April 29, 2014 | Issue 226
Southeast Real Estate Business
Top Story

Jamestown Secures $180M Loan
for Atlanta's Ponce City Market

Jamestown will utilize a $180 million loan that JLL has arranged through PNC Bank, SunTrust Bank and JP Morgan.


















ATLANTA -- Real estate development firm Jamestown has secured a $180 million construction loan for the Ponce City Market adaptive reuse project, located two miles northeast of downtown Atlanta. PNC Bank provided the loan in partnership with SunTrust and JP Morgan. Ponce City Market is the largest construction loan in post-recession Atlanta, according to Jamestown.


Up until now, Jamestown has used its own equity to fund 100 percent of the 1.1 million-square-foot restoration of a former historic Sears, Roebuck & Co. building.


The 10-story, 16-acre Ponce City Market is slated for a rolling opening this fall. The ballyhooed project will consist of 330,000 square feet of retail and restaurants, 517,000 square feet of Class A loft office space, and 259 residential units. Signed office tenants include athenahealth, Cardlytics, MailChimp, as well as retailer Binders and The Suzuki School, a preparatory preschool.


-- Scott Reid


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Avalon in Metro Atlanta Tops Off, Adds New Retailers
The new retailers joining Avalon's tenant roster include J. Crew, Crate & Barrel, Calypso St. Barth, Bantu, LensCrafters and Sunglass Hut.


ALPHARETTA, GA. -- North American Properties (NAP) has topped off Avalon, the $600 million, mixed-use development in Alpharetta, an affluent suburb north of Atlanta. NAP has also signed 15 new retailers to the property, making Avalon's retail component 97 percent pre-leased. The new retailers joining Avalon's tenant roster include J. Crew, Crate & Barrel, Calypso St. Barth, Bantu, LensCrafters, BCBG, Sunglass Hut, Road Runner Sports, Soft Surroundings, J. Jill, Goldberg's Deli, J. McLaughlin, Boston Proper, Lou & Grey and Columbia Sportswear. Avalon is set to open to the public on Oct. 30.

The Herrick Company Buys 44
CVS-Leased Properties for $190M

All 44 of the CVS/pharmacy stores that The Herrick Company acquired have 25 years remaining on their lease terms. 


BOCA RATON, FLA. -- The Herrick Company has acquired 44 properties throughout the U.S., all of which are triple-net-leased to CVS Caremark (NYSE: CVS), for a purchase price of $190 million. All of the CVS leases have 25 years remaining on the term.


"In real estate, there are few investment opportunities as desirable as properties that are leased on a triple-net basis by creditworthy tenants such as CVS," says Norton Herrick, Herrick's chairman and CEO. "As we actively seek out additional investment opportunities that fit our requirements, we're intently focused on acquiring this type of stable, non-management-intensive property in the retail, industrial and office sectors."


The debt to finance this acquisition was provided by a consortium of capital sources under a private placement arrangement. Affiliates of The Herrick Company purchased the CVS portfolio from private equity firm Fortress Investment Group LLC.


-- Nellie Day


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Cassidy Turley Arranges $45M Loan
for Bethesda Place II

Bethesda Place II

BETHESDA, MD. -- Cassidy Turley has arranged $45 million in financing for Bethesda Place II, a 209,397-square-foot, Class A office building in Bethesda. Bethesda Place II's retail tenant roster includes Safeway and Original Pancake House, and its office tenant roster includes Wells Fargo, First Potomac Realty Trust, Comcast Sports Net and Beech Street Capital. 


Philip Mudd and Bradley Geiger of Cassidy Turley arranged the 20-year, fixed-rate loan through a life insurance company on behalf of the borrower, Bethesda Place II Associates LLC. 

Virtus Acquires Two Self Storage Facilities in Northwest Arkansas

BENTONVILLE AND ROGERS, ARK. -- Virtus Real Estate Capital has acquired two self storage facilities in northwest Arkansas for an undisclosed price. The Austin, Texas-based private equity firm purchased a 57,700-square-foot facility in Bentonville and a 72,025-square-foot property in Rogers. Both locations are operated under the A&A Stor It brand. Virtus purchased the assets in a joint venture with Memphis, Tenn.-based Absolute Storage Management (ASM). ASM will invest approximately $120,000 in capital improvements to the two facilities, and Virtus will undertake asphalt repairs, painting and repairing doors, office rehabilitations and implementing additional security measures.

Wegman's to Enter Richmond
Market with Two New Stores

Wegman's will anchor two new shopping centers in Richmond, Va.


RICHMOND, VA. -- Wegman's has revealed plans to enter the Richmond market with two new locations. The grocer plans to construct a store within West Broad Marketplace, a 350,000-square-foot lifestyle shopping center that is scheduled to open in spring 2016. NV Retail is the developer of the shopping center, which will feature Wegman's and Cabela's as co-anchors. Wegman's is also opening a new store in Stonehenge Village Shopping Center, a planned 230,000-square-foot retail center that Marchetti Properties is developing. Connie Jordan Nielsen of Cushman & Wakefield | Thalhimer handled the lease transactions on behalf of NV Retail and Marchetti Properties. Nielsen and associate Mark Douglas will handle leasing responsibilities for West Broad Marketplace. Nielsen, along with associate Nicki Jassy, will also lease Stonehenge Village.


Ally Center in Downtown Charlotte
Nears Full Occupancy


Ally Center

CHARLOTTE, N.C. -- Thanks to new tenants, lease renewals and lease expansions, Ally Center in downtown Charlotte's Third Ward neighborhood is 96 percent leased. The Class A, LEED Gold-certified office building, located at 440 S. Church St., is occupied by tenants such as Ally Financial, HDR Engineering, JELD-WEN Windows and Doors, Driven Brands, Trinity Partners and Trinity Capital Advisors. A joint venture between Trinity Capital Advisors and Principal Real Estate Investors owns Allly Center. Leah Bailey and John Ball of Trinity Partners lease the building on behalf of the ownership.


"Ally Center helped pioneer Third Ward's changing landscape, and now we're a new center city with all of the energy that surrounds our block," says Bailey. "It's truly a professional highlight to have helped it grow into such a successful part of downtown Charlotte."


Commercial Real Estate Show Launches New Website
The new Commercial Real Estate Show website allows users to interact and explore the show's content, including videos, podcasts and blogs.


ATLANTA -- The analysis and discussions of the nationally syndicated "Commercial Real Estate Show" program aren't just limited to terrestrial radio. The discussions are easily accessible online, thanks to the show's new website, www.CREshow.com.


"The show has undergone some significant growth in the last three-and-a-half years, and we are excited to bring this robust site to our growing fan base around the country," says Michael Bull, host and executive producer of Commercial Real Estate Show, as well as CEO of Atlanta-based Bull Realty.


The new site allows users to interact and explore the show's content, including videos, podcasts and blogs on commercial real estate and business-related topics. Visitors can also learn about trending business topics like crowd funding, social media, tax credits and effective tenant strategies.


The redesigned website also features the recently launched "Ask Michael Bull" video series. Each business day, in a short video, the show's host answers a question submitted by show listeners in the website's "Answers" section. Like the videos, podcasts and blogs, the questions are easy to peruse for topics of interest.


The show has been adding affiliate terrestrial radio stations and growing its online numbers. The show airs on 11 stations around the country and has become the No. 1 investment podcast on the PodOmatic app.

InterFace Carolinas 2014
When: June 11, 2014
Where: Hilton Charlotte City Center
222 E. 3rd St.
Charlotte, NC 28202
InterFace Carolinas Healthcare Real Estate 2014
When: June 11, 2014
Where: Hilton Charlotte City Center
222 E. 3rd St.
Charlotte, NC 28202

Have an event that you would to share with our readers? Send an email with the details to Southeast Real Estate Business editor John Nelson at jnelson@francemediainc.com.

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