Atlanta Chapter July Meeting Key Take Aways!
- Always looking for 20-40 acres well located but has a lot of problems; we like to fix problems. Currently have 40 acres in Bartow County to either sell or do a build to suit;, 26 acres zoned industrial – looking for build to suit; small warehouse in Cartersville -10k square feet looking to lease on highway 41. Market Intelligence: retail cap rates are increasing: Dollar Generals are in mid to high 6s; cap rates on unanchored centers are in the 7-8 range. Optimistic about where market is in terms of industrial – looking forward to trying to build something in next couple of years. (Knight Commercial Real Estate)
- Been loving the warehouse world over the past few years when there’s been high demand, but seeing a lull lately. Enjoy using the services of about 10 companies in this group and really enjoyed the connections. (Full Circle Realty)
- We are always looking for problems to help clean up: mold, biohazard projects. If you go out of town, please leave your air on shut your water off – otherwise if disaster strikes, it can be very expensive to clean up (mold, burst water pipes, etc. ). Would love to jump on the warehouse bandwagon for deep cleanings, etc. We also love to walk your property and help you develop an Emergency Response Plan so you can reduce damages upfront and reduce costs in the long-run. We can also ensure walls and carpets are actually DRY after any incidents. (SERVPRO)
- Seeing a lot of original data centers that were built out on Windward Parkway move to Douglasville. That demand for new data centers is driving up prices for big roofers: the roofs on data centers are different (can’t have any water leaks) and thus, more expensive than a roof for any other type of building. Roofing costs are up, not just because of an increase in materials, but because of the labor to do the jobs. Labor is going up 10-15% almost monthly. Hard to find subcontractors because many of them are immigrants and they aren’t working. Preventative work is important, recovers and coatings vs. new roofs, but we are also helping people buy some time by offering warranties. (FGA Roofing)
- Starting to see rental rates in B and C products start to ease up some – people are more picky, but it’s starting to feel more like a normal market. 1% vacancy is great for landlord, but not healthy vacancy: usually between 7-9%. Negotiation takes more time; a lot of people took a space because it was all that was available; they weren’t really happy with it, though, so now they are being more selective. Also seeing a lot of people trying to use AI to replace a real estate attorney when negotiating leases: it ends up taking more time. (Brennan Investment Group)
- Starting to see an uptick in interest in industrial sites; people are now looking for larger sites vs. the smaller sites, like they were in the past couple of years. (A D Commercial Real Estate)
- Doing a lot of work in condo assemblage right now. Investment sector is also busy and I have a number of buyers looking at a variety of different assets. Have space for lease in Woodstock (property and business – doggy daycare). Also have a 19,000 sq. ft daycare facility off of Fulton Industrial – ready for operation. (Massell Commercial Real Estate)
- Still updating the collateral for distillery and movie deal to raise money for those projects. Continuing to work on the flag project near Panama City Beach in conjunction with 250 birthday. (Deway Capital, LLC)
- Did another refinancing on Breman Farms ; have 18 luxury glamping units ready to install; also some cool tents for the Farm to Table section; zoning is similar to Serenbe (artist village). We have also started a Founders Circle for investment, which will also include a lot. Buying some land in Haralson County – starting to see the Atlanta suburbs move West. Have also assembled a 50 acre site for sports multiplex mixed use project – $100 million project – got some foundations that will be involved; looking for smaller sites 10-20 acres for the sports multiplexes, too. (Grayson Properties)
- Do any type of 1031 exchanges and we have one person who follows you through the entire process (Atlanta Deferred Exchange)
- It’s been too busy for this time of summer: working on refinances for 1.5 million industrial property in Rockmart; $2million childcare center in Panama City; senior living work out in Peoria; working on 8 million refinance in CA, another in Biloxi, MS. Sales of new property over past 18 months been non-existent. (Harvest Small Business Finance)
Summer has been busy; recently closed a deal; also have 88 acres in S Fulton County listed for residential (Ackerman & Co.) - In the midst of a 1031 exchange – selling 3 properties for approx.. $10 million and buying 5 properties. When cap rates go up – we get in the market and get aggressive. Cap rates for Dollar Generals were around 5 and are not in the mid to 6 and some in low 7 cap rates. So this is a perfect opportunity for us to come in and grow our portfolio because we are all cash buyers. When interest rates go down, we focus on management. (Newburger-Andes)
- We are offering security guard services for construction sites; MF, CRE. Recently closed a deal with Trammell Crow MF). Chasing data center construction sites for security contracts right now. (Pritchard Global Alliance)
- We focus on investing in the lower market; we typically put together 2-3 projects each year and raise company from entrepreneurs, investing our own capital alongside you, and put together diversified funds. On the real estate side, we have a multi-manager fund that’s raising money and we are looking for good opportunities (Altera Investments).
- Summer has been a little bit slower with more small transactions. Have seen a few foreclosures and lots of refinances. We are also seeing sellers run titles and we recommend you run titles as early as possible in the process so you know what’s out there and don’t get caught at the last minute with a surprise. (First American Title NCS).
- Work as a Commercial Property Manager, primarily on the industrial side and happy to be a guest of Lorenzo’s (Selig Enterprises)
- Land listings, predominantly for residential: 14 acres in Adairsville, off hwy 140; 23 acres Campbellton Fairburn Rd, Fairburn; 12.5 acres in Douglasville; and 1 acre in Southpoint Blvd, McDonough (PureLand Real Estate)
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