This Week's Atlanta Deal Sheet: West End Mall Redevelopment A Go
The city of Atlanta finally purchased The Mall West End to make way for its massive mixed-use overhaul.
The city, along with Atlanta Urban Development Corp. and Atlanta BeltLine Inc., acquired the ailing mall and its 12-acre site in the West End for an undisclosed sum. BRP Cos. and The Prusik Group were tapped to lead its $450M redevelopment into a mixed-use project that will include affordable housing.
“This is a long-awaited new era for the West End,” Atlanta Mayor Andre Dickens said in a statement. “This is not just a redevelopment of the Mall West End—this is fulfilling a commitment to a community.”
Plans for the 150K SF mall include reducing the retail square footage to 125K SF, adding 900 mixed-income rental units — 70% of which would be geared toward workforce housing and 20% to residents earning as little as 10% of the area median income — student housing, a 150-room hotel, 12K SF of medical office space and 10K SF of affordable merchant space for qualified local businesses.
Construction is set to start next year, with delivery expected in 2026. Financing included $5M from the nonprofit Atlanta Urban Development, $5M from Atlanta BeltLine and $19M in purchase financing from Merchants Capital.
SALES
Babloo Investments picked up two Smyrna retail properties via foreclosure auctions this month. The firm purchased 1290 West Spring St., a 15K SF retail building in the Smyrna Market Village, for $3.3M. TAMG Realty’s $2.9M loan was put in foreclosure in September, according to records.
Babloo also bought 4425 S. Cobb Drive, a 40K SF retail center also in Smyrna, for $3.5M out of foreclosure. Kennesaw Properties Advisors foreclosed in September on a $2.5M loan to the previous owner, Kennesaw Falls Holdings, according to records.
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Kite Realty Group purchased Parkside West Cobb, an 82K SF Sprouts Farmers Market-anchored retail center at 3805 Dallas Highway in Marietta, from ShopCore Properties for $40.1M, according to transaction records listed in the Atlanta Business Chronicle.
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Westplan Investors purchased 13 acres at the corner of Sugarloaf Parkway and Cruse Road in Gwinnett County from Foxfield and AEW Capital Management. The land is contiguous to Foxfield’s Sugarloaf Logistics Hub industrial complex. Westplan plans to develop a 330-unit apartment complex on the site.
JLL’s Scott Cullen brokered the sale, the price of which was undisclosed, for Foxfield and AEW. Construction is slated to start in the second quarter.
LEASES
On-demand printing company Spoke Custom leased 107K SF at 4350 Peachtree Industrial Blvd., a 316K SF flex industrial building in Norcross, for its North American headquarters. Spoke, a subsidiary of Polyconcept North America, opened its operations there on Oct. 2.
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Souto Foods, a subsidiary of Alex Lee, inked a 200K SF lease, including cold storage, at Foxfield and AEW’s Sugarloaf Logistics Hub in Gwinnett. The food distributor is expected to invest $28M in the facility and hire 70 employees.
JLL’s Reed Davis and OnPace Partners’ Stephen Bridges brokered the deal for Foxfield and AEW, while NAI Brannen Goddard’s Bill Kee represented Souto.
PERSONNEL
Bull Realty hired Shadia Jaraysi as a retail investment broker. The Kennesaw State University graduate has spent much of her career to this point assisting in managing her family’s retail real estate assets, according to a press release.
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Sherry Rexroad, the former chief financial officer of the REIT Store Capital, has been named CFO of Piedmont Office Realty Trust beginning Nov. 8. Rexroad succeeds current CFO Robert Bowers, who is transitioning to an administrative role with Piedmont.
“Bobby has left an indelible mark on Piedmont, having been involved in virtually all aspects of the Company since, and even prior to, our public listing in 2010,” Piedmont CEO Brent Smith said in a release. “I will miss our daily interaction and strategic collaboration. We thank him for his meaningful contributions and celebrate him as he focuses more of his time outside of Piedmont.”
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Peachtree Group tapped Brent LeBlanc as the firm’s business development leader for its investment platforms. LeBlanc, who has been with Peachtree since 2012 and most recently served as executive vice president of affiliate Peachtree PC Investors, has helped Peachtree expand its relationships with Marriott, Hilton and Hyatt.
DEVELOPMENT
Forestar Group purchased 3585 Engineering Drive in Peachtree Corners from Dilweg Cos. for $7.5M. The group plans to raze the 102K SF office building in Technology Park/Atlanta, allowing its parent company, D.R. Horton, to build 75 upscale townhouses.
Stream Realty Partners’ Bryan Heller represented Dilweg in the sale.
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Horizon Hospitality Management is planning to develop a Motto by Hilton at 524 W. Peachtree St., across from Emory University Midtown Hospital and Winship Cancer Institute, the Atlanta Business Chronicle reported. Horizon will build 221 units for Motto’s debut in Atlanta.
