Crane Watch: January 2022--Atlanta real estate projects - Centennial Yards, Lee+White, a new North DeKalb Mall, Stone Mountain, and Smyrna's public land sell off
The Update 1/27/2022
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Centennial Yards (aka The Gulch)
Centennial Yards has made the announcement that it plans to launch the first 4 buildings of its massive 50 acre downtown property this year. The launch will include loft styled apartments and other residential properties before the end of the year.
The aggressive move is a signal that the 10-year project will be on schedule and building upon a hot real estate market. Should this happen on time, the development would be following a framework of one of the most successful commercial real estate-sports projects, LA Live which opened over 20 years ago. But unlike LA Live, the density + diversity of real estate offerings could make it more lucrative.
From my 8/13/2021 newsletter - The Hawks need Trae Young to be LeBron James to sell a $5 billion dollar real estate development
The immediate post-Michael Jordan era gave rise to the new Shaq and Kobe Los Angeles Lakers. The combination of the Staples Center + development of LA Live aided in the remaking of downtown Los Angeles. That one-two punch provided the impetus for gentrifying downtown Los Angeles. The Staples Center + LA Live combination has been so successful that now the Atlanta Hawks are hoping to replicate that model here in Atlanta…
….The Hawks and CIM are hoping to have the same success as the Lakers in downtown LA. The long-term bet is for Trae Young and the Hawks to continue winning, becoming a national phenomenon that people would theoretically stay overnight at a hotel, spend money at the dining options at Centennial Yards. The value proposition of an east coast LA Live is dependent on a winning franchise and playing every year in the NBA Finals. An NBA Finals broadcast to millions worldwide from the US to China is a win-win for the franchise, Centennial Yards, and downtown Atlanta if* this works.
Centennial Yards can be more successful than LA Live
But unlike LA Live, the density and diversity of real estate offerings of Centennial Yards could make it more lucrative. The project will be nestled between a hotbed of development activity from downtown Atlanta including the controversial Margaritaville tower, recently opened Hard Rock Reverb Hotel, Castleberry Hills, Norfolk Southern renovation, and adjacent South Downtown project. Not to mention the connections to Mercedes Benz-Stadium, State Farm Arena, and the World Congress Center.
Centennial Yards could be the next evolution of large-scale, CRE-centered placemaking. Centennial Yards is a poised to become a micro city within downtown Atlanta, creating a new center of economic development. Making downtown Atlanta a major economic hub for the first time since the 1960s. But this move will come with a lot of scrutiny over both its public subsidy + privatized streets. In addition to growing concerns of affordability and gentrification of adjacent communities near Vine City and the AUC. But the project has hired Atlanta veteran Brian McGowan last spring to oversee the project as CEO who was previously in Seattle. McGowan who’s previous time at the Metro Atlanta Chamber of Commerce and Invest Atlanta seems the most poised to understand both the commercial and cultural needs of the project.
North DeKalb Mall
North DeKalb Mall’s new owner has announced that it will be undergoing a major redevelopment. The new North DeKalb is slated to include 1,700 apartments, 100 townhouses, and a 150 room hotel, in addition to 300,000 sq ft of retail development + 200,000 sq ft of office space. The development is slated to be completed by 2028. Edens first purchased the mall for $43 million in September.
The developer, Edens, has announced a plan for redeveloping the entire site into a mixed-use development. The development is likely to be similar to the company’s Fairfax, Virginia mixed use, town center styled project, the Mosaic District. One of the many copies of a Mark Toro-type of urbanized town center designs that have been happeing in various suburbs across the country since the launch of Avalon in 2015.
The property has been a topic of annexation for both Tucker and Clarkston, with Clarkston backing out. As for the popular AMC Theaters located at North DeKalb Mall, it is likely (but not guaranteed) to remain.
Lee+White’s new food hall
Popular West End location, Lee + White, will be opening a new food hall this year. The food hall will be in a renovated 28,000 sq ft space on the property, with 13 full-service food stalls, 5 shipping containers built solely for pop-ups, and include a great lawn for guests, in addition, will be facing the Beltline’s southwest trail. Lee + white has already starting securing food tenants, with more by launch. Originally slated in 2020 to be a brand new $85 million dollar building, that for undisclosed reasons (likely costs), it was changed to become a renovation of building 1020.
Lee + White since it opened in 2017 has been a hit for the area, becoming Atlanta’s brewing district, with several breweries and alcohol venues located within walking distance of each other. This includes Monday Night Brewing, ASW Distillery, Wild Haven Brewery, and Best End Brewing. Since the growth of this area, it has also aided in the rampant gentrification of Southwest Atlanta, in particular The West End. Lee + White is also expanding the offerings by including two new office buildings.
A new co-working space, CreateATL is opening across the street from Lee + White
A few hundred feet away from Lee+White in neighboring Adair Park at 900 Murphy Avenue will see the debut of CreateATL (@createatl) a new coworking space. CreateATL is a co-working space from Atlanta entrepreners Pouya Dianat and Dana Xavier Dojnik. CreateATL is seeking to differ from standard co-working spaces by offering a phyisical maker space for members, which is something I previewed last year on Instagram and on Twitter. The space also will differ by having tiered membership for local Adair Park residents and non-profits, to ensure access to the programing + networks fostered in these spaces gets to long time residents.
Underground Atlanta is getting a new food hall
Underground Atlanta is also undergoing a massive renovation under its new ownership. This year will see Underground converting its former cafeteria into a new 21-stall food hall. This comes after the return of the annual New Years Eve Peach drop was canceled due to covid concerns. But Underground has seen an uptick in positive relations due to a fall 2021 Banksy exhibit, and the return of historic tours.
Smyrna has sold off public land to a brewery, sparking criticism
The city of Smyrna in a 5-2 vote, has sold off nearly an acre of public land near Marietta Square to Suwanne brewery, StillFire for $600,000. The sale was contested by residents, with often for months prior in Cobb before the decision of the city council this week. The selling off of the space comes as Marietta Square is becoming a hot commodity, while Cobb is currently overseeing real estate growth in three hot commercial markets: Marietta Square, The Battery, and the Cumberland area. While the city of Smyrna has stated that it intends to develop the remaining public land into a public park then separately build three-story, 250 space public parking deck to the cost of $4 million dollars.
Georgia Tech will be getting a $647.5 million dollar bond via the Development Authority of Fulton County
Georgia Tech’s bioscience and health innovation district is getting big financial help from Fulton County to the tune of $647.5 million. The site will be located on the westside at the corner of Northside Drive and North Avenue, near the headquarters of Coca-Cola. The move is planned to be an expansion westward of Ga Tech as it looks to entrench itself with new development patterns and the arrival of Microsoft.
The move by tech represents new commerical development spurred by the expansion of residential apartments on Marietta Street, Atlanta Beltline, and other westside projects. This includes nearby World Congress Center, MBS, Castleberry, Centennial Yards, the RCIE building and other Castleberry Hills developments.
Microsoft is spurring the Westside’s next chapter
The move to the westside is heating up as Microsoft will soon be opening its doors at Atlantic Station this year and at the 90 acre Quarry Yards project site.
The Quarry Yards project was a $400 million dollar mixed use development announced in early 2018 with former Atlanta Brave, Mark Texeira being a main leader in the group. The project from the beginning was being questioned for its gentrication implications, ‘New Atlanta’ target audience, and marketing materials. It then was purchased for $127 million dollars by Microsoft in 2020 for its east coast office, in addition to another 20 acres last year for $22 million.
Both are located behind the Bankhead MARTA station, located directly next to the Westside BeltLine trail. The areas of Bankhead, Howell Mill Road, Chattahooche Avenue, Marietta Street/Boulevard, and Georgia Tech have become ‘West Midtown’ and the ‘Upper Westside’. Names that are direct real estate rebrands of both the existing industrial districts and plus their adjorning neighborhoods of Bankhead, Home Park, Howell Mill, Knight Park/Howell Station, as well as few others. Or if reading Wikipedia, it seems as if everything on the Westside is now ‘West Midtown’. Microsoft’s entry now is bringing about the $500,000 condos on Bankhead, plus rampant concerns over gentrification in the historically poor-working class area.
Nobu Hotel and Restaurant is coming to Phipps Plaza’s
Famed hotel and restaurant Nobu is opening in Phipps Plaza this summer. Intially announced in 2017, but now opening this summer. The move is part of an extensive revamp of the high-end mall by the parent company, Simon Properties. The move will see a consolidation of vacancies within the mall to be replaced by a more streamlined offering of restaurants in front-facing Peachtree Road, with retail and the AMC Theaters in the back. Nobu will be taking up vacated space. Nobu is a concept from actor Robert DeNiro and several of his business partners. It has expanded from a restaurant to include a series of hotels and now in Atlanta a dual hotel/condominum development. If you’re still unfamiliar, rappers talk about it a lot.
The Confederates want the state of Georgia to fund Stone Mountain Park to offset the decline in the park’s revenues
Stone Mountain Park is facing more problems as revenue losses continue. Many of which stems from the adherence to accommodating the demands of the Sons of Confederate Soldiers and the Daughters of the Confederacy. The Marriott is leaving this year and the managing company, Hirschend Entertainment, has already broken its agreement to manage the property after signing an extension to do so until 2031. The pro-confederate groups are now hoping this legislative session will bring funding to the park. They’ve hired lobbyists to aid in the efforts at the park in the past for success. Due to the nature of this election year, it’s a 50/50 chance it happens. This comes as the new mayor and new businesses are looking for a rebrand outside of its Confederate past.
For more on the history, please read my previous two-part article:
The History of Stone Mountain and the KKK - Part One
The History of Stone Mountain and the KKK - Part Two
Other real estate news:
Buckhead’s 3630 Peachtree Tower has sold for a near-record $202 million.
SCAD has issued a $159m bond to build a new 17 story dormitory tower.
Fox Hall Resort in Douglas County will be starting construction on a $180 million dollar, 250 room hotel, becoming the largest in the county as part of a larger $2 billion dollar project in the county. It will include a public financing portion of $175 million.
Athens is considering a new $426 million dollar mixed-use development project to revitalize Georgia Square Mall.
Stone Mountain’s first new mayor since 1998, Beverly Jones, is hoping for a revitalization for the city by building upon the local entreprenuers efforts.
Red Clay News
DeKalb County has announced its voting locations and dates.
Slutty Vegan owner Pinky Cole and partner Derrick Hayes of Big Dave’s Cheesesteaks are on the cover of Essence Magazine.
David Perdue has contracted covid-19.
The Midtown Neighbors Association is having its annual meeting on Thursday.
Pastor Curtis Bankston and his wife were arrested in Griffin after eight disabled people were found in the couple’s basement.
The Department of Driver Services is looking to move to self-service kiosks to combat staffing shortages.
National News
Lusia Harris, the first and only woman to be drafted by the NBA has died at 66.
Cardi B won a $4 million dollar settlement against a gossip blogger.
A bill targeting ‘racial guilt’ has advanced in Florida.
Florida has also drafted a bill to stop teaching about LGBTQ and parents can sue schools that do.
A Virginia mother who brought a loaded gun to school to protest mask mandates has been arrested.
Several Virginia school systems have filed a lawsuit against newly elected governor Glenn Youngkin’s anti-mask mandates.
A Boston hospital patient has been denied a heart transplant over her vaccination status.
Covid-19 sick pay has been reinstated in California.
Nancy Pelosi has announced that she will be running again for re-election.
International News
Omicron is expected to infect half of Europe’s population within 6-8 weeks.
Quebec will impose a health tax on unvaccinated Canadians.
Several hundred Canadian truckers are purposely trying to shut down the government over vaccine mandates. Nearly 90% of all Canadian truckers are vaccinated.
An Egyptian belly dance instructor is sparking a national debate on women’s rights.
El Salvador's President Nayib Bukele has lost money for his country because of the country’s purchasing of Bitcoin and recognizing it as legal tender.
An American fugitive from the US who faked his own death was found in Scotland after contracting covid and being on a ventilator.
Tesla has opened its showroom in the Xinjiang region of China despite genocide claims.
China just opened its new driverless bullet train ahead of the 2022 winter Olympics next month.
We’re halfway through the end of the week! - KJW