Category: Retail

These are challenging times for the office sector.

Vacancy rates have surged as the hybrid home/office work model and job cutbacks in high-tech and other sectors are leading companies to reduce their office footprints. The vacancy rate in metro Atlanta has risen to 15 percent, the highest level since the global financial downturn of the late 2000s.

Tenants increasingly favor newer buildings and also have the option of exploring potential bargains in the growing amount of sublease space in the market. These trends present hurdles for landlords working to fill vacancies in their buildings.

However, in its recent Atlanta office sector report, CoStar points out that one of the bright spots in the market is the stronger leasing demand in areas of 18-hour activity. These areas frequently feature mixed-use developments as their focal point – including The Battery Atlanta at the Atlanta Braves’ Truist Park and at Ponce City Market along the bustling Eastside section of the popular Atlanta BeltLine multi-use trail.

These districts offer an exciting mix of amenities that are attractive to employers seeking to attract talent. Truist Bank is developing a 250,000 SF office tower at the northwest side of Truist Park, a location offering walkable access to the Battery’s array of restaurants, bars and retail offerings. Sage Software has committed to occupying 57,000 SF at a timber loft-office building under development at Ponce City Market, setting a rental rate record of $70 per square foot.

In the West End, a neighborhood just south of Downtown Atlanta, the Lee + White adaptive reuse development has become a hub of the community, attracting visitors to its breweries, retailers and outdoor spaces. One of the project’s biggest draws is its four direct access points to the Westside BeltLine.

These amenities at Lee + White were a significant factor in the decision of two high-tech companies to open headquarters featuring creative offices and production space in the refurbished Building 1050 – cleantech energy company JTEC Energy Inc. and nanotechnology innovator Carbice Inc.

After opening its new facility, located right next to the BeltLine, JTEC Energy CEO Mike McQuary spoke about the benefits of selecting Lee + White for its new home.

“Our offices, including our All-Hands Room, are designed for collaboration and communication. And the team is enjoying exploring our new neighborhood, trying all the restaurants and walking on the Beltline at lunch,” he said.

The 442,562 SF development, a partnership between owners Ackerman & Co. and MDH Partners, is transforming the former “Warehouse Row” in the West End. In addition to the breweries, food manufacturers and retailers that opened in the first phase of the redevelopment, the newest phase is adding a 19-vendor food hall and Class A creative offices in the redesigned 929 Building, which offers more than 100,000 square feet across two floors.

The food hall is now open, and the loft-style offices of the 929 Building, featuring floor-to-ceiling windows overlooking the BeltLine, are nearly completed.

With BeltLine accessibility unmatched by any other development in Atlanta, several newly opened food hall eateries – with more to open very soon – expanding retail offerings, and popular breweries available to tenants and visitors alike after a busy day of work, Lee + White could be viewed as the West End’s version of The Battery or Ponce City Market.

Ponce City Market and The Battery have certainly attracted high-profile office leases. Lee + White has already announced a few of its own and is hoping to complete even larger ones soon now that the 929 Building is available.

The year is now half over, and some clear trends are emerging in commercial real estate.

Chuck McShane, Director of Market Analytics for CoStar, recently presented the “Atlanta State of the Market,” and one of the positive stories is the ongoing resilience of the retail sector.

This resilience comes at a time when the office sector faces the challenge of large amounts of sublease space entering the market, and the multifamily sector is experiencing flat absorption and a slight decline in rental growth amid a surge of new supply. The industrial sector continues to shine, although its record-setting performance appears to be entering a new phase of more modest absorption and demand levels.

Limited New Supply Creates Competition for Retail Space
In Atlanta’s retail sector, the vacancy rate at the mid-point of the year is 3.7%, a historic low for the market. In addition, year-over-year rent growth is 6.7%, positioning Atlanta as one of the few markets in the country where rent growth is outpacing inflation.

What accounts for these impressive stats?

Metro Atlanta is benefiting from continued strong job growth – which has doubled the U.S. average over the past few years – and the return of robust population increases, posting a 1.5% rise in new residents as of the first quarter of 2023.

“Because of the population growth, what we’ve seen in Atlanta is we’re one of the top markets for total absorption and for rent growth,” said McShane.

There has been minimal new retail supply added to the market, and the growth of experiential concepts is heightening demand for space, backfilling vacancies including those that are occurring due to some high-profile retail brand bankruptcies.

“We haven’t built a lot of spec development, so we’ve only built the property that we need, really. And over the last 10 years, we’ve seen leasing activity in retail outpace new deliveries, so that’s led to a compression in vacancies,” McShane said.

He added, “Free-standing retail, power center retail, neighborhood centers, places close to people’s homes that provide experiential retail, and that provide goods and necessities that can’t necessarily be bought online, are really seeing very tight compression because there’s not enough new supply coming online. Not much has been built since 2010.”

Negative news, including the declared bankruptcies of Bed, Bath & Beyond and David’s Bridal, are not likely to have a major impact on the market.

“These announcements of bankruptcies have captured a lot of headlines, but if you look at what’s happening to these spaces they’re vacating, I guarantee there’s several letters of interest going out for those spaces in every market that are high-quality, well-located retail space, which is very scarce in every market.”

He said the retail sector can expect headwinds due to the shaky state of the economy, but noted that Atlanta is in a strong position to weather potential obstacles.

“We do expect rental growth to slow down going forward because we are starting to see a little bit of a slowdown in consumer spending and retail leasing,” he said.

But the long-term prospects are encouraging for the retail sector in Atlanta, as population growth continues to drive demand while the new supply pipeline remains comparatively limited.

Container village opening this fall provides a unique, affordable brick & mortar option for new and growing businesses.

For businesses seeking brick-and-mortar space to sell their products, conventional storefronts can present challenges. Retail space is becoming increasingly scarce – CoStar reports that Atlanta’s 3.9% vacancy rate in 3Q 2022 is the lowest this century – and leasing costs are on the rise.

Businesses interested in expanding beyond an online presence or opening a new location have an affordable and unique option at the popular Lee + White mixed-use development in Atlanta’s West End neighborhood – shipping containers.

Investment partners Ackerman & Co. and MDH Partners are integrating a container village at the property. Five shipping containers – located steps away from the project’s retailers, offices, breweries and restaurants – have attracted a variety of businesses ranging from an electric bike shop to specialty goods and eco-friendly retailers.

Featuring brightly painted exteriors with glass-door storefronts and entries, the containers occupy a prominent position on the property facing White Street next to a paved path providing access to the Atlanta Beltline.

“There’s no better or more affordable way for a business to get a start in a brick-and-mortar location than at a container space like this,” said Ackerman Retail SVP Kelly Wilson, who is leading the retail and food hall leasing efforts at Lee + White on behalf of ownership. “We’re excited about the unique mix of businesses that will be opening in our container village providing an affordable alternative for retailers to grow their businesses, and we’re thrilled that sustainable and eco-friendly products are part of the mix of items offered.”

Instead of a traditional lease, businesses sign a short-term license agreement (often 12 months or less), with costs included for power and other utilities. The lower cost and the short-term length of the agreement provide flexibility for businesses, which typically have the option to extend the license agreement to stay in the container space, or may ultimately choose to move into a larger leased space.

The Lee + White container village is launching this fall with a dynamic and eclectic group of businesses. Kelly has completed agreements with: Atlo, specializing in eco-friendly refills of everyday products; Coastal Green Wellness, a seller of organically produced CBD and hemp products, opening its second Atlanta location; Edison Bicycles, a locally-owned business selling its own brand of electric bikes, launching its third Atlanta location; Erin Smith Art, offering unique greeting cards, gift items and party supplies; and Highfalutin Press, selling a variety of gift products and specialty items.

The container retailers will benefit from heavy foot traffic from visitors to Lee + White’s exciting mix of tenants, which in early 2023 will include a 19-vendor food hall. They’ll also be able to draw customers from the bustling BeltLine trail, which is accessible via four direct entrances at Lee + White, unmatched by any other development in Atlanta.

Acquired by MDH Partners and Ackerman & Co. in September 2019, the ongoing adaptive reuse redevelopment recently welcomed the grand opening of the new headquarters and production facility for nanotechnology innovator Carbice. The lineup of food hall tenants so far includes Lake & Oak BBQ, The Original Hot Dog Factory, Gekko Hibachi & Sushi, Honeysuckle Gelato, Pastaholics, Crème de la Crepe and Cielito Lindo taqueria, with more eateries to be announced soon.

Ackerman & Co. and MDH Partners are making exciting progress transforming the former “Warehouse Row” buildings in Atlanta’s historic West End community into a go-to mixed-use destination.

But the investment partners are involved in more than real estate development in the West End. In addition to forging ahead with the adaptive reuse development – which includes the addition of a food hall and Class A offices at the popular entertainment destination – Ackerman & Co. and MDH Partners are committed to supporting efforts to improve the community.

An example of this is the decision to include two projects in the West End Community Improvement District: the 442,562-square-foot Lee + White project at the corner of Lee and White streets that Ackerman & Co. co-owns with MDH Partners and the Ackerman-owned 1200 White Street, a 212,500-square-foot facility now included within the CID.

Formed in 2017, the CID funds a variety of infrastructure, public safety and other initiatives. Ackerman & Co. will contribute extra property tax revenues from its properties located within the CID to help fund the CID’s programs.

West End Improvements
“We’re very happy to support the wide variety of initiatives underway in the West End CID that will benefit West End residents and those visiting the community,” said Leo Wiener, President of Ackerman Retail, the division of Ackerman & Co. spearheading retail and restaurant leasing at Lee + White.

Added Evan Ziegler, Senior Vice President of Investments for Ackerman: “As the owner of the recently acquired 1200 White Street Building, in addition to Lee + White, we see great value in becoming a member of the West End CID. It’s exciting to see the expansion of the CID along White Street.”

The West End CID’s initiatives include community programs such as the weekly Fresh MARTA Market and the Soccer in the Streets program at the soccer field next to the West End MARTA station.

The I-20 cleanup and landscaping project at the Lee Street and Joseph E. Lowery Boulevard interchanges and a storefront redesign program and pedestrian improvements along the Ralph David Abernathy Boulevard corridor are among the current West End CID priorities.

The CID also has received a dedicated patrol car that will be used for safety patrols in the community.

“Ackerman bringing their properties into the West End CID is a huge win for us,” said Chris Pierre, Project Manager for the West End CID. “The fact that Ackerman sees the benefits of the CID speaks positively to other property owners who might be interested in including their projects in the CID.”

More about Ackerman & Co.’s West End Projects
A reinvention of mid-20^th century warehouse buildings in Atlanta’s historic West End, the trendsetting Lee + White mixed-use development is a melting pot of homegrown entrepreneurs and innovative businesses. Craft breweries, distilleries and food manufacturers are among the pioneers that joined Lee + White in the first phase of the redevelopment. The next phase of the transformation is adding creative loft offices, a 19-vendor food hall, unique retail concepts and a Central Lawn gathering place.

Located just down the road from Lee + White, 1200 White Street is a 212,500-square-foot facility providing convenient access to two nearby MARTA rail stations and MARTA bus service.

Developers say they are committed to incorporating affordable options and community-focused services to offset potential gentrification.

Adaptive reuse projects are booming across metro Atlanta.

The projects range from repurposing old warehouse properties into mixed-use developments to converting factory buildings into loft-office space and restoring small retail spaces housed in historic buildings, among other examples.

Although adaptive reuse development was largely concentrated in intown Atlanta when the trend took off in the 1990s – with King Plow Arts Center in West Midtown one of the prominent examples – it is now increasingly common in the suburbs as well.

In a recent Bisnow adaptive reuse event, representatives of several Atlanta commercial real estate companies discussed notable adaptive reuse projects – both completed and under development – and the challenges of bringing these projects to fruition.

Developers are increasingly being called upon to address gentrification. Projects can face opposition over concerns that they will price out residents and businesses who were part of neighborhoods before developers arrived on the scene.

No stranger to those concerns are developers such as Jamestown, credited with energizing the adaptive reuse movement in Atlanta with its hugely successful Ponce City Market redevelopment and Newport RE, whose Hotel Row project is part of its larger vision of revitalizing the once-bustling commercial districts on Mitchell and Broad Streets in South Downtown.

“About 20 percent of the square footage we purchased was occupied, probably half of those to tenants that no one in the neighborhood wanted,” said April Stammel, Senior Vice President at Newport. “I think it’s about telling the right story and letting people know what the real impact is.”

The story Newport is emphasizing to the community is how their development will revitalize a historic but long-neglected part of the city’s urban core.

“This story is about the opportunity. We’re turning the lights back on. We’re bringing life back to these buildings,” she said.

Creating Affordability
Michael Phillips, President of Jamestown, said his company is committed to integrating community-focused features into its projects such as workforce housing and more affordable business rates.

“You can’t whitewash the fact that we’re changing the demographics of neighborhoods,” Phillips said. “We all have to be committed to creating opportunities and economic benefits for everyone. We’re just starting… but we all have to find our ways to do it.”

Tapping into local, state and federal incentives can provide funding that developers can use to pass along savings to prospective residents and businesses. Newport received $8 million in Tax Allocation District (TAD) funding for their South Downtown project.

“What that’s going to give us the ability to do is offer affordability in both the residential and commercial components,” said April Stammel. “When you think about what that means in the diversity of tenancy, not only diversity of residents, it’s incredible. We can now offer certain spaces for tenants like arts groups who can’t pay market rent or new restauranteurs who can’t afford market rent.”

Arun Nijhawan, Managing Principal of Lucror Resources – which renovated and repositioned Downtown Atlanta’s famous Flatiron Building – said there are also plenty of examples of projects receiving community support. Such was the case with the company’s $80-million Waldo’s Old Fourth Ward, a mixed-use development featuring a hotel, office space, retail and townhomes.

“To the surprise of our team, we got zero resistance. The question was, ‘when are you going to start?’” he said, noting that the project’s location several blocks away from the BeltLine in an area where “you had a certain amount of urban blight” contributed to the support from the community.

From the West End to Northlake
Ackerman & Co. is also active in adaptive reuse development. With partner MDH Partners, Ackerman is investing $85 million in its Lee + White project, an adaptive reuse redevelopment of the former “Warehouse Row” buildings in the historic West End neighborhood of Atlanta. Already home to popular breweries, a whiskey tasting room, a rock climbing gym, among other retailers and businesses, the partners are in the process of adding loft office space, a food hall, unique retail and a Great Lawn fronting the BeltLine.

“Our goal in continuing the redevelopment of Lee + White is to diversify this project beyond its popularity as an entertainment destination to serve the practical and daily needs of the community, as well as offer affordable business opportunities. New businesses and services coming to Lee + White include a family dental practice and Beya Salon Studios, which will open its newest flagship location at Lee + White, giving stylists and other salon professionals the opportunity to grow their businesses,” said Evan Ziegler, Senior Vice President of Investments for Ackerman.

“Lee + White’s container pop-up village will also open this year, providing small businesses high-visibility locations to sell their products at shorter-term lease commitments than traditional retail,” he added.

In addition, the project’s Great Lawn will be a gathering spot for the community, hosting a variety of events throughout the year.

Another adaptive reuse project Ackerman & Co. is involved in is Northlake, the transformation of the former mall northeast of Downtown Atlanta into a mixed-use project featuring offices, retail and restaurants. Ackerman Retail’s Kelly Wilson and Suzanne Shank are currently leading leasing efforts for the project’s restaurants and food stall spaces.

“With its 300,000 square feet of new medical office and office space, this redevelopment has attracted new offices for Emory Healthcare and CDC Credit Union that will bring 1,800-plus employees to the property,” said Suzanne. “For the restaurant spaces, we envision a mix of fast-casual restaurants, full-service eateries, chef-driven concepts, coffee shops and brewpubs. In revitalizing this property, this redevelopment is bringing new businesses and new retail and restaurant offerings that will benefit the surrounding community.”

New additions at the Milton, Ga. mixed-use destination will range from barbecue and sushi restaurants to a gourmet market and brewery. 

This is shaping up to be a milestone year for Crabapple Market, the live-work-play destination in Milton Ga., in North Metro Atlanta.

Since its opening, the mixed-use development has been consistently growing its roster of office, retail and restaurant tenants. With construction now complete on a major expansion, Crabapple Market is getting ready for its busiest year of restaurant and retail openings.

More than a typical shopping destination, Crabapple Market is creating a new downtown “Main Street” environment, with a pedestrian-friendly streetscape lined with buildings featuring brick façade detailing and floor-to-ceiling arched windows. There is also The Green – a park-like gathering space for the community – as well as a stage for concerts, movies and theatrical performances.

As construction was buzzing throughout the past year, project leasing representatives Courtney Brumbelow and Haley Hartman of Ackerman Retail were busy completing numerous restaurant and retail leases that filled up all but one of the restaurant spaces in the expanded project.

So, what’s coming in 2022?

The restaurant openings will include:

DUA Vietnamese – An authentic Vietnamese restaurant specializing in Pho and noodle soups, as well as rice and egg-noodle dishes. Crabapple Market will be its fifth metro Atlanta location.

Roll On In Sushi Burritos & Bowls – Opening its second metro Atlanta location at Crabapple, the restaurant serves sushi burritos, tacos, bowls and donuts.

Spiced Right Ribhouse – An “old-school and authentic” Georgia barbecue restaurant offering ribs, pulled pork, chicken, brisket and smoked turkey BBQ meals, as well as BBQ tacos, sandwiches and salads. The restaurant also operates a Roswell location.

Six Bridges Brewing – A second location of the family-owned brewery, with a taproom, games and sports on multiple TVs.

Nest Café – Marking the second location of the eatery, Nest Café offers breakfast, brunch and lunch in a laidback coffeehouse setting.

Buzzed Bull Creamery – Handcrafted ice creams and milkshakes, including alcohol-infused options. Buzzed Bull Creamery is also planning to open several other metro Atlanta locations.

Alumni Cookie Dough – Serving cookie dough by the scoop, with special items including cookie dough sundaes, milkshakes, pretzel bites and snickerdoodle bites. There is also a Marietta location.

“With the new restaurants, along with the growing retail lineup and the community-focused amenities, Crabapple Market is a place where visitors can enjoy everything from breakfast at a café in the morning, to a great lunch or dinner with family or friends, craft beers after work and community events at The Green,” said Courtney.

New additions to the retail lineup include:

Savi Provisions – A market specializing in gourmet and organic foods, wines and spirits.

Evimero Marketplace – Featuring artisan-made gifts and home goods.

Kitchens By Design Firm – Offering a range of kitchen and other installations, including cabinets, bathroom vanities, bookcases, entertainment centers and more.

Loveday Place – Curated by artist Donna Loveday, the artisan market concept features locally crafted artwork.

Dinna Eckstein Designs – The Store (Now Open) – Provides innovative home furnishings and accessories.

Prescott Design – A full-service interior design studio offering services for home remodeling and ground-up construction.

The expansion of Crabapple Market added 11 new buildings ranging from one to three stories. In addition to the diverse mix of restaurants and retailers, Crabapple Market also features Class A offices and luxury residences.

Atlanta’s appeal as a destination for corporate relocations is helping to boost its economy and fill office space in locations ranging from Midtown Atlanta to the suburbs. Despite these large corporate move-ins, the office market in metro Atlanta has been showing signs of demand softening – with vacancies up by 2.7% over the past 12 months – as the market continues to grapple with the lingering impacts of the COVID-19 pandemic.

What will it take to keep and attract new tenants in today’s evolving office market?

This challenge was a big topic of discussion at Atlanta Bisnow’s “What’s Driving Atlanta CRE?” event held at the new 712 West Peachtree tower in Midtown Atlanta. Representatives from four Atlanta commercial real estate firms offered their perspectives on the latest CRE trends, with an in-depth discussion on the office sector.

Taylor Smith, Southeast Regional Director for Rubenstein Partners, said COVID-19 impacts have accentuated trends that were already taking shape.

“You can look at COVID as an accelerant,” he said. At a time when more space users are experimenting with hybrid in-office and remote working options for their employees, his team has arrived at a clear conclusion.

“I think the one thing that will stick is a concentration on amenities,” he said.

Cousins Properties EVP Kennedy Hicks agreed. “I’m not convinced that the new normal looks much different than where we were heading pre-Covid. This has given everybody time to reflect on the office space needs for their company.”

She added: “You’ve got to make the environment something where people want to come to work. Companies will continue to focus on using their office space to provide the amenities, the lifestyle and the conveniences employees want.”

These conveniences and amenities can increasingly be found at mixed-use developments offering a variety of both indoor and outdoor amenities.

Ackerman & Co. SVP Steve Langford told the audience about two Atlanta projects that are representative of this trend.

Lee + White, a 433,000-square-foot adaptive re-use development in the West End of Atlanta co-owned by Ackerman and MDH Partners, is home to popular breweries, distilleries, food manufacturers and retailers. In the next phase of the redevelopment now underway, the investment partners are adding 150,000 square feet of creative loft office space that has already attracted a new HQ location for an innovative nanotechnology company.

A major draw for office tenants is the project’s diverse mix amenities, including ½ mile of direct Atlanta BeltLine access and an abundance of outdoor patio and green spaces. The current phase of the development will add more amenities, including a food hall and a great lawn for events and community gatherings.

There is also Six West, a planned $1-billion mixed-use project in the shadow of Hartsfield-Jackson Atlanta International Airport. Steve Langford is the exclusive land broker for the project, designed to be a 24/7 work-live-play destination incorporating Class A office, stores and boutiques, hotels, restaurants, and single-family and multifamily residential.

Langford said the project’s location at the doorstep of the world’s busiest airport combined with the varied amenities – which also include the nearby College Park MARTA rail station and a recreational trail circling the project – should help Six West stand out in its efforts to attract national and international HQ operations.

Taylor Smith pointed to Alpharetta’s Sanctuary Park office complex as another development that has added an array of amenities. A multimillion-dollar capital improvement initiative went into opening the Clubhouse, which offers tenants a food hall, athletic club and training facility. A newly added perk is a micro-mobility program offering tenants e-scooters, e-bikes and traditional bikes to navigate throughout the campus. The property also offers two miles of walking and jogging trails.

‘Firing On All Cylinders’
Since the ‘What’s Driving CRE?” event was held in Midtown in the fast-growing Tech Square corridor, it was only natural that the panelists discussed the emergence of Midtown Atlanta as an increasingly important tech hub benefitting from the resources and talent of Georgia Tech.

High-profile space commitments in Midtown include Google leasing 500,000 square feet at 1105 West Peachtree Street and Microsoft occupying 523,000 square feet at Atlantic Yards, with future plans also calling for the software and technology giant to establish an East Coast headquarters campus at Quarry Yards on the West Side.

While these and other relocations to Midtown including MailChimp’s 300,000 square foot expanded headquarters in the nearby Old Fourth Ward neighborhood are impressive, the Atlanta metro area as a whole is benefitting from high-profile corporate relocations.

“Atlanta is firing on all cylinders,” said Kennedy Hicks. “It’s not just Midtown. Companies will gravitate toward amenities and mixed-use development, and you can find those in Alpharetta at Avalon, in Buckhead [among other submarkets].”

Steve Langford said the influx of corporate relocations is influenced in part by the COVID-19 crisis, which spurred organizations to investigate lower-cost locations for their business operations. “When Covid hit, a number of businesses, particularly in the Northeast, started looking at the Sunbelt markets, especially Atlanta,” Langford said.

He added: “Atlanta really stood out. We’re fortunate that Atlanta has an increasingly diversified economy. This will really bode well for Atlanta going forward.”

While Atlanta’s CRE sector faces similar challenges to other markets across the country, the panel agreed that the metro area’s advantages, including its lower business costs compared to gateway markets, place it in a healthy position to continue thriving.

Investment Sales Experts Sean Patrick and KB Yabuku Produce Impressive Results for Clients  

As high-producing brokers for Ackerman Retail who team up to develop prospects and complete investment sales transactions, Sean Patrick and KB Yabuku share quite a bit in common.

They both have extensive commercial real estate expertise ranging from net-lease sales, project development and asset management to site selection and property leasing.

Traveling is a hobby both enjoy – recent visits for Sean include Athens and Santorini in Greece, while one of KB’s favorite trips was to Barcelona and Ibiza, Spain.

They also both have similar approaches to their work. When KB lists some of the traits that he considers crucial for success as broker – “tenacious, analytical, sociable, driven” – Sean agrees with him.

Oh, and then there’s the way they describe themselves.

“Two of the best bald brokers in the business,” says KB.

“Two of the best AND good-looking bald brokers, I might add,” says Sean, laughing.

So, with these similarities, it’s not surprising that they make an effective Investment Sales team for Ackerman Retail. Sean and KB advise investors on dispositions and acquisitions, with both single-tenant and multi-tenant retail properties and portfolios representing key areas of focus.

Roots in ATL
KB and Sean share another thing in common – Atlanta roots. Sean is an Atlanta native born at Piedmont Hospital, and KB grew up in College Park after his family moved to metro Atlanta when he was three years old.

When he was an undergraduate student at Georgia State University, KB said professor David Haddow was a big reason he became interested in real estate.

“I took David’s Real Estate Market Analysis course as an elective and I was hooked. That semester, I switched my major from marketing to real estate, picked up an internship with Cushman and Wakefield and never looked back,” says KB. He credits Haddow and Ron Whitley (former Chief Diversity Officer at Cushman & Wakefield) for setting him on the path of a successful career in commercial real estate.

Sean, who received a Civil Engineering degree from Auburn University, started his real estate career working in the development side of the business, first at the civil engineering firm Post Buckley Schuh & Jernigan in Florida and then as a project manager focusing on power center civil engineering design at Wolverton & Associates. Next, at Bullock Mannelly Partners, he established himself in development and brokerage, focusing on sales of residential, retail and multifamily land. He did so after meeting two successful brokers who would eventually move over to Ackerman & Co. with him – John Speros and Larry Wood.

“They were closing big deals and I thought, ‘I want to do what they do,’” Sean said. Around the Great Recession of 2008, Sean completed his CCIM certification and now focuses on private client retail investment sales with KB.

KB brings an equally wide range of experience. He received a Bachelor’s degree in Real Estate from Georgia State University’s J. Mack Robinson College of Business and an MBA in Finance from the University of Georgia’s Terry College of Business.

KB gained experience in office leasing as a tenant rep at the Staubach Company and Jones Lang LaSalle. He then became a commercial real estate underwriter at BB&T and later focused on investment sales with a specialty in net-lease retail and industrial properties at the Stan Johnson Company. He also spent two years in commercial real estate development, managing retail and industrial build-to-suit and redevelopment projects at Hart Lyman Companies.

“KB and I are able to combine our strategies and experience to gain new clients. Our experiences and backgrounds complement each other’s,” said Sean.

Between the two of them, Sean and KB have over 42 years of experience.

Thinking Outside The Box

Sean and KB are committed to providing solutions that help buyers and sellers maximize the value of their investments. While they’re proud of their deal-making track records, they view themselves as much more than transaction brokers. With their wide-ranging commercial real estate expertise, they’re able to provide additional services to help clients achieve their long-term business goals.

“We’re not just like every other broker. Our approach is all about thinking outside the box and adding real value for our clients,” said KB.

Added Sean, “Our approach to serving our clients is tied to the Ackerman approach to commercial real estate. A lot of us are investors and own real estate, so we understand what it’s like to be in the client’s shoes and how to bring extra expertise and services to the table to meet their needs.”

Customizing services to match the objectives of their clients is a big part of what they do.

“We try to serve as the back office for our clients. For instance, if our clients need help raising capital or with site selection or other assistance, we can do that ourselves or utilize Ackerman’s full-services platform and the expertise of our Ackerman Retail colleagues,” said KB.

One of their recent deals is representative of the value they bring to their clients.

In marketing and selling the Childtime Learning Center of Kennesaw on behalf of the owner, they attracted six offers and succeeded in selling the property at 100 percent of the listing price at a cap rate of 8.75 percent. This was definitely a great result for a value-add property with a short-term lease.

Sean and KB are also currently in the process of creating strategic business plans for several clients interested in selling portfolio assets across the Southeast.

“We’ve been successful completing deals despite the challenging environment during the pandemic and we expect transactions to pick up steam now that the retail sector is slowly improving,” Sean said. “The Southeast has diversified its economy. This is a great place to do what we do and add value.”

Are you a buyer or seller seeking expertise to maximize your investments? Contact Sean at spatrick@ackermanco.net or KB at kyabuku@ackermanco.net

The project’s development team gives Atlanta’s CRE community an update on the exciting mixed-use project.

For many of the Atlanta commercial real estate professionals who attended the sold out Construction Coffee Club breakfast at the Buckhead Club on Thursday, it was their first large in-person event since virtual Zoom meetings became the norm during the pandemic.

The event provided an opportunity for the Six West development team to update the CRE community on the $1.5-billion mixed-use development in College Park, which will offer a dynamic mix of offices, restaurants, shopping, entertainment venues, hotels and single-family and multifamily residential.

On a beautiful spring-like day coinciding with a sense of optimism that the country just might be turning the corner on the COVID-19 pandemic, it’s fitting that the mood was upbeat about the project.

“Things are moving fast. There are a lot of development sites that are already closed, so we need to get going,” said Jesse Frasier, Partner at BDR Partners, serving as project manager for Six West. “We’re starting construction in 2021.”

College Park held a ceremonial groundbreaking for the 320-acre project last October. Like many other real estate developments, Six West has experienced some delays due to the COVID-19 pandemic’s impacts on the economy.

“The good news is that during this time we still had activity and we still had interest from developers,” said Ackerman & Co. Senior Vice President Steve Langford, the exclusive broker for the project.

Langford noted that construction will begin as early as this summer on several components of the multiphase project, including residential, office and hotel developments. He said he expects there to be announcements soon on development commitments for specific parcels.

About 87 acres has been spoken for, roughly 27% of the 320-acre site.

“Let me put that into perspective for you. The first phase of Avalon encompassed 80 acres. So right now with what we have under contract and are currently in discussions with, we’re pretty much at the size of phase 1 of the Avalon development,” said Langford, referring to the hugely successful mixed-use development in Alpharetta.

The Six West Difference

Six West is designed to be a 24/7 work-live-play destination. The development team discussed key features that will set Six West apart from existing and planned mixed-use projects in metro Atlanta.

“The Six West development has a lot of really nice infrastructure all around it,” said Artie Jones, Director of Economic Development for College Park.

Of course, its strategic location next to Hartsfield-Jackson Atlanta International Airport is a huge benefit. In addition to creating a built-in customer base for the project’s many attractions, developers also hope the airport will be a draw for national and international HQ operations.

Six West is also walkable from the College Park MARTA rail station and conveniently accessible via I-75, I-85 and I-285.

“The most important things about Six West are affordability, connectivity and accessibility,” said Steve Langford.

The construction of a pedestrian bridge connecting the Georgia International Convention Center and the Gateway Center Arena to Six West will boost accessibility. The pedestrian experience within the development will be enhanced by the walkable streetscape extending from downtown College Park’s street grid, and a pedestrian trail will circle the development.

Investors will be able to purchase and develop sites at a lower cost than in Midtown, Buckhead and many other prominent Atlanta districts.

“Relative to other major projects around the city, this project is hands down more affordable for a business to relocate to,” Langford said.

The project’s Incremental District near the entrance will feature smaller-scale developments designed to attract local businesses.

“This [College Park] is a big area where people were moved out of,” said Bill de St. Aubin, CEO of the Sizemore Group, referring to the residential properties vacated as part of the FAA’s noise abatement program beginning in the 1980s. The Incremental District provides an opportunity for local residents to participate in the project.

The Incremental District is designed to bring the ambiance of downtown College Park into Six West. The district’s walkable streets and alleys will be lined with restaurants, shops and offices. Strategies will be implemented to support local business owners and help them purchase parcels and implement their visions.

“How can local residents benefit? One of the ways they can benefit is by becoming small developers, by owning a piece of it,” said de St. Aubin, whose company created the Six West masterplan with community input. “This district is for small, local owners.”

About the Construction Coffee Club
The Construction Coffee Club, created by Chris Maier of Cooper & Company General Contractors, schedules breakfast meetings and other events for Atlanta’s construction and real estate community.

There’s no doubt that the COVID-19 crisis created unexpected challenges for the commercial real estate industry in 2020.

Despite the uncertain environment, there were many bright spots at Ackerman & Co. throughout the year, thanks to the hard work of our experienced and diverse team of brokers and professional advisors.

From industrial and office leases to building and land sales to deals for restaurant and retail space, our brokers completed a steady flow of transactions.

Some of our major transactions during the year included a 710,962-square-foot lease of an e-commerce distribution facility in Florida; a 325,000-square-foot build-to-suit project at Ackerman’s Rockdale Technology Center for a regional distribution center; and a 75,205-square-foot lease with Goodwill of North Georgia for their new distribution and donation center.

Our Ackerman Retail brokers had a successful year completing a number of high-profile restaurant and retail leases. These included lease signings that will bring gourmet food market Savi Provisions and workout studio Twisted Cycle to Crabapple Market in Milton, Ga., this spring; a 17,850-square-foot lease for a new Shoe Gallery store in Cumming, Ga.; lease signings that added Henri’s Bakery & Café, Siete Tacos + Tequila, and The Original Hot Dog Factory to Marietta Square Market; and a lease for a new location of the upscale brunch spot Gocha’s Breakfast Bar in Fayetteville, Ga.

Also, our Investment Sales team was busy in 2020, with transactions that included a 30,000 square foot medical office building in Newnan, Ga., where Ackerman Medical also completed lease extensions to maintain 100 percent occupancy.

These represent just a sampling of our transactions.

And Ackerman & Co. and its partner MDH Partners are moving forward with the $85-million redevelopment and expansion of the Lee + White mixed-use project in Atlanta’s West End. The next phase of development at the popular entertainment destination will include loft offices, a food hall, public spaces, additional retail options and multifamily units.

Congratulations to our brokers of the year
Continuing an annual tradition, Ackerman & Co. also recognized the achievements of our brokers with our Broker of the Year and Young Broker of the Year awards.

The leader of our Land Group John Speros enjoyed another banner year, earning him the Broker of the Year honor – for the second year in a row. The dollar value of his deals exceeded $100 million. John works closely with his colleagues Kyle Gable and JT Speros in the Land Group.

“John really didn’t skip a beat this past year in his deal-making, which is a testament to his experience and the proven process he and his team have developed to complete land sales on behalf of their clients,” said Kris Miller.

In 2020, John’s biggest deal was the sale of 14.8 acres at Sandy Plains Marketplace for $42 million. Another major deal, completed with David Branch of SSG Realty partners, was the sale of a 4.6-acre parcel for $15.8 million that will become Porter on Peachtree, a mixed-use project featuring 291 multifamily units and 17,600 square feet of ground-level retail.

Other significant transactions for John included the sale of 67.9 acres for $5.8 million for a Meritage Homes development of 152 single-family homes and 20.37 acres for $5.6 million for the next phase of the Exchange at Gwinnett mixed-use project.

In addition to recognizing the top producer, Ackerman is also excited to announce that our Young Broker of the Year for 2020 is Will Goff.

Will’s main focus is brokering raw land and redevelopment sites, along with providing site selection services. Since joining Ackerman in 2017, Will has been involved in brokering land transactions for a wide range of uses, including residential, retail, mixed-use and industrial projects. His transactions during that time total nearly $40 million.

“Will is one of our hardest-working brokers. He can often be seen in his office at 7:30 in the morning to get started on his work, and he always has a positive attitude,” said F. Keene Miller. “In addition to his commitment to helping his clients achieve their business goals, Will is always trying to expand his knowledge. These qualities will serve him well as he grows his career in commercial real estate.”

A large portion of Will’s business is currently focused on representing developers to identify sites for multifamily and industrial projects. Will has carved out a niche in Low-Income Housing Tax Credit (LIHTC) and outside storage space, with current projects spanning across the Sunbelt from Atlanta to Houston and Charlotte to Tampa.

Will is pursuing a Master of Real Estate Development at Georgia Tech and is a CCIM candidate, having completed all course work and portfolio requirements for the designation. He plans to take the final qualifying exam at the next availability.

Read more about our brokerage group here: https://www.ackermanco.com/real-estate-services/overview/