325 RALPH D. ABERNATHY BOV - LoopNet · 2017-03-16 · 325 Ralph D. Abernathy Blvd. is a .30 acre lot (13,100 SF) sitting at the hard corner of a signalized intersection. This asset

ATLANTA, GA

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

ATLANTA, GA

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

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NON-ENDORSEMENT NOTICE

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RECENT SALES

Section 4 ON MARKET COMPARABLES

Section 5 MARKET OVERVIEW

Section 6 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

ATLANTA, GA

PRICING AND FINANCIAL ANALYSIS

PRICING AND FINANCIAL ANALYSIS325 RALPH D. ABERNATHYATLANTA, GA

Summary

Property 325 RALPH D. ABERNATHY

Property Address 325 RALPH D. ABERNATHY

Atlanta, GA 30312

Price $410,000

Lot Size (SF) 13,100

Lot Size (Acres) 0.3000

Price/Acre $1,366,667

` 13,100

Number Of Lots 1

Price/Lot $410,000

Type of Ownership Fee Simple

This information has been secured from sources we believe to be reliable, but we make no representations or warranties,expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer mustverify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap RealEstate Investment Services of Atlanta, Inc. © 2017 Marcus & Millichap. All rights reserved.

Financing

FIRST TRUST DEED

Loan Type All Cash

FINANCIAL OVERVIEW

ATLANTA, GA

PROPERTY DESCRIPTION

Marcus & Millichap presents 325 Ralph D. Abernathy Blvd. a .30 acre lot situated at the hard corner of a signalized intersection in the

dense, proximate, and walkable corridor of Ralph D. Abernathy Blvd.

Previously a corridor that served as game day parking for the Atlanta Braves and other events, Ralph D. Abernathy Blvd. exemplifies the

creation of value through density, walkability, and proximity to the transformational Georgia State re-development of Turner Field.

Centrally located to the interstate, transformational re-development, job centers, and neighborhoods, the Ralph D. Abernathy corridor will

receive value from the development of 66 single family homes for affordable housing on or near the main corridor.

Sitting on the same corridor and a short walk away, the re-development of Turner Field presents the possibility to transform 1,700 acres

making up 5 neighborhoods. In 2017, the Atlanta Braves will start the season at their new home SunTrust Park, located in Marietta GA.

Georgia State University and Carter, Oakwood Development, and Healey Weatherholtz Properties, its development partners, will re-

develop Turner Field. Presently, the re-development includes the conversion of Turner Field into a football stadium for the Georgia State

Panthers' 2017 season, student housing with 850 beds, and multi-family with 200 units and retail. Over the next decade, the future

possibility for value includes the development of a baseball stadium, student housing, work force housing, mixed use, transit, street grids,

and parks. The Turner Field re-development presents the possibility of generating $ 1 billion of investment.

325 Ralph D. Abernathy Blvd. is positioned to create value for the development of future single or multi-tenant retail.

Investment Highlights

■ Former Local Retail Corner Lot at Signalized Intersection and .2 Miles fromI-75/I-85 with Traffic Counts of 295,000.

■ Situated less than .2 miles from the Georgia State/Turner Field Re-development of 68 Acres Projected to Generate $ 1 Billion of Investment.

■ Within 1 Mile of Downtown Atlanta, Major Corridors, and MARTA

■ 1 Mile from Georgia State University, Grady Hospital, and the Offices of theFederal Government, State of Georgia, Fulton County, and City of Atlanta.

■ Walking distance from 3 Historic Single Family Neighborhoods on BothSides of the Georgia State University/Turner Field Re-development

■ 66 Single Family Homes to be Delivered on or near the Ralph D. Abernathycorridor.

■ Population Density over 18,000 within 1 mile, 148,000 within 3 miles andover 318,000 within 5 miles.

■ Opportunity to Create Value in Growth Corridor with Average HHI over $65,000 and Anticipated Median Income Growth of 15 % by 2019.

PROPERTY DESCRIPTION325 RALPH D. ABERNATHYATLANTA, GA


INVESTMENT OVERVIEW

325 Ralph D. Abernathy Blvd. is a .30 acre lot (13,100 SF) sitting at the hard corner of a signalized intersection. This asset has

184 ft. of frontage along Ralph D. Abernathy Blvd. and has 3 points of ingress/egress. It presents the opportunity to develop

retail and create value on a corridor with density, proximity, and walkability.

With a population over 18,000 within 1 mile and over 148,000 within 3 miles, the development of retail on this lot will

leverage density, proximity, and walkability to a number of market drivers. It sits within a mile of major job centers: Georgia

State University, Grady Hospital, and the offices of the Federal Government, State of Georgia, Fulton County, and Atlanta. It

sits within walking distance to Georgia State's 68 acre re-development of Turner Field. It sits within walking distance of 3

historic downtown Atlanta neighborhoods, Mechanicsville, Summer Hill, and Grant Park. It sits a short drive from the

entrance/exit to I-75/I-85 where the traffic count is over 295,000 cars a day. It is within a 1 mile radius of 2 MARTA transit

stations. Future development of this lot will serve and benefit from a growing diverse and millenial driven demographic with an

average age of 32 years, average HHI over $ 65,000, and anticipated median income growth of 15 % by 2019. Additionally,

this asset sits a mile from the explosive growth and traffic from Memorial Dr., which is set to receive $ 1 billion of

development in the form of 26 projects.

Any future retail development on 325 Ralph D. Abernathy Blvd. will flourish from the surrounding density, proximity, and

walkability.



INVESTMENT OVERVIEW



SURROUNDING DEVELOPMENT

66 NEW SINGLE FAMILY HOMES



PRESENT RETAIL



PROXIMATE JOB CENTERS

PROXIMATE JOB CENTERSNUMBERS

Delta Airlines 27,335

COCA-COLA 8,000

CNN 6,770

Grady Health System 4,932

AT&T 3,003

Hughes Spalding Childrens Hosp 3,000

Georgia-Pacific 2,857

Turner Broadcasting System Inc 2,820

Delta Technology LLC 2,760

Emory Crawford Long Hospital 2,500

Forscom Intelligence Ops 2,500

City of Atlanta 2,432



TURNER FIELD RE-DEVELOPMENT



MEMORIAL DR. DEVELOPMENT

26 PROJECTS

Memorial Drive Linear Park, Capitol Gateway A, Grant Park Apartments, The George Apartments, The Leonard Apartments, MARTA’s King Memorial Station, Capitol Gateway B, The Parker Apartments, Larkin on Memorial, Walter Davis Project, The Cube, Brother Moto, Grindhouse Killer Burgers, Charles Tate Project, Urban Realty Partners Project, Habitat for Humanity HQ, Atlanta Dairies, 841 Memorial, The Lofts at Reynoldstown Crossing, Leggett and Plat, The Heritage on Memorial, Urban Realty Partners Project (Wonder Root)



PERTINENT ARTICLES

From the Atlanta Business Chronicle:

First look at Turner Field's FutureJan 10, 2017, 2:51 p.m. EST

Days after buying Turner Field, Atlanta real estate company Carter andGeorgia State University have released new images of the project,along with their vision for the sweeping redevelopment.

The 68-acre site includes Turner Field - where the Atlanta Bravesplayed until last fall - and surrounding properties along Hank AaronDrive and Georgia Avenue, where the majority of the project will befocused.

Georgia State intends to transform the area into a sports complex.

It wants to have Turner Field renovated in time for its 2017 football season. The first phase of that work begins next month. More extensive renovations could take another two years.

GSU will also redevelop the site of the old Atlanta-Fulton County Stadium, where the school will put its baseball field. That could happen in about two years, pending state approval.

Over time, GSU president Mark Becker also wants to see acres and acres of parking turned into a mixed-use environment.

“The future of this area is not going to be massive parking lots,” Becker said.

Carter, along with Oakwood Development and Healey Weatherholtz Properties, is focused on remaking Hank Aaron Drive and Georgia Avenue into boulevards lined with new projects, including street-level retail.

The hope is one day that light rail would extend down Hank Aaron Drive from downtown, and plans show a proposed transit stops at theintersection of Fulton Street and Hank Aaron Drive, along with near Turner Field.

The first step for Carter: a new 850-bed student housing project just north of Turner Field. Carter wants to break ground by the end of the year.

It also plans a 200-unit apartment building along Hank Aaron Drive, with 10 percent of those units dedicated to workforce housing.

Carter and its team will likely close next week on an additional seven aging retail buildings along Georgia Avenue, which it plans to fill with local businesses such as restaurants and a coffee shop. Read more about the property here.

Carter President Scott Taylor said those buildings offer an authenticity retailers are looking for. He hopes to find tenants that speak to “the soul and spirit of Summerhill,” referring to the neighborhood where Turner Field was built.

Carter’s guide in planning the redevelopment has been the Turner Field Livable Centers Initiative (LCI), which would transform 1,700 acres and five neighborhoods surrounding Turner Field with new student housing, parks and transit. Taking place over the next decade, it could end up as one of the city’s largest-ever urban renewal projects.

“We want to be very respectful to the LCI process,” Taylor said. “None of our plans exactly reflect (the LCI), but they are components -greenspace, paying homage to the history of the site, retail, street-grids, sustainable development.”

There’s also a wildcard - landing a major employer that wants to put its office space along Hank Aaron Drive. That hope foreshadows just how stark the transformation of the area, including neighborhoods, might be.



PERTINENT ARTICLES

“Were it the case that a Fortune 100 company comes to Carter and says we need a million square feet of office … then we’ll just have to see how the corporate interests in these sites plays out,” Becker said.



PERTINENT ARTICLES

From the Atlanta Business Chronicle

Shops, restaurants planned near Turner FieldNov 18, 2016, 10:03am EST

Developers could bring life to a collection of dormant, graffiti-coveredbuildings by Turner Field - helping fulfill a long-awaited promise tospark investment in neighborhoods around the ballpark.

The team of private developers working with Georgia State Universityto redevelop 67 acres including Turner Field and its sprawling parkinglots could acquire additional property in the Summerhill neighborhoodof Atlanta.

A joint venture of Carter, Oakwood Development and HealeyWeatherholtz Properties has nearly 5 additional acres under contractthat includes more than 40 parcels along Hank Aaron Drive and GeorgiaAvenue, according to sources familiar with the deal.

Several low-rise buildings, mostly along Georgia Avenue, could be renovated and filled with new shops andrestaurants, with the hope of breathing life into an area that has long lacked retail options and has been cutoff from the economic activity in the city’s core for decades.

The parcels are owned by the Federal Deposit Insurance Corporation, which foreclosed on the land fromCapitol City Bank & Trust.

Scott Taylor, president of Carter, declined to comment on the acquisition.

The deal comes as the Carter, Oakwood and Healey Weatherholtz team continues to polish its broader master plan for the Turner Field area, which could include new student housing and retail such as a grocery store. Acquiring more land could give the team control of a critical corner, along with the ability to get started on reviving the area immediately.

“More than anything, it shows the long-term commitment to the area that Carter has,” said Suzanne Mitchell, president of the Organized Neighbors of Summerhill. “They are committed to the fabric of the community ... It really is moving forward with a nod to the past.”

Atlanta Mayor Kasim Reed has said the deal to sell Turner Field to Georgia State and its development team for $30 million should close by the end of the year. The Atlanta Braves played their last game at the stadium in October.

Filling the buildings along Georgia Avenue with new tenants, such as a funky coffee shop or local restaurant, could create a walkable district with a similar vibe to East Atlanta Village or Castleberry Hill.

Up-and-coming local retailers and restaurateurs could find it a compelling option as retail rents surge in popular intown neighborhoods such as Inman Park and Old Fourth Ward.

The structures along Georgia Avenue offer what many tenants today are seeking - authentic buildings with history and character. One of the best examples of this is at Ponce City Market, where the converted Sears, Roebuck and Co. building now is filled with new concepts from top chefs and retailers.

Take what the company did at Buckhead’s Shops Around Lenox. Once a bland suburban shopping center, Healey Weatherholtz added murals from Atlanta street artists and brought in trendy retailers including American Apparel and fab’rik, along with local restaurants Seven Lamps and Bhojanic. It later sold Shops Around Lenox for nearly $72 million, a record price at the time.

A joint venture of Carter, Oakwood Development and Healey Weatherholtz Properties has nearly 5 acres under



PERTINENT ARTICLES

“I think they can do a fine job with intown local retailers and restaurateurs that are looking for authentic buildings and reasonable rents,” said Atlanta retail expert George Banks, who this year launched Revel, a new retail consulting and development firm, with partner Kristi Rooks. “It allows them to create a sense of place immediately.”

The efforts along Georgia Avenue aren’t without their challenges, as questions linger as to whether there’s enough buying power in the immediate area to sustain new retail.

But, with the surge of development along Memorial Drive, including several projects from Krog Street Market developer Paces Properties, it’s widely agreed that new investment is pushing west from Grant Park.

“It’s directly in the path of good things,” Banks said. “It’s only a matter of time.”

Carter, Oakwood and Healey Weatherholtz’s strategy near Turner Field parallels another developer’s efforts in downtown.

The South Carolina developer that’s trying to acquire and remake Underground Atlanta just scooped up nine more south downtown properties that have been languishing for years. WRS Inc. recently paid almost $10 million for multiple properties including 74, 73, 70, 64, 57 and 55 Peachtree Street, along with 98, 96 and 60 Broad Street, according to Fulton County records. The collection of row-style buildings once made up the heart of downtown’s retail district. Today, some of the buildings are part of an emerging artists’ district on Broad Street.

WRS would renovate the buildings and bring in new ground-floor retailers.

“This section of Peachtree has much greater potential than what you see today,” Kevin Rogers with WRS said in an October interview with Atlanta Business Chronicle.



PERTINENT ARTICLES

City of Atlanta Celebrates Launch of Mechanicsville Cityside Project

News Release

City of Atlanta Celebrates Launch of Mechanicsville Cityside Project

Initiative aims to create homeownership opportunities for low-income families

ATLANTA - Mayor Kasim Reed and the Department of Planning and Community Development announced today the launch of the Mechanicsville Cityside initiative, the first scattered site development in the City of Atlanta. The project offers newly-built or renovated homes with affordable rents for working families. During a ribbon-cutting ceremony for Mechanicsville Cityside, Mayor Reed was joined by Georgia Department of Community Affairs Commissioner Camila Knowles, Department of Planning and Community Development Commissioner Tim Keane, SUMMECH Development Corporation Executive Director Janis Ware and Atlanta City Councilmember Cleta Winslow.

“Partnerships between the City, the State and the private sector are essential tools for creating quality, affordable housing options and opportunities in every neighborhood in Atlanta,” said Mayor Kasim Reed. “This new program will offer housing stability for more than70 families, and help make the dream of homeownership a reality.”

The Mechanicsville Cityside development aims to provide homeownership opportunities for low-income families. The families will rent the units for the first fifteen years of occupancy, and will then have the opportunity to purchase the home. Scattered site developments distribute affordable housing units in income-diverse neighborhoods, promoting greater economic inclusion. The Cityside development is spread over one square mile of land in the southeast Atlanta neighborhood.

“Thanks to the leadership of Mayor Reed, the Department of Planning and Community Development was able to take a lead role in establishing the partnership between the State of Georgia, SUMMECH CDC and Columbia Residential for this critical project,” said Commissioner Tim Keane, Department of Planning and Community Development. “We believe that this scattered site development in Atlanta will be an example for other municipalities to follow. It promotes affordability in communities that need it the most.”

The project consists of 66 new construction, single family homes being built on acquired vacant land and on land where formerly vacant single-family homes were demolished. Eight single family homes will be renovated for occupancy. Currently, seven homes are completed.

“This scattered site development is bringing a concentration of new homes to Mechanicsville that is spurring new investment in the community,” said Janis Ware, Executive Director of SUMMECH CDC. “SUMMECH is very excited about the possibilities and proud to be a partner in this venture.”

“We truly believe this scattered site initiative will have a positive impact on this deserving community,” said Noel Khalil, Chairman and Founder of Columbia Residential. “The value of the new and even the existing homes are increasing with this initiative, and we’re going to be able to see the benefits of this scattered site throughout the area.”

Funding for Mechanicsville Cityside is provided by the U.S. Department of Housing and Urban Development Low Income Housing Tax



SITE PHOTO



ABERNATHY CORRIDOR MAP



FUTURE DEVELOPMENT MAP



PROXIMITY MAP

Local Map Regional Map



AREA MAPS

ATLANTA, GA

RECENT SALES

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325 RALPH D. ABERNATHY419627985742EDGEWOOD800DEKALB260125

RECENT SALES325 RALPH D. ABERNATHYATLANTA, GA


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419419 GARTRELL ST.

Atlanta, GA 30312

627627 IRWIN ST.

Atlanta, GA 30312

325 RALPH D. ABERNATHY325 RALPH D. ABERNATHY BLVD.Atlanta, GA 30312

Subject Property

Close of Escrow: 3/18/2014 Lot Size (SF): 28,619

Sale Price: $432,500 Price/SF: $15.11

Down Payment: Lot Size (Acres): 0.6600

Down Payment %: Price/Acre: $655,303

Zoning: MR3 Lot Dimensions:


Sale Price: $1,000,000 Price/SF: $31.88


Down Payment %: Price/Acre: $1,388,889

Zoning: Lot Dimensions:



RECENT SALES

Sale Price: $410,000 Lot Size (SF): 13,100




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742742 MEMORIAL DR.

Atlanta, GA 30316

EDGEWOODEDGEWOOD@PIEDMONT AVE.

Atlanta, GA 30303

985985 MEMORIAL DR.

Atlanta, GA 30316





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RECENT SALES





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325 RALPH D. ABERNATHYATLANTA, GA


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DEKALBDEKALB AVE. N E

Atlanta, GA 30307

260260 GIBSON ST.

Atlanta, GA 30316

800800 GLENWOOD AVE

Atlanta, GA 30316





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10 350350 MEMORIAL DR.

Atlanta, GA 30312

125125 MORELAND AVE.

Atlanta, GA 30316

Close of Escrow: Lot Size (SF): 9,450




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ATLANTA, GA

ON MARKET COMPARABLES

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325 RALPH D. ABERNATHY489175313WALTHALL

ON MARKET COMPARABLES325 RALPH D. ABERNATHYATLANTA, GA


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1 489489 PEACHTREE ST. N E

Atlanta, GA 30308

175175 PEACHTREE ST. S W

Atlanta, GA 30309

325 RALPH D. ABERNATHY325 RALPH D. ABERNATHY BLVD.

Atlanta, GA 30312

Subject Property


List Price: $5,800,000 Price/SF: $142.21



Zoning: SPI-1 Lot Dimensions:







Sale Price: $410,000 Lot Size (SF): 13,100






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WALTHALLWALTHALL AND ARKWRIGHT

Atlanta, GA 30316

641641 MEMORIAL DR.

Atlanta, GA 30312

313313 HILL ST.

Atlanta, GA 30312


List Price: $900,000 Price/SF: $22.50



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346346 PETERS ST.

Atlanta, GA 30313

465465 GLENN ST.

Atlanta, GA 30312

Close of Escrow: On Market Lot Size (SF): 12,545













ATLANTA, GA

MARKET OVERVIEW

MARKET OVERVIEW325 RALPH D. ABERNATHYATLANTA, GA

Geography

The Atlanta metro is nestled in the rolling hills of

northwestern Georgia. The Chattahoochee River

and Stone Mountain are recognized as

spectacular geological features in the area.

Stone Mountain, located east of Atlanta, is a

major part of a granite vein running through the

region. With few natural barriers to limit

development, tremendous population growth

over the past decade expanded the metro’s

borders, which now encompass 21 counties.

Meanwhile, new redevelopment projects

downtown that present a vast array of housing,

entertainment and retail opportunities are

enticing residents back into the city.


Market Highlights

Heavy concentration of headquarters

■ Atlanta ranks fifth in the nation in the number

of Fortune 500 headquarters with 18,

including UPS, Coca-Cola, Delta Air Lines and

High median household income

■ The metro’s annual median household income

of $59,000 places it above the U.S. level of

Low costs of living and doing business attract jobs

■ A pro-business environment and affordable

home prices helped Atlanta rise to fourth in

the nation in job creation last year.

Atlanta-Sandy Springs-Marietta Metro

ATLANTA

MARKET OVERVIEW

Largest Cities in Metro by Population


* ForecastSources: Marcus & Millichap Research Services, U.S.Census Bureau, Experian

Metro

The Atlanta metro is home to more than 5.6

million residents. From 2010 to 2015, the

population rose by 351,100 people. In the coming

five years, annual population growth will flourish

even more rapidly with the addition of 481,600

people. Fulton is the most populous county in the

metro with 1 million residents. Atlanta is the

largest city, with 465,200 citizens.

Infrastructure

Atlanta’s extensive and well-developed

transportation network is a key competitive

advantage. Hartsfield-Jackson Atlanta

International Airport is the busiest passenger

airport in the world. It is also home to Delta Air

Lines and a major air cargo hub.

The metro’s extensive road, rail and airport

systems and its proximity to the Port of

Savannah ensure its status as the pre-eminent

distribution hub for the Southeast. CSX and

Norfolk Southern provide rail connections

nationally through five intermodal yards.

The Metropolitan Atlanta Rapid Transit Authority

(MARTA) operates train and bus service

throughout the region; its system contains

dozens of train stations running on four lines with

a link to the airport and around 125 bus lines.

The Atlanta Regional Commission is embarking

on an exciting new initiative that will provide


Atlanta 465,200

Sandy Springs 102,900

Roswell 95,700

Johns Creek 84,000

Alpharetta 62,500

Marietta 59,700

ATLANTA

Airports

■ Hartsfield-Jackson Atlanta International

Airport

■ Six reliever airports

Major Roadways

■ Interstates 20, 75, 85, 285 and 575

Rail

■ Freight - CSX, Norfolk Southern

■ Passenger - Amtrak

■ Commuter - MARTA

Atlanta is:

■ 250 miles from Savannah

■ 640 miles from Washington, D.C.

■ 720 miles from Chicago

■ 790 miles from Dallas

MARKET OVERVIEW

* ForecastSources: Marcus & Millichap Research Services,Bureau of Economic Analysis, Moody’s Analytics, U.S.Census Bureau, Fortune


Economy

The Atlanta economy is thriving, with both gross

metropolitan product (GMP) and retail sales

progressing above national levels. The metro

ranks high in the nation for Fortune 500

headquarters and serves as a financial hub for

the Southeast; it is home to SunTrust Bank and

the Federal Reserve Bank of Atlanta.

Many companies favor Atlanta for its low

corporate taxes, pro-business climate, and

access to national and global markets. The metro

boasts one of the country’s largest

concentrations of air transportation, cargo and

warehousing operations, making trade,

transportation and utilities the dominant

employment sector.

Atlanta is also an exceptional business and

government center. Numerous governmental and

educational entities are based in Atlanta,

including the Centers for Disease Control, the

Federal Reserve District Six and more than 30

accredited higher learning institutions.

Technology-focused R&D programs and

facilities at the universities boost high-tech

employment.

Media outlets have an immense presence in

Atlanta with CNN headquartered in the city, along

with Turner Broadcasting System, Cox

Communications and The Weather Channel. Five


2015 Atlanta Fortune 500 Headquarters

Home Depot Rock-Tenn

Newell Rubbermaid Genuine PartsThe Coca-Cola Co. First Data

Delta Air Lines AGCO

Coca-Cola Enterprises UPS

Southern Co. NCR

SunTrust Banks HD Supply

Asbury Automotive Aflac

ARRIS Group AGL Resources

ATLANTA


Labor

For the last five years, nonfarm employment in the Atlanta metro has consistently averaged higher

growth per year than the U.S. In the coming five years, this trend will continue as Atlanta posts an

average 2.0 annualized growth rate, exceeding the national average of 1.3 percent annually. With

the existing employment base totaling more than 2.6 million positions, job growth will sustain an

expanding economy.

Currently, the largest share of metro employment is represented by the trade, transportation and

utilities sector, which comprises 22 percent of jobs. The sector derives its strength from the region’s

position as the primary distribution hub for the Southeast; numerous large companies have office

and warehouse facilities in the area. Employment in trade, transportation and utilities is expected to

expand at an average rate of 1.6 percent annually over the next five years.

The professional and business services industry accounts for 19 percent of local jobs and is

projected to post annual gains of 2.8 percent through 2020. Expansion in this sector will fuel the

need for office space. Education and health services employment also continues to escalate as the

population rises. This sector currently provides nearly 321,800 jobs and is expected to average 3.1

percent annual growth in the coming five years.

During this period, all sectors will expand, but the fastest employment growth will be in construction.

The sector will add jobs at an annual pace of 3.8 percent as new housing starts increase and major

developments, such as facilities for the Atlanta Braves and Atlanta Falcons, proceed.


* ForecastSources: Marcus & Millichap Research Services, BLS, Moody’s Analytics

ATLANTA


Major Employers

Employers

Atlanta is one of the nation’s leading business

centers. In total, 18 Fortune 500 companies call

the metro their headquarters, and many of the

world’s most recognizable companies have a

substantial presence in the metro. Large

employers include Delta, Home Depot, United

Parcel Service (UPS) and Cox Communications.

Among these, both UPS and Cox chose to

relocate to Atlanta to take advantage of the high-

quality workforce, a low cost of doing business

and a well-developed transportation

infrastructure. Mercedes-Benz is in the process

of moving their headquarters to Atlanta, adding

hundreds of employees and State Farm will

anchor the largest corporate office project in the

metro. When completed, the 2.2-million-square-

foot mixed-use project in Dunwoody will house

8,000 employees.

Other major employers include transportation

companies such as Southwest Airlines and Delta

Air Lines, which has a local payroll of more than

27,000 workers. Many of the transportation jobs

are located at Hartsfield-Jackson Atlanta

International Airport.

Telecommunications companies in the metro

include AT&T, CNN and Cox Communications.

The area also hosts a growing biotechnology

industry, and defense manufacturer Lockheed

Martin is located in Marietta.

Atlanta has the largest concentration of * ForecastSources: Marcus & Millichap Research Services, BLS,Moody’s Analytics, Experian


ATLANTA

Gwinnett County Public Schools

Emory University

Delta Air Lines

Cox Enterprises, Inc.

Cobb County Public Schools

AT&T

Wal-Mart

UPS

WellStar Health Systems

Home Depot


Demographics

Atlanta’s emergence as a world-class business

center and the population shift to Sun Belt areas

continue to drive population growth. The metro is

ranked among the nation’s top 10 largest, and

will exceed 6 million residents by 2019.

Many of the young people who move to Atlanta

for employment have chosen to remain in the

region and have families. This has lowered the

median age to 35.6 years, which is younger than

the U.S. median. More than 62 percent of

residents are in their working years, and seniors

comprise just 10 percent of the population.

Educational attainment is high, as 34.6 percent of

the local population age 25 and older have

obtained at least a bachelor’s degree, up from 31

percent in 2000. Job quality has also increased,

as reflected in a median household income of

nearly $59,000 per year, above the national

median of $56,100 annually.

In the coming five years, the rise in household

income will outpace a tick up in home prices.

This trend should expand the homeownership

rate in the metro. Atlanta home prices are among

the most affordable of Southeastern cities, with a

median price of $175,900. This has contributed

to a homeownership rate of 64.2 percent, slightly

higher than the national average.* ForecastSources: Marcus & Millichap Research Services, AGS,Experian, Moody’s Analytics, U.S. Census Bureau


ATLANTA

MARKET OVERVIEW

The information contained in the market overview comes from sources deemed to be reliable, however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. The most timely data available at time of production, including estimates and forecasts, were used and may be subject to revision.


Quality of Life

The Atlanta metro features a surging business

environment and modern infrastructure while

providing entertainment and attractions in a safe

and comfortable community. With its genuine

Southern hospitality, Atlanta boasts a lifestyle

that attracts many people. Affordable housing

lowers the average cost of living, allowing

citizens to lead prosperous lives in the region,

whether in a rural or urban setting.

Outdoor and sports enthusiasts will find plenty to

enjoy. Mild weather year-round beckons

residents to hike and bike on the many trails in

and around Atlanta. Atlanta is also home to

professional sports franchises in the NFL, MLB,

NBA and WNBA.

The metro has several acclaimed cultural

institutions, including Zoo Atlanta and the High

Museum of Art. Central Atlanta continues its

urban renaissance with an abundance of

nightclubs, restaurants and entertainment

venues, including the Atlanta Symphony

Orchestra and the Atlanta Ballet. The Georgia

Aquarium, the National Center for Civil and

Human Rights, the College Football Hall of Fame

and the World of Coca-Cola museum are all

located downtown in Centennial Park.* ForecastSources: Marcus & Millichap Research Services,Economy.com, National Association of Realtors, U.S.Census Bureau


ATLANTA


Surging Atlanta Economy Supports Retail Spending,Driving Vacancy Rates to New Lows

Increasing consumer spending coupled with a slowdown in retail construction will further tighten the

strong Atlanta retail market. Demand for retail space has risen due to favorable demographic trends.

In addition, several high-profile projects are in the works that will create new retail and trade areas,

including new NFL and MLB stadiums expected to open in 2017. These projects will provide

substantial economic lift to surrounding retailers and enhance the opportunity to attract marquee

events to Atlanta. The warm climate, ample job opportunities and affordable cost of living are also

having a positive impact on demographic trends. Population growth, particularly among the high-

spending cohort of 20- to 34-year-olds, is nearly triple the national rate, underpinning the strongest

period of retail sales growth in three years. Despite robust optimism, construction will slow in 2016

with annual completions stalling to well below the five-year average. A decline in metro development

will allow the metrowide vacancy rate to fall to a 10-year low in 2016. Tight market conditions will

encourage a rent uptick, with the average asking rate reaching the highest point since mid-2011.

Investor demand for Atlanta retail assets will remain intense in 2016 with high occupancy rates and

a strong economic outlook holding interest. Buyers outnumber sellers in the metro, forcing highly

motivated investors to bid aggressively on available assets. This competitive buying environment

has helped push valuations to a 15-year high, led primarily by gains in single-tenant pricing. Deal

flow is overwhelmingly centered on transactions in the $1 million to $10 million price tranche,

although some activity occurs for more expensive properties by out-of-state buyers. Cap rates for

fast-food properties with a nationally recognized tenant will trade in the 4 percent range with

drugstore assets hovering in the 6 percent area. On the multi-tenant side rates average in the 7

percent area depending on asset quality, location, tenant mix and lease structure.


* Forecast

ATLANTA


2016 Market Forecast


* ForecastSources: CoStar Group, Inc.; Real Capital Analytics

ATLANTA

NRI Rank23, up 3 places

Employmentup 3.2%

Construction760,000 sq. ft.

Vacancydown 80 bps

Rentup 1.1%

Investment

A steep decline in vacancy and strong employment growth pushed Atlanta upthree spots.

Metro employers will hire 84,000 new workers in 2016, an increase of 3.2 percent.Last year, Atlanta organizations added 77,000 jobs, led by gains in theprofessional and business services sector.

The pace of construction will slow this year as developers bring 760,000 squarefeet of retail space to market. In 2015, builders completed 922,000 square feet.

Following an 80-basis-point drop last year, the metro’s vacancy rate will fall 80basis points in 2016, landing at a 10-year low of 7 percent by year end.

The average asking rent will reach $13.55 per square foot this year, an increaseof 1.1 percent. Last year, metro rent remained flat at $13.40 per square foot.

In-town properties and assets in the northern suburbs will draw heavy investorinterest. Specialty grocers with some health component will also attract attention.

ATLANTA, GA

DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles

2000 Population 17,112 138,822 305,053

2010 Population 15,994 133,313 289,057

2014 Population 17,701 147,611 318,529

2019 Population 18,988 153,054 327,747

2000 Households 4,880 49,836 117,890

2010 Households 5,918 53,024 123,622

2014 Households 6,549 58,752 136,671

2019 Households 7,251 62,702 144,185

2014 Average Household Size 2.25 2.06 2.10

2014 Daytime Population 16,445 161,819 267,777

2000 Owner Occupied Housing Units 20.80% 29.76% 36.16%

2000 Renter Occupied Housing Units 65.83% 57.46% 53.57%

2000 Vacant 13.37% 12.79% 10.26%



2014 Vacant 14.84% 16.45% 13.39%



2019 Vacant 14.87% 16.77% 13.75%

$ 0 - $14,999 42.6% 30.5% 24.6%

$ 15,000 - $24,999 19.1% 14.7% 13.9%

$ 25,000 - $34,999 10.7% 11.2% 11.5%

$ 35,000 - $49,999 7.7% 11.9% 12.4%

$ 50,000 - $74,999 7.2% 12.2% 13.1%

$ 75,000 - $99,999 5.3% 6.9% 7.5%

$100,000 - $124,999 2.6% 4.8% 5.6%

$125,000 - $149,999 1.9% 2.5% 2.9%

$150,000 - $199,999 1.8% 2.7% 3.6%

$200,000 - $249,999 0.4% 0.9% 1.8%

$250,000 + 0.8% 1.8% 3.2%

2014 Median Household Income $19,391 $29,168 $35,048

2014 Per Capita Income $14,177 $22,732 $29,355

2014 Average Household Income $35,993 $51,818 $65,436

Demographic data © 2012 by Experian.

DEMOGRAPHIC ANALYSIS325 RALPH D. ABERNATHYATLANTA, GA


DEMOGRAPHIC REPORT

Geography: 5 miles

Population

In 2014, the population in your selected geography is 318,529. The population has changed by 4.41% since 2000. It is estimated thatthe population in your area will be 327,746 five years from now, which represents a change of 2.89% from the current year. Thecurrent population is 51.24% male and 48.75% female. The median age of the population in your area is 32.7, compare this to theEntire US average which is 37.3. The population density in your area is 4,055.30 people per square mile.

HouseholdsThere are currently 136,670 households in your selected geography. The number of households has changed by 15.93% since 2000.It is estimated that the number of households in your area will be 144,185 five years from now, which represents a change of 5.49%from the current year. The average household size in your area is 2.09 persons.

Income

In 2014, the median household income for your selected geography is $35,047, compare this to the Entire US average which iscurrently $51,972. The median household income for your area has changed by 18.78% since 2000. It is estimated that the medianhousehold income in your area will be $40,478 five years from now, which represents a change of 15.49% from the current year.

The current year per capita income in your area is $29,355, compare this to the Entire US average, which is $28,599. The current yearaverage household income in your area is $65,436, compare this to the Entire US average which is $74,533.

Race & EthnicityThe current year racial makeup of your selected area is as follows: 33.36% White, 59.06% Black, 0.03% Native American and 3.46%Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 4.41% of the current year populationin your selected area. Compare this to the Entire US average of 17.13%.

HousingIn 2000, there were 47,508 owner occupied housing units in your area and there were 70,381 renter occupied housing units in yourarea. The median rent at the time was $499.

Employment

In 2014, there are 267,776 employees in your selected area, this is also known as the daytime population. The 2000 Census revealedthat 60.72% of employees are employed in white-collar occupations in this geography, and 39.00% are employed in blue-collaroccupations. In 2014, unemployment in this area is 10.92%. In 2000, the average time traveled to work was 28.4 minutes.




SUMMARY REPORT

Number of people living in a given area per square mile.




POPULATION DENSITY

The number of people employed in a given area per square mile.




EMPLOYMENT DENSITY

Average income of all the people 15 years and older occupying a single housing unit.




AVERAGE HOUSEHOLD INCOME

Two-way, average daily traffic volumes.Traffic Count data © 2012 by TrafficMetrix. All rights reserved.



TRAFFIC COUNTS

* Traffic Count Estimate

ATLANTA, GA

OFFERING MEMORANDUM

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325 RALPH D. ABERNATHY BOV - LoopNet · 2017-03-16 · 325 Ralph D. Abernathy Blvd. is a .30 acre lot (13,100 SF) sitting at the hard corner of a signalized intersection. This asset