Alpharetta’s Avalon Has A New Owner
The recession is definitely behind us, and the real estate market in Alpharetta is doing pretty well. One of the success stories here is that of Avalon, a mixed-use property developed by North American Properties. Avalon has grown into a modern-style community since it was opened two years ago.
With a mix of restaurants, stores, offices and luxury apartments, you can see why investors would be happy to get their hands on this $600 million goldmine.
North American set out to create a community, more than a retail center, that was immune from the effects of e-commerce by offering “experiential retail” and a unique living experience…
The first phase of the $600 million Avalon development includes 250 luxury apartments, 390,000 square feet of high-end retail and 105,000 square feet of office space. PGIM Real Estate also acquired a 3.3-acre tract slated for a future office tower.
A Whole Foods Market, Crate & Barrel, Anthropolgie, Antico Pizza, Coletta, Regal Cinemas and Tesla are among Avalon tenants. Via My AJC…
PGIM Real Estate, an arm of Prudential Financial, is the new owner of Avalon. PGIM acquired the first phase of the Alpharetta project and is set to acquire the second phase once it’s complete. Avalon was an immediate hit following its opening in the fall of 2014. All the retail and office spaces are fully leased, while the apartments are 98 percent leased.
In fact, the retail spaces of the second phase are already 80 percent pre-leased despite the fact that it’s still under construction. You can bet that PGIM is happy with their new acquisition.
“Avalon is one of the premier mixed-use development projects in the United States,” said Kevin R. Smith, head of Americas at PGIM Real Estate. “The acquisition provides our investors with a rare opportunity to acquire a trophy-quality mixed-use property in a strong demographic area, and is consistent with PGIM Real Estate’s strategy to acquire experiential retail centers in markets that are poised to continue to benefit from an increase in consumer discretionary spending.” Via Patch.com…
The second phase, much like the first, will include 276 apartments, retail and office spaces as well as a hotel and conference center. Currently under construction, it is expected to open in 2017, with the retail and residences opening in April while the hotel opening later in January 2018.
So why is it a success story? Well, it was initially meant to be a development project that would include high-rises and high-end retail. Unfortunately, the Great Recession came, the project collapsed and the Old Milton Parkway site sat abandoned for a few years before NAP came in and saved the day.
Avalon, which was developed by North American Properties, was the second act for a site that was previously envisioned as Prospect Park by another development group. That development was scuttled by the recession before North American and investment partners acquired the site and set about crafting a new vision of a walkable mini-city just east of Alpharetta’s downtown. Via AJC…
The acquisition presents minimal if any interruptions to existing businesses, their customers and tenants in Avalon. North American Properties will remain the retail center’s manager. The apartment operator won’t change either.
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