ATLANTA—Early this week in the Southeast saw some strategic musical chairs on the commercial real estate executive front. And Georgia dominated the commercial real estate headlines.
BY THE NUMBERS
Despite the record occupancy levels, average daily rate (ADR) growth continues to challenge hoteliers. Factors such as increased supply growth, low inflation, the sharing economy, revenue management beyond RevPAR and book-direct, best-price guarantees all put downward pressure on the ability of operators to raise rates. For 2017, CBRE is forecasting an annual ADR increase of 2.2%, followed by 2.5% in 2018. Both measures are below the long-run average annual ADR growth rate of 3.1%. (Source: CBRE)
NEWS & NOTABLES
ATLANTA—Walker & Dunlop hired Gregory Krafcik as a managing director on its Capital Markets team, which brokers commercial real estate loans to life insurance companies, banks, and commercial mortgage-backed security (CMBS) lenders and sources Fannie Mae, Freddie Mac, and United States Department for Housing and Urban Development loans. Krafcik is based out of Walker & Dunlop's Atlanta office and is responsible for sourcing and structuring permanent, bridge, and construction loans for all commercial real estate property types.
DEAL TRACKER
ATLANTA—Ashford Retreat, a multifamily garden-style property in Marietta, GA, has traded hands. The sale price: $61 million. Berkadia managing directors Andrew Mays and Paul Vetter, senior director Judy MacManus and director Matthew White of Berkadia's Atlanta office secured the deal on behalf of Washington-based Wilkinson Corporation, and the seller, Radco Companies.
ATLANTA—GAIA Real Estate, with its institutional partners Amitim Senior Pension Funds and Psagot Investment House, acquired in separate transactions two newly-constructed class A residential properties in Atlanta and Nashville. Station R is a class A, 2017 construction, midrise multifamily property consisting of 285 units located in East Atlanta's historic and walkable residential neighborhood of Reynoldstown. Carillon is a class A, 2016 construction, midrise property consisting of 306 units located in Nashville's historic and hip residential neighborhood of Germantown.
ATLANTA—Franklin Street brokered the sales of two multifamily properties in Metro Atlanta for a combined $14.35 million. Salem Chase Apartments in Conyers, GA, and Delta Appletree Apartments in southwest Atlanta were both purchased by out-of-state investors, indicating how Atlanta's strong metro growth is continuing to attract the interest of individuals across the country. Franklin Street's Jake Reid and Roger Schoerner represented the sellers.
ATLANTA—YMCA of Metro Atlanta, SunTrust Community Capital and MBS Urban Initiatives CDE closed the financing for the organization's new headquarters. The 54,400-square-foot building, known as the YMCA Center for Leadership and Learning, will be located in Atlanta's Westside. The center will house YMCA of Metro Atlanta's administrative offices and other functions including a training center for 4,000 regional staff. The deal, a partnership between SunTrust Community Capital, McCormack Baron Salazar and Invest Atlanta, included $22 million in New Markets Tax Credits allocation. The deal also included a $2.5 million Westside Tax Allocation District grant from Invest Atlanta.
BUILDING BLOCKS
DOUGLASVILLE, GA—Silverman Group is scheduled to break ground in the fourth quarter on the second building at Bright Star Logistics Center, a master-planned industrial campus located in Douglasville. Pat Murphy, James Phillpott, and Tara Healy of Cushman & Wakefield have been retained to lease the building on behalf of The Silverman Group. Building two is a 330,000-square-foot speculative modern manufacturing/distribution building with a 36-foot clear ceiling height, cross dock configuration, and ample car parking and trailer storage. Completion is slated for summer 2018.
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