NEWS & NOTABLES

ATLANTA—Cushman & Wakefield hired two industry veterans, John Zintak and Robbin Pearson, both formerly with Daniel Corp., to join the company's Atlanta office. Zintak has joined the firm as a senior director in the company's office agency leasing group. Pearson has joined the firm's asset services division as director of operations.

Prior to joining Cushman & Wakefield, Zintak was senior vice president of commercial leasing and development at Daniel Corp., where he oversaw leasing activity and was involved with the design and planning of future commercial development. In his career, he has worked for Carter as senior vice president of commercial property leasing, and Kern Realty Service as vice president of marketing and development.

Pearson was previously vice president of commercial operations at Daniel Corp., where she was responsible for commercial office and retail operations including managerial oversight of 12th & Midtown and other institutionally owned assets. Pearson was also employed by Colonial Properties Trust as vice president of operations, PM Realty Group as senior property manager and portfolio manager with Ahold Real Estate Co., where she was responsible for 1 million square feet of retail property located throughout the mid-Atlantic region.

DEAL TRACKER

ATLANTA—Transwestern Corporate Properties I Investor reached an agreement to acquire Park Center I in Atlanta as part of a sale-leaseback transaction with State Farm Auto Insurance Co. This agreement follows Transwestern's acquisition of the 2.2 million-square-foot, mixed-use project in Texas occupied by State Farm under long-term leases. Park Center I is a 13-story, LEED-certified office tower situated on a seven-level parking structure with ground-floor retail. The class A building is located on four acres at Hammond Drive and Perimeter Center Parkway, next to the Dunwoody MARTA station. State Farm employees began moving into the new building in fourth quarter 2016.

BIRMINGHAM, AL—Vulcan Materials Company reached a definitive agreement with SPO Partners to acquire its aggregates business, Aggregates USA LLC for $900 million in cash. Aggregates USA LLC operates 31 facilities serving high growth markets in Georgia, Florida, Tennessee, South Carolina and Virginia. The acquisition expands Vulcan's service offerings in Georgia with three granite quarries—two of which have rail capabilities extending the company's reach into important markets—along with 16 rail distribution yards in Georgia, South Carolina and Florida. The acquisition also includes 12 limestone quarries in eastern Tennessee and southwest Virginia. Vulcan may divest several quarries in Tennessee to a third party in order to expedite the regulatory approval process.

ATHENS, GA—American Healthcare Investors and Griffin Capital Company, the co-sponsors of Griffin-American Healthcare REIT IV, acquired the two-building Athens Medical Office Building Portfolio in Athens, approximately 70 miles east of Atlanta. Built in 2007, the approximately 61,000-square-foot Athens Medical Office Building Portfolio is currently 98.5% leased to three tenants, with about 87% of the rentable square footage leased to Saint Mary's Health Care System.

ANDERSONVILLE, TN—A&S Building Systems relocated its headquarters from Caryville to the David Jones Industrial Park in Andersonville, TN. With the new facility, A&S has expanded their engineering and sales support.

ATLANTA—Ashford Hospitality Trust refinanced the mortgage loan secured by the Hotel Indigo Atlanta Midtown with an existing outstanding balance totaling approximately $15.6 million and a final maturity date in June 2017. The new non-recourse loan totals $16.1 million with a three-year term and two, one-year extension options subject to the satisfaction of certain conditions. The loan carries an interest rate of LIBOR plus 2.9% and is interest only for the first two years with a 30-year amortization schedule based on a 6% interest rate starting in the third year.

CANTON, GA—Landeavor acquired Great Sky, a 475-acre master planned community in Canton, GA, just minutes from Interstate 575. The purchase is the 11th acquisition for Landeavor and its second in the Atlanta area in the last eight months. Great Sky is partially developed with 450 occupied homes. Landeavor's purchase includes vacant developed lots, undeveloped parcels and the community's HOA amenity and open space. Landeavor plans to expand the housing inventory in the community by adding builders and housing products. Great Sky borders the Hickory Log Creek Reservoir, a 411-acre reservoir formed by damming Hickory Creek in 2007. A sizable percentage of the reservoir's 15 miles of shoreline fall within Great Sky.

BUILDING BLOCKS

HUNTSVILLE, AL—The Hollingsworth Companies broke ground on its fifth industrial building project in SouthPoint Industrial Park with the start of a sixth building project expected in mid-2017. The 252,000-square-foot class A steel building is designed to be a single tenant or the option of a multitenant facility with 32-foot clear height and 14 loading docks suitable for warehouse or manufacturing space. Tommy Battle, mayor of Huntsville stated, “Huntsville has experienced tremendous private sector job and investment growth over the past nine years; however, the competition for jobs and investment is only getting more fierce. Project timelines are moving faster than ever before and companies are under more pressure now to make projects successful. Communities, like Huntsville, that are prepared will be the ones that continue to prosper. This 252,000-square-foot facility will add another critical tool to our economic development tool kit.”

This week in the Southeast saw a slew of commercial real estate activity in Georgia, much of it in Atlanta proper. However, smaller submarkets across the region showed strength.

BY THE NUMBERS

Soaring demand fills retail space as employment growth attracts residents. Encouraged by job creation in higher-paying sectors, more than 65,400 individuals migrated to Atlanta in the last four quarters, underpinning demand for retail space. (Source: Marcus & Millichap)

Retail sales have grown nearly 5% over the previous 12-month period, exceeding the national pace of growth. (Source: Marcus & Millichap)

NEWS & NOTABLES

ATLANTA—Cushman & Wakefield hired two industry veterans, John Zintak and Robbin Pearson, both formerly with Daniel Corp., to join the company's Atlanta office. Zintak has joined the firm as a senior director in the company's office agency leasing group. Pearson has joined the firm's asset services division as director of operations.

Prior to joining Cushman & Wakefield, Zintak was senior vice president of commercial leasing and development at Daniel Corp., where he oversaw leasing activity and was involved with the design and planning of future commercial development. In his career, he has worked for Carter as senior vice president of commercial property leasing, and Kern Realty Service as vice president of marketing and development.

Pearson was previously vice president of commercial operations at Daniel Corp., where she was responsible for commercial office and retail operations including managerial oversight of 12th & Midtown and other institutionally owned assets. Pearson was also employed by Colonial Properties Trust as vice president of operations, PM Realty Group as senior property manager and portfolio manager with Ahold Real Estate Co., where she was responsible for 1 million square feet of retail property located throughout the mid-Atlantic region.

DEAL TRACKER

ATLANTA—Transwestern Corporate Properties I Investor reached an agreement to acquire Park Center I in Atlanta as part of a sale-leaseback transaction with State Farm Auto Insurance Co. This agreement follows Transwestern's acquisition of the 2.2 million-square-foot, mixed-use project in Texas occupied by State Farm under long-term leases. Park Center I is a 13-story, LEED-certified office tower situated on a seven-level parking structure with ground-floor retail. The class A building is located on four acres at Hammond Drive and Perimeter Center Parkway, next to the Dunwoody MARTA station. State Farm employees began moving into the new building in fourth quarter 2016.

BIRMINGHAM, AL—Vulcan Materials Company reached a definitive agreement with SPO Partners to acquire its aggregates business, Aggregates USA LLC for $900 million in cash. Aggregates USA LLC operates 31 facilities serving high growth markets in Georgia, Florida, Tennessee, South Carolina and Virginia. The acquisition expands Vulcan's service offerings in Georgia with three granite quarries—two of which have rail capabilities extending the company's reach into important markets—along with 16 rail distribution yards in Georgia, South Carolina and Florida. The acquisition also includes 12 limestone quarries in eastern Tennessee and southwest Virginia. Vulcan may divest several quarries in Tennessee to a third party in order to expedite the regulatory approval process.

ATHENS, GA—American Healthcare Investors and Griffin Capital Company, the co-sponsors of Griffin-American Healthcare REIT IV, acquired the two-building Athens Medical Office Building Portfolio in Athens, approximately 70 miles east of Atlanta. Built in 2007, the approximately 61,000-square-foot Athens Medical Office Building Portfolio is currently 98.5% leased to three tenants, with about 87% of the rentable square footage leased to Saint Mary's Health Care System.

ANDERSONVILLE, TN—A&S Building Systems relocated its headquarters from Caryville to the David Jones Industrial Park in Andersonville, TN. With the new facility, A&S has expanded their engineering and sales support.

ATLANTA—Ashford Hospitality Trust refinanced the mortgage loan secured by the Hotel Indigo Atlanta Midtown with an existing outstanding balance totaling approximately $15.6 million and a final maturity date in June 2017. The new non-recourse loan totals $16.1 million with a three-year term and two, one-year extension options subject to the satisfaction of certain conditions. The loan carries an interest rate of LIBOR plus 2.9% and is interest only for the first two years with a 30-year amortization schedule based on a 6% interest rate starting in the third year.

CANTON, GA—Landeavor acquired Great Sky, a 475-acre master planned community in Canton, GA, just minutes from Interstate 575. The purchase is the 11th acquisition for Landeavor and its second in the Atlanta area in the last eight months. Great Sky is partially developed with 450 occupied homes. Landeavor's purchase includes vacant developed lots, undeveloped parcels and the community's HOA amenity and open space. Landeavor plans to expand the housing inventory in the community by adding builders and housing products. Great Sky borders the Hickory Log Creek Reservoir, a 411-acre reservoir formed by damming Hickory Creek in 2007. A sizable percentage of the reservoir's 15 miles of shoreline fall within Great Sky.

BUILDING BLOCKS

HUNTSVILLE, AL—The Hollingsworth Companies broke ground on its fifth industrial building project in SouthPoint Industrial Park with the start of a sixth building project expected in mid-2017. The 252,000-square-foot class A steel building is designed to be a single tenant or the option of a multitenant facility with 32-foot clear height and 14 loading docks suitable for warehouse or manufacturing space. Tommy Battle, mayor of Huntsville stated, “Huntsville has experienced tremendous private sector job and investment growth over the past nine years; however, the competition for jobs and investment is only getting more fierce. Project timelines are moving faster than ever before and companies are under more pressure now to make projects successful. Communities, like Huntsville, that are prepared will be the ones that continue to prosper. This 252,000-square-foot facility will add another critical tool to our economic development tool kit.”