Snellville food hall underway at new town center
Construction is starting on the brick centerpiece of The Grove at Towne Center, a major redevelopment project aimed at creating a downtown environment in Snellville. A two-story food and entertainment hall known as The Market is now underway. The 24,000-square-foot building will be one of the final pieces of the town center, which will comprise of a library, shops, restaurants, apartments, public space and other uses. In 2019, Snellville tapped CASTO and MidCity Real Estate Partners to develop the town center near U.S. 78. City leaders have spent decades pushing for the creation of a de facto downtown, an effort sweeping through Atlanta’s suburbs. Doraville and Johns Creek are a few of the other communities in the midst of adding similar projects. “Being in the retail business, you see the decline of malls, where people used to spend a lot of their time,” said Shannon Dixon, executive vice president of asset management, development and leasing at CASTO. “Now, people want to be able to shop, go to a brewery, be outside, work and live in the same place.” The Market is expected to reach completion in spring 2024, Dixon said, with a goal of attracting local and regional tenants. It will be built in front of The Grove Commons, a I-acre greenspace for events. The grass is already laid, while a stage with a tree-shaped canopy is now under construction. A shared parking deck with 750 spaces opened last year, followed by the completion of a mid-rise apartment building called The Tomlin. The units are nearing 95% occupancy after opening to residents in December. An additional 26 apartments will be available for move-in later this year. A collection of six buildings with shops, restaurants and other businesses are expected to be completed by the end of this year. Great American Cookie, Marble Slab Creamery, restaurant Parkside District and nail spa The Solan are among the first tenants to claim retail space. Gwinnett County Public Library is opening a new branch beside the future home of The Market. THRIVE Coworking is filling the top floor with 26 private offices, three conference rooms and phone booths. The rest of the library will be filled with meeting and collaboration rooms, learning labs, computer stations and study rooms. On the opposite side of Wisteria Drive from The Grove, Northside Hospital is close to wrapping up construction on a medical office building with an ambulatory surgery center, urgent care and other outpatient facilities. It plans to start assisting patients in November. Snellville is located 30 miles to the east of Atlanta. The Grove serves as an homage to the city’s history, as it bears the same name of a gathering spot for travelers and traders during the early 20th century. “It checked all the boxes for us as far as everything it could offer a community,” Dixon said. “It’s within 20 minutes of Atlanta, yet it’s close to scenic areas such as Stone Mountain.” This article first appeared in the Atlanta Business Chronicle on Aug 2, 2023 by Tyler Wilkins. To see the original article, click...
read moreAtlanta Office Leasing Picks Up Speed, But Sublease Availability Is Growing Faster
Companies offering their space for lease to other businesses are an increasingly large factor in the Atlanta office market. There was 7.7M SF of office space on the sublease market in Atlanta at the end of the first quarter, 34% more than a year ago and a new all-time high for the region, according to Avison Young’s quarterly report. Roughly 2.1M SF of that availability is currently vacant, while the majority of the sublease space is being occupied but marketed nonetheless, said Sara Barnes, the director of insight for Avison Young’s Southern region. But the 5.6M SF of office space on the sublease market is raising alarms for the health of the office market overall and exemplifies the continued uncertainty companies have with just how much office space will be enough at a time when hybrid work has become the norm, Barnes said. Four of the top 20 leases signed in the first quarter were sublease deals, including Procure Advisors’ 44K SF sublease at One Overton Park in the Cumberland/Galleria area, Colliers said in its quarterly report. Chronic uncertainty on office space needs can easily turn to actual vacancies once company leases run out. “Less space is the ultimate need of most companies,” said Kirk Demetrops, the founder of MidCity Real Estate Partners, a firm that has developed a number of corporate offices in Atlanta, including buildings for JAS Corp. in Central Perimeter and DataScan’s headquarters in Alpharetta City Center. “[Sublease space] is going to be a competitor in the marketplace.” As companies continue to gravitate toward newer offices in their efforts to recruit and retain workers, subleases are becoming a more viable option. With some subleases being offered with furnishings, taking over the space of another company is allowing corporate executives to tamp down on real estate expenses, Demetrops said. More offices were emptied than filled in the first quarter, with Metro Atlanta’s absorption turning a negative 42K SF, keeping the overall vacancy rate at 22.7%, according to Avison Young. While the 1.3M SF leasing activity was up by 1.7% over the fourth quarter, according to Cushman & Wakefield, much of that activity was dominated by companies renewing their leases. Some of the largest renewals this past quarter included Q2 Solutions’ 81K SF lease at 1600 Terrell Mill Road in Marietta and Paradies Lagardere’s 47K SF renewal at Overlook I in Cumberland/Galleria, according to Avison Young. “The day Covid hit in March ’20, the fate of our space has been debated in the newspapers,” Demetrops said. “Right now, it appears that it’s not coming back in the old form.” This article first appeared on the site Bisnow.com on April 24, 2023 by Jarred Schenke. To see the original article, click...
read moreOwners 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...
read moreNorthside 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...
read moreNorthside 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...
read moreSnellville’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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