buckhead/brookhaven

HADDOW’S APARTMENT REPORT INTOWN ATLANTA

SUBMARKETS

Haddow’s Apartment Report provides a thorough analysis of the intown Atlanta apartment market. This semiannual report examines current

Buckhead/ Brookhaven

trends in the Class A market by tracking rental and occupancy rates at apartments built since

Lindbergh

2000. Apartments planned and under construction

Midtown/ Brookwood

are also monitored, as well as land and building

Midtown West

sales. Important demand drivers are constantly assessed.

Atlanta East

Downtown

CONTENT OF REPORT •

Market-rate apartments built since 2000 in Atlanta’s six urban submarkets.

REPORT DETAILS

Current rental and occupancy rates reported individually for at least 80 percent of existing units.

Release Dates: April 1 and October 1

•

Recent sales of apartments and development sites.

* Additional copies are $25 per copy.

•

Apartments planned or under construction.

•

Key demand drivers and economic indicators.

•

•

Special Topics section analyzing important trends shaping intown Atlanta.

Cost: $1,000 per issue, $1,750 annually

CONTACT INFO

Ladson Haddow [email protected] Phone (404) 577-7222

HADDOW’S APARTMENT REPORT INTOWN ATLANTA

FIRST QUARTER 2013 Haddow & Company, The Hurt Building, 50 Hurt Plaza, Suite 920, Atlanta, Georgia 30303 www.haddowandcompany.com | Phone (404) 577-7222 | FAX (404) 577-7276

TABLE OF CONTENTS Introduction

1

Intown Market Data and Analysis

2-9

Quarter Highlights

2

Market Summary

3

Market Analysis

4

Lease-Up Analysis

5

Apartments Under Construction

6-7

Apartments Proposed

8-9

Sales Data

10-14

Apartment Land Sales

10-11

Apartment Sales

12-13 14

E

Land and Apartment Sales Analysis

Special Topic: Development Budgets

Downtown Map Downtown - Class A Apartments Downtown Overview Downtown - Performance by Unit Type

M

Midtown/Brookwood Map

PL

Submarket Data and Analysis

15 16-39 16 17 18 19 20

Midtown/Brookwood - Class A Apartments

21

Midtown/Brookwood Overview

22 23

Midtown West Map

24

SA

Midtown/Brookwood - Performance by Unit Type Midtown West - Class A Apartments

25

Midtown West Overview

26

Midtown West - Performance by Unit Type

27

Buckhead/Brookhaven Map

28

Buckhead/Brookhaven - Class A Apartments

29

Buckhead/Brookhaven Overview

30

Buckhead/Brookhaven - Performance by Unit Type

31

Lindbergh Map

32

Lindbergh - Class A Apartments

33

Lindbergh Overview

34

Lindbergh - Performance by Unit Type

35

Atlanta East Map

36

Atlanta East - Class A Apartments

37

Atlanta East Overview

38

Atlanta East - Performance by Unit Type

39

Economic and Demographic Data

40-41

Economic and Housing Indicators

40

Apartment Demand Indicators

41

Haddow & Company

INTRODUCTION Haddow’s Apartment Report: Intown Atlanta examines trends in the Class A market by tracking rental and occupancy rates at market-rate apartments built in the urban core since 2000. Apartments planned and under construction are also monitored, as well as land and building sales, key demand drivers, and economic indicators. A special topic relevant to the intown apartment market is discussed in each issue. Development and operating costs for mid-rise, wrapped-deck projects are addressed in this edition. This report is produced semiannually, with release dates on April 1st and October 1st. Intown Atlanta has been divided into the following submarkets for analytical purposes:

CLASS A APARTMENTS BUILT SINCE 2000 Number of Projects

Submarket

Number of Units

Number Of Units Surveyed

11

2,043

1,824

Midtown/Brookwood

24

5,708

5,516

7

2,123

2,123

14

3,511

3,104

7

2,225

2,021

21

5,375

5,091

84

20,985

19,679

Lindbergh Atlanta East Total Intown Atlanta

PL

Buckhead/Brookhaven

M

Midtown West

E

Downtown

SA

Note: Developments with a significant affordable or tax-credit component, as well as student housing, are not considered.

Methodology

Information in this report is presented on a project-by-project basis. Data were obtained during First Quarter 2013 through on-site interviews and phone surveys of leasing agents, or directly from the property owners. Rental rate and occupancy data by submarket are based on surveys of at least 80 percent of the units in a submarket that were built since 2000. In this issue, projects representing 94 percent of the Class A units in intown Atlanta were surveyed. Apartments described as high-rise are at least eight stories, mid-rise are between four and seven stories, and low-rise are under four stories. Below is an explanation of key terms used in this report: Average Monthly Effective Rent – The quoted rent net of any concessions. Occupancy Rate – The number of units occupied as a percentage of total units. Apartment Deliveries – The year in which the first units of a project were completed is considered the “delivery year.” Condominium Conversions – Class A apartments built since 2000 that were converted to condominiums. Proposed Development – Project for which the site is controlled by a developer and preliminary development plans and construction timeline have been announced.

1Q13

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1

APARTMENT MARKET SUMMARY

BUCKHEAD/ BROOKHAVEN

LINDBERGH

MIDTOWN/ BROOKWOOD

E

ATLANTA EAST

PL

MIDTOWN WEST

Submarket

Downtown

SA

M

DOWNTOWN

Market-Rate Units Built Units Since 2000 Surveyed

Average Unit Size (Sq. Ft.)

Average Monthly Rent

Average Rent Per Sq. Ft.

Units Average Under Units Occupancy Construction Proposed

2,043

1,824

971

$1,192

$1.23

94.2%

0

0

Midtown/Brookwood

5,708

5,516

1,002

$1,421

$1.42

94.3%

930

957

Midtown West

2,123

2,123

933

$1,204

$1.29

95.3%

447

719

Buckhead/Brookhaven

3,511

3,104

1,048

$1,553

$1.48

95.0%

1,976

1,624

Lindbergh

2,225

2,021

915

$1,208

$1.32

94.0%

0

0

Atlanta East

5,375

5,091

977

$1,299

$1.33

95.1%

1,067

1,402

20,985

19,679

984

$1,344

$1.37

94.7%

4,420

4,702

Totals/Weighted Averages

1Q13

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3

UNDER CONSTRUCTION (UNITS) 1. @1377 (215)

2. 92 West Paces (210)

u Mo

n

ern tV

on

y Hw

Glenridge Dr NE

Riverside Dr NW

BUCKHEAD/BROOKHAVEN

§ ¦ ¨ 285

3. Alta Brookhaven (230)

4. Camden Paces - Phase I (379)

5. Crescent Terminus (355)

6. Fairfield Town Brookhaven (299)

7. The Reserve at Collier Hills (288)

400

PROPOSED (UNITS)

8. Broadstone Maple (250)

ths Nor

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12

5

4

2

8

10

Atlanta Memorial Park

9

! (

7

85

LaV ista

Bobby Jones Golf Course

! (

§ ¦ ¨

Piedmont Rd NE

Northside Dr

SA

d ta R

§ ¦ ¨ 75

3 1

! (! (

E dN eR htre c a Pe

Rd NE

Northside Pkwy

6

N Druid Hills

M

W Dr N ide

tl a n SA Bolton Rd NW

PL

wy Pk

13

! ( 11 ! (

13 ! (!9! ( (

Hw y

bb Co

13. The Rocca - Phase II (218)

or d

Chastain Memorial Park

12. Post Alexander - Phase II (340)

Bu f

11. Circle Howell Mill (260)

Roswell Rd NE

10. Buckhead Atlanta (370)

E

9. Broadstone Peachtree (186)

i Br

ff cli ar

Rd

NE

Rd

11

1Q13

ve tA Piedmont Park

! ( ! ( ! ( ! (

Projects Surveyed Projects Not Surveyed Projects Under Construction Projects Proposed

Spring St

Bankhead Hwy NW

on

NW

W dN lR Mi l

lvd aB

§ ¦ ¨

75/85

Pi ed m

e tt

ll we Ho

ri Ma

14th St NW

Spring St NW

! (

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BUCKHEAD/BROOKHAVEN - CLASS A APARTMENTS

Year No.

Project

No.

No.

of

of

Average

Average

Average Monthly

Monthly

Unit Mix

Unit Size Effective Rent Per

Open Floors Units (Sq. Ft.)

Occ.

Rent

Sq. Ft.

1BR

2BR

3BR

Rate

PROJECTS SURVEYED 05 Buckhead

2009

20

155

1,226

$2,500

$2.04

46.5%

48.4%

5.2%

98.1%

2.

Alexan Lenox

2004

6

305

917

$1,232

$1.34

71.1%

28.9%

0.0%

97.7%

3 3.

Allure in Buckhead Village

2002

6

230

981

$1 182 $1,182

$1 20 $1.20

59 6% 59.6%

40 4% 40.4%

0 0% 0.0%

95 2% 95.2%

4.

Elle of Buckhead *

2012

4-5

373

926

$1,602

$1.73

61.9%

38.1%

0.0%

50.1%

5.

Kingsboro

2008

4-5

152

1,141

$1,806

$1.58

57.9%

42.1%

0.0%

96.1%

6.

Phipps Place

2002

4-5

266

1,222

$1,776

$1.45

43.6%

45.9% 10.5%

91.7%

7.

Post Alexander

2008

5-7

307

1,015

$1,550

$1.53

58.3%

35.2%

6.5%

93.2%

8.

Post Stratford

2000

4-5

250

1,000

$1,314

$1.31

65.6%

32.8%

1.6%

94.0%

9.

The Goodwynn at Town Brookhaven 2009 2007

11.

The Rocca Piazza at Paces

2002

12.

Tremont

2009

13.

Windsor Brookhaven

372

1,098

$1,463

$1.33

71.0%

29.0%

0.0%

93.3%

4-5

249

980

$1,388

$1.42

53.8%

41.0%

5.2%

95.2%

6

80

1,646

$2,275

$1.38

23.8%

41.3% 35.0%

95.0%

4

78

1,243

$2,012

$1.62

46.2%

52.6%

1.3%

96.2%

2009

287

945

$1,425

$1.51

58.9%

41.1%

0.0%

97.6%

3,104

1,048

$1,553

$1.48

58.8%

37.9%

3.3%

95.0%

5

SA


PL

The Gramercy at Buckhead

6-7

M

10.

E

1.

* The average occupancy rate does not include Elle of Buckhead because this project is still in initial lease-up. PROJECTS NOT SURVEYED 14.

1050 Lenox Park


All re in Buckhead Allure B ckhead Village

1Q13

2000

4

407

-

-

-

-

-

-

-

407

-

-

-

-

-

-

-

The Goodwynn Good nn at Town To n Brookhaven Brookha en

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29

BUCKHEAD/BROOKHAVEN OVERVIEW

RENT & OCCUPANCY BY UNIT TYPE STD/1-BR

2-BR

3-BR

1,826

1,176

102

96.0%

93.4%

96.1%

858

1,277

1,806

Avg. Monthly Rent

$1,301

$1,844

$2,776

Avg. Rent Per SF

$1.52

$1.44

$1.54

No. of Units Occupancy Rate Avg. Unit Size (SF)

KEY FACTS •

Delivery of the 1,976 units under construction will increase the supply of Class A units in Buckhead/ Brookhaven by 56 percent.

•

A total of 710 units are proposed in high-rise buildings, including Phase II of Post Alexander (340 units) and Buckhead Atlanta (370 units).

•

One site to monitor is the property where the restaurant Dante’s Down the Hatch is located. Atlantic Realty Partners is eyeing this site for an apartment tower.

•

The Buckhead/Brookhaven submarket has the highest average rent per square foot ($1.48) and the highest absolute rent ($1,553) among intown Atlanta submarkets.

E

The occupancy rate in the Buckhead/Brookhaven submarket was 95.0 percent during First Quarter 2013, a drop from 96.6 percent in First Quarter 2012. While rents grew 3.5 percent over the previous 12 months to $1.48 per square foot, they were down from $1.53 during Third Quarter 2012. 05 Buckhead, a 20-story tower, is leading the submarket, attaining rents of $2.04 per square foot, followed by Elle of Buckhead at $1.73 per square foot.

PL

•

SA

M

The development pipeline continues to swell in Buckhead. A total of 1,976 units are under construction and another 1,624 are currently proposed. 92 West Paces (210 units) is set to deliver this spring, and Hines Interests and Fairfield Residential are on pace to deliver 514 units in Brookhaven later this fall. Crescent Terminus (355 units) is also under way and will add a rental component to Cousins Properties’ high-profile development at the corner of Peachtree and Piedmont roads. Notable proposed projects include Phase II of Post Alexander, where a 20-story tower is planned but delivery is not expected until late 2015. More imminent are the two towers (370 units) planned at Buckhead Atlanta, which OliverMcMillan hopes to break ground on this spring. Buckhead has captured substantial developer attention and is in the most danger of becoming overbuilt, but it is the most vibrant intown office node and is adding more green space and becoming a more walkable environment, both of which will heighten its appeal.

RENT & OCCUPANCY TRENDS

Crocker Partners is attempting to rezone 4.5 acres adjacent to Prominence (office tower) for two apartment towers totaling 703 units.

DELIVERIES

Year

Apartment Deliveries

Condominium Conversions

Net Change

2000

797

140

657

2001

121

0

121

2002

576

0

576

2003

0

0

0

2004

891

286

605

2005

0

421

(421)

2006

0

0

0

2007

249

0

249

2008

459

0

459

2009

892

0

892

2010

0

0

0

2011

0

0

0

1Q12

1Q13 % Change

2012

373

0

373

2,731

3,104

-

2013

0

0

0

96.6%

95.0%

(1.7%)

Total

4,358

847

3,511

Avg. Unit Size (SF)

1,065

1,048

(1.6%)

Avg. Monthly Rent

$1,526

$1,553

1.8%

Avg. Rent Per SF

$1.43

$1.48

3.5%

Units Surveyed Occupancy Rate

1Q13

Note: New apartment deliveries may include projects later converted to condominiums. Condominium conversions reflect only conversions of apartments delivered since 2000. Data for 2013 are through the end of March.

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BUCKHEAD/BROOKHAVEN - PERFORMANCE BY UNIT TYPE Average Unit Size (Sq. Ft.)

Effective Monthly Rent

Average Rent Per Sq. Ft.

Number of Units

Vacant Units

Occupancy Rate

-

-

-

-

-

-

600 - 699 SF

168

2

98.8%

628

$1,003

$1.60

700 - 799 SF

47

1

97.9%

773

$1,139

$1.47

Over 799 SF

-

-

-

-

-

-

215

3

98.6%

660

$1,033

$1.56

-

-

-

-

-

-

700 - 799 SF

296

12

95.9%

774

$1,254

$1.62

800 - 899 SF

597

20

96.6%

851

$1,218

$1.43

900 - 999 SF

222

14

93.7%

924

$1,352

$1.46

1,000 - 1,099 SF

104

1,100 - 1,199 SF

96

Over 1,199 SF

65

Unit Size Range STUDIO UNITS Under 600 SF


2 BEDROOM UNITS Under 1,000 SF 1,000 - 1,099 SF

1,053

$1,542

$1.46

89.6%

1,133

$1,587

$1.40

1

98.5%

1,303

$1,681

$1.29

61

95.6%

903

$1,319

$1.46

-

-

-

-

-

-

36

2

94.4%

1,051

$1,590

$1.51

323

15

95.4%

1,170

$1,543

$1.32

1,200 - 1,299 SF

259

15

94.2%

1,267

$1,775

$1.40

1,300 - 1,399 SF

255

15

94.1%

1,339

$1,975

$1.47

1,400 - 1,499 SF

72

10

86.1%

1,434

$2,089

$1.46

1,500 - 1,599 SF

41

5

87.8%

1,539

$2,523

$1.64

Over 1,599 SF

48

6

87.5%

1,760

$2,747

$1.56

1,034

68

93.4%

1,292

$1,842

$1.43

-

-

-

-

-

-

1,300 - 1,499 SF

14

1

92.9%

1,387

$2,111

$1.52

1,500 - 1,699 SF

51

3

94.1%

1,558

$2,401

$1.54

SA

1,100 - 1,199 SF

1,380

4

PL


96.2%

10

M

Under 700 SF

E

1 BEDROOM UNITS

Totals/Weighted Averages 3 BEDROOM UNITS Under 1,300 SF

1,700 - 1,899 SF

-

-

-

-

-

-

1,900 - 2,099 SF

20

0

100.0%

1,986

$2,652

$1.34

2,100 - 2,299 SF

-

-

-

-

-

-

17

0

100.0%

2,682

$4,575

$1.71

102

4

96.1%

1,806

$2,773

$1.54

Over 2,300 SF Totals/Weighted Averages

Note: Elle of Buckhead (373 units) is still in initial lease-up and is not included in this analysis.

1Q13

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