129 North Avenue

Downtown Atlanta, Georgia

Categories: Detailed Design & Procurement, Development & Construction, Completion & Management

Main Services: Project Repositioning & Design, Management of Building Fit Outs & Refurbishments, Asset Management, Property Leasing, Property Tax Management

Objective Strategic repositioning of a fully-leased commercial redevelopment site

Project Type Commercial redevelopment site

Project Size 1.69 acres

Status Complete

St. Bourke was engaged to reposition 129 North Avenue, a 1.69-acre commercial site comprised of four (4) fully-leased, standalone retail buildings. At the time of acquisition, the property was plagued with various issues, including:

 ·       Physical damage to the buildings’ roofs and utilities

·       Overall run-down and “shabby” appearance

·       Major trespassing and security problems

·       The leases in place were well below market rate

St. Bourke’s ultimate goal was to minimize and offset the client’s holding costs through a series of physical repairs, property enhancements, and strategic leasing adjustments. The team focused on:

Building repairs – at acquisition, several of the existing buildings had fallen into a state of disrepair and were exhibiting problems that would ultimately result in additional maintenance costs to the client if left unchecked. The St. Bourke team assessed the damaged areas and engaged local contractors to repair the roofs as well as various gas and plumbing utility lines.

Visual upgrades – to improve the aesthetics of the site, the team removed a significant amount of overgrown landscaping and foliage and installed upgraded landscaping components in various places. Several of the buildings’ exteriors were repainted to remove graffiti, and the parking lots were patched and resealed. Additionally, concrete enclosures were constructed to prevent the tenants’ dumpsters from being visible from the street.

Site security – at acquisition, the property had a significant amount of criminal activity and traffic from transients. To combat this problem, a partnership with the local authorities was formed so that the property would be continuously monitored. Additionally, all existing fencing and barricades that provided opportunity for undesirable activity were removed, and privacy fencing and extensive exterior lighting were installed in strategic places across the property to deter future trespassing issues.

Lease Renegotiations – while each of the site’s four (4) standalone buildings were fully-leased at the time of acquisition, there was very little consistency between the leases and the rental rates were well-below the market rate for comparable space in the area. The team used the various property enhancements and upgrades to leverage early lease renewals with increased rental rates with all of the existing tenants. The lease renegotiations resulted in more favorable lease terms for our client, limiting their liability and securing higher rental income during the holding period.

For more information on this property, please contact Katie Flaim at katie@stbourke.com.