Commercial Real Estate

NEWS - Commercial Real Estate

SBJ Staff Report

Jan 3, 2012 - The U.S. Army Corps of Engineers Savannah District announced this week that it is accepting applications for the development of a marina on the 29-acre site formerly known as the Little River Marina and Family Resort in Appling, Ga., (Columbia County) on the J. Strom Thurmond Dam and Lake Project.

The site will be leased on a competitive basis to the individual or organization presenting the best plan for development while meeting the required criteria. Applications will be evaluated by diversity of marina facilities and development plan, experience and background of the applicant, financial capability, and credit and background checks.

Thurmond Lake is one of the Southeast’s largest and most popular public recreation lakes. Each year, millions of people visit the many public parks, marinas, and campgrounds located around the lake to pursue a variety of outdoor recreational experiences, making Thurmond one of the top 10 most-visited Corps lakes in the nation.  The man-made lake is located 22 miles north of Augusta, Ga., and borders Georgia and South Carolina on the Savannah River. 

All applications must be received in the Savannah district office by 3 p.m. EST Feb. 3. Any applications not received by this date will be returned to the applicant as non-responsive to the Notice of Availability.

The Thurmond Project Office will host a pre-proposal site visit at the visitor’s center conference room Jan. 17 at 8:30 a.m. at which the Corps will explain the application and lease provisions, the minimum facilities required and include a visit to the actual site.

Applicants should note that the government reserves the sole and exclusive right to reject any applications and the right to not award a lease for the area, according to the Savannah District Real Estate Division, Chief of the Management and Disposal Branch.

Interested individuals and organizations may view, download and print the application announcement, requirements, and maps on the Savannah District’s Real Estate webpage at www.sas.usace.army.mil/re/re.html. Additional information regarding this action is available by calling (912) 652-5554. 

NEWS - Commercial Real Estate

SBJ Staff Report

Sept 26, 2011 – When times get tough, the tough get going…and they innovate for survival. And that’s what Ashley Bowersox has done by offering Savannah’s business executives a creative way to have an office and public presence, without all the resultant overhead. It's called ThincSavannah.

A commercial Realtor by trade, as the economy took a downturn Bowersox found a new way to make a living, renting 8,100 sq ft. of space in Savannah's Historic District and bringing a fresh, new idea for office rental space to the City by developing creative work environments for business executives and artists.

Bowersox launched ThincSavannah six months ago, creating workspace for local businesses that can’t afford – or don’t need – or don't want to commit to a long lease for - an office of their own. The furnished workspace with complete office amenities including phones and internet, was created to “redefine the way we do work,” according to Bowersox. Tenants can rent an individual, furnished office, or just a desk. It’s a popular idea around the U.S. in many major metro areas, but it was new to Savannah, and as he approaches his first six months since first opening at 35 Barnard Street, he now finds that he needs to expand. “I’ve got five commitments for individual offices,” he states, so he is working to expand into empty space he has under contract in the building by the end of the year.

ThincSavannah also offers a conference room and space to holds events.  Additional events space will be included in the expanded footprint.

The shared office space and overhead is approached with a different concept, beyond just less expensive office facilities. It’s about ‘co-working.’ he says – that independent professionals work better together than they do alone. “Everyone is looking out for each other, and sharing ideas and contacts. That’s the other big, big benefit.”

Bowersox has also created a new division of his company called ‘ThincArt,” with two new exhibitions that have opened this month. An opening reception for the public was held on Sept.15, and the exhibits will run through November. Shredded Greens + White Flags features recent work by accomplished artists Betsy Cain and John Spurlock, and ‘Visual Thinc-ers’ which will showcase the original work by ThincSavannah members.

Shredded Greens + White Flags features Cain's large shredded paintings on yupo paper from the body of work presented in her exhibition, in situ, now showing at the Telfair Museums' Jepson Center. John Spurlock displays drawings and paintings that employ a printmaker's sensibility toward image and word. Shredded Greens + White Flags is guest curated by Arthur Kouwenhoven, Jr. and installed by Casey Belogorska.

‘Visual Thinc-ers’ presents the work by eight current and former ThincSavannah members working in visual disciplines, including film, photography, architecture and design. Participants are Veta Bateham, Jason Bateham, Jim Wubbena, Sandi Rushing Wubbena, Shelly Short, Neil Short, Denise Grabowski and Lauren DeRosa.

ThincArt is an extension of Bowersox’s goal of bringing creative people together to work in new, creative ways.

“Coworking answers the question that so many face when working from home: ‘Why isn’t this as fun as I thought it would be?’ he says. “ Beyond just creating better places to work, coworking spaces are built around the idea of community-building and sustainability.”

ThincSavannah’s work environments cost as little as $100 per month through what he terms’ “memberships.” He offers everything from a one-day pass to a full private office. But all members must uphold what he terms the values of his concept: collaboration, community, sustainability, openness, and accessibility.

ThincSavannah currently offers 10 private offices ranging in size and location, stating at $450 per month, with 24 hour access, phone lines and internet connections.

He also offers ‘ThincDesks’ available for people who would like a permanent desk with storage. All ThincDesk members have access to all of the services and amenities starting at $350 per month.

Or, business people can become members for $ 250 per month where work spaces are shared.

His latest addition is ‘Thinc Hours’ where business people can buy 40 hours a month of access to a workspace for $100 a month.

ThincSavannah is located at 35 Barnard St., Suite 300 in Savannah.

Membership levels range from one-day passes to annual contracts starting as low as $100 a month. More information is available by contacting Ashley Bowersox at 912.544.1200 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or by visiting the company’s website at www.ThincSavannah.com.

 

NEWS - Commercial Real Estate

2nd Qtr. Financial Results are Positive, Reflecting Five New Projects During Qtr.

By Lou Phelps
SBJ Staff

Aug 8, 2011 - Mid-America Apartment Communities Inc. has continued its previously announced acquisition plan with the purchase last week of the Avala development at Savannah Quarters, a 256-unit apartment community within one of Savannah’s largest residential communities. The acquisition price was not disclosed.

It’s the second recent apartment acquisition by the company, including the purchase last week of 279-unit Tattersall at Tapestry Park, located in Jacksonville.  MAA has also purchase the 300-unit Hamptons at Hunton Park in Richmond, VA in June.

Avala at Savannah Quarters was developed in 2009 in the Greg Norman-designed golf and residential community of Savannah Quarters which features a fitness center, resort-style pool, picnic area and more than two acres of park and play area.

“We are very pleased to add Avala at Savannah Quarters to our Georgia portfolio,” according to Al Campbell, executive vice president and CFO. “We believe the continued growth of the Port of Savannah, which is the fourth largest container port in the United States, and the recently announced expansion of Mitsubishi Power Systems will further support steady economic growth in the area for the foreseeable future.”

The acquisition was funded by common stock issuances through MAA’s at-the-market program and borrowings under its current credit facilities. MAA (NYSE: MAA) is an apartment-only real estate investment trust.  The company also announced its 2nd Qtr. earnings last week.

Net income available for common shareholders for the quarter ended June 30, 2011 was $7.4 million, or $0.20 per diluted common share, as compared to net income available for common shareholders of $1.4 million, or $0.04 per diluted common share, for the quarter ended June 30, 2010.

Funds from operations, or FFO, a widely accepted measure of performance for real estate investment trusts, was $36.2 million, representing $0.93 per diluted share/unit, or per share, for the quarter ended June 30, 2011, as compared to $26.4 million, or $0.80 per share, for the quarter ended June 30, 2010.

Same store net operating income, or NOI, grew 4.5 percent over the second quarter of 2010 on a 3.8 percent increase in revenue and a 2.9 percent increase in operating expenses with bulk cable netted in revenues (discussed later in report). Year to date same store NOI grew 4.7 percent

Physical occupancy at the end of the quarter was a strong 96.3 percent and resident turnover remains at historic lows running at 54 percent on an annualized basis through the second quarter.

The company completed the acquisition of five wholly owned communities representing a total investment of $153 million and the company's initial investment in the Richmond, Virginia market in the quarter including the acquisition of a parcel of land in Little Rock, Arkansas and commenced development of 312 new high quality units.  Construction continues on two other development projects in Charlotte and Nashville.

According to Eric Bolton, chairman and CEO, "Strong second quarter results reflect robust leasing conditions with solid pricing momentum across the portfolio.  Despite continued sluggishness in the economy, we expect to capture steady upward pricing trends into 2012. Our new value growth opportunities also remain robust with a higher than expected volume of property acquisitions completed during the quarter. Additionally, we made significant progress during the quarter in executing on our long term financing strategy, further increasing the strength and flexibility of our balance sheet."

NEWS - Commercial Real Estate

This is the first installment in a series of six articles about real estate development and/or projects that are performing well in the currently challenging economic environment. The author is Harvey J. Gilbert, who is managing director and broker-in-charge of Gilbert & Lattimore Commercial Real Estate, LLC, a full service commercial real estate brokerage, consulting and development firm that is a member of the Cushman & Wakefield Alliance.

When the Norwood Market first opened, the Sandfly intersection of Skidaway Road and Ferguson/Norwood Avenue was a relatively sleepy crossroads primarily serving the transportation and shopping needs of the immediate neighborhood. Over the last 20 years, the southeast sector of Chatham County has experienced an intense level of development including the build-out of Dutch Island, Isle of Hope, Skidaway Island and the neighborhoods in between. Transportation patterns have been radically altered by the completion of Truman Parkway with interchanges at nearby Montgomery Cross Road and Eisenhower Drive.

Today, Sandfly is a vibrant commercial center catering to the shopping needs of tens of thousands of residents residing within a 20-minute drive of the traditional crossroads historically known as Newton’s Corner. There are now commercial centers located on three quadrants of Newton’s Corner that feature a myriad of commercial uses including multiple restaurants, retail shops, dry cleaners, mini-storage, a grocery store and pharmacy.

The current owners of Norwood Market envisioned and have successfully executed the repositioning of the center from a dated neighborhood shopping establishment to a true lifestyle center catering to the needs and consumer preferences of area residents. By investing more than $2 million in renovations and upgrades to Norwood Market, its owners have not only created an aesthetically pleasing regional focal point, but they have also attracted a strong roster of new, highly complementary tenants.

Phase I of the project, which consisted of the renovation of the existing buildings, is complete. Phase II will entail the construction of a third building with 10,000 square feet of additional retail space which is slated for availability in the first quarter of 2012. Since the renovation began, the owners have leased 100 percent of the existing space at a prevailing rate slightly above $20 per square foot. Although there are no formal plans committed or announced, there has been discussion of extensive renovation to the Piggly Wiggly space.

The existing anchors of Norwood Market, Piggly Wiggly and CVS, have remained in place. The owners have brought in Family Dollar as an additional national tenant to anchor the center and broaden the spectrum of retail goods offered.

Cutters Point is a central daily gathering place for retirees chasing their first cup of coffee, as well as moms who have just dropped off their children at school or daycare, and business people pursuing a networking strategy. On most mornings, and particularly Saturdays and Sundays, one is hard-pressed to immediately land a table at Loc’s restaurant. Wright Square Café is a preferred destination for a relaxing lunch break or dinner after a hard day’s work.

For the sports and/or athletic buffs, there is the Sandfly Bar and Grill, a long time neighborhood fixture with an attractive new décor, and Savannah Power Yoga. Several new or updated gift stores offer a full array of unique and widely appealing merchandise. Simply put, there is something for everyone at Norwood Market, which makes it difficult for residents to pass through Sandfly without stopping in.

You do not have to be a seasoned shopping center developer to understand the primary determinants of success for a retail center. You need a rectangularly shaped site located on at least one corner of a signalized intersection of two busy traffic thoroughfares, and the site needs to have good visibility, multiple access points and plenty of room for off-street parking. But these factors alone do not ensure long term success and we all know a tired and outdated center when we see one.

For a retail center to thrive, the owner has to make periodic and substantial investments in facades, mechanical systems, amenities, landscaping and signage, as well as stay focused on and adapt to the ever changing needs and preferences of consumers and tenants. The owners of Norwood Market have followed this course and the result has been the successful rebirth of a vibrant neighborhood center.

The owners of Norwood Market, Shoppes at Isle of Hope, LLC, are partners with Talbot & Company, which is based in Myrtle Beach, SC. The architectural services were provided by Gunn, Meyerhoff and Shay, with construction completed by Talbot Real Estate Services, and leasing by Mary Christy Macdonald of Whitley & Associates.