblee Tucker Road (120,523 square feet); Crawford & Co at 5335 Triangle Parkway (109,172 square feet); and the Weather Company at 1001 Summit Boulevard Northeast (92,272 square feet). (Source: Savills Studley)

Office availability in the Atlanta is falling in the region, ending at 19.3%, a quarter-on-quarter decline of 60 basis points, and a year-on-year decrease of 20 basis points. (Source: Savills Studley)

NEWS & NOTABLES

ATLANTA—Castell Project, a 501(c)3 nonprofit organization dedicated to accelerating the careers of women professionals in the hospitality industry, just launched. The group will host its first Castell Leadership Program in the second quarter of 2017. The two-pronged program delivers tools tailored for women and implements a custom career development program to move attendees up the leadership ranks. “Have you noticed how few women there are in the upper ranks of the hospitality industry, and how many terrific women work in the industry?” asks Peggy Berg, Castell director. “We recently spent a weekend working out how to set these women up for success, and as we talked, it became obvious that the time is right for this. The industry has a large pool of talented women poised to move up and committed industry executives—both men and women—who want more women in leadership. Tools to accelerate women's careers are available and vetted in other industries, and we are adapting them to hospitality.”

DEAL TRACKER

DECATUR, GA—Capital One provided a $14.4 million HUD 221(d)(4) fixed-rate new construction and permanent loan for Sterling at Candler Village. The 170-unit, affordable, age-restricted rental community is located in Decatur. The developer, Benoit Group, partnered with the Housing Authority of DeKalb County. Senior vice president Carolyn Whatley originated the transaction. Sitting more than 5.5 acres, Sterling at Candler Village will consist of two mid-rise buildings, with one- and two-bedroom units that will be restricted to residents whose head of household is at least 62 years old. Most of the units will be allocated to households earning up to 60% of the area median income (AMI), while the remaining 34 will be reserved for households earning up to 50% of AMI.

ATLANTA—Officials of Peachtree Hotel Group made five hotel acquisitions and undertook five development projects totaling approximately $155 million during the second half of 2016, increasing to its growing portfolio of select- and limited-service hotels nationwide by approximately 1,250 rooms. “While most indicators suggest we are near the peak of the current hospitality cycle, we firmly believe there remain a number of prudent and profitable investment opportunities that provide compelling value,” says Brian Waldman, senior vice president of investments. “As evidenced by our recent acquisitions, Peachtree will continue to focus on value-add hotel investment opportunities in secondary and tertiary markets with high barriers to entry and diverse demand generators.”

CHATANOOGA, TN—RADCO completed its first acquisition of 2017 with the closing of Mountain Creek apartments in Chattanooga. This is RADCO's first property in Tennessee, and the company now operates in 10 states. The 296-unit, class C-plus property has been renamed Radius Mountain Creek. RADCO plans to spend upwards of $6.5 million, or approximately $22,000 a unit, on capital improvements to modernize the community, update its oversized apartments, and reset its economic clock. RADCO financed the acquisition using a $19.8 million Bank of North Georgia loan and over $8 million in private capital. Since August 2011, the Company has raised around $500 million in private capital to fund its acquisitions, making it one of the largest private capital companies of its type in the nation.

BIRMINGHAM—HFF closed the sale of Cahaba Village, a trophy 115,180-square-foot, Whole Foods-anchored retail center in the affluent Birmingham submarket of Mountain Brook, AL. L & B Realty Advisors purchased the asset free and clear of existing debt on behalf of an institutional separate account client. Cahaba Village is a generational asset located in Mountain Brook, one of the most affluent markets in Alabama, and is strategically positioned along US 280, the main retail corridor in Birmingham. Tenants include Whole Foods, Diamonds Direct, Mountain High Outfitters and Bryant Bank. The HFF investment sales team representing the seller was led by senior managing directors Jim Hamilton, Richard Reid and Barry Brown; managing director Ryan Shore and associates Mike Allison and Brad Buchanan.

BUILDING BLOCKS

ATLANTA—Batson-Cook Development is forming a joint venture partnership with Regent Partners to acquire the last remaining parcel in the Buckhead financial district in Atlanta. Regent Partners is spearheading the $400 million office, retail and multifamily project at 3354 and 3356 Peachtree Road. The four-acre parcel is the centerpiece of the Buckhead office market. It is on the future Park400, MARTA heavy rail line and Georgia 400. The development calls for two buildings with more than 550,000 square feet of office and retail space, approximately 60 condominiums and 300 multifamily units. The office submarket boasts the lowest vacancy and highest rental rates in Atlanta. The development-ready land supply in the core of the submarket has been nearly depleted over the prior two development cycles. Buckhead's core office buildings are currently 92.3% occupied. The joint-venture partnership closed on the land January 20, 2017, and the project is expected to get underway in 2018. Any renderings associated with the project are subject to change as it moves forward.