Category: Commercial Development

As the old saying goes, “location, location, location” is all-important in commercial real estate.

Ben Campbell, who has been named Ackerman & Co.’s Broker of the Month for August (based on total transaction value), focuses on land sales in sought-after intown Atlanta districts such as Decatur, Avondale Estate and Old Fourth Ward.

One of the properties he was selected to market back in 2015 definitely had a strong location going for it. The property – containing a 37,750 square foot warehouse building and an additional 3.1 acres of land for sale – was located at 2969 East Ponce de Leon Avenue directly across from the busy DeKalb Farmers Market. That section of road had a high traffic count of 26,000 vehicles per day, a number that was likely to increase significantly with the planned expansion of the market that would triple its size.

Clearly, this was a prime opportunity for re-development.

The property became more challenging to market, however, with proposed modifications to the lane configuration on Ponce that would benefit DeKalb Farmers Market while eliminating direct access to the 2969 Ponce de Leon property.

However, Ben displayed useful traits of successful brokers – tenacity and determination – and closed the sale of the property for $2.2 million two-and-a-half years after he was selected by owner Custom Slip Cover & Upholstery. During that time, he came very close to reaching deals with two buyers who ultimately backed out due to concerns over the property’s access.

In August, his persistence paid off when he closed the property’s sale with a buyer (Oakhurst Realty Partners) who saw the potential of the strategic location inside the I-285 perimeter and plans to revitalize the property for future lease or sale.

The sale of 2969 Ponce de Leon earned Ben the Broker of the Month recognition. Ben said it was a great experience getting to know the two owners of the business and partnering with them to provide a solution that will contribute to their long-term success.

“It was a pleasure to work with the owners of that property, Chean Chea and Miguel Moreno. They’re dedicated to their field of work and the community, and this transaction will enable them to relocate to new space that’s ideal for their business,” Ben said.

In addition to the Ponce de Leon sale, Ben closed another large transaction earlier this year: the sale of a 3.2-acre parcel in the city of Avondale Estates to South City Partners that will be the site of a major mixed-use project.

Ben is currently working on numerous land listings in his core intown markets and others in metro Atlanta. Contact him at 770-913-3931 if you’re interested in any of these opportunities or would like him to market one of your properties for sale.

Did you know that 51% of all restaurants in metro Atlanta’s Gwinnett County are international? The county is a culinary hotspot for foodies seeking everything from Korean barbeque to Indian street food.

The qualities that have produced this vibrant food scene – ethnic diversity, strong population growth, a pro-business climate – also have contributed to Gwinnett County’s emergence as one of metro Atlanta’s most important business hubs.

As the chair of the Gwinnett Place Community Improvement District (CID) board of directors, Ackerman & Co.’s Leo Wiener has first-hand experience working on a variety of initiatives aimed at boosting Gwinnett’s ability to attract business. He’s been pleased to witness Gwinnett’s ongoing economic growth – in particular, the county’s success recruiting company headquarters.

Leo, who is President of Ackerman Retail, is featured in a GeorgiaTrend magazine article focused on this very subject. The steady flow of HQ relocations to Gwinnett County in recent years has certainly been impressive and the article notes that this trend shows no sign of abating.

One of the biggest HQ announcements in the past year was Boehringer Ingelheim’s decision to move its North American animal health pharmaceutical headquarters from St. Joseph, Mo., to Duluth.

“Having a multi-billion dollar international company such as Boehringer Ingelheim locate their U.S. headquarters in Gwinnett, and specifically within the Gwinnett Place CID, demonstrates that the area’s strategic location, its strong infrastructure and talent assets are clear benefits to business enterprises as they consider site selection,” Leo told the magazine.

AmerisourceBergen, Level 3 Communications, Crawford & Company, M&I Materials, Trenton Systems and Shuma Sports also have picked Gwinnett for HQ locations.

With major infrastructure improvements planned to accommodate additional economic development and mixed-use projects under way (including a redevelopment of Infinite Energy Center) that will enhance the county’s urban amenities, Gwinnett is clearly primed for more population growth and economic prosperity. As the GeorgiaTrend article summed up, these sorts of projects are “just the thing to attract employees needed to keep the jobs engine humming across this bigger-is-better county.”

Braselton Logistics Center, one of the largest distribution centers currently under construction in metro Atlanta, is getting closer to completion.

As we mentioned on Twitter and Facebook earlier this week, the Ackerman & Co. project has achieved a new milestone, with construction now nearly complete on the 980,000 SF warehouse portion of the building. Ackerman arranged a special lunch to mark the construction milestone and thank crews for their hard work.

Jim Eyre, the project manager overseeing the huge development for Ackerman, said construction workers enjoyed the Mexican lunch buffet that was set up for them in the Braselton warehouse space.

“Good food goes a long way to show appreciation,” Jim said. “It’s not often that they get a chance to sit down for a few minutes like that during the day.”

The Conlan Company is the GC for the project. Other contractors whose workers attended the lunch included Rogers Mechanical Contractors, Plateau Excavation and Crown Electric.

Construction has moved smoothly on the state-of-the-art facility, with only a few hiccups due to an unusually rainy stretch in the early summer.

“Fortunately, weather hasn’t been a big factor,” Jim said.

The majority of the construction work going forward will involve the customized build-out of tenant Uline’s two-story office space, which will be completed in time for the company’s scheduled 1Q 2018 move-in.

The 1,000,812 SF facility, featuring 40-foot clear heights, will serve as Uline’s Southeast U.S. logistics hub. The distributor of shipping, packaging and industrial supplies will consolidate two area distribution operations in Duluth and Buford into the facility, which also provides additional space for future growth.

Atlanta attracted an impressive 52 million visitors in 2016. Many of them headed downtown to one or more of the city’s elite attractions – the Georgia Aquarium, Center for Civil and Human Rights, the College Football Hall of Fame, the Martin Luther King Jr. National Historic Site, the World of Coca-Cola, the CNN Center.

Now comes Mercedes-Benz Stadium, the home of both the Atlanta Falcons NFL squad and the city’s new MLS team, the Atlanta United FC. The $1.5-billion multi-use facility will host its first game this Saturday when the Falcons play the Arizona Cardinals.

The stadium is already receiving accolades for its innovative design and amenities. While Mercedes-Benz Stadium will no doubt wow sports fans with one-of-a-kind features such as the world’s largest 360-degree halo video screen, even more important for Atlanta is the impact this huge project will have on the local economy.

The stadium has already been booked for some of the sporting world’s biggest events, including this season’s College Football Playoff National Championship, the 2019 Super Bowl and the 2020 NCAA Men’s Final Four. Visitors from all parts of the U.S., as well as international travelers, will converge on Atlanta to attend these events.

“The opening of Mercedes-Benz Stadium is a very exciting moment for the city of Atlanta. It will raise Atlanta’s image by bringing more high-profile events to the city, and these events will be great for the city’s economy, generating income for area hotels, restaurants and shops,” said Kris Miller, President of Ackerman & Co. “The new stadium also complements the other major venues near the stadium, like the Georgia World Congress Center, which hosts one million-plus visitors each year.”

In addition to these economic benefits, major commercial real estate projects are in the works near the stadium: GWCC has proposed building an 800-room hotel on the former site of the Georgia Dome (which will be demolished this fall) and a 220-room Hard Rock Hotel is expected to open before Atlanta hosts the 2019 Super Bowl.

So, to be sure – Atlanta has plenty to be excited about as it gears up for the upcoming games at Mercedes-Benz Stadium.

The Port of Savannah is constantly breaking its own records. Just this past month, the port surpassed its July record for cargo handled, moving 336,000 TEUs (twenty-foot equivalent container units) – a nearly 7 percent increase over the previous July.

With this ongoing surge of cargo volumes, the Port of Savannah has grown into the fourth-busiest port in the U.S. for containerized materials, trailing only the Port of Los Angeles, Port of Long Beach, and Port of New York & New Jersey.

This is not only good news for Savannah’s economy – it also benefits Atlanta’s industrial market. That’s because many of the goods imported into Savannah are later trucked to Atlanta, one of the nation’s key distribution hubs.

As one of the top-10 consumer markets In the U.S. and a strategically located distribution hub, Atlanta is a logical market for retailers seeking to establish regional distribution centers that pack and ship products to stores, businesses and other end-users. Many of those items arrive in the U.S. via the Port of Savannah.

The roster of companies that have set up bulk distribution centers in Atlanta is proof of the city’s logistical benefits. In addition to the large existing centers in metro Atlanta for Google, PetSmart and others, online retailing giant Amazon.com recently announced plans for a more than 850,000-square-foot fulfillment center in Jackson County northeast of Atlanta that will create 1,000 jobs.

Those projects are indicative of the growing demand for industrial space in Atlanta, which is also spurring construction activity. Gross absorption in the Atlanta industrial market totaled 13.9 million square feet in the second quarter, up from 10.6 million in gross absorption during the same quarter a year ago. The construction pipeline remains active, with 13.2 million square feet under construction as of the second quarter.

Major projects under way in the metro area include Lambert Farms Logistics Park (1.5 million square feet) and Dollar General Distribution Center (1.2 million square feet).

San Antonio, the seventh most populous city in the U.S., is attracting new residents at an impressive clip – the Alamo City added 24,473 residents between July 1, 2015 and July 1, 2016. During that time, only Los Angeles and Phoenix added more residents.

In fact, all of Texas’ major cities are popular relocation destinations – Dallas, Fort Worth, Houston and Austin all ranked in the top 10 for population gains.

The state is also experiencing extremely strong demand in the healthcare market, with a medical construction pipeline totaling $15.8 billion – second largest in the nation.

Ackerman & Co. was impressed with this extremely active construction pipeline and ongoing investment in new health system facilities. In particular, the $135-million investment by CHRISTUS in the city’s first stand-alone children’s hospital was a key reason the firm decided to team with Artemis Real Estate Partners and MLL Capital on the acquisition of a four-building, 423,411-square-foot MOB portfolio.

Two of those assets – Santa Rosa Professional Pavilion (128,578 SF) and Rosa Verde Tower (123,324 SF) – are on the campus of the newly-renovated and expanded CHRISTUS Children’s Hospital of San Antonio. Rounding out the portfolio, Northwest Towers I & II are on the campus of the CHRISTUS Santa Rosa Hospital – Medical Center.

So, it’s easy to see why Ackerman determined that the four on-campus properties offered a promising investment opportunity. Ackerman and its partners will spend $27 million to reposition the four MOBs into top-tier medical facilities to meet the rising demand for outpatient services.

In addition to the city’s strong demographics and thriving medical market, Ackerman & Co. viewed the $175-million redevelopment of San Pedro Creek – which runs past the children’s hospital and will be transformed into a linear park – as another incentive to expand into San Antonio.

“They’re willing to take their own money and spend $175 million reinvesting in San Antonio. Those are the kinds of communities – thoughtful, forward-thinking communities – we want to do business in,” Kris Miller, President of Ackerman, told the San Antonio Express-News.

Ackerman & Co. has arranged the sale of a 3.40 acre, 13-parcel land assemblage along the northeastern corner of Gay Street and East Glenn Avenue in Downtown Auburn, within walking distance of area landmarks including the Auburn University Campus.

The assemblage, targeted for a six-story, 683-bedroom residential project dubbed The Standard at Auburn, was acquired by Landmark Properties, a real estate development and management firm of high-quality student housing communities. The property is expected to include 16,000 square feet of retail space at its base and offer state-of-the-art amenities including rooftop infinity pool. Ackerman & Co. Senior Vice Presidents Steve Langford and Sean W. Patrick were the exclusive agents for the sellers and acted as the intermediaries in the transaction.

“Given the high barriers of entry, it was a rare opportunity to acquire these parcels and in such close proximity to Auburn University,” said Langford.

Such an endeavor did not come without challenges. The Ackerman & Co. team spent nearly two and a half years assembling the mix of 13 contiguous and non-contiguous land parcels, owned by 10 different families, some of whom lived out of state.

Kirk Rich, Ackerman & Co. President of Brokerage, Keener Miller (center) and Sim Doughtie

Keene Miller, Ackerman & Co. President of Brokerage and also President of The Atlanta Commercial Board of Realtors, spoke at the 59th Million Dollar Club Banquet, celebrating the best in commercial real estate. The Atlanta Commercial Board of REALTORS® is one of the largest commercial in the nation with more than 2,200 members. The 2017 Million Dollar Club produced over a record-setting $26+ billion in commercial real estate transactions, surpassing the previous record of just over $25 billion, set in 2016.

Ackerman congratulates all Million Dollar Club award winners, including our own, for their outstanding achievements. Each of the following Ackerman brokers has generated in excess of four and a half million dollars in commercial real estate sales and leasing activity last year.

Kevin Hermetz $20+ Million		Sean Patrick $20+ Million		Larry Jarema $10+ Million
Frank Farrell $4.5+ Million		Jimmy Stevens $4.5+ Million		Brett Buckner $4.5+ Million

Ackerman & Co. has announced the recent acquisition of a three-building industrial portfolio in the Westgate Business Park in Atlanta, Ga. The three buildings (5215, 5245 and 5260 Westgate Drive) were purchased in an off-market deal from Clarion Partners, LLC for $7.55 million.

The three well-located, front-load, shallow-bay industrial buildings total 274,791 square feet and are fully occupied. Ackerman & Co.’s in-house team will provide leasing and management services for the new acquisition. The deal was facilitated by Cushman and Wakefield’s Stewart Calhoun and Casey Masters. The all-equity transaction was sourced through a new partnership with a leading European private equity group.

“The I-20W/Fulton Industrial Submarket continues to be a top performer with low vacancy and steady quarter-over-quarter average rental rate growth,” said Kris Miller, President of Ackerman & Co. “We are very excited about this opportunity to purchase highly functional industrial properties in a key submarket,” he added.

We’re kicking off 2017 by speaking with our Broker of the Year, John Speros. John has been with Ackerman & Co. for eight years and is one of the premier land brokers in the Metro Atlanta area. We caught up with John between deals for some insight into the mind of one of our senior brokers. 

A.) Congrats on being named Ackerman’s Broker of the Year for 2016. Can you tell me how you got to that point and what your goals were at the beginning of 2016 and how you achieved them?

The real answer is simple: I produced more revenue than any other broker at Ackerman. I don’t start off the year hoping to be Broker of the Year. I just focus on helping the client meet their objectives and if you do that the commission seem to follow.

B.) What brought you to Ackerman & Co. and how long have you been here?

I joined Ackerman & Co almost eight years ago when Larry Wood, Sean Patrick, Kyle Gable and I left another firm. We all felt that Ackerman provided a unique platform for our business.

C.) Can you tell us a little about what you do at Ackerman & Co.?

My focus is selling raw land for commercial and residential development.

D.) What is the best part of working at Ackerman & Co.?

Ackerman & Co. gives me ALL of the support that I need to be successful including administrative, marketing, research and other support services.

E.)  What’s something that surprises people about you?

For some reason, people see me as really intense. I have had several people say that they were warned about how difficult I would be to work with only to discover that I am pretty easy going.

F.) What is the most exciting thing about commercial real estate to you?

It all or nothing. I learn something new in every transaction. It’s like Vegas with better odds.

G.) What is the most rewarding part of your job?

I enjoy helping my clients achieve their objectives. The commissions are anticlimactic, to me.

H.) What advice do you have for someone trying to break into your field?

Get lean on all expenses, be prepared to go for two years without an income and find someone to mentor you.

I.) What book do you think everyone on the team should read?

The Good Earth by Pearl S. Buck.

J.) If you could have lunch with a U.S. president or someone famous, who would it be and why?

That’s tough to narrow down. There are so many people that I would love to talk with for an hour. I would have to put Ronald Reagan near the top of that list.

K.) Do you have a bucket list? What’s one thing on your bucket list that you can share with us?

At 60, I have completed most of the “physical” bucket list items. However, I would like to step foot on every continent.

L.) Who has been the most important person in your life?

My father. He taught me a great work ethic and emphasized getting my education. He could also “fix” just about anything and “fixing” things take a logical thought process that I use every day in brokerage.

M.) What lessons has your work life taught you?

If you work hard and smart, you seem to have more luck!