Shopping Center Business

MAY 2017

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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AVALON 298 • SHOPPING CENTER BUSINESS • May 2017 build on Avalon's reputation as a food- ie haven with a new slate of restaurants. The restaurants opening at Boulevard East include Barleygarden Kitchen and Craft Bar, District III, Jeni's Splendid Ice Creams, Rumi's Kitchen, MF Sushi and Brine Seafood Shack, which will feature a walkup window. "We [at Avalon] have an open contain- er policy; you'll see many of our restau- rants have walkup windows, which Brine will participate in with their line of craft beers," says Toro, who also mentioned that Starbucks Coffee will open in Janu- ary 2018. A CAPTIVE AUDIENCE The shops and restaurants within the second phase will have a captive audi- ence as Boulevard East will also feature a Class A office tower known as 8000 Avalon. The nine-story office building is a joint venture between Hines and Cous- ins Properties. The pair has had success marketing 8000 Avalon, which is currently 95 percent leased. "One of the reasons the office build- ing has been leased so fast is that our customers have seen the advantage of this development," says John Heagy III, senior managing director of Hines' At- lanta office. "They understand that this is a great place to recruit and keep talent. The paseo gives our office a direct link to the retail and restaurants, which will help keep [our tenants] here long-term." Headlining the office tenants is Mic- rosoft Corp., which will occupy 43,000 square feet on the top two floors with office space and a training center. Spac- es, a co-working office space provider owned by Regus, will lease space on the first two floors. Spaces is targeting some of the top submarkets in metro Atlanta with upcoming locations at Battery Atlan- ta near SunTrust Park in Cobb County and across from the Fox Theatre in Midtown Atlanta. Other office tenants coming to 8000 Avalon include Balbec Capital LP, LS Retail and Chemence Medical on floor eight; an undisclosed firm that will lease floors six and seven; two tenants that have signed letters of intent on floors four and five; and a software firm and high-tech firm on floor three. Heagy says that with the rising cost of construction, Hines and Cousins Properties are charging top-of- market rents for the brick and glass office building. "On average, our rental rates are $37 to $38 per square foot full-service, that's in a market where rates are in the $26 to $27 per square foot range," says Heagy. "It's a function of construction costs, that's what it takes to build a building of this quality." The office building will house rough- ly 900 to 1,000 employees, according to Heagy. In addition to the entrenched of- fice workers, retailers and restaurants will benefit from the Veranda at Avalon, a 276- unit apartment community that joins the existing multifamily community in Phase I, Haven at Avalon. Tawny Walsh, general manager of Veranda at Avalon, says that to date the average age of renter is 51. "Empty nesters are deciding to give up the responsibility of homeownership and live this life with concierge services and events," says Walsh. Residents can become "black card" members by paying an extra $395 per month in rent at the premium residences. On average there are three to four events per month at Avalon for members, with past events including complimentary wine tastings at Whole Foods Market, pri- vate shopping parties with discounts and private movie showings at the 12-screen Regal Avalon theater. At the far-east end of Avalon will be the $112 million Hotel at Avalon and Al- pharetta Conference Center, which will open next January. The property, which will be part of the Marriott Autograph Collection, has also helped Hines and Cousins lease 08000 Avalon. "The hotel has been a big selling point for our office tenants," says Heagy. "Near- ly every conversation with them involves the hotel. Companies are finding ways to Among the new dining options at Avalon are Jeni's Splendid Ice Creams, which will operate a freestanding location along the median in the Boulevard East section. North American Properties hosted a private fundraising event the night before the opening of Avalon's second phase, Boulevard East.

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