Commercial Real Estate

NEWS - Commercial Real Estate

May 8, 2013 – The Realty Building, a high-rise commercial office building located at 24 Drayton St. in the heart of historic downtown Savannah, was recently purchased by SCGII-Drayton, LLC, a real estate company based in South Carolina with ownership managed by South Coast Commercial, LLC.

Built during the Art Deco era in 1921, The Realty Building will undergo significant improvements and interior enhancements, which are currently in the planning stages. J.T. Turner Construction Co. will serve as the general contractor and Hansen Architects will serve as the lead architect on the project.

The 10-story Realty Building is one of the tallest commercial buildings in Chatham County and includes nearly 60,000 square feet of commercial and retail office space. Designed with neoclassical-style accents, the property’s exterior façade features a simple geometric design, crafted with brown brick and white stone columns with detailed trim engravings. A grand foyer welcomes tenants and guests with high ceilings, custom moldings, glass walls, marble floors, mahogany doors, oversized windows and brass trim throughout the building.

Ideally situated between Reynolds Square and Johnson Square – the hub of legal, banking and municipal businesses in the downtown area – The Realty Building is adjacent to The Olde Pink House and within walking distance of many of the city’s finest hotels, parks, museums, shops and award-winning restaurants.

The Realty Building is currently occupied by a dynamic group of co-tenants including Hansen Architects, P.C.; ILA Local #1475; Ivy Funding Company, LLC; Kathleen Aderhold, P.C.; Amy Lee Copeland, LLC; Morris, Manning & Martin, LLP;  K. Craig Dobson; B.P. Barber & Associates, Inc.; Sebring Engineering, Inc.; and Gray & Pannell, LLP.

The Savannah office of Colliers International, a leader in global real estate services, will act as the new property manager and leasing agent for The Realty Building and will oversee all property management needs and leasing negotiations for current and future tenants.

For information about The Realty Building and leasing options, please contact Ashley Smith at Colliers International at 912-233-7111.

NEWS - Commercial Real Estate

Dec. 21, 2012 – Judge Realty, a leading full-service real estate brokerage headquartered in Savannah, has announced  that the firm’s agents have brokered a deal to bring Tondee’s Tavern, an exciting new locally-owned restaurant and bar, to the former location of Tony Roma’s restaurant at 7 E. Bay St.

“This is a major commercial real estate deal, which will have wonderful benefits for Savannah residents and visitors,” said Lori Judge, owner and broker-in-charge. “I’m proud of our team for listing and selling this business and for helping to bring such an exciting new restaurant concept to fruition in a prime downtown Savannah location.”

Rhett Mouchet, a commercial agent for Judge Realty, represented the owner of the property in negotiating the lease. Judge Realty agent Kim Iocovozzi, the company’s 2011-2012 Top Producer, represented the buyer, Willie Tuten of Savannah, in negotiating the sale of the business without the franchise as well as a 10-year lease on the building with an option to buy.

“There was so much synergy on this deal,” said Judge Realty agent Kim Iocovozzi. “It was a beautiful thing. This is an in-town, local deal that shows we have a team with the ability to close the most complicated of transactions.”

Tondee’s Tavern is set to open on Jan. 11, 2013 and will feature 4,500 square feet of space, with seating for more than 140. Restauranteur Willie Tuten, a Savannah native, decided to convert the former 1850 bank building into Tondee’s Tavern, a casual, locally-owned dining establishment specializing in fresh local seafood, baby back ribs and high-quality steaks.

The name recalls one of Savannah’s earliest and most successful taverns, originally located at the corner of Broughton Street and Whitaker Street between 1770 and 1785. The city’s Sons of Liberty, an early American group of patriots and soldiers, met there regularly. Legend has it that the Declaration of Independence was read aloud in Georgia for the first time at this infamous 18th-century establishment.

“We’re trying to recreate Tondee’s Tavern, which was the place in Savannah in the late 1700s,” said Tuten. “We’re trying to bring an old Savannah landmark back to life.”

Menu highlights will include crab-stuffed flounder, bacon-wrapped scallops and fried shrimp, as well as a number of dishes named after legendary early Georgians like General James Edward Oglethorpe, Mary Musgrove and James Habersham. A convenient soup and salad buffet will be available in addition to a full lunch menu for diners on the go.

“When visitors come to Savannah, they want to enjoy local food, not something a franchise ships in a box,” said Tuten. “We’re proud to be a locally-owned restaurant serving fresh local food.”

Signature drinks at Tondee’s Tavern will include a Frozen Chatham Artillery Punch, inspired by the original drink recipe pioneered in Savannah during the Revolutionary War, as well as a Frozen Mint Julep. The restaurant also has an innovative beer tap capable of delivering beer at a colder-than-ice 28 degrees.

Unlike many fine dining establishments in Savannah’s National Landmark Historic District, Tondee’s Tavern will offer a decidedly casual dining environment.

“I want people to feel comfortable in their shorts and Topsiders,” Tuten enthused.

Tondee’s Tavern will be open from 7 a.m.-11 p.m. Sunday through Thursday and 7 a.m.-2:30 a.m. Friday and Saturday. The restaurant will serve breakfast, lunch and dinner daily. For more information about Tondee’s Tavern, please call 912-341-7427.

NEWS - Commercial Real Estate

Savannah-based apartment management company will oversee The Palms, a 408-unit West Ashley apartment building

Nov. 13, 2012 – Kole Management, a Savannah-based apartment management company, has acquired The Palms, a 408-unit apartment community in Charleston, SC.

“The Palms is a perfect fit for Kole Management. It’s a very well maintained and well managed community with a good, long-standing reputation in the Charleston area,” said Jeff Kole, President of Kole Management.

Located in the West Ashley area of Charleston, The Palms features garden-style apartments, a fitness center, multi-use pool and on-site leasing/management office. The community is adjacent to a city-owned athletic park, giving residents access to tennis courts, a baseball/softball field, playground and more.

Kole Management owns nine apartment properties in Chatham County, including six communities in Savannah and three in Garden City. The acquisition of The Palms marks the company’s first venture into the Charleston market.

About Kole Management
Kole Management Company, the largest apartment management firm in the Savannah area, owns and operates six apartment communities in Savannah and three in Garden City, comprising more than 1,350 units. The company’s newest community, The Palms, is a 408-unit apartment building located in the West Ashley neighborhood of Charleston, South Carolina. Residents of Kole Management apartment communities enjoy many benefits, including the ability to pay rent and request work orders online. The company employs more than 40 maintenance, management and leasing personnel, all of whom are local and able to assist residents with their immediate needs. In addition to managing the apartment communities, Kole Management owns and operates six warehouse distribution facilities in the Savannah area. For more information on Kole Management, please visit www.apartmentsavannah.com

NEWS - Commercial Real Estate

Nov. 8, 2012 – The Shopping Center Group, the largest retail-only real estate advisory firm in the eastern United States, has announced that its Net Leased Sales Team brokered the sale of the LongHorn Steakhouse property in Pooler, GA. Located on Pooler Parkway at Interstate 95, the 1.76-acre site ground leased to LongHorn Steakhouse (Darden Restaurants, Inc.) sold for $1.41 million, a 6.6 percent cap rate.

Daniel Earles, senior investment advisor with The Shopping Center Group’s Investment Sales Division, represented the seller, a South Carolina developer. An Atlanta developer with diversified real estate interests purchased the asset.

“Ultimately, it was the strength of the tenant, Darden Restaurants, and the tremendous growth this retail corridor is experiencing that made this an attractive investment to the buyer,” explains Earles. “We continue to see significant demand for investment-grade net-leased assets. There were over 20 offers to purchase this property which resulted in the seller negotiating a contract with a 10-day inspection period and a 15-day close.”

Developed in 2006, LongHorn Steakhouse is situated west of Interstate 95 on Pooler Parkway, a major retail corridor home to Walmart, Sam’s Club, The Home Depot and Publix Supermarkets as well as two new movie theatres, Pooler Stadium Cinema and Royal Cinemas, and 15 hotels.

The Shopping Center Group’s Investment Sales Division represents owners of retail real estate in their efforts to maximize their return on investment from the sale of their property by utilizing the most effective analytical, valuation and sales methods. The investment team provides brokerage transactional services, capital management, underwriting services and asset management support.

About The Shopping Center Group
Founded in 1983, The Shopping Center Group, with approximately 120 licensed professionals in 15 states, is a retail real estate advisory firm respected for its analytical approach, wide-ranging resources and industry leading results. The firm provides services to owners, retailers, landlords, developers, investors and financial institutions throughout the United States. The Shopping Center Group manages exclusive leasing assignments for over 800 retail centers totaling 50 million square feet and manages eight million square feet of retail throughout the Eastern footprint. The firm also represents over 400 national, regional and local retailers and restaurants. The team delivers "best in class" service in leasing, tenant representation, property management, investment advisory services, capital advisory services and surplus property disposition. For more information, visit www.theshoppingcentergroup.com.

NEWS - Commercial Real Estate

Sept. 27, 2012 – Chattanooga, TN-Based Kenco announced plans for a new facility to be located inside Interstate Centre, in Bryan County, GA. Kenco, a leading provider of distribution and fulfillment, transportation services and intelligent information technology, will take 230,000-sq.-ft. of Building 100 in the Industrial Park located at Interstate16 and U.S. Hwy. 280, 18 miles from The Georgia Port Terminals. The company plans to employ more than 50 people in the next few years.

“Kenco’s selection of Bryan County and Black Creek is outstanding news for our community. We have worked hard to make Interstate Centre the ideal location for Logistics firms looking to take advantage of The Georgia Port Terminals. With our comparable Drayage Rates, lower taxes, and skilled workforce, Bryan County provides the ideal business climate in this market. We appreciate Kenco’s faith in Bryan County and we look forward to building an outstanding partnership with this firm,” stated DABC chairman Steve Croy.

“We chose this facility because of its close proximity to the Savannah Port and the area’s solid infrastructure,” said Kenco COO Andy Smith, “The Bryan County facility will be Kenco’s fourth in Georgia and first in the Port of Savannah Market, bringing our total Georgia footprint to over 2.5 million square feet.”

Interstate Centre is a 1,100 acre Class A Industrial Park located at the intersection of interstate16 and U.S. Hwy. 280, 18 Miles East of The Port of Savannah. Building 100 is a Partnership between the Development Authority of Bryan County and TPA Realty Services. Interstate Centre is the only Tier 1 Industrial Park in the Savannah MSA and is a Magnet Site for Foreign Trade Zone #104 (Savannah/Hilton Head International Airport). Kenco joins Oneida, Blue Bell Creameries, Kawasaki, Oracal USA, Matson, and others in calling Interstate Centre home to its Savannah Metro distribution operations.

“Georgia’s most important customers are its existing ones,” stated Chris Cummiskey, Commissioner of The Georgia Department of Economic Development. “We congratulate Kenco on its expansion and continued contributions to Georgia strength as the logistics and transportation hub of the Southeast.

The Bryan County facility is expected to be a boost to Kenco’s use of The Georgia Port Authority’s Garden City Terminal. “Kenco’s position in the Port of Savannah Market is an example of how attracting new 3PL to the area can create jobs," said Curtis Foltz, GPA's Executive Director. "Kenco’s move to Bryan County highlights the increasing ability of our ports to attract new cargo and jobs to Georgia. Attracting yet another new 3PL to our region demonstrates the high level of interest and commitment cargo owners have for the Port of Savannah.." 

Nathan Pramik and Mark Hawks of Resource Real Estate Partners represented the owner, Kenco was represented by Jimmy Glascock and Wilson McGinness of JDK Real Estate Services. The Development Authority of Bryan County assisted Resource on the project.

About Kenco
Kenco provides integrated logistics solutions that include distribution and fulfillment, comprehensive transportation management, material handling services, real estate management and supply chain intelligence – all engineered for operational excellence. For over 60 years, Kenco has built lasting customer relationships because it is the 3PL that listens, learns and adapts. Privately-held and financially strong, Kenco’s focus is on common sense solutions that drive uncommon value.

NEWS - Commercial Real Estate

Signs lease for additional 237,600 square feet at Interstate Centre

Sept. 25, 2012 – Matson Logistics is expanding its Port of Savannah distribution operations and recently signed a lease to expand its presence in Building 100 at Interstate Centre in Bryan County. The expansion is expected to create over 40 new jobs in the next 5 years and add 237,600 sq. ft. to their current 135,000 sq. ft. facility.  Interstate Centre, Building 100 is a 604,930 SF, state of the art, cross dock distribution facility that is designed for today’s sophisticated logistics user looking for heavy trailer storage, deep truck courts, immediate access to the Interstate system and the world’s shipping lanes. The Building is a Public-Private Partnership between TPA Realty Services and The Development Authority of Bryan County.

Matson Logistics, which provides warehousing and distribution services in The Port of Savannah market, is expanding its presence in the region. The company currently has been operating in Black Creek since 2011 and has an additional location in Pooler.

Matson Logistics began offering warehousing and distribution services in 2008 as an expansion of its suite of logistics capabilities, which encompass domestic and international rail intermodal service, long haul and regional highway service, supply chain services and LTL transportation services.  It currently operates warehousing and distribution facilities in Northern and Southern California, as well as The Port of Savannah Market. 

The addition to the Black Creek warehouse, which is located 18 miles west of The Georgia Port Terminals, is scheduled to begin later this month. With the expanded facility, Matson Logistics’ full-time staff at Black Creek is expected to exceed 100 within the next few years.  James Scarboro manages the area operations for Matson Logistics. “Matson Logistics is investing in the Savannah market and community. We have a great team of employees dedicated to providing the best service to our customers.”  Scarboro said. “It has been a pleasure working with the entire Bryan County community over the past year.  Matson and Bryan County have built a partnership for growth and success and we are starting to see the fruits of our labor with this expansion. Matson plans to continue to build our presence and reputation in the region as a long-term provider of premium warehousing and logistics services for goods moving through the Port of Savannah.”

“This expansion once again proves that Interstate Centre is the ideal location for Supply Chain Companies looking to use The Georgia Port Terminals. With our comparable drayage rates to Savannah's rates and our low taxes plus skilled workforce, we provide the ideal business climate for a company’s real estate needs. Matson has been a great corporate citizen in their short time in Bryan County and we are excited that our partnership with them will continue to grow”, stated DABC Chairman Steve Croy.

Interstate Centre is a 1,100 acre Class A Industrial Park located at the Intersection of I-16 and US 280, 18 Miles East of The Port of Savannah. Building 100 is a Partnership between The Development Authority of Bryan County and TPA Realty Services. Interstate Centre is the only Tier 1 Industrial Park in the Savannah MSA and is a Magnet Site for Foreign Trade Zone #104 (Savannah/Hilton Head International Airport). Matson Logistics joins Oneida, Blue Bell Creameries, Kawasaki, Oracal USA and others in calling Interstate Centre home to its Savannah Metro distribution operations. “When companies like Matson expand, it means they have the confidence that Georgia’s business environment is healthy and ready to support their growth,” said Chris Cummiskey, Commissioner of The Georgia Department of Economic Development. “We’re pleased that Matson will in turn create jobs and increase its presence in the state’s logistics infrastructure.”

The expansion is expected to be a boost to Matson's use of The Georgia Port Authority’s Garden City Terminal. “Matson is a longtime port user, and we’re excited to see them expanding in our local area. This is one in a flurry of recent announcements springing from the Port of Savannah commercial real estate sector. Matson’s decision to expand to 370,000 square feet in Bryan County is another good example of positive net absorption in our commercial real estate sector, and a testament to the Port of Savannah area’s logistical advantages,” said GPA Executive Director Curtis Foltz. “Increasingly the Port of Savannah area is a strategic market for third party logistics warehouse and distribution operations. Locating in proximity to the ports makes for a more efficient business model, allowing greater flexibility and utilization of company assets.”

Nathan Pramik and Mark Hawks of Resource Real Estate Partners represented the owner and Bob Robers with Jones Lang LaSalle represented Matson. The Development Authority of Bryan County assisted Resource on the project. “The leadership in Bryan County has created an atmosphere conducive to nurturing and growing both existing industry as well as new entries to the market. This is evidenced by Matson Logistics' decision to continue to conduct its business in Bryan County. TPA Realty Services looks forward to continued success in our public-private partnership with Bryan County”, stated Paul Michael, Vice President of Development for TPA Realty Services.

About Matson
Founded in 1882, Matson is one of the leading U.S. carriers in the Pacific. Matson provides a vital lifeline to the island economies of Hawaii, Guam and Micronesia and premium, expedited service from China to Southern California. The Company's fleet of 17 ships includes containerships, combination container and roll-on/roll-off vessels, and custom-designed barges. Matson Logistics, established in 1987, extends the geographic reach of Matson's transportation network throughout the continental U.S. Its integrated, asset-light logistics services include rail intermodal, highway brokerage and warehousing. Additional information about Matson, Inc. is available at www.matson.com (NYSE: ALEX).

NEWS - Commercial Real Estate

$11.4 Million purchase includes Myrtle Beach business

Oct. 4, 2012 – Strategic Storage Trust, Inc. (SSTI) – a publicly registered non-traded REIT investing in self storage - has acquired two properties in Georgia and South Carolina consisting of approximately 1,050 self-storage units with a total aggregate purchase price of $11.4 million.  The sites, which add approximately 142,690 square feet to SSTI’s rental storage space inventory, will be rebranded under the SmartStop® Self Storage trade name.

The Savannah property is located at 4777 U.S. Hwy. 80 East, Wilmington Island and features 570 units. In Myrtle Beach, the company purchased 480 units located at 3015 Ricks Industrial Park Dr.

“These assets are an ideal fit for our growing brand and strategy, allowing for instant economies of scale for operations and future expansion in the Georgia and South Carolina markets,” said H. Michael Schwartz, chairman and CEO of SSTI.

This acquisition is the second phase of a three-phase acquisition of a 16-property portfolio that contains more than 1.1 million square feet and approximately 8,560 self-storage units in South Carolina, Florida and Georgia.  In August 2012, SSTI purchased the first phase in this portfolio, which consisted of eight properties in South Carolina, Florida and Georgia totaling approximately 3,770 self-storage units and approximately 508,200 square feet.  SSTI expects the remaining properties to close in the fourth quarter of 2012.

NEWS - Commercial Real Estate

Deal part of eight acquisitions in three states

Aug. 27, 2012 – Strategic Storage Trust, Inc. (SSTI) – a publicly registered non-traded REIT investing in self storage – has acquired eight properties in Georgia, South Carolina and Florida consisting of approximately 3,770 self-storage units with a total aggregate purchase price of $25 million.  The sites, which add approximately 508,200 square feet to SSTI’s rental storage space inventory, will be rebranded under the SmartStop® Self Storage trade name.

“Due to this recent transaction, we have achieved a major milestone with the purchase of our 100th self-storage property,” said H. Michael Schwartz, chairman and CEO of SSTI.  “The self-storage sector’s consistently strong performance continues to drive our decision to expand our portfolio.”

This acquisition is the first phase of a three-phase acquisition of a 16-property portfolio that contains more than 1.1 million square feet and approximately 8,560 self-storage units in Georgia, South Carolina and Florida.  SSTI expects the remaining properties to close in the fourth quarter of 2012.

The details of the eight properties acquired are as follows:

Georgia:
• 1060 King George Blvd., Savannah:  590 units, 68,700  sq.ft.
• 782 King George Blvd., Savannah:  450 units, 67,100 sq.ft.

South Carolina:
• 512 Percival Road, Columbia: 490 units, 65,400 sq.ft.
• 890 St. Peters Church Road, Lexington: 250 units, 35,400 sq.ft.
• 120 Northpoint Drive, Lexington: 580 units, 86,500 sq.ft.
• 298 Red Cedar St., Bluffton: 660 units, 78,900 sq.ft.

Florida:
• 1990 NW Federal Highway 1, Stuart:  370 units, 51,500 sq.ft.
• 6195 South Kanner Highway, Stuart:  380 units, 54,700 sq.ft.

According to Wayne Johnson, senior vice president of acquisitions for SSTI, the supply of self-storage space has more than doubled over the past 16 years while vacancy has remained relatively stable.