CarterBlog

Carter CEO Talks Multifamily with SmartMoney Reporter

By Mary Kathryn Kennon, marketing coordinator, Carter

ATLANTA (Jan. 19, 2012) - In a just-published article, a national magazine from The Wall Street Journal includes thoughts from Carter Chairman and CEO Bob Peterson on investing in multifamily REITs.

In the February issue of SmartMoney, Peterson tells writer Alyssa Abkowitz that multifamily real estate investment trusts are a smart investment right now. As a group, apartment REITs are up 9 percent this year, and they're still fairly priced, Peterson says.

Peterson knows firsthand about the current apartment market and about REITs. After a great response to apartments at The Banks in Cincinnati, Carter is planning a second phase that will include more apartments at the successful mixed-use development along the banks of the Ohio River. Carter also is pursing development and investment opportunities in urban, infill multifamily developments in cities such as Nashville, Tenn.

As for REITs, Peterson is a past executive of CarrAmerica Realty Corp., a former real estate investment trust. In late 1996, Peterson sold Peterson Properties to CarrAmerica. When the transaction closed, he joined the REIT as Southeast regional managing partner and later was named president of CarrAmerica Development. Peterson also served on CarrAmerica's investment and operating committee.

The SmartMoney story quoting Peterson highlights two different ways to invest in the housing market. While Peterson recommends apartment REITs, veteran house-flipper Doug Clark says big payoffs are available for house-flippers who have the cash, do-it-yourself ability and a high tolerance for risk.

If you would like to learn more about Carter's investment strategy in multifamily, contact John Akin at [email protected].

Here's the SmartMoney article.

2 Ways to Invest in the Housing Market Now

Even with the broad housing market still in a funk, some investors are putting cash back into real estate.

By ALYSSA ABKOWITZ

Play It Safe: Apartment REITs

When it comes to safe investing, real estate doesn't exactly pop into mind these days. But the bust that has beleaguered builders and real estate agents has actually been a boon for many apartment owners. Vacancies are at their lowest levels in six years, and rents are on the rise nationwide. Those factors aren't stopping families -- many of them former homeowners -- from becoming tenants, says Bob Peterson, CEO of Carter, a commercial real estate company in Atlanta. The simplest way investors can capitalize: Pick up shares of a real estate investment trust, or REIT, that specializes in apartments. REITs collect the rents and then pay out at least 90 percent of their taxable income to shareholders through dividends. While such REITs as a group are up 9 percent this year, they're still fairly priced, Peterson says. Home Properties (HME: 55.52, 0.16, 0.29%) now owns about 120 properties and yields 4.6 percent, while UDR (UDR: 24.78, -0.11, -0.44%) is about twice as big and yields 3.3 percent.

Go for Broke: Home Flipping

 Do you have a lot of cash on hand? More important: Can you install drywall? If you said yes twice, then "flipping" an abandoned house could be your next big score. With the number of foreclosures still rising, there are plenty of rehab projects to choose from, and banks often sell them at big discounts. But navigating a foreclosure auction is tricky; pros say investors usually end up buying homes first, sight unseen, and inspecting them for damages later. Buyers likely then need to sink a hefty amount of time (at least six months, flippers say) and money into rehabbing the home. There's no guarantee of selling the rehabbed house for a profit, either, which is why veteran flipper Doug Clark calls it "the riskiest part of the real estate industry." But the potential payoff can be huge. Clark recently paid $1.6 million at auction for a 14,000-square-foot Utah mansion. He spent $250,000 to fix it up and expects to sell it for $3 million. Not bad for a couple of months' work.

 

Carter Continues to Bring Tenants to The Banks

By Laura Swadel, director, Carter

CINCINNATI (Jan. 12, 2012) - Carter continues to fill The Banks mixed-use development here with quality tenants, despite the tough environment for the commercial real estate industry.

Earlier this week, Carter announced that Mahogany's Cafe and Grill will open a new location in The Banks in April. Mahogany's is an upscale soul food restaurant that will increase the presence of minority-owned enterprises at The Banks. Co-owned by executive chef Liz Rogers, Mahogany's signed a lease for 3,500 square feet between The Holy Grail Banks and the spot where Tin Roof will open a location.

The Banks is an 18-acre mixed-use project rising on the banks of the Ohio River, between Paul Brown Stadium and Great American Ball Park. Carter serves as master developer of The Banks in partnership with The Dawson Co., an Atlanta-based development firm and one of the city's oldest African-American-owned commercial real estate firms.

The Banks is a prime examples of the new, narrowed focus at Carter. In December, Carter announced it would focus on successfully developing in urban locations - especially multifamily - and in investing in value-add office properties. Carter also will grow its strategic consulting and interiors businesses. 

At The Banks, Mahogany's is the latest in a string of restaurants and entertainment venues to commit to the landmark development. Toby Keith's I Love This Bar & Grill, Christian Moerlein Lager House and Tin Roof will open this winter, and Holy Grail Banks and Johnny Rockets opened to much fanfare last year.

 "The food [at Mahogany's] is fabulous. Liz is passionate about it and she's got a great product," Cincinnati City Manager Milton Dohoney told the Cincinnati Enquirer this week. "We continued to be pleased by the development at The Banks and we're getting a lot of positive feedback. We think this will only add to that."

For more information about leasing and other opportunities at The Banks, contact Laura Swadel of Carter at [email protected].

 

Carter Pursuing $500 Million in Development, Investments

Firm’s Focus Centers on Multifamily, Student Housing Projects and Office Investments

ATLANTA (Dec. 8, 2011) - With the sale of its brokerage and property management groups complete, Carter is focusing on new investment and development opportunities as well as growing its program management and strategic consulting groups.

Moving forward, Carter will leverage its 54-year-old brand to create value through its strong relationships. Specifically, Carter is focusing its efforts on the:

• Development of mixed-use and for-rent multifamily projects in urban infill locations.
• Equity development of student housing.
• Acquisition of opportunistic and value-add investments in office.
• Growing its well-established project management and strategic consulting businesses.

The firm’s more than 100 high-caliber associates will serve clients using a high-performance team-based approach that results in delivering maximum value for our clients and investors. This approach allows Carter to leverage the firm’s strong expertise and deep knowledge base in a wide variety of markets and product types.

“The sale of our brokerage services and property management businesses marks a milestone for Carter,” Chairman and CEO Bob Peterson said. “This transaction was a major step for us in executing our strategy to narrow Carter’s focus on building high-quality projects, investing in real estate and providing strategic solutions to our clients.”

Carter’s development business expects new opportunities to emerge as corporate and educational development begins to rebound. Carter is the No. 3 commercial developer in the United States, as ranked by National Real Estate Investor, and currently is overseeing The Banks, one of the largest mixed-use projects in the Midwest. Carter is master developer of The Banks, a $600 million development on the Ohio River in Downtown Cincinnati, Ohio. Late last month, Carter announced plans to double the size of the retail and multifamily components along with new marketing efforts for the proposed office component.

In the K-12 education realm, Carter is currently overseeing a $107 million public school building program in Enid, Okla.

The firm’s Interiors group continues to be a leading third-party provider to top law and financial firms and grown its business well beyond Atlanta. The Interiors group currently has more than 500,000 square feet under construction for clients such as AT&T, RockTenn and Starwood Vacation Ownership.

Carter’s Higher Education and Campus Innovation team is currently leading a $100 million program at the University of Louisiana Lafayette that comprises 2,000 beds and 900 structured parking spaces.

“Our 54-year history of development across the Southeast and beyond positions Carter to take full advantage of new development opportunities,” said Carter President Scott Taylor. “Our Development group is well positioned when it comes to developing and building out corporate, institutional and educational buildings and facilities.”

Carter’s Investments group is actively seeking new opportunities across the country. Vice Chairman Jim Shelton, who leads Carter’s Investments group, said he expects to see more high-quality assets to come to the market at distressed prices. Carter recently invested in City Federal condominiums in Birmingham, Ala., and Valencia condominiums in Ponte Vedra, Fla., and played a key role on Piedmont Office Realty Trust’s acquisition of The Medici office building in Atlanta.

The firm also serves as a service provider to Carter Validus Mission Critical REIT, which is focused on acquiring mission critical facilities such as data centers and healthcare facilities. John Carter, a Carter vice chairman, serves as CEO of Carter Validus Mission Critical REIT.

In other areas, Carter’s strategic consulting group has performed advisory assignments for seven major clients in 2011 alone. Carter will continue to deliver high-quality service and results from its asset management division, which oversees more than $2.5 billion of third-party and Carter-owned properties.

“Moving forward, you will see Carter aggressively leveraging our thought leadership and experience to pursue and participate in high-quality developments and investments on behalf of our firm and our clients,” Carter’s Peterson said. “We will do this while continuing to build on our core values of integrity, commitment and excellence.”

About Carter

Founded in 1958, Carter is one of the country's leading real estate development, investment, and advisory firms. The firm has headquarters in Atlanta and operations across the country. Carter focuses on development of mixed-use and multifamily projects in urban infill locations, equity development of student housing, acquisition of opportunistic office, project management and strategic consulting. Carter’s high-caliber associates create value for clients using a team-based approach that leverages strong expertise and a deep knowledge base in a wide variety of markets. Carter is the country’s third-largest commercial developer, according to National Real Estate Investor, with strong higher education, k-12, interiors, and corporate specialty practices. Carter also focuses on value-add real estate investment opportunities, currently overseeing a $550 million portfolio. Carter’s asset management division manages more than $2.5 billion of third-party and Carter-owned assets. Its strategic consulting practice provides clients with customized real estate solutions. As it has for 54 years, Carter will continue to build on the firm’s core values of integrity, commitment and excellence and strive for a culture based on trust and candor. For additional information on Carter, please visit http://www.carterusa.com.

 

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.

 

Residents Move-in at The Banks

CINCINNATI, Ohio (August 02, 2011) - This summer some of Cincinnati’s newest residents are settling in and enjoying all the Queen City has to offer. According to them it's happening at The Banks, Cincinnati’s new mixed-use development located along the Ohio River.

Current At The Banks, the development’s first apartment complex, opened its doors this spring to residents. The complex has attracted people from all walks of life. However, one thing they all seem to share is the excitement of living in Cincinnati’s premier live-work-play destination.

One of the newest residents is Amanda Rose. A recent Ohio State Law graduate, Amanda and her roommate wanted to find an apartment with great amenities that was close to their jobs and the social scene.

“I really like the location,” said Amanda. “I’m right by the river and I can walk to both work and the Reds’ games.”

Recent grads aren’t the only people flocking to The Banks. Mike Glotfelter, 65, has followed the development since its inception and was delighted to move into Current At The Banks. Although downtown life is a drastic change from Mike and his wife’s former life on 28 acres, they are learning to adjust.

“My experience has been wonderful,” said Mike. “I’ve always wanted to live downtown, and I have met a lot of nice people.”

Current At The Banks has amenities that include granite countertops, walk-in closets, built-in microwaves, contemporary finishes and a washer/dryer in every apartment. Resident Lindsay Rain described the amenities as one of the top selling points in her decision to move.

“I cannot put into words how happy I am that I decided to live at The Banks,” Rain said. “The pool is one of my favorite amenities. Some of the best bars and restaurants in the city are within walking distance, not to mention those that are conveniently right downstairs!”

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 and The Dawson Company were selected by the City of Cincinnati and Hamilton County to serve as Master Developers 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.

Check back soon for more updates on what’s happening at The Banks!

 

Carter Brokers Sale of Property for New Kennesaw State Student Housing Development

By Malloy Peterson, vice president of marketing, Carter

ATLANTA (June 3, 2011) - Carter’s Rob Adamson recently represented the seller on the sale of a 5.9-acre site on Big Shanty Road directly across the street from Kennesaw State University’s new sports complex. Vertical construction of a student housing development is scheduled to begin on the property immediately. The project is projected to be completed by mid-summer 2012 and ready for student occupancy by fall 2012. Check out the video below to hear more!

 

This off-campus student housing facility will be two buildings comprised of 217 units and 804 beds. The project will also include a pool, breezeways and a connected five-story parking deck. This new facility will provide an off-campus alternative for students with direct access to the sports complex which currently includes the main stadium for the university’s soccer events, practice facility fields and home for Atlanta’s professional women’s soccer team, Atlanta Beat.

Another large component of the project is the 20,000 square feet of ground retail. Approximately 8,000 square feet of the retail has already been preleased to McCray's Tavern and Blue Moon Pizza. Carter’s Jack Arnold is assisting Rob and will be heading up the project’s leasing and development management. He is actively working to secure preleases for the remaining 12,000 square feet of space.

“This project offers a glimpse of the demand for student housing at Kennesaw State and also underscores the willingness of private equity and lenders to fund these types of projects,” said Adamson. “We are very excited about this development that will serve as a community where students can live, study and play.”

Largest Wells Fargo Sign Goes Up

By: Jonathon Barge, vice president at Carter

Over the weekend, a helicopter crew from Michigan replaced the familiar Wachovia signs at 171 17th Street in Atlantic Station with Wells Fargo signs that are the largest Wells signs on an office building anywhere. The two large red-and-yellow Wells Fargo signs were installed letter-by-letter on the 22-story building. Wells Fargo will permanently light the signs in a ceremony at 8 p.m. Oct. 26 to mark the occasion.

Wells Fargo, which acquired Wachovia in late 2008, is the largest tenant at Atlantic Station.
The two sets of 10 letters spelling Wells Fargo are 11 feet tall and 128 feet long and made of aluminum, steel and polycarbonate. The letters were fabricated in Virginia Beach, Va., and arrived Friday on seven semi trucks. The logo directly facing the interstate is 27 feet high and 29 feet wide. The signs weigh 17 tons in all with 22,543 LED lights that use 75 percent less energy than standard light bulbs. 

The office tower at 171 17th Street, managed by Carter, was the first LEED Silver-Core & Shell certified high-rise office building in the world and the first high-rise office building in Georgia to receive any LEED certification by the U.S. Green Building Council. Carter has played a key role at the Atlantic Station mixed-use development, where we moved our headquarters five years ago. In addition to managing 171 17th Street, Carter also manages the 201 17th Street and 271 17th Street office towers and provides leasing for all three buildings . Carter also project managed the development of the 201 and 271 office towers and the Town Center open-air retail component.

Wells Fargo says the signs are a symbol of the bank’s commitment to Midtown and the overall Atlanta market.

Jonathon Barge provides a highly technical perspective to projects by drawing from his Mechanical Engineering design background and complex, large-scale construction experience. With over 13 years of experience in design and project management, Jonathon can understand and overcome daily field issues to keep projects moving towards successful completion. He has consistently completed challenging projects while protecting owners’ interests with an organized and detailed project management approach.

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.

Team Updates Ohio Senator on Banks Project

By Scott Taylor, president, Carter

Members of The Banks development team had the pleasure of briefing the Honorable Sherrod Brown (D-Ohio) on the status of the $600 million mixed-use project in Cincinnati, Ohio. 

Trent Germano, Harold Dawson Jr., Jerome Hagley and I gave the Senator an overview of the project and an internal analysis of the economic impact to the region while showing images on the construction status.

Sen. Brown, right, was incredibly supportive of the project and has been an advocate for sustainable development.  

We learned from the Senator that he has ties to the state of Georgia. His family has roots in Mansfield, Ga., where they were players in the hotel development industry in the early 1990s - another cool Georgia-Ohio connection.  

Cooperation Among Business, Governments Key to Successful Downtown Revitalization

ATLANTA (Jan. 25, 2010) - During Atlanta magazine's recent Big Idea Roundtable, Carter President Scott Taylor spoke on the vital role cooperation among the business community, city and county plays in downtown revitalization initiatives - specifically in neighborhoods surrounding major tourist attractions and sports arenas.  

 Carter has already taken on this challenge in Cincinnati as co-master developer and project manager of The Banks, $1 billion mixed-use development on Cincinnati's downtown riverfront that will comprise roughly 2.8 million square feet of new mixed-use space to be built in phases over the next decade.

 

The topic is big news in Atlanta right now, as three major new attractions are in the fundraising and design stages in downtown Atlanta.  The National Health Museum, the Center for Civil and Human Rights and the College Football Hall of Fame are all scouting sites adjacent to the existing tourist draws including Centennial Olympic Park, the Georgia Aquarium and the new World of Coca-Cola. Carter has been hired by theNational Health Museum to help identify and acquire a site in downtown Atlanta. In addition, Carter will coordinate predevelopment activities, including working with various public and civic stakeholder groups and advise the board and museum staff throughout this process.

 

Taylor commented that a stronger partnership between the private and public sector is the missing link in Atlanta in the areas surrounding the Georgia Dome and Turner Field, shown in photo at left. “People that own sports teams don’t make any money off the team itself, they make it off the facilities, said Taylor. “And if you look at Cowboys Stadium, at the Patriots' [Gillette Stadium] just outside Boston, they used the economic engine from a hundreds-of-millions-of-dollars facility to revitalize areas. But it takes a significant amount of economic incentives in order to get those things off the ground. What these owners like to see is the commercial, the retail, the hospitality. It drives the game-day experience that allows the venue to thrive when the games aren’t there. Turner Field, I’d say yes, it will happen, but I don’t know when. But it will take some serious economic incentives to get it going.”

 “We’re working on a project now in Cincinnati,” Taylor is quoted as saying. “It’s in between Great American Ball Park where the Reds play and Paul Brown Stadium where the Bengals play (photo at right). It’s 18 acres on the Ohio River, a vacant parcel of land that’s been there for 30-plus years. It’s ripe for development, but it hadn’t been developed because of tension between the city and the county and the business community. 

"Now we’re coming out of the ground with 330 apartment units, 100,000 square feet of retail, office towers, and a hotel to anchor this wonderful part of the city. But it didn’t happen until there was great unity among the business community, city, and county.”