DEVELOPMENT OPPORTUNITY 236 Williams Street, 30303
2 3 DEVELOPMENT OPPORTUNITY SECTION ONE EXECUTIVE SUMMARY Jones Lang LaSalle, as exclusive representative of Owner, is pleased to present the opportunity to develop (in partnership) 236 Williams Street,, GA 30303. The site is uniquely situated at the East entrance of Olympic, with easy accessibility to downtown amenities and tourist attractions, as well as Street and Marta. The 1.8 acre property is zoned C3 SPI I, with frontage on Olympic Drive, John Portman Blvd and Williams Street. Inter Holdings, through its subsidiaries, owns the Property and is seeking a partner to develop a mixed-use project on the site. Inter s goal is to own the condominium interest in a multi-level parking facility within the project at completion. Interpark s land basis shall serve as its equity contribution. The chosen partner will own remaining interest in the Property at completion. Organizational structure of the partnership is negotiable, but Inter requires that chosen partner leads all facets of the project, including but not limited to the design, financing, construction, leasing and management. INTERPARK HOLDINGS Inter is North America s premier owner, operator and developer of parking facilities. Their ownership perspective and operating expertise result in a superior parking experience for customers. The utilization of garage access, payment and security technology, coupled with leading edge point-of-sale support systems, put Inter at the forefront in operating complex, high volume parking properties. Inter parks over 20 million cars annually and has a first class team of nearly 1,000 people providing each one of our customers a safe, clean, efficient and courteous parking experience.
MARIETTA LUCKIE OUNG INTERNATIONAL BLVD national laza PHILIPS DR PARKER SIMPSON LATIMER MARIETTA VENABLE East MCAF Metro Chamber MARIETTA L LOVEJO PARKER 4 Twelve 5 Summit Federal 55 Renaissance W Allen Square Downtown Civic World Congress A DOME, GWCC, PHILIPS ARENA, CNN Philips Arena Hilton Garden Inn SITE OVERVIEW Aquarium PARK AVENUE WE CNN PARK AVE WE CENTENNI AL OLYMPIC PARK DRIVE MILLS World of Coca-Cola, with direct pedestrian Embassy access to both the East and Suites West sides of downtown. Located Olympic Hotel between the American Cancer Society headquarters and an existing Holiday Inn, the Property is just a half block from the Streetcar route and ¼ mile from the Marta Station. Omni Hotel Pemberton Place The Property is uniquely located directly across from Olympic in the middle of downtown Olympic The Glenn WALTON State Bar of DR PARK OLYMPIC CENTENNIAL NASSAU SPRING SPRING WE PL SIMPSON BAKER AKA HONORARY XERNONA CLAYTON WAY Inforum- American Cancer Society JOHN PORTMAN BLVD Dept. of Family and Children Services 75 Marietta 55 Marietta WILLIAMS Turner 11th District Court of Appeals 11th District Court of Appeals AKA HIORIC HARRIS ANDREW YOUNG INTERNATIONAL BLVD LUCKIE Imagine It! Children s Museum CONE Property Site Holiday Inn The Tabernacle IVAN ALLEN JR. BLVD Marriott Downtown F A I R L I E - P O P L A R L A N D M A R K D I S T R I C T Hotel ATL 3 2 Balzer Theatre Rialto for the Arts State University Healey POPLAR SPRING Walton Spring Hampton Inn Holiday Inn Express AmericasMart CARNEGIE WY Quality Hotel Fulton County Library Central Library LUCKIE Aderhold Learning WILLIAMS Flatiron 100 30 Allen Inn at the s 1 230 200 270 260 Westin Courtyard by Marriott Residence Inn 180 The Ellis Candler WE Hardy Ivy PORTER PL 241 55 Place North First United Methodist Church South Cornerstone ALEXANDER Hyatt Place Downtown 191 Ritz-Carlton SunTrust Hyatt Regency Harris International AVE AVE Mayors Sacred Heart Catholic Church Marquis Two Marquis One SunTrust COURTLAND CURRIER 75 85 BAKER AKA HONORARY XERNONA CLAYTONWAY Marriott Marquis JOHN PORTMAN BLVD Agatha s A Taste of Mystery ELLIS AKA HIORIC HARRIS COURTLAND Folk Art Motel 6 Life Insurance Company Hilton Oxford Industries ANDREW YOUNG INTERNATIONAL BLVD Sheraton JOHN WESLEY DOBBS AVE AVE PIEDMONT 75 Piedmont Calhoun RALPH MCGILL BLVD Power State University Piedmont Housing State University University Commons Big Bethel AME Housing Authority Odd Fellows
6 DOWNTOWN ATLANTA The area surrounding Olympic is a major tourist destination in the southeast, highlighted by the Aquarium, the World of Coke, the for Civil and Human Rights, the College Football Hall of Fame, the CNN and SkyView (ferris wheel) among many others. The World Congress, one of the largest and most active convention centers in the U.S., is located 1/3 acre from the Property. Phillips Arena, Dome and the new Stadium (Falcons and future MLS expansion team) are all an easy walk and within a half-mile of the site. The Streetcar stops just one-half block from the site, connecting Olympic with the historic Auburn Avenue area and the MLK. 7 CNN 300,000 visitors per year Opened as CNN in 1987 Phillips Arena 1,500,000 visitors per year Aquarium 2,200,000 visitors per year Opened November 23, 2005 State of the art aquarium housing 100,000 animals in six galleries ranging from rivers, freshwater, tropical, coldwater, and ocean environments World headquarters for CNN offering studio tours, demonstrations, and viewing galleries overlooking newsrooms and anchors. Houses the Omni Hotel at CNN, as well as two dozen restaurants and stores Opened September 18, 1999 23 million visitors since opening Top 5 venue in the country as rated by Pollstar, selling over 500,000 concert tickets in 2013 Home to the Hawks, the Dream, and popular event and concert venue World of Coca-Cola 1,000,000 visitors per year Opened May 24, 2007 Permanent exhibit of the history and advertisement of Coca-Cola featuring interactive displays like the product tasting center and Vault of the Secret Formula for Civil and Human Rights 350,000 anticipated per year Opened June 2014 A newly constructed facility that includes a museum, archives, and cultural and research center commemorating the contributions of ns to the struggle for African- American freedom and equality, and to those struggles worldwide Centenial Olympic 1,400,000 visitors per year Opened 1996 The largest downtown park in the country developed in the last 25 years, the park sponsors community-wide free events, including the Fourth of July Celebration, concert series and Family Fun Days. The also hosts festivals, fundraisers, and private events World Congress 3,000,000 + visitors per year College Football Hall of Fame 450,000 anticipated per year Scheduled to open Fall 2014 Football hall of fame and museum relocating from South Bend, Indiana to newly constructed facility Opened in 1976 International trade and exhibition center that also hosts conventions, trade shows, and major events such as SEC Football Fanfare, The International Car Show, and Cheersport competitions.
8 9 SECTION TWO PROPERTY DETAILS CITY OF ATLANTA INCENTIVES Tax Allocation District (Tax Increment) Financing Almost all of Downtown falls within one of two Tax Allocation Districts (TAD) Eastside and Westside. TADs offer developers a method of paying for public improvements within these districts via the increases in tax revenue resulting from the revitalization of this district. Tax allocation bonds are used to finance these redevelopment costs within a TAD. The bonds are issued on a pledge of the projected increase in ad valorem revenues from the proposed TAD redevelopment for their repayment. Tax-Exempt Bond Financing from Invest s Housing Finance Team (Urban Residential Finance Authority - URFA) This citywide incentive provides loans to developers of the proceeds of bonds sold by URFA. The proceeds, which must go toward permanent financing for the development, are intended to encourage affordable housing with a mix of market rate units. Housing Opportunity Bond Financing from Invest s Housing Finance Team (Urban Residential Finance Authority - URFA) This fund provides below market rate loans to developers planning mixed-income rental housing in the City of. Business Improvement Loan Fund Provides financing to businesses for additions and improvements to commercial, industrial and mixed-use property to encourage revitalization and support commercial and industrial development in designated areas. The Phoenix Fund The Fund assists small and medium-sized businesses with affordable loans up to $100,000 and provides financial assistance for the construction or renovation of privately owned commercial buildings, equipment purchases, etc. New Market Tax Credits from Invest Invest has been awarded $80 million of New Market Tax Credits from the U.S. Treasury to be used as gap financing for projects within Downtown. Developers of commercial projects can save up to 20% of development costs through access to below market rate loans or equity investments. Neighborhood Development Partnership (ANDP) Programs & Loan Funds ANDP s Community Investment & Redevelopment Loan Fund makes predevelopment, construction, bridge land acquisition and other loans to spur affordable and mixed-income housing developments. Land Bank Authority (LBA) The Fulton County/City of Land Bank Authority has the power to extinguish tax liens and resell tax-foreclosed properties to support their development as tax paying properties.
10 11 The East-West route serves as Phase One of the Streetcar project, connecting the Olympic area to the Martin Luther King Jr. National Historic Site. Route: East-West route running 2.7 track miles with 12 stops Vehicle: Electric streetcar vehicle a modern electric streetcar made by Siemens Property Site Operation: Overhead power system (single trolley wire) that operates on-street in lanes shared with other traffic Frequency: Planned service includes a 15-minute frequency on average with a 10-minute one-way running time Hours: Service will operate 7 days a week; 5:00 am to 11:00 pm weekdays, 8:30 am to 11:00 pm Saturdays, and 9:00 am to 10:30 pm Sundays* Ridership: Project estimates anticipate 2,600 riders each weekday
12 13 Zoning: C3 SPI 1 CONCEPT PLAN Zoning, overlay, and FAR entitlements allow for a maximum density of 2,750,000 sf. 1.8227 Acres 200 linear feet frontage on Olympic Drive 200 linear feet frontage on Williams Street 400 linear feet frontage on John Portman Blvd CURRENT MASSING UDY CONTEMPLATES THE FOLLOWING CONSERVATIVE SCENARIO: 8 story parking structure 1-300,000 s.f. - 15,000 s.f. floor plates - 20 stories 2-500,000 s.f. - 25,000 s.f. floor plates - 20 stories
14 15 SECTION THREE MARKET OVERVIEW Aquarium for Civil and Human Rights World of Coke
MARIETTA LUCKIE OUNG INTERNATIONAL BLVD national laza PHILIPS DR PARKER SIMPSON LATIMER MARIETTA VENABLE East MCAF Metro Chamber MARIETTA L LOVEJO PARKER 16 Twelve 17 Summit Federal 55 Renaissance W Allen Square Downtown Civic World Congress A World Congress DOME, GWCC, PHILIPS ARENA, CNN Philips Arena Hilton Garden Inn Aquarium Aquarium CNN and Phillips PARK AVENUE WE Omni Hotel Embassy Suites Hotel CNN PARK AVE WE CENTENNI AL OLYMPIC PARK DRIVE Pemberton Place MILLS World of Coca-Cola Olympic Olympic Olympic The Glenn for Civil and Human Rights World of Coke WALTON State Bar of DR PARK OLYMPIC CENTENNIAL NASSAU SPRING SPRING WE PL SIMPSON BAKER AKA HONORARY XERNONA CLAYTON WAY Inforum- American Cancer Society JOHN PORTMAN BLVD Dept. of Family and Children Services 75 Marietta 55 Marietta WILLIAMS Turner 11th District Court of Appeals 11th District Court of Appeals AKA HIORIC HARRIS ANDREW YOUNG INTERNATIONAL BLVD LUCKIE Imagine It! Children s Museum CONE Property Site Holiday Inn The Tabernacle IVAN ALLEN JR. BLVD Marriott Downtown F A I R L I E - P O P L A R L A N D M A R K D I S T R I C T Hotel ATL 3 2 Balzer Theatre Rialto for the Arts State University Healey POPLAR SPRING Walton Spring Hampton Inn Holiday Inn Express AmericasMart CARNEGIE WY Quality Hotel Fulton County Library Central Library LUCKIE Aderhold Learning WILLIAMS Flatiron 100 30 Allen Inn at the s 1 230 200 270 260 Westin Courtyard by Marriott Residence Inn 180 The Ellis Candler WE Hardy Ivy PORTER PL 241 55 Place North First United Methodist Church South Cornerstone ALEXANDER Hyatt Place Downtown 191 Ritz-Carlton SunTrust Hyatt Regency Harris International AVE AVE Mayors Sacred Heart Catholic Church Marquis Two Marquis One SunTrust COURTLAND CURRIER 75 85 BAKER AKA HONORARY XERNONA CLAYTONWAY Marriott Marquis JOHN PORTMAN BLVD Agatha s A Taste of Mystery ELLIS AKA HIORIC HARRIS COURTLAND Folk Art Motel 6 Life Insurance Company Hilton DOWNTOWN ANNUAL ATTENDANCE: Sporting Events 4.8 Million Oxford Industries Concerts & Shows 2.6 Million ANDREW YOUNG INTERNATIONAL BLVD JOHN WESLEY DOBBS AVE AVE PIEDMONT Conventions Calhoun RALPH MCGILL BLVD Power 2.1 Million ANNUAL ATTENDANCE AT DOWNTOWN ATTRACTIONS: Olympic... Sheraton 3 Million Visitors Aquarium... 2.2 Million Visitors State University Piedmont Housing World of Coca-Cola... 1.1 Million Visitors Martin Luther King, Jr. National Historic Site... 700,00 Visitors College Football Hall of Fame... 450,000 Visitors est. National for Civil and Human Rights... 350,000 Visitors est. CNN Studio Tours... 300,000 Visitors est. State University Imagine It! Children s Museum... 200,000 Visitors University Commons DOWNTOWN IS HOME TO MORE THAN 8 MILLION SQUARE FEET OF CONVENTION SPACE: AmericasMart: 4.2 MSF World Congress : 3.9 MSF 75 Dome: 102,000 SF Stadium Space Piedmont Boisfeuillet Jones Civic : 5,800 SF Ballroom / 4,600 Seat Theater Philips Arena: 17,000 SF Exhibit Space Attractions 13 Million Big Bethel AME Housing Authority Odd Fellows
18 19 HOTELS The metro area hosts an estimated 37 million visitors each year who spend approximately $12 billion. Attractions: Visitation to has grown substantially as a tourism hub, thanks to its prominence in sports ( is home to six professional sports teams), and a growing number of restaurants, entertainment venues, and cultural attractions. International Tourism: s unique tourism offerings and excellent air access has made the city a top destination for international travelers. In 2011 the city was the twelfth most visited US city by international tourists. Visitor Profile: Approximately 70% Business visitation and 30% Leisure Average party size was 1.9 people (2011) Average length of stay 2.4 days (2011) International visitation has been growing at more than twice the US average since 2010. 70% Leisure 30% Business RETAIL Downtown is projected to add significant retail demand over the next 20 years that could amount to 725,000 square feet of absorption. Who s driving the demand? Young people (the average age of a Downtown resident is 30) with higher incomes who choose to live Downtown so they can walk to dinner, shops and attractions. They re joined by a booming student population Downtown is home to 53 percent of the city s college-goers. Take these desirable demographics, add an additional 22,000 daytime workers by 2030, and you have an area that s ripe for retail growth. Downtown spending generates $23,007,000 in sales tax revenue. While Downtown has 4% of the city s population, it generates 8% of its sales tax revenue. 23,202 People Live Downtown 118,000 People Work Downtown 62,170 People Study Downtown 13 Million People Play Downtown Downtown spending by category Category Dollar Amount Restaurants/Bars $374,200,000 Apparel/Accessories $65,566,000 Motor Vehicles/ Parts $54,483,000 General Merchandise $44,294,222 9% 8% 6% 23% 54% Apparel/Accessories Restaurants/Bars Motor Vehicles/Parts General Merchandise Other $160,557,000 Other Total $699,100,222 Downtown spending by group Group % of Total Spending Conventioneers 21% Tourists 13% 20% 12% 34% Employees Conventioneers Students Households 20% Students 12% Employees 34% 13% 21% Tourists Households Marriott Marquis - Downtown Source: Central Progress / RCLCO, Downtown Development Forecast, June 2011
20 21 HOUSING The news is out: Downtown is growing faster than the state and the country in population, housing and median income. Who s behind this increase? Young, upwardly mobile residents who are attracted to Downtown s easy accessibility, popular entertainment venues and affordable housing options. As this population continues to grow, so will its need for quality places to live. The occupancy rate for one-bedroom units in Downtown is 98.1%, which is the highest among in-town submarkets. s.f. 300,000 Outlook Looking forward to the second half of the year, expect value conscious tenants to continue to renew within the submarket. Driven by tenant- Overall absorption, deliveries, and vacancies favorable terms, walkable urban-oriented environment, and access to various modes of transportation Downtown will remain an active office submarket. 30% 13,542 Downtown Housing Units 10,758 Downtown Households 5,957 New Units Constructed Downtown since 2007 1.87 Average Downtown Household Size $17,000 Annual Spending Per Downtown Household $183,961,800 Downtown Households Annual Economic Impact 200,000 100,000 0-100,000-200,000 20% 10% Demand for new units will be driven by 15 to 34 year olds earning $35,000 to $75,000 who are drawn to Downtown for its: Excellent access to jobs and transit. High level of entertainment options and amenities, especially relative to the suburbs. Affordable housing stock. -300,000-400,000 0% 2010 2011 2012 2013 YTD 2014 Overall net absorption (s.f.) Delivered (s.f.) Overall vacancy (%) Source: JLL Research Trends result in a demand for 8,800 new, market-rate residential units over the next 20 years. The Streetcar contributes to these numbers by 800 units. Source: Central Progress / RCLCO, Downtown Development Forecast, June 2011, U.S. Census / Haddow & Associates, Haddow s Apartment Report, Third Quarter 2012 OFFICE Market conditions Coca-Cola. Deloitte. Stevens & Wilkinson. Morgan & Morgan. What do these firms have in common? Each has recently renewed their commitment to the Downtown submarket by signing for new space or renewing in place. In fact, nearly forty percent of all transactions over the past 12 months have been renewals a statistic we expect to increase. For the most part firms are drawn to the area by the perceived value. With average asking rates $6.15-per-square-foot lower than Midtown and $6.91-per-square-foot lower than Buckhead, occupiers are finding Downtown s leasing conditions attractive. Landlords are offering one month of free rent per year of term on average and tenant improvement packages for new deals ranging between $20.00 and $30.00-persquare-foot, depending on length of term. The walkable urban environment which is home to much of s entertainment, tourism, and convention venues shows well to visitors and adds a unique vibrancy during the day. In contrast to Midtown, however, the area lacks the true 24-hour buzz because of its lack of modern residential and retail inventory.
22 23 DOWNTOWN INVEMENT, 2007-2012 2007 2008 2009 2010 2011 2012 Total Housing Units 257 404 489 1,236 348 564 3,298 Student Beds 2,000-325 145 900-3,370 Hotel Rooms 127 242 121-506 - 996 Office Space (SF) 334,970 295,000 165,000-29,000 238,000 1,061,970 Retail Space (SF) 89,779 206,843 102,176 42,900 21,526 110,500 573,724 Institutional Space (SF) 116,000 125,648 16,500 347,000 17,000 900 623,048 Total Investment (in millions) $583.4 $727.3 $477.5 $433.5 $395.7 $304.2 $2,921.6 Source: Central Progress Additionally, $142 million in public capital has been invested Downtown. COMMERCIAL REAL EATE MOMENTUM IN BROADENING Year-over-year percent change is s fundamentals Y-o-Y Vacancy rates New construction YTD net absorption Asking rental rates Multifamily -0.12 0.8% -6.1% 3.7% Industrial -16.9% 922% 22.7% 2.2% Office -7.8% 84.7% 346.6% 1.3% Retail -8.9% -29.7% 74.4% -2.3% Source: JLL Research, Reis
Development & Asset Strategy Scott Cullen 404 995 2127 scott.cullen@am.jll.com Mark Lindenbaum 404 995 2181 mark.lindenbaum@am.jll.com Justin Bates 404 995 6514 justin.bates@am.jll.com Jones Lang LaSalle 2014 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof. 02765_09.14