This Week's Atlanta Deal Sheet: Invest Atlanta Buys Parking Deck For Resi Conversion Play
Invest Atlanta now has the parking for all those future residents of its planned 2 Peachtree St. residential conversion.
IA 2 Peachtree LLC, an affiliate of the city’s economic development agency, paid $18.4M for the 535-space 15 Peachtree St. parking deck in the heart of the Five Points business district in Downtown Atlanta. The seven-story building also has office and retail space and is bounded by Peachtree, Decatur, Wall and Pryor streets.
Invest Atlanta purchased the property from an amalgam of 24 owners stemming from generations of pass-downs that began 130 years ago when John Inman gave the property to his daughter and son-in-law, John Grant. Atlanta businessman H.I. Kimball developed the six-story, 500-room Kimball House hotel in 1870 — the largest hotel in Atlanta at the time — which burned to the ground in 1883, according to the Atlanta History Center. A second hotel rebuilt on the site was torn down in 1959 to make way for the parking deck.
Ackerman & Co. Senior Vice President John Speros represented the majority of the owners of 15 Peachtree in the transaction. JLL Executive Vice President Paul Hanna brokered the deal for Invest Atlanta.
The purchase comes as Integral Group, The Atlantic Cos., brokerage firm T. Dallas Smith & Co. and Underground Atlanta owners Lalani Ventures team up to redevelop the 41-story, 988K SF 2 Peachtree into a 220-unit workforce housing tower for Invest Atlanta as the city pushes to create and preserve 20,000 affordable units by 2029.
SALES
A Peachtree Group affiliate has sold a Lawrenceville limited-service hotel to a group of 1031 exchange investors in another fund the Atlanta-based firm controls.
PHG Lawrenceville sold Home2 Suites by Hilton off North Brown Road in the northern suburban Atlanta city to PG Sugarloaf Manager LLC and PG Sugarloaf DST for $25.5M, according to Gwinnett County sales records. The seller was an entity made up of Peachtree Group house capital and investments from friends and family, CEO Greg Friedman told Bisnow. The buyer is an entity made up of 1031 investors, he said.
Peachtree Group developed the four-story, 130-room Home2 Suites by Hilton Lawrenceville Atlanta Sugarloaf in 2019.
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CenterSquare’s Essential Service Retail division purchased Barrett Creek Plaza, a 28K SF retail center off Ernest Barrett Parkway in Marietta, from Miami-based Dalan Realty for an undisclosed sum. The fully leased property’s tenant roster includes Cheeseburger Bobby's, Buffalo Wild Wings, Chase Bank and Puppyland.
The property last sold in 2015 for $9.2M, according to Cobb County property records.
LEASES
City BBQ has leased 22K SF of retail space at 2828 Buford Drive near the Mall of Georgia for its newest restaurant. Terra Alma founder Edie Weintraub brokered the deal on behalf of City BBQ.
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EAE USA inked a 195K SF lease at 41 Logistics Center, a 390K SF industrial building off Highway 41 in Adairsville owned by McCraney Property Co. Transwestern Executive Managing Director Clark Dean and Managing Directors Thomas Savage and Cody Lolakis brokered the deal for the electrical parts distributor.
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The Greater Atlanta Home Builders Association signed a lease for more than 11K SF at 925 North Point Parkway in Alpharetta, a four-story, 167K SF, Class-A office property off Georgia Highway 400 near Avalon. Cresa Managing Director Tom Tindall and principal Brooks Morris represented the homebuilders trade association. The landlord is an LLC that appears to be an affiliate of Dallas-based Macfarlan Capital Partners.
PERSONNEL
Catamount Constructors hired Chris Heard as director of business development, tasking him with developing new business in Metro Atlanta. Heard previously was director of marketing and business development with Winter Construction, according to his LinkedIn profile.
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Cortland tapped Lee Everett as head of research. He will work with executives and investment and capital markets teams on research, strategy and investment management decisions. Prior to Cortland, Everett worked for Waterton as vice president of research and strategy.
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Tameka Clark has joined Bull Realty as a retail sales and leasing broker, moving over from KW Commercial. The 20-year CRE veteran is a 2019 graduate of the nonprofit Project REAP, the Real Estate Associate Program.
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Atlanta Habitat for Humanity has named Rosalyn Merrick its new CEO, succeeding Alan Ferguson, who is leaving to join another organization, the Atlanta Business Chronicle reported. Merrick had leadership roles with the Mount Vernon School in Sandy Springs, the Georgia Community Foundation and United Way of Greater Atlanta before joining Habitat in 2020, according to the ABC.
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Clay Haden has been promoted to president for the general contractor Skanska USA Building, taking the role starting June 1, the Atlanta Business Chronicle reported. Haden is succeeding Paul Hewins, who is planning to retire. Haden has been with Skanska since 2006 in various executive roles, including general counsel and chief administrative officer. Prior to Skanska, Haden was a partner at the law firm Seyfarth Shaw, according to the ABC.
FINANCING
Songy Highroads and an affiliate of Hyatt Hotels Corp. have refinanced their 18-story Hyatt Centric Buckhead Atlanta hotel off Lenox Square Parkway, adjacent to the popular Lenox Square mall.
Deutsche Bank originated the $54M loan for the 218-room hotel, which matures in April 2029, the Atlanta Business Chronicle reported. The debt replaces a $48M loan from Citizens Bank that matured in March.
JLL Senior Managing Director Ed Coco and Managing Director Matt Casey arranged the debt.
ASSIGNMENTS
Transwestern Executive Managing Director Greg Frankum, Senior Managing Director Matt Spickard and associate Ansley Chenault were tapped by Lone Star Funds to lease the 14-story, 349K SF 55 Allen Plaza in Downtown Atlanta. The tower, home to EY's regional headquarters, has more than 95K SF available, according to LoopNet.
Lone Star acquired 55 Allen Plaza in 2020 from the Teachers' Retirement System of the State of Illinois for $79M.
CORRECTION, MAY 20, 6 P.M. ET: Lee Everett was vice president of research with Waterton. A previous version of this story misstated his title. The story has been updated.
