Inman Quarter sells for $72.5M (Atlanta: apartments, for rent, condo)

[ATLJR]

Originally Posted by JPD

When you buy on the high end, you have no choice but to charge absolute top dollar for retail and residential units. This will likely price out all but the deepest pocketed retailers, most of which happen to be boring national chains.

From talking of the few apartment developers the banks require the deepest pocketed retailers, which do happen to be boring national chains anyways. If the banks were okay with these restaurants and retailers that they do have leased up, I don't see why a change in ownership would push these current retailers out of business unless they were going to fail anyways at current lease rates. The location is prime and they should do well.

[arjay57]

It seems like a reasonable price to me. $247,000 per unit is well within what other intown apartment complexes have been going for.

[JPD]

Originally Posted by ATLJR

From talking of the few apartment developers the banks require the deepest pocketed retailers, which do happen to be boring national chains anyways. If the banks were okay with these restaurants and retailers that they do have leased up, I don't see why a change in ownership would push these current retailers out of business unless they were going to fail anyways at current lease rates. The location is prime and they should do well.

It's not about change of ownership, it's about the exorbitant amount of money the new owners have sunk into the place. The new owners obviously expect to turn a profit, and that's a lot more difficult when you've invested 72 million than it is when you've invested 46 million.

[onemanarmy]

Originally Posted by JPD

It's not about change of ownership, it's about the exorbitant amount of money the new owners have sunk into the place. The new owners obviously expect to turn a profit, and that's a lot more difficult when you've invested 72 million than it is when you've invested 46 million.

Let's also keep in mind that the new owners purchased from a developer, which means the total cost is not really known. I'm guessing the 46 million is a little understated. Also, this does not include the cost to lease up the spaces and rental units. I'm not suggesting it's a bargain, but the new owners are banking on rise rents for the residential portion, not the retail, since the leases change yearly.

The retail leases are contingent on the prices of the rental units, as they will mirror the demographics of the neighborhood. It's funny you mentioned national chains, I beg to differ, these stores are really reluctant to put stores in this type of development. I would guess the retailers have 5 year leases, with an renewal option. So they can predict their leases for 10 years, that's a long time.

[George Chong]

Originally Posted by onemanarmy

It's funny you mentioned national chains, I beg to differ, these stores are really reluctant to put stores in this type of development. I would guess the retailers have 5 year leases, with an renewal option. So they can predict their leases for 10 years, that's a long time.

The retail spaces are not big enough for national retail chains and the neighborhood would prefer local retailers.

MF Sushi has already opened.

Here is the list of the other retailers/restaurants https://inmanquarter.com/coming-to-iq/

[JPD]

Originally Posted by George Chong

The retail spaces are not big enough for national retail chains and the neighborhood would prefer local retailers.

I'm not talking about Macy's or Old Navy. The retail spaces are more than big enough to fit a Smothie King, GNC, Dunkin' Donuts, or the like. I know what the neighborhood prefers, but do they have a say in the matter?

[magnetar]

Originally Posted by JPD

I'm not talking about Macy's or Old Navy. The retail spaces are more than big enough to fit a Smothie King, GNC, Dunkin' Donuts, or the like. I know what the neighborhood prefers, but do they have a say in the matter?

Uhh, ok, you're on the record. Inman Quarter will be filled with donut shops and smoothie places in 5 years. Ok?

[JPD]

Originally Posted by magnetar

Uhh, ok, you're on the record. Inman Quarter will be filled with donut shops and smoothie places in 5 years. Ok?

Those are just examples. I don't foresee a lot of locally owned businesses surviving long term considering the rents they'll have to charge to make a return on that 72 million investment.

[UrbanConquistador]

I think a healthy mix of some chains along with local retailers isn't a bad thing. As long as it's in a good urban format, I could honestly care less. Major cities have chains all over the place. I'm more excited that the project was a financial success and will hopefully be replicated.

[travbo]

Originally Posted by onemanarmy

Let's also keep in mind that the new owners purchased from a developer, which means the total cost is not really known. I'm guessing the 46 million is a little understated. Also, this does not include the cost to lease up the spaces and rental units. I'm not suggesting it's a bargain, but the new owners are banking on rise rents for the residential portion, not the retail, since the leases change yearly.

The retail leases are contingent on the prices of the rental units, as they will mirror the demographics of the neighborhood. It's funny you mentioned national chains, I beg to differ, these stores are really reluctant to put stores in this type of development. I would guess the retailers have 5 year leases, with an renewal option. So they can predict their leases for 10 years, that's a long time.

If they are banking on rising rents on the residential portion they are waaaay more optimistic about Atlanta's economic conditions than most. I can imagine 10-15% appreciation from current prices but not much more than that for rentals. The traffic congestion in Inman Park is and is becoming an even greater turn off for the very demographic they are trying to reach. However, I imagine they'll be turning them into Condos sooner rather than later.