172 UNITS MIDTOWN ATLANTA, GA

172 UNITS • MIDTOWN ATLANTA, GA PROPERTY SUMMARY Address 470 16th Street Atlanta, GA 30363 County Fulton County Site Size: Units Year Built Net ...
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172 UNITS • MIDTOWN ATLANTA, GA

PROPERTY SUMMARY Address

470 16th Street Atlanta, GA 30363

County

Fulton County

Site Size: Units Year Built Net Rentable Area

2.31 Acres 172 Units 2007 151,455 SF

Average Unit Size

881 SF

Average Market Rent*

$1,286

Average Market Rent/SF* Occupancy* *As of 5-29-15

$1.46 91%

ATLANTIC SQUARE

INVESTMENT HIGHLIGHTS INVESTMENT OFFERING OVERVIEW Cushman & Wakefield is pleased to present Atlantic Square, a 172-unit residential community in Atlantic Station, Midtown Atlanta’s “City within a City.” Developed by nationally renowned CFLane (fka Lane Company) in 2007, Atlantic Square is a quintessential urban institutional asset. As West Midtown’s only institutional quality asset of its vintage without upgraded interior finishes, Atlantic Square is positioned as one of metro Atlanta’s best core-plus opportunities.

1

TRANSFORMATIONAL WEST MIDTOWN LOCATION CLOSE TO MIDTOWN & GA TECH

Situated on the west end of Atlantic Station, Atlantic Square offers a desirable location in vibrant West Midtown, Atlanta’s hottest new development submarket and popular area for Millennials. The property is just west of Midtown, which has had 7,400 new job announcements since October 2014, and north of Georgia Institute of Technology, a top ten public university that is a leading research and innovation hub. This area occupies a strategic central location between Buckhead and Downtown.

3

O N LY I N S T I T U T I O N A L C O R E - P L U S O P P O RT U N I T Y I N W E S T M I D TOW N

4

I M P R E S S I V E F I N A N C I A L S W I T H O P P O RT U N I T Y TO C O M P E T E W I T H N E W E R P RO D U C T

5

AT T R AC T I V E A S S U M A B L E D E B T W E L L B E L OW C U R R E N T I N T E R E S T R AT E S

As West Midtown’s only institutional quality asset of its vintage without newly upgraded interior finishes, Atlantic Square presents a true value-add opportunity. One of two already-upgraded units with stainless steel appliances, wood flooring, granite countertops, tiled backsplash, and modern fixtures, generated a $270 rent premium, reflecting a 30% return on cost of improvements.

Atlantic Square’s strong organic growth over the past five years has been attributable to unprecedented demand for in-town housing and to Atlantic Station’s transformation into a higher-end retail center. Atlantic Square’s effective rent has increased from $1.20/SF in 2010 to $1.47 in 2014. Implementation of the recommended VA program would elevate average subject rents to $1.65/SF, catapulting the property above similar vintage comparables and directly competing with new product.

2

AT L A N T I C S TAT I O N : A T L A N T A ’ S T R U E “ L I V E WORK PLAY” COMMUNITY

Atlantic Square is set apart from the competition by its inherent position in Atlantic Station, a 138-acre urban “mini city” in the heart of Midtown. This unique livework-play community represents one of the nation’s first successful models for smart growth and sustainable green development. With immediate access to Atlantic Station’s 2.7M SF retail district, glass office towers, hip restaurants, upscale residences, luxury hotels, and acres of parks, Atlantic Square residents enjoy a unique walkable living experience incomparable in the Southeast region.

The new owner has the opportunity to assume the current financing, which has a 3.70% interest rate. With the loan maturing in February of 2023, this gives the option for a debt service well below what one could achieve in today’s market. CUSHMAN & WAKEFIELD

ATLANTIC SQUARE

STRATEGIC WEST MIDTOWN LOCATION NEXT TO MIDTOWN AND GEORGIA TECH PROLIFIC RECENT MIDTOWN JOB ANNOUNCEMENTS COMPANY

JOBS ADDED

COMPANY

JOBS ADDED

COMPANY

JOBS ADDED

NCR

4,000

Pindrop

100

SoftWear Automation

25

Worldpay

1,200

Riskalyze

60

Coca Cola

Expansion

Kaiser Permanente

900

PureCars

50

The Home Depot

Potential Relocation

RIB Software AG

700

Bauerfeind

50

Tech Square Labs

Expansion

Earthlink

250

Southern Company

50

QTS

Relocation

Whole Foods

200

HubLogix

30

ATDC

Expansion

Total Jobs

7,615

DEMOGRAPHICS

Little Five Points Virginia Highlands

line Belt a t n Atla

Piedmont Park Atlanta Botanical Garden

1-MILE 45.6%

Avg HH Income

$92,164

Graduated College

73%

• Anthropologie • JCT Kitchen • Lululemon • Terminal West

• Westside Cultural Arts Center • Sid Mashburn • Bacchanalia • King Plow Arts Center • Miller Union

Piedmont Driving Club

Pershing Point Plaza

Pea cht ree

• The Optimist • Room & Board • Bartaco

Woodruff Art Center

Future IT Campus

U.S. NEWS & WORLD REPORT 2015 RANKINGS

• Antico Pizza

• No. 7 public university in the country

• Goat Farm Arts Center

• No. 4 undergraduate engineering college • No. 6 graduate engineering college • No. 1 industrial engineering program

Arts Center Station ett reee SSttr e tre

t ch ea P P tt eess W W gg rriinn SSpp

0 01 6, 1 -

aayy s/dd e l c hi Ve

tt eeee r r SStt

Endowment Academic Staff Students Campus Size

$1.88 billion 5,126 (Fall 2014) 23,109 total (Fall 2014) 373 Acres

Center for Puppetry Art

Savannah College of Art and Design

85

CUSHMAN & WAKEFIELD

Mid

Ansley Park

WEST MIDTOWN IS “SOHO OF ATLANTA”: INCLUDES 350K SF OF HIGH END RETAIL AND TOP RESTAURANTS, ONE OF ATLANTA’S EMERGING RETAIL AND ARTS DISTRICTS WITH CONTINUED RETAIL DEVELOPMENT UNDERWAY • West Egg

Colony Square

Str eeett

Pop. Growth (2000-2010)

Ponce City Mark

75

ATLANTIC SQUARE

Downtown Old 4th Ward Historical Park

Georgia Dome Centennial Olympic Park

ket Federal Reserve

dtown

5th Stree t Technology Square

Future Northside Hospital Midtown Campus

Georgia Tech Main Campus

10th Stre et 75

313,460 Vehic icle less/D /Daayy

85

Georgia World Congress Center Carriage Works

World Headquarters

Techwood Campus

Ho we ll M ill R o ad

10th Stre et

14th Sttrree t

Little Italia

Stree State

Westside

ive e Dr

14th Str treet

t

14,0 .069 Ve hiiccles//D Day Home Park

17th Street

BrickWorks

hsid Nort

Atlanta Waterworks

eet 16th Str 20,5 ,530 Ve hiiccles//D Day

5

17 th

1

ailway e rn R h t u o lk S Norfo

St re et

ay s /D icle eh 0 V , 57 25

ts

Future

FutureHeadquarters

LEGEND Office Retail Education Recreation Civic

New Stadium

reet Bishop St

CUSHMAN & WAKEFIELD

ATLANTIC SQUARE

ATLANTIC STATION: ATLANTA’S LIVE- WORK-PLAY MECCA DOWNTOWN

ATLANTIC STATION OFFICE TENANTS:

• Wells Fargo

• WorldPay

• BB&T

• Uber

• Arnall Golden & Gregory

• Square

• Burr & Forman Pandora • Georgia Tech Research Corp. • Booking.com

• Ogilvy & Matthew

MIDTOWN

• The Bank of the Ozarks • Thrive Senior Living

GEORGIA TECH

ATLANTIC STATION REGAL CINEMAS 16

PLANNED HINES OFFICE BUILDING Hines is planning new 220,000 SF “creative” office building that will accommodate 1,500 workers.

CUSHMAN & WAKEFIELD

ATLANTIC SQUARE

ATLANTIC STATION FLOURISHING UNDER NEW OWNERSHIP ATLANTIC STATION RETAIL: VACANCY DOWN, RENTS UP Asking Rent $34

• Introducing a 5-star hospitality and guest service program staffed by RitzCarlton trained professionals.

$32

• Completing a $2.5M parking deck makeover, enhancing security, ongoing video surveillance, smoking ban, and zero-tolerance code of conduct policy.

$30

• Launching an industry leading social media campaign that ranks as the highest social media influcence of any shopping venue in the US. • Generating more traffic through special events that attract 9 million annually.

Vacancy % 12.0% 11.0% 10.0% 9.0%

Asking Rent

• Reworking retail mix to resonate with young and affluent urban Millennials.

Vacancy %

NORTH AMERICAN PROPERTIES HAS TRANSFORMED THE 586,000 SF ATLANTIC STATION RETAIL COMPONENT BY:

8.0%

$28

7.0% 6.0%

$26

5.0%

$24 $22

4.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014

3.0%

RESULT HAS BEEN OVERWHELMINGLY SUCCESSFUL: • Retail sales are up $140 PSF, an average 15% YoY increase. • 34 new retail leases bringing blend of local, regional and national retailers, including Which Wich, BGR: The Burger Joint, Meehan’s Public House, and microbrew specialist Yard House.

$1,700 WEST MIDTOWN APARTMENT RENT GROWTH

• 20 new office leases, mostly new technology companies including Uber and Square.

$1,600

• Retail asking rent has increased from $25 PSF to $33 PSF and apartment rent has increased from $1,418 to $1,633.

$1,500

$1,650

$215 increase

$1,550 $1,450 $1,400 $1,350 $1,300 $1,250 $1,200

1Q 2010

3Q 2010

1Q 2011

3Q 2011

1Q 2012

3Q 2012

1Q 2013

3Q 2013

1Q 2014

3Q 2014

1Q 2015

CUSHMAN & WAKEFIELD

ATLANTIC SQUARE

UNIQUE URBAN VALUE-ADD OPPORTUNITY $2,500

$2,300 $2,300 $2,300 $2,400

$2,200 $2,200 $2,200 $2,300 $2,100 $2,100 $2,100 $2,200 $2,000 $2,000 $2,000 $2,100 $1,900 $1,900 $1,900 $2,000 Monthly Rent

New ownership has the strategic opportunity to continue with this program and elevate the property’s overall market position within the West Midtown submarket.

LINEAR REGRESSION ANALYSIS

$2,400 $2,400 $2,400

$1,900 $1,800 $1,800 $1,800 Monthly Rent

Given its exemplary Atlantic Station location and striking urban architecture, Atlantic Square’s full investment potential remains unfulfilled, as all unit interiors have not been upgraded with 2015 finishes. One of two already-upgraded units (SS appliances, granite countertops, new cabinets, tiled backsplash, new plumbing fixtures, track lighting, ceiling fans, plank flooring, bathroom lighting/hardware) leased at a $270 premium.

$2,500 $2,500 $2,500

Monthly Rent Monthly Rent

RARE OPPORTUNITY TO ACQUIRE BELOW REPLACEMENT COST AND COMPETE WITH NEWER URBAN PRODUCT

$1,800 $1,700 $1,700 $1,700 $1,700 $1,600 $1,600 $1,600 $1,600

$1,500 $1,500 $1,500 $1,500

$1,400 $1,400 $1,400

MAXIMUM VALUE-ADD STRATEGY: ORIGINAL FINISH SUBJECT UNIT

$1,400

$1,300 $1,300 $1,300

RENOVATED SUBJECT UNIT

$1,300

new

$1,200 $1,200 $1,200 $1,200

$1,100 $1,100 $1,100 $1,100

new

old

new

$1,000 $1,000 $1,000 $1,000

$900 $900 $900 $900 550550 550 550 650650650 650 750750750

750 850850 850

850 950950 950

9501,050 1,050 1,050

1,050 1,150 1,150 1,150

Atlantic Atlantic Square Square Atlantic Square Atlantic Square

Unit Unit SF SF Unit SF Unit SF 17 17 West West (Park 17 (Park West District, District, (Park UGUG District, Rents) Rents) UG Rents) Elan Elan Westside Westside Elan Westside 17 West (Park District, UG Rents) Elan Westside

Walton Walton Westside Westside Walton Westside Walton Westside

Steelworks Steelworks (Lease-up) Steelworks (Lease-up) (Lease-up) Steelworks (Lease-up)

1,150 1,250 1,250 1,250

1717 17 West West (ICON 17 (ICON West City, City, (ICON UG Rents) City, Rents) UG Rents) West (ICON City, UGUG Rents)

SELECT COMPARABLE SUMMARY COMMUNITY NAME

ELAN WESTSIDE

WALTON WESTSIDE

EFF. RENT

UNIT SIZE

RENT PSF

17 West - Park District Upgraded

$1,424

983

$1.45

17 West - Icon City Upgraded

$1,557

976

$1.60

Walton Westside

$1,803

903

$2.00

Elan Westside (Lease-up)

$1,350

860

$1.57

Steelworks (Lease-up)

$1,682

864

$1.95

$1,250

881

$1.42

Atlantic Square

$8,000/unit* expected cost to implement CUSHMAN & WAKEFIELD

$250

expected average premium

38%

expected return on investment

1,250

RECOMMENDED UPGRADES • Stainless Steel GE • Plank Flooring throughout Appliances • Tiled Backsplash • Granite Countertops • New Lighting and (kitchen+bath) Hardware • Plumbing Fixtures • Ceiling Fan in Living Room (kitchen+bath)

ATLANTIC SQUARE

OPPORTUNITY TO COMPETE WITH NEW MIDTOWN PRODUCT ATLANTIC SQUARE POST RENOVATION WILL COMPETE WITH NEW MIDTOWN PRODUCT Following the suggested value-add improvements, Atlantic Square will surpass similar vintage West Midtown comparables, yet remain a value provider to newer product. ATLANTIC SQUARE VS. MIDTOWN COMPS $2.80 $2.60

$2.61 $2.37

$2.40

Rent PSF

$2.20 $1.95

$2.00

$1.78

$1.80

$1.65

$1.60

$1.60

$1.57 $1.45

$1.42

$1.40 $1.20 $1.00 77th 12th (2013)

Skyhouse Midtown (2013)

Steelworks (2014)

Walton Westside (2014) Atlantic Square Post VA

DRAMATIC INCREASE IN EFFECTIVE RENT

17 West - Icon City (2006)

Elan Westside (2014)

17 West - Park District Atlantic Square (2008) (2004)

EFFECTIVE RENT (PER UNIT)  $1,300

Atlantic Square experienced a dramatic increase in effective rent from 2010 to 2014. This is attributable to Atlantic Station’s revamped retail under its North American Properties ownership, along with high demand market conditions in the Midtown submarket.

$220 increase  $1,250

Effective Rent

 $1,200

 $1,150

 $1,100

 $1,050

 $1,000 2010

2011

2012

2013

2014

CUSHMAN & WAKEFIELD

ATLANTIC SQUARE

CUSHMAN & WAKEFIELD

ATLANTIC SQUARE

COMMUNITY AMENITIES

RESIDENCE FEATURES

• Structured Parking Deck • Controlled Building and Parking Access • Courtyard Swimming Pool • Zero-Edge Poolside Fountain • Fully-Equipped Fitness Center • Resident Business Center • Cyber Café with Plasma Screen TV • Wi-Fi Throughout Amenity Areas • Picnic Area with Grills • Car Care Center w/Vacuum • Bark Park with Pet Stations • Laundry Facility • Storage Rooms Available • Central Mail Station • Central Trash Compactor

• Stunning Atlantic Station and Skyline Views Available • Gourmet Kitchens with Cherry Cabinets and Black Appliances • Stainless Steel Appliances* • Granite Countertops* • Tiled Backsplash* • Upgraded Fixtures/Lighting* • FF Refrigerator with Icemaker • Microwave Oven • Washer and Dryer Appliances • Nine-Foot Ceilings • Ceiling Fans • Track Lighting • Walk-in Closets • Garden Tubs in Master Bath • Double Sink Vanities* • Paneled Doors • Private Terraces & Verandas* • Fenced Patio* • Plank Flooring* *Select Units

UNIT MIX TYPE 1BR-1BA, Gdn 1BR-1BA, Gdn 1BR-1BA, Gdn 2BR-1BA, Gdn 2BR-2BA, Gdn 2BR-2BA, Gdn 2BR-2BA, Gdn 2BR-2BA, Gdn 2BR-2BA, Gdn Total / Avg.

FLOORPLAN Uptown Midtown Downtown Atlantic Central Station Park Avenue Park Plaza Cosmopolitan Metropolitan

# UNITS 83 5 5 5 40 20 5 4 5 172 Units

SIZE (SF) 750 SF 750 SF 800 SF 972 SF 989 SF 1,051 SF 1,090 SF 1,135 SF 1,205 SF 881 SF Avg. CUSHMAN & WAKEFIELD

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Please visit our website, www.apartments.cushwake.com/atlanta, to sign a Confidentiality Agreement and gain access to the Offering Memorandum.

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MIKE KEMETHER Multifamily Advisory Group Jonesboro Executive Vice President 404.853.5269

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BRANDON WHITESELL - LEAD Multifamily Advisory Group Morrow Executive Vice President Riverdale 404.853.5200

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J. CHRISTOPHER SPAIN Multifamily Advisory Group Executive Vice President 404.853.5234

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CUSHMAN & WAKEFIELD 55 Ivan Allen Jr. Blvd., Suite 700, Atlanta, GA 30308 Phone: 404.875.1000 | Fax: 404.853.5248 www.apartments.cushwake.com/atlanta

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Rd

85

d ill R

H on

Vern

Old

d

Blv

H sant Plea

Hill

Mt.

PERIMETER MALL

llite

Sate

Beav er R

cliff Rd Oak

y ind

Heards Ferry Rd

Du Cham nw b oo lee dy Rd

23

Blvd

Pat Mell Rd

Rd idge b Br

DOBBINS AFB

Rd

Rd l Rd Winters Chape

ta

Peachtree Dunwoody Rd

an

wy

Dr

Delk Rd Atl

CHATTAHOOCHEE RIVER NATIONAL RECREATION AREA

Sandy Springs

n nso Rd Joherry F

St

Mt.Ve

d ill R

Rd Abernathy

ide ers Riv

w Po

ngs

Spri

swel l Rd

ry Rd rs Fer Powe

r de

rnon

Dunwoody Ashford Dunwoody Rd

wy b Pk

S. Marie tta Pkwy

Darymple Dr

ll Rd

r Mi Pape

Low er Ro

yM Till

Roswell St

Cob

las

Dal

n Ferry Rd

120

Marietta y Hw

Barn

ett Br

idge

Rd

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