Amazon HQ2 and The Gulch: A Symbiotic Relationship?

Amazon HQ2 and The Gulch: A Symbiotic Relationship?

1 month ago 1 0 118

Atlanta was originally called Terminus because the rail lines converged here. Eventually, the interaction of trains and cars became problematic, and streets were built over the railroad tracks. Existing shops were abandoned, and new shops were built on the new streets. Then, the Omni, Phillips Arena and the Georgia Dome were built, creating a big, empty space that you can look into. That area is The Gulch, a 120-acre site, currently made up of parking lots and rail lines. The Gulch: Past and Future Visions  For years, the vision was to turn The Gulch into a multi-modal station and then build mixed-use around the station, but that plan has never come to fruition, mostly because of the number of entities that would have to be involved—county, city, state and federal agencies; MARTA; and Norfolk Southern to name a few. However, according to a recent Atlanta Business Chronicle article, “The Gulch…is

Read more

Intentional Development Around Stadiums: Can It Work?

2 months ago 0 0 112

In my last blog “The Not-So-Obvious Connection Between Stadiums and Community”, I admitted my skepticism related to the community-building aspect of erecting new stadiums while acknowledging my hope for the success of such projects, like the Mercedes-Benz Stadium. But there’s an exception. And that’s the new Georgia State Football Stadium. Once Turner Field. Once the Olympic Stadium. (In fact, did you know this is one of the longest sustainable stadiums in the history of the Olympics?) What’s Different? Why do I think this example is different? It’s all in the approach. And I see private co-developers Georgia State University (GSU) and Atlanta-based Carter & Associates creating Summerhill, a development around the stadium, in an intentional and realistic way. In other words, this is not a “build it and they will come” project. GSU and Carter appear to be assessing what the community needs and then building it. To me, this

Read more

The Not-So-Obvious Connection Between Stadiums and Community

3 months ago 0 4 138

I admit it. I am a skeptic when it comes to the community-building aspect of sports stadiums—and I am not alone. This issue is particularly relevant in Atlanta with the recent openings of the Mercedes-Benz Stadium and SunTrust Park and the soon-to-be completed renovation of Philips Arena, all done with public financial assistance.  In this blog, I focus on the Mercedes-Benz Stadium because it is the most expensive and prominent. Here’s my question: How can a huge building, that looks like either the Lunar Lander or an alien landing zone (think big hole in the roof) and that is used less than 100 days per year, help revitalize a struggling community? Wasn’t this supposed to happen before with Turner Field and the Georgia Dome? Don’t get me wrong. I support public-private partnerships and these revitalization efforts, but in general, I do not see the connection. With that said, I do think the

Read more

Historic Tax Credits Drive Downtown Revitalization

3 months ago 0 0 118

The town of Sandusky, Ohio is experiencing a bit of a resurgence these days, thanks in part to Historic Tax Credits (HTCs) incentivizing developers to re-think their approach to space, as described in: Booming downtown Sandusky gets a boost. While this isn’t necessarily a “new” approach to redevelopment, it is an incentive that is preserving the culture and architectural nuances of cities across the country, and PREF LLC is uniquely positioned to help organizations strategically leverage HTCs through financing and trading tax credits. Here in Georgia, downtown Savannah has experienced a similar resurgence. Boarded and largely desolate for years, Broughton Street is a great example of how businesses recognized and utilized redevelopment incentives to revitalize the downtown area to a once again make it a bustling center of commerce. BusinessinSavannah.com cites a study by real estate and economic development firm, Place Economics, who reiterates the importance of these programs to

Read more

Cap Rates: They Have Their Place

4 months ago 0 0 130

Here’s the scenario. You have money you want to invest, and you do not want to manage real estate, but you want an income stream. When considering your options, you find the following: U.S. Treasury bond—2.3 percent return with virtually no risk; Municipal bond—4.5 percent return (with some tax benefits), still with minimal risk; and McDonald’s ground lease—5 to 5.5 percent return, with a slightly higher risk and illiquidity. These examples demonstrate very low risk situations, but make a comparison between similar investment options. So, where do Cap Rates (short for capitalization rates) come in? Cap rates are the benchmark that enable investors to compare various investments. Here’s a straight forward definition: “A cap rate measures a property’s natural rate of return for a single year without taking into account debt on the asset, making it easy to compare the relative value of one property to another.” In most basic

Read more

More Players in Tax Credit Programs

4 months ago 0 0 175

One emerging trend in tax credit programs we are more frequently seeing is cities, counties and sometimes even several towns banding together to offer film tax credit programs in the wake of state programs, such as Florida’s, expiring or being discontinued. These smaller areas—such as Miami-Dade—recognize the value of such programs. This trend alone should send a powerful message to states that these programs are wanted and valuable to the state and local economies. Minimizing the programs to a municipal level results in smaller programs, which are subject to a number of limitations regarding what productions have to do to qualify. Film tax credits in such a diminished capacity can make a difference for small, local productions, but they won’t attract the big productions that significantly impact the local and state economy. States will continue to benefit even when the municipalities provide incentives, but the opportunity for larger gains and

Read more

The Pro Forma: Garbage In, Garbage Out

5 months ago 0 1 205

I clearly remember one speaker’s comments from a 1985 NAIOP conference. His claim was this: One of the worst things that ever happened to the real estate business was the personal computer. How Can This Be?  For those who can remember prior to 1980—before the personal computer and in the early days of the financial calculator—real estate pro formas were done by hand. Income-producing properties were evaluated based on current income, and development pro formas rarely went beyond three years. With the onset of high inflation in the early 80s, pro formas showing annual increases in income became common to achieve high future evaluations, so real estate could compete with high bond rates. Even then you had to get the numbers (rents, expenses, cap ex, etc.) right on the first try because changing them after the initial projection was cumbersome and time-consuming. Enter the Financial Calculator and the Personal Computer. With

Read more

Amazon’s Bold Purchase of Whole Foods: Why Exactly?

5 months ago 0 0 167

Jeff Bezos has done it again. He’s managed to set the retail world on end with his unexpected, and possibly risky, move to purchase Whole Foods. And the move has left a trail of analysts wondering exactly why he did it. So, I guess I will chime in. Stan’s Prediction Amazon bought Whole Foods because it now has 431 convenient pick-up points for existing and future customers to pick-up more Amazon stuff. It’s my thought that future home delivery will only be available for the best of customers, and if you don’t rank, you will be picking up your Amazon shipment, still conveniently, at your local Whole Foods store. That may be one of the main reasons the transaction happened, but let’s look at other factors influencing this just under $14 billion-dollar transaction which recently lit up the retail market. Why Whole Foods? Organic food market becomes flooded. At one

Read more

The Show Will Go On In Georgia

5 months ago 0 0 299

We’ve all heard the adage “if it bleeds, it leads” in news today, and Georgia’s burgeoning film industry is no different. We’ve also heard lately about Netflix’s return to LA and now Captain Marvel has chosen not to film in Georgia – a move that wounds some who take pride in its presence here. As ominous as it sounds, the truth is that Georgia maintains one of the most competitive film tax credit programs in the country, and as long as it continues to do so, Georgia’s film industry will continue to flourish. With Georgia’s robust film industry comes an array of job and economy-stimulating needs that drive the economy, beyond just the revenue from film production. Remember, the actors, actresses, producers and other staff all have to eat, sleep, shop and be entertained in the cities in which they’re working. And while that doesn’t hit the “bottom line” for

Read more

Development: Unpredictability in the Process

6 months ago 0 0 167

Development: Unpredictability in the Process My last blog, “The Importance of Timing on Real Estate Investment,” focused on the unpredictability in investment, on what can happen over time once you own a property. In development, there is the added unpredictability during the process. For a broker selling a property or an investor buying a property, the complete process can be done in 90 days or less. But that is not the same with development, not even close. Process Derailment Developers have many considerations—they need time for inspections, site tests, neighborhood forums, entitlement or zoning processes, permitting, and soil boring tests, to name a few. While some of these can be controlled, others cannot. For example, everything could be moving forward smoothly and one ruffled neighborhood group at a zoning hearing or one difficult inspector could stop the project dead or at least create a significant delay, with the developer having

Read more

Seo wordpress plugin by www.seowizard.org.
/*-----------------------------------------------------------------------------------*/ /* Bouncepath 2016 Analytics /*-----------------------------------------------------------------------------------*/