This Week's Atlanta Deal Sheet: Allen Morris Moving Forward On Star Metals Phase 2
The Allen Morris Co., in a joint venture with Atlanta-based investment firm Animal, plans to break ground on a second helping of its Star Metals District development next year.
The Florida-based developer is looking to add 1.5M SF to the mixed-use project, including 800 residential units, 100K SF of retail and a 200-room hotel, the Atlanta Business Chronicle reported. The 3-acre site, bound by Howell Mill, 11th Street, Bellingrath and Edgehill avenues, is just south of Star Metal Offices, the 15-story, 267K SF office building that is 97% leased, according to the ABC.
Allen Morris is proposing a more than 30-story, 450-unit apartment tower that would make it the tallest building in West Midtown, according to the ABC.
The variance proposal is going before the Neighborhood Planning Unit-E meeting on Nov. 12. The firm expects to break ground next year, according to the ABC.
Allen Morris is already developing the 327-unit Stella at Star Metals apartment tower.
FINANCING
Toro Development Co. landed financing for the $560M, 43-acre Medley mixed-use project in Johns Creek, allowing Mark Toro's firm to break ground in December. Toro received a $158M construction loan from Banco Inbursa for the first phase and an unspecified equity investment from Ascentris.
The project at the corner of McGinnis Ferry Road and Johns Creek Parkway will include 150K SF of retail, a 175-room boutique hotel, 110K SF of office, 750 apartments, 133 townhouses and a 25K SF plaza.
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Regent Partners and Mariner Group obtained a $50M short-term first mortgage to refinance the 193-room Thompson Savannah luxury hotel. The five-year, nonrecourse loan satisfies the developers' original construction loan for the hotel that opened in 2021.
Mesa West’s Russell Frahm, Pamir Niaz and Jacob Rosen led the origination of the loan, which was arranged by Berkadia’s Jared Kelso, Steve Michels and Lauren Greenberg.
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Galerie Living secured a $140M, 10-year Freddie Mac senior loan from Kayne Anderson Real Estate Debt for the Corso Atlanta, a 203-unit senior housing project at 3200 Howell Mill Road. Newmark’s Sarah Anderson, Chad Lavender, Ryan Maconachy, Mills Poynor and Ben McElroy arranged the deal.
DEVELOPMENT
Landmark Properties is under contract to buy multiple parking lots owned by The Varsity in Midtown to develop a 560-unit student housing tower. The developer, which owns the nearby The Standard Atlanta and The Mark Atlanta luxury student housing projects, would offer 2,000 beds in the new tower.
The Varsity plans to sell the site, bounded by Spring Street and the Connector, to Landmark if the development is approved. The Varsity’s operations will be unaffected by the development, the family that owns the restaurant said in a statement.
SALES
The Atlanta BeltLine Inc. purchased 2110 Peachtree Road for $11M to pave the way for a section of the planned 22-mile pedestrian path through Buckhead, The Atlanta Journal-Constitution reported.
The property is the site of the former Elleven45 Lounge, which was shut down in August by a Fulton County Superior Court judge after being ruled a public nuisance due to a string of crimes, including the Mother’s Day shooting that killed a college volleyball player and another person.
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Canton Road Commercial Business Park Inc. sold the Noonday Business Center in Kennesaw for $8.2M to an undisclosed buyer. The three-building, 66K SF flex office park at 771 Shallowford Road is almost fully leased. Marcus & Millichap’s Mason Bierster and Ani Paulson brokered the sale.
LEASES
Ollie’s Bargain Outlet has leased 25K SF at 4450 Nelson Brogdon Blvd. in Sugar Hill for a new store. Halpern Enterprises owns the 144K SF retail center, which also counts O’Reilly Auto Parts and Beauty Now as tenants.
The Shopping Center Group’s Stuart Nelson represented Ollie’s, which will open next summer.
