Some Atlanta Suburbs Craving Walkability Are Coming Around On Apartments

Density is still a dirty word in many suburban cities and towns throughout Georgia. But some cities in Atlanta’s belt of northern suburbs are starting to embrace larger developments with apartments and a mix of commercial units, at times defying NIMBYism, developers said during Bisnow’s Atlanta State of the Market event last week. “Suburban and municipal governments in every northern arc city and county in Metro Atlanta has been afraid of density, afraid of multifamily residential, afraid of anything that threatens their life behind the gates of their golf course communities,” said Toro Development Co. founder Mark Toro, who developed Avalon in Alpharetta while at North American Properties, one of the region’s first urban-like dense mixed-use developments to sprout up in suburban Atlanta. Avalon has more than 500 apartment units, an aspect of the project that was met with pushback during its municipal approval process. But Toro and other panelists at the event, held at The Ritz-Carlton Atlanta, said apartment dwellers are critical to the health of the retail and commercial aspects of these popular projects, which rely on sales to survive. “Those sales are driven by density,” Toro said. “If you’re going to fuel downtown, town center districts, you better have a lot of people.” Despite the need for customers — and the ongoing housing crisis in the region — anti-apartment attitudes remain strong in many suburban cities and counties in Metro Atlanta, with a handful of districts imposing new moratoriums on multifamily over the past year. Since 2022, Henry County and the cities of Marietta and Roswell have enacted moratoriums on new apartment development. Stockbridge also blocked accepting applications for any new rental units, including build-to-rent homes, in 2021. Sandy Springs Mayor Rusty Paul vowed to block new apartment applications within the city’s borders for three years during a Bisnow event last summer. But other city leaders have sought out developers willing to build apartments to transform their town centers. Despite some initial pushback, the city of Snellville, 25 miles northeast of Downtown Atlanta, entered into a public-private partnership to create the Grove, an $85M mixed-use city center that includes 250 apartments. The success of the Grove has helped to ease some attitudes toward multifamily in other suburban cities of Gwinnett County, Smallwood principal Greg Bennett said. Duluth, Lawrenceville, Sugar Hill and Peachtree Corners also have approved multifamily within mixed-use projects in recent years. “I think the success of that project is a testament to the sort of breaking the logjam” against multifamily, Bennett said. “People realize they want convenience, they want walkability, they want connectivity. And as long as you provide it, that’s kind of, sort of, what the secret is.” North American Properties received approval last year to develop more than 600 apartment units across two properties in Peachtree Corners, including more than 300 units as part of its revamp of the Forum on Peachtree Parkway shopping center. That approval was not unanimous among all city council members and area residents. North American Properties Managing Partner Tim Perry said apartment dwellers are critical to fueling sales in the retail tenants in these projects, which in turn help to generate more tax revenues to support more infrastructure and school spending, particularly in traditional suburban bedroom communities. “All of these single-family subdivisions don’t pay for themselves. They don’t pay for the wear and tear on the roads, schools or anything else,” Perry said. “It comes down to me on leadership … within these municipalities. They either accept the burden of their elected position and understand that they need to make decisions for the citizens years down the...

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Sandy Springs nears plan for city center expansion

Sandy Springs is keen on a southern expansion of City Springs, a project aimed at creating a downtown environment in the North Fulton suburb. Local leaders recently agreed to consider selecting a master developer for the 4-acre expansion, which would take shape along Mount Vernon Highway and Hildebrand Drive near Sandy Springs Circle. The city will choose between five real estate companies, mostly comprised of Atlanta-based firms with experience creating mixed-use projects in the metro area. These are the firms considered for the project: The Atlantic Cos. MidCity Real Estate Partners with ASD|SKY Mill Creek Residential Trust with Westbridge Regent Partners with Morris and Fellows RocaPoint Partners and The Georgetown Co. The expansion involves redeveloping city-owned buildings — including a fleet facility for vehicles and gym used by Sandy Springs Police Department — and 108 surface parking spaces. The site is located to the south of the existing City Springs campus, a 14-acre project anchored by a five-story city hall, performing arts center, town green, shops, restaurants and apartments. In recent years, Atlanta’s suburbs have embraced the concept of creating city centers or vibrant downtowns. Suwanee, Woodstock and Duluth have all centered residential units, shops and restaurants around public space. Mixed-use developments such as Avalon in Alpharetta or Halcyon in Forsyth County serve a similar purpose for those communities. Johns Creek recently tapped Toro Development Co. to transform an empty State Farm office campus into a mixed-use destination with apartments, shops, restaurants, townhomes, offices and ample public space. A town center built from scratch is also underway in Snellville. Peachtree Corners, Avondale Estates, Tucker and Roswell are a few of other cities in the midst of expanding their downtown areas. The five firms will now pitch development proposals to Sandy Springs with the projected financial performance of their plans, said Mayor Rusty Paul at a late January meeting. Sandy Springs expects to select a master developer and award a contract by April, added City Manager Eden Freeman. A concept plan for the 4-acre expansion depicts a 120-room boutique hotel, 56,000 square feet of offices, 27,000 square feet of retail space, 149 residential units and 750 private and shared parking spaces. The final project approved by the city could deviate from the preliminary ideas for the site. This article first appeared in the Atlanta Business Chronicle on February 8th, 2023 by Tyler Wilkins. To see the original article, click...

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Owners Of North Fulton’s Outdated Office Parks Look To Mixed-Use It Up But Risk ‘Oversaturation’

The suburban office parks that dot North Fulton County are growing more obsolete by the month, a trend that could lead to a wave of demolitions as developers strive to make their properties relevant in today’s corporate environment, one industry veteran said at a Bisnow event Tuesday.   “I think for every four-building office project, one might get torn down … to pave the way for density of other types versus trying to redo those,” MidCity Real Estate Partners founder Kirk Demetrops said on a panel at Bisnow’s North Fulton County event, held at Sanctuary Park in Alpharetta. “What do they become? That question has not been answered. We’re spending hours really thinking about what we can make these boxes become,” he said. “There’s just so much demand in the market for real estate that these hold a lot of value.”   Getting rid of the older office buildings could be a welcome relief to the North Fulton market, which has wallowed with more than 160K SF of negative net absorption since the start of the year, pushing the vacancy rate to 18.5%, the highest level since 2003, according to a recent Colliers report.   Toro Development Co. is planning a major demolition with its redevelopment of the former State Farm campus in Johns Creek, slated to become a 43-acre mixed-use destination that eventually will tie into the city of Johns Creek’s larger Town Center project.   “We have a campus that has 450K SF of vacant office space that is obsolete. It’s functionally obsolete. The good news for the brokerage community is early next year, 350K of that will get demolished, so that will take a good. chunk of vacancy out of that submarket,” Toro partner John Kelley said.   Despite the rising vacancy, average rent in North Fulton is ticking up, driven by the newest buildings. The delta between Class-A and Class-B office in North Fulton is more than $8 per SF, with Class-A rents an average of $30 per SF, according to a recent Avison Young report.   “That’s as wide as it’s ever been, and I’ve been in the office business for 40 years here,” Demetrops said. “There are buildings that are winning. Some are going to have to change.”   Office space at Avalon is commanding $44 per SF, according to Avison Young, with office space at Halcyon close to that as well. The top offices in Metro Atlanta, often part of mixed-use campuses, today are seeking rents. as high as $ 60 per SF, Demetrops said.   But panelists contend that vintage office buildings can still be competitive in North Fulton thanks to the proliferation of mixed-use projects in the area, especially if the older buildings are close to a strong amenity base.   Rubenstein Partners Senior Vice President Mahesh Mani said for a property like Sanctuary Park, a nine-building office campus situated in a 150-acre nature preserve in Alpharetta, proximity to other mixed-use destinations is a key driver. Sanctuary Park is across Georgia 400 from North Point Mall, which is slated for a massive redevelopment, and 3 miles south of Avalon, the high-end mixed-­use destination that set a new standard in Metro Atlanta. “We can’t be everything to everyone, and we can’t do all of it. So we are actually trying to embrace the ability of proximity, kind of getting some halo factor effects of developments of like the North Point conversion, so say we are in the greater footprint of that,” Mani said. “We’re going to be a partner and benefit from the mixed-use assets that are coming closer to sort...

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Northside to anchor phase II at Snellville’s The Grove at Towne Center

As construction and excitement continue to grow about The Grove at Towne Center, Development Partners CASTO and MidCity Real Estate Partners, along with the City of Snellville and the Downtown Development Authority, are excited to announce the addition of Northside Hospital to The Grove. In a transaction that closed at the end of May, Northside Hospital will occupy two buildings in Phase II of Snellville’s new City Center. The Northside Hospital buildings will include physician offices, an ambulatory surgery center, urgent care and other Northside outpatient services that will cater to the residents of Snellville as well as The Groves growing community. Construction of the Northside buildings is anticipated to start immediately and open in the 2nd Quarter 2023. Phase I of the $100 million Project commenced construction in March 2021, and residential units will begin leasing later this year. Kirk Demetrops, partner, and founder of MidCity Real Estate spoke about the new partnership, “We always wanted Phase II to further strengthen the unique mix that makes a town center so special, Northside is the perfect fit. The Grove soon will have nine buildings under construction, delivering a city center long sought after by the City and Community.” “Northside Hospital is committed to strengthening health care resources in the Gwinnett region,” said Debbie Mitcham, president and CEO of Northside Hospital in Gwinnett and Duluth. “We look forward to this new partnership, which will continue Northside’s high quality of care for our patients in their own community.” “Northside has an outstanding reputation for the care and treatment of their patients, and we are delighted to add them to The Grove at Towne Center where they will help serve the members of our community for years to come,” said Snellville Mayor Barbara Bender. Once completed The Grove at Towne Center, will include over 275 luxury residential units, 50,000 SF of retail space (including a special use Market Building), 50,000 SF of medical office, the new Gwinnett County Elizabeth H. Williams Library with 2nd floor coworking space and a 750 parking-space parking deck, all surrounding The Grove, a one-acre town green space. This article first appeared on...

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Northside Hospital is coming to Snellville’s Grove at Towne Center

Snellville’s new downtown was already slated to include a library, apartments and market, but now its going to get Northside Hospital facilities as well. The city and Northside officials announced Northside Hospital will be part of Phase II of The Grove at Towne Center mixed-use development. The hospital system will have offices in two buildings in the development, and those offices are expected to open in the second quarter of 2023. “Northside has an outstanding reputation for the care and treatment of their patients, and we are delighted to add them to The Grove at Towne Center where they will help serve the members of our community for years to come,” Snellville Mayor Barbara Bender said. The Snellville announcement is latest development in Northside’s ongoing expansion into Gwinnett County. Gwinnett Medical Center’s campuses merged into the Northside system just before the COVID-19 pandemic. Northside is currently building an expansion of the Northside Hospital Gwinnett campus in Lawrenceville, that will include a new tower, and a two-building medical office complex on Buford Drive near the Mall of Georgia. The plans for Snellville call for Northside to build physician offices, an ambulatory surgery center, urgent care facilities and other outpatient services. They will join Phase I amenities such as apartments at The Grove that are set to begin leasing later this year, a parking deck and Gwinnett County’s new Elizabeth H. Williams library branch. Greenspace, a market, commercial businesses and free-standing restaurants will also be part of the finished Towne Center development. “Northside Hospital is committed to strengthening health care resources in the Gwinnett region,” said Debbie Mitcham, president and CEO of Northside Hospital in Gwinnett and Duluth. “We look forward to this new partnership, which will continue Northside’s high quality of care for our patients in their own community.” Northside and Snellville closed on the land transaction for the Northside buildings in late May. “We always wanted Phase II to further strengthen the unique mix that makes a town center so special, Northside is the perfect fit,” said Kirk Demetrops, founder of MidCity Real Estate, which is the development partner for The Grove project. “The Grove soon will have nine buildings under construction, delivering a city center long sought after by the city and community.” The new facilities are also going to greatly expand access to healthcare in south Gwinnett, and put Northside in greater competition with Piedmont Healthcare in that part of the county. Piedmont absorbed Eastside Medical Center in Snellville into its healthcare system during the pandemic, making it Piedmont Eastside. But, while the two healthcare systems will be in Snellville, city officials say that will benefit residents of the city. “Adding Northside to our longstanding, excellent Piedmont Eastside facilities, will make Snellville a premium healthcare destination,” Snellville City Manager Butch Sanders said. This article first appeared in the Gwinnett Daily Post on June 17, 2022 by Curt...

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Snellville’s long-awaited ‘Grove’ downtown district starting to take shape

The Atlanta Journal-Constitution is providing this content as part of our public service mission. Please support real, local journalism by subscribing today. For decades, the idea of a mixed-use downtown district in the heart of Snellville was only a dream in the minds of city leaders. But that has changed in the last year. Dirt has been turned, concrete has been poured, and steel and wood frames as well as brick walls have begun to rise out of the ground between Oak Road, Wisteria Drive, Clower Street and North Road. These are tangible signs that the dream has begun to turn into a reality known as The Grove at Towne Center. “It seems surreal that we have been talking and planning about this for development for years and to see it finally start to come out of the ground has me at a loss for words,” Snellville Mayor Barbara Bender said. “It’s an amazing feeling and we are approaching a moment we have waited decades for.” Since ground was broken on The Grove at Towne Center last year, a lot has happened at the site. The development is very important for the city because it will give Snellville something it’s never had before: a downtown district. Snellville is working with CASTO and MidCity Real Estate Partners on the project, which is expected to cost about $85 million. The 750-space parking deck has topped out and is now in its “punch list phase.” Meanwhile, a 262-unit luxury apartment community which is being built around the parking deck has been rising out of the ground — there are some parts of the apartment community that are already getting exterior finishes. “I know the ones that they’re already starting to do stone mason work on, they’re hoping to have those available to rent by the end of this year, and I think they hope to have the space fully rented — or at least available to fully rent — by (mid-2023),” Assistant City Manager Matt Pepper said. At the end of last year, Snellville and Gwinnett County officials broke ground on a new, two-story library that will have a co-working space on its second floor and its steel frame has already been erected. The city is leasing the second floor from the county. Pepper said Snellville is working with a co-working company that is expected to fill much of the floor. He hesitated to say, on the record, who the company is since he was not sure the company had made an official announcement yet. “We’re working with that co-working company’s engineer to kind of develop and build that space out,” Pepper said. The developers of The Grove at Towne Center have expanded their plans for the site — but they aren’t expanding its foot print. Two mixed-use, two-story buildings that will have ground-level retail have been redesigned to be three stories tall so additional residential units can be added. “There will be one (building) at the corner of Wisteria and Clower, that’s where we’ll be installing the roundabout,” Pepper said. “And then the other one will be (further up Clower Street heading toward Oak Road).” City officials said the change will add 26 more residential units to the site. Conceptual renderings show two restaurants and three retail shops on the ground level of one building and three commercial spaces on the ground level of the other building. Those renderings only show one-side of each building, however, and they are conceptual so it’s not clear yet how far back the actual ground-level businesses on those buildings will ultimately go. In a statement,...

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