CarterBlog

Carter Continues to Grow the Banks- Plans are to double the size of its residential and retail components

By Laura Swadel, director, Carter

ATLANTA (Nov. 29, 2011) - The Banks mixed-use development in downtown Cincinnati plans to double the size of its residential and retail components.

According to an article in The Cincinnati Enquirer on Sunday, these plans put The Banks a year ahead of schedule with more than $75 million in new private investment.

Carter serves as the master developer for The Banks. By 2019, The Banks will be 1.9 million square feet of new development including 1,000 residential units, a hotel, a new office tower and at least 400,000 square feet of retail space.

The development’s fast-tracked schedule is largely due to a $23 million federal stimulus grant that helped fund a 729-space public parking garage. The deck serves as the foundation for the first phase of the project, which delivered 77,000 square feet of retail space and a 300-unit apartment community, Current at The Banks.  According to the article in The Enquirer, Current is 98-percent leased.

Former Carter Vice Chairman Trent Germano, who oversees The Banks project as a consultant, is pleased with the development’s success, especially considering the current economic climate.

Just last week, the development team was able to secure an important extension from the city and county, giving it another year to attract key retail tenants. Germano hopes to sign four more tenants by early next year.

“Sure, we would have liked to have been five months ahead of where we are in retail leasing by now,” Germano told the Enquirer. “But if we think about the overall economy – and where we’ve come from – we’re still on the front of the curve of seeing improvement. As retailer’s look to expand, we’re high on the list.”

Toby Keith’s I Love This Bar & Grill, Crave and Tin Roof all plan to open next month. These restaurants will join Holy Grail Bar & Grill and Johnny Rockets that opened this year.

Located between the Great American Ball Park and Paul Brown Stadium, The Banks spans 18 acres and features residential, office, retail and restaurant options for all to enjoy. Carter was selected by the City of Cincinnati and Hamilton County to serve as Master Developer for The Banks. Carter also served as Program Manager for the construction of the City and County-funded parking garage and infrastructure components of the project.

To read the complete article that appeared in the Cincinnati Enquirer, click here.

 

City of Enid Votes to Expand Carter’s Role on Enid Renaissance Project

By Danny Jardine, senior vice president, Carter

ENID, Okla. (Nov. 28, 2011) - Enid city commissioners recently approved to appropriate $243,690 to expand Carter’s program management contract to include management of construction activities for the Enid Renaissance Project in Enid, Okla.

The Carter K-12 team is the project manager for the $24.5 million project and has acted as the city’s administrative representative for construction on the project.

An article on EnidNews.com explains Carter’s expanded duties on the project will include coordination of activities with the demolition contractor, utility contractor, event center contractor, convention hall renovation contractor and utility companies. 

The Enid Renaissance project includes the construction of a new multipurpose events center, which will contain an exhibit, concert and multipurpose sports arena. Carter is also completing the renovations to the existing convention hall that will house three large ballrooms that can accommodate 800 guests, a new full service kitchen and 10 meeting rooms.

Carter has provided a valued service to the citizens of Enid for almost two years and we have a proven track record in the community due to our successful project with the Enid public schools. We are looking forward to helping the city embark on this landmark project.

 

Windham Brannon, P.C. Moves into New Home at 3630 Peachtree

By Mary Kathryn Kennon, marketing coordinator, Carter

ATLANTA (Aug. 17, 2011) - Windham Brannon, P.C. has 150 employees settling into their new 35,000-square-foot home in 3630 Peachtree. Back in April, we reported that Carter's Dale Lewis represented Windham Brannon in finding the firm's new location and signing a 12-year, six-month lease.  The accounting firm then began the search for a project management firm to manage the design, construction and relocation for their new offices. The firm needed to consolidate two separate offices into one location in a short timeframe. Due to Carter's industry knowledge and tailored delivery process, Carter's Interiors Project Management Team was selected as the right group for the job. Senior Vice President, Nan Loudon, and Senior Project Manager, Donna West, from Carter headed up the project. Carter Vice President, Carey Poole, also played an instrumental role in the furniture evaluation, selection and procurement process.

Carter was hired on April 4, 2011 and within a week the balance of the project team was selected. Construction documents were completed by mid-May and construction commenced on June 1. The build-out was complete on Aug. 5 and Windham Brannon's first day of business in their new space was Aug. 8.  

The entire Cater team was responsible for delivering the project within Windham Brannon’s desired schedule. The typical timeframe to obtain a permit for this size project is between three and four weeks. Dale Lewis contacted the Atlanta Development Authority to ask for assistance on obtaining a permit quickly based on Windham Brannon's ability to add new jobs in the city of Atlanta. The interiors team was able to meet with ADA and the Bureau of Buildings at The City of Atlanta to discuss the project and request expediting the permit process. As a result, Carter obtained the permit in two weeks.

From team selection to move-in, Carter completed the project in 124 days. The client's ability to streamline the decision making process, eliminated initial concerns on the short time frame.  Carter delivered Windham Brannon’s vision, objectives were accomplished and expectations were exceeded. This certainly shows what can happen when there is a good team in place working towards a common goal.

Check out pictures of the renovated interiors. Congratulations to Windham Brannon on its new Atlanta home!

Mayor Reed Taps Top U.S. Economic Development Official to Head Atlanta Development Authority

ATLANTA (May 18, 2011) - In what can be described as a major move for the city, Atlanta Mayor Kasim Reed today named Obama administration official Brian McGowan as president and CEO of the Atlanta Development Authority. McGowan, shown here with Vice President Joe Biden, has served as U.S. Deputy Assistant Secretary of Commerce and COO for the U.S. Economic Development Administration since September 2009.

The Atlanta Development Authority is the city of Atlanta's official economic development agency. Carter President Scott Taylor served as chairman of the Selection Committee.

Here's the official press release, issued by the mayor's office this afternoon.

NEWS RELEASE

Mayor Kasim Reed Names President and Chief Executive Officer of the Atlanta Development Authority

Brian P. McGowan brings more than 15 years of economic development experience at all levels of government to the City of Atlanta 

 ATLANTA - Mayor Kasim Reed today named Brian P. McGowan as the President and Chief Executive Officer of the Atlanta Development Authority. McGowan has served as U.S. Deputy Assistant Secretary of Commerce and COO for the U.S. Economic Development Administration since September 2009. McGowan was also detailed to the White House from July to November 2010 to establish and lead an Economic Solutions Group within the National Incident Command to help communities along the gulf mitigate the economic impacts of the BP oil spill.

“I believe that Brian McGowan’s extensive experience having worked at all levels of government will help the Atlanta Development Authority continue to move the City of Atlanta toward economic recovery,” said Mayor Reed. “We’ve made great strides over the past 16 months with initiatives such as the ongoing revitalization of the Historic Westside District, the redevelopment of Fort McPherson, and the relocation of Porsche’s headquarters to the city. I am confident that under Brian’s leadership, we will build on that strong foundation and generate even more economic investment and development opportunities for the City of Atlanta.”

“I am honored to have been selected as the new President/CEO of the Atlanta Development Authority, and I am grateful for the confidence that Mayor Reed and the board members have placed in me,” McGowan said. “Atlanta is one of America’s greatest cities because of the value it has placed on innovation, education and connections to the global economy.  It’s an economic powerhouse and a city poised for 21^st century leadership and growth. I look forward to working with public and private sector leaders throughout the region to accelerate that momentum and create jobs and opportunity for the people of Atlanta.”

Before joining the Obama Administration, McGowan was appointed by Governor Arnold Schwarzenegger and served as California’s Deputy Secretary for Economic Development and Commerce in the Business, Transportation, and Housing Agency.  Prior to that, he was appointed as the Economic Development Agency Administrator for the County of San Bernardino, California, overseeing four departments focused on economic development, community development and housing, redevelopment, and workforce development. He also worked for the Cities of Ontario and Palm Springs in California. In addition, McGowan served as a consultant on a U.S. Agency for International Development funded program to help cities in Bulgaria and Serbia create economic development and growth strategies.

While serving the State of California, McGowan created the California iHub program to strengthen California’s economic clusters and the California Certified Sites program to accelerate the development process for new projects. McGowan also served on the boards of the California Infrastructure and Economic Development Bank, the California Employment Training Panel, the California Workforce Investment Board, the International Trade Advisory Committee and the California Travel and Tourism Commission. 

While serving in the Obama Administration, McGowan worked to modernize the Economic Development Administration by streamlining operating systems, created new “innovation challenge” programs, supported America’s regions through new trade and foreign direct investment programs, developed new “economic cluster” initiatives and expanded EDA’s role in leading the federal economic development agenda. A tireless advocate of small businesses and entrepreneurship, he recently was tapped by President Obama to be part of an initiative that engages directly with America’s businesses create jobs and increase competitiveness. He also served on the U.S. Historic Preservation Board and was elected Vice Chair of the Rural Working Party for the Organization of Economic Cooperation and Development inParis.

McGowan received a Bachelor’s degree in Political Science from the University of California, Riverside and a Master’s degree in Politics, Economics, and Business from the Claremont Graduate University. He was also the Michael and Mary Johnston Fellow at the Claremont Graduate University, where he is completing a PhD in American Politics and Policy.

McGowan was one of three finalists selected by Mayor Reed following a national search conducted on the City’s behalf by Ken Taunton of the Royster Group and an independent selection committee.

The Atlanta Development Authority Selection Committee was chaired by Scott Taylor, president of Carter. Other members of the committee were:  Atlanta City Councilwoman Joyce Sheperd, Anna Foote and Julian Bene.

ABOUT ATLANTA DEVELOPMENT AUTHORITY

The Atlanta Development Authority is the official economic development agency for the city of Atlanta. ADA is a research-based economic development organization, focused on residential, business and investment growth in the city. ADA manages the city’s ten tax allocation districts. Visit www.atlantada.com.  

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For more information about this and services of the City of Atlanta visit our website at www.atlantaga.gov or watch City Channel 26

 

Georgia's New State Government Will Have Substantial Impact on Commercial Real Estate

By Brad Alexander, partner, Georgia360

ATLANTA (Jan. 4, 2011) - The November 2010 statewide elections resulted in a historically large - some would say massive - turnover in Georgia's political leadership.

Georgia now has a new governor, attorney general, secretary of state, labor commissioner, school superintendent, agriculture commissioner and insurance commissioner. And when the 2011 Georgia General Assembly convenes next week, it will do so with abnormally large freshman classes in both the House and Senate.

This election - and subsequent party switches by elected officials -- have solidified GOP control of state government in the near term.

Combined with Georgia’s substantial budget deficit, the level of change expected in the next 12 months will be higher than anything residents have become accustomed to expecting. And, the implications for the commercial real estate industry will be substantial.

In terms of people, the leadership of Georgia's in-house real estate management agencies - Steve Stancil, Marvin Woodward, Frank Smith, Susan Ridley and their team - will remain intact.

Combined with the staff at the Board of Regents, the Georgia State Financing and Investment Commission will make most of the decisions regarding the state's new construction projects and real estate portfolio. In addition to being one the largest sources of new commercial construction starts in a down economy, the state’s taxpayer-owned real estate portfolio is one of the largest combined real estate portfolios in the state. While the state construction portfolio will shrink in terms of new starts as revenue falls off, it will remain more robust than the private sector in the near term.

In addition to the Board of Regents (which is in the early stages of a search for a new chancellor) and the GSFIC, the Department of Natural Resources and Department of Transportation are also highly relevant for the real estate purposes. Managing the owned and leased conservation and recreation portfolio at DNR will be newly appointed commissioner and former state representative from Southeast Georgia, Mark Williams.

On the DOT side, several board seats will change hands, but the commissioner's job will remain with Vance Smith. Smith's leadership and political acumen will be highly valuable as the state enters the election cycle where voters will approve or reject any new transportation funding mechanisms the legislature puts on the ballot.

From a policy standpoint, state real estate activity will be driven almost exclusively by value.

In terms of new construction projects, those that have appeal but do not fill a critical and immediate need will be delayed as policymakers try to maintain the state’s AAA bond rating in the midst of substantial cash shortfalls. This means the government’s appetite for financing structures outside traditional general obligation bonds (particularly in higher education) will continue to grow. This will include both traditional alternative finance mechanisms - such as fee-driven projects at universities - and more innovative structures.

Chief among the more innovative structureswill be energy savings performance contracts, which became legal in Georgia following passage of Amendment Four in the November elections. Initial estimates project that savings from these contracts will fund several hundred million dollars in facility and systems upgrades.

On the bright side, with historically high levels of unemployment, we can expect to see a proactive government role - led by Governor Nathan Deal and new Economic Development Commissioner Chris Cummiskey - in funding and otherwise supporting private sector projects that could create substantial numbers of new jobs. Cummiskey's corporate background (energy trading) and political connections (top staffer in the state House) combined with the new Governor's focus on job creation will give the Department significant heft.

From a development and leasing standpoint, this political dynamic will hopefully lead to new activity, particularly in the corporate HQ, data center, healthcare and logistics spaces. This effort will be substantially boosted if recommendations from the tax reform council that would turn automatic credits into a more discretionary system are followed. 

Additionally, legislation will be reintroduced to amend the Constitution so Georgia can execute multi-year real estate leases. While this change is two years away, its passage will almost certainly unlock an array of transactions as Georgia seeks to lower leased real estate costs by replacing annual leases with those with longer terms.  

Going forward, the primary challenge for the real estate sector in terms of Georgia public policy will be to prevent likely passage of broad tax reform and certain passage of major budget cuts from moving the ball backward. Additionally, the industry has a strong interest in ensuring Georgia's core infrastructure is maintained and upgraded.

In the near term, that means passing a transportation funding mechanism for urban parts of the state, dredging the Savannah harbor ahead of a bump in traffic when the Panama Canal expands, and supporting Atlanta Mayor Kasim Reed's visionary efforts to put Hartsfield at the same high level on air cargo rankings as it is on passenger transport. Over the longer term, building new reservoirs and connecting cities via high speed rail will be very relevant in terms of keeping commercial real estate activity robust in Georgia.

In sum, there's a great deal of reason to be optimistic about the future role state government can play in maintaining Georgia's future as not only a consumer of real estate services, but also an exporter of expertise in that area. They key challenge for the industry is staying engaged enough over the next several years to ensure that potential is realized as the process plays out.

 

Atlanta Eye Organizers Choose Carter to Assist in Site Selection

By Malloy Peterson, Vice President of Marketing, Carter

ATLANTA (Nov. 23, 2010) - Home Depot co-founder Bernie Marcus, who singlehandedly created one of the South's largest tourist attractions in downtown Atlanta, is working to bring a second one to the city's core.

And Carter is playing a role in the process.

Marcus is working with Atlanta business and civic leaders to bring the "Atlanta Eye" to the area near Atlanta's Centennial Olympic Park. The Atlanta Eye would be a large sightseeing wheel similar to the London Eye, is one of the most-popular attractions in Europe. The destination, shown at left in Wikimedia photo, attracted 3.7 million visitors last year. 

Tourists who board the London Eye climb into a climate-controlled capsule. Each capsule on the Eye holds 25 people and travels 45 stories high. The Atlanta Eye would be a copy of the London Eye.

Atlanta Eye organizers have just begun its site-selection process and recently retained Carter to assist it in the search for the right spot. They'll need about 2 to 3 acres for the attraction that will reach 45 stories in Atlanta's skyline.

Carter President Scott Taylor is heading up the team at Carter. "Downtown Atlanta is approaching critical mass when it comes to major attractions. The Georgia Aquarium, new World of Coca-Cola, the Children's Museum and other destinations have created an incredible base," Taylor said. "The Atlanta Eye would complement these attractions, help downtown maintain its momentum and become a major destination on its own."

Carter also is advising the National Health Museum in its search for land near Centennial Olympic Park. Click here for a recent update on the search from NHM President David Roland.

On Nov. 9, Marcus convened a meeting of government and business leaders at McKenna Long Aldridge's downtown offices to promote and gauge interest in the plan to bring an Eye to Atlanta. In an exclusive interview with Atlanta Business Chronicle columnist Maria Saporta, Marcus says he thought about Atlanta getting its own version of the London Eye even before he opened the Georgia Aquarium in 2005.

"I thought this would be absolutely sensational," Marcus told Saporta. "It's like nothing I've ever seen before. There is no sound. There's virtually no movement. All of a sudden you are up 45 floors looking around 360 degrees."

Excitement about the Atlanta Eye comes amid of a series of good news for downtown Atlanta. They include the College Football Hall of Fame's selection of a site for its museum, the federal government's decision to give $47.6 million for the Atlanta Streetcar and Cox Enterprises' $50 million donation of the former Atlanta Journal-Constitution headquarters to the city of Atlanta.

"I think we are executing the plan," Central Atlanta Progress President A.J. Robinson recently told WABE's Charles Edwards. "These last two weeks we've had pretty good two weeks of good news. People just weren't paying attention during the recession because we were working on all of these things."

 

 

 

Cox Gives Former AJC Building to City of Atlanta

ATLANTA (Nov. 9, 2010) - Cox Enterprises has donated the former Atlanta Journal-Constitution headquarters complex, valued at more than $50 million, to the city of Atlanta.

The city will use the complex at Marietta and Forsyth streets in downtown for several purposes, including office space for its employees. The complex includes a nine-story office building and large industrial component that contains warehouse space and the paper's old printing presses.

The AJC vacated the Marietta Street complex earlier this year and moved its main newsroom at 223 Perimeter Center Parkway near Perimeter Mall.

"This generous and indeed unprecedented gift is worth over $50 million," Atlanta Mayor Kasim Reed said at a morning press conference where the donation was announced. (Reed is shown answering questions after the press conference in photo. COO Peter Aman is in center of background with yellow tie.)

The mayor said Cox's gift has to be the largest single donation of its kind to Atlanta - or any other city - in recent memory.

"Show me when the city of Atlanta has received a gift like this - really," the mayor said. Atlanta Chief Operating Officer Peter Aman agreed. "It is a stunning gift to the city." 

During his remarks, Mayor Reed acknowledged Carter President Scott Taylor for his help. "I also want to thank Scott Taylor for being involved in the early process," the mayor said.

Taylor was involved in early discussions about potential uses for the vacant AJC property. CBRE Vice Chairman John Shlesinger, who represents Cox Enterprises in its real estate transactions, played a key role in the donation.

Reed said the repurposing of the headquarters complex will help the Marietta Street corridor, which has been "different" since the paper shut down its downtown operation. "The reopening of the doors at 72 Marietta will bring new life and energy and vitality to the area," he said. "[City employees] will literally be in a building that's a jewel."

The new office space will help the city of Atlanta eliminate about $2 million in lease payments over a phased in period. This will more than offset the $100,000 in annual property taxes Cox paid on the AJC complex.

The mayor and Aman also stressed that the donation by Cox will benefit generations to come. "It's about caring for the long-term vitality ... of the city," Reed said. "It will help me and every mayor after me."

High-Powered Political Entourage Tours The Banks in Cincinnati

By Patti Neal, vice president, Carter

Momentum has been building at The Banks. As a result, the $800 million development has garnered a great deal of exposure as residents, business owners and even politicians monitor the construction and await completion of the anticipated project along the Ohio River in Cincinnati.

The latest political dignitaries to check out progress at The Banks was an entourage of federal, state, city and county political officials, who toured The Banks on Friday afternoon. According to an article on the website of Cincinnati ABC affiliate, WCPO, Ohio Gov. Ted Strickland, Cincinnati Mayor Mark Mallory, Hamilton County Commission President Todd Portune, Congressman Steve Driehaus and Sen. Eric Kearney each got a first hand look at the construction.

Strickland was quick to point out the economic boost The Banks development and the construction of the Great American Tower are giving Cincinnati under the assembled politicians' watch.

"I would suspect that there's more development going on here than in any other place in the mid-western part of our country," the governor said.

Carter is developing The Banks with The Dawson Co. and USAA Real Estate. The mixed-use project will comprise multifamily, office, retail and other uses. The first phase will open next spring.

Since joining Carter in 2000, Patti Neal has been highly involved in managing complex, multi-phased projects for both institutional and private clients. Her skills include negotiations and contract management, budget and cash-flow management, owner and contractor relations, scheduling, safety, and project documentation. Patti works closely with all team members to assure the swift resolution of issues and takes great care in protecting the owner's interests.

Relationships Key in Big-Box Industrial Deals

By Skip Petters, director of industrial leasing & sales, Carter  

Over the past 30 months 24 industrial transactions, ranging from 200,704 SF to 969,150 square feet, have been completed across metro Atlanta. And relationships played key roles in each.

Once a large corporate user has decided to locate regional industrial hubs in Atlanta, it will begin its search by reviewing all available buildings. It will tour some personally and take flyers on others.

Corporate users will whittle down the list because of particular access they desire. The I-75 South corridor is attractive to clients moving goods to Florida and the Georgia Ports in Savannah. I-75 North works well for distribution to the Midwest. I-85 South is ideal for Kia-related business and the Gulf Coast, and the I-85 North corridor works well for distribution to the East Coast.

Prospects also take into account labor (cost and availability), state and county incentives and local real estate taxes.

Civic and government relationships are critical to capitalize on the incentives that can make the difference in attracting large regional corporate distribution and manufacturing hubs. To this end, Carter has developed relationships at the state and local levels to help better serve our client’s interests.  Carter’s Executive Team has personal relationships at the state level with Ga. Gov. Sonny Purdue and Lt. Gov. Casey Cagle, and the local level with Atlanta Mayor Kasim Reed and with the Metro Atlanta Chamber and Georgia Power.

Relationships with developers also are vital because they dominate the big-box market. They include IDI, ProLogis, Panattoni, First Industrial, Majestic Realty, Raco, McDonald Development and MD Hodges. Large industrial buildings of 500,000 square feet and bigger started popping up years ago and were predominately build-to-suit construction. 

This concept changed seven or eight years ago when developers saw the trend of large national firms consolidating their distribution centers from multiple locations to regional hubs. At this time, industrial developers began building 500,000 square-foot-plus bulk distribution facilities on a speculative basis.

The users in the large transactions mentioned above were represented by industrial brokers. This demonstrates the importance of knowing each brokerage house and their respective agents personally. 

Real estate creating opportunities for relocations, jobs

By Scott Taylor, president, Carter

March 16 (ATLANTA) - The economy may be in a slump, but Atlanta’s leaders have put together a game plan to lure companies and jobs to the city.

And Atlanta’s lagging commercial real estate market could be one of the keys.

The Metro Atlanta Chamber is projecting 50 new company operations and 5,000 new jobs in 2010. Here is a snap shot of what the chamber is working towards:

• Global commerce - 12 companies creating 700 jobs
• Supply chain – 10 companies creating 850 jobs plus two international air cargo carriers
• Technology – 7 companies creating 350 jobs
• Bioscience/biomed – 5 companies creating 300 new jobs
• Headquarters, business services and general recruitment – 16 companies creating 2,800 jobs

The MAC strategy includes generating 250 new qualified company relocation leads through marketing and recruiting business from Latin America, Asia, Europe and North America.

According to the March 5 Atlanta Business Chronicle, the commercial real estate situation could help this effort. John Boyd, the president of The Boyd Company Inc., a consultancy based in Princeton N.J. told the Chronicle that Atlanta’s cheap real estate, lower taxes and inexpensive energy costs are attractive especially compared to northern cities. A Boyd study found New York has the highest annual operating cost for a headquarters, at $30.6 million. Atlanta is in relatively good shape with an annual cost of $23.2 million.

Of course, 2009 was not too shabby for metro Atlanta. According to MAC, 59 companies moved to Atlanta, bringing with them 6,600 jobs.