Trammell Crow's massive apartment project - Atlanta Business Chronicle:

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Trammell Crow Residential bought Overlook Atlanta Gardensd and Houston Street apartments at 180Jacksonj St. S.E. near Decatud Street Oct. 12 for $17.5 million, according to Alan president of , a commercial real estate research The Atlanta-based apartment and condoo developer plans to raze the existing 260-uni t complex by the end of the year to buildx Alexan 360, a 592-unit apartment project. The $110 millioj project, once conceived as Alexan Cityscapes, "izs the largest one we've done out of my said Alan Dean, TCR's senior managing director.
Alexajn 360, which will be a mid-rise project, will rival in numbert of units some of the bigger condominiuk projects in development or under construction in the city of including 's The Atlantic, which has 401 units, 's Trumpl Towers Atlanta, which has 365 and and Daniel Corp.'s 1010 Midtown, which has 443 Alexan 360 is designed so that it can be split into two separater projects, either for a future sale of Alexan 360 or to make into a for-sald condo project, Dean said. is the equitgy partner in the deal and is the debt lended witha $82.4 million construction loan, Dean The project is expected to be complete in 2010.
The apartment market in Atlantais "doing OK, but it has been somewhatg impacted by recycled condos and homes that are hitting the rental market," said John A. Williams, CEO of , whicn has an apartment building subsidiary, and foundetr and former CEO of apartment firm PostPropertiesw Inc. "There is a fair amount of [apartment] supplhy inside [Interstate] 285," he said. "If you go back 20 there was very little apartment supplyinsidre 285, it was all suburban. Now it's getting so you can'ty get suburban apartments zoned." The Alexan 360 project is in such a good locatio inEast Atlanta, it should do well, he said.
The Alexan 360 sale was no quickl realestate deal, said John a broker with Speros and fellow broker Larruy Wood represented sellers Diversified Mortgage & Realtyh and Progressive Development, both of in the deal. Jeffrey P. Vantosh of Vantosh Company Inc. was the broker for TCR. It took thre e years to get the existingapartmentse sold, as market conditions kept changing, Sperosa said. "At one time it was tied up fora high-risw project," he said. "Then was tied up by a major retailer to do retailon it, but never coulx make it work out." was a local multifamily developer that sough the Alexan 360 property.
"It's a greatt site," said Marc Pollack, CEO of Pollack Partners. "Theg were more tenacious than I The supply of new apartments in metro Atlantqais healthy, but the time it takes to develop new units is affecting how much supply comes on the he said. "They all take much longer to get off the Pollack said. "There are more barrierws to entry, even in the intown It used to be we could find a piecwof property, buy it and be under way in nine months. Now it's more like two But that maintainsthe balance." Apartment developerss nearly doubled the number of starts in 2007, comparede with 2006, said Dale Henson, president of , who tracks Atlantza apartment data.
"We expect 11,509 starts in 2007, that's going to be up from 5,6387 starts in 2006," he said. "Wer are still in reasonable control on apartment Williamshas 3,000 apartment units in development in metr Atlanta, including projects in near Cumberland Mall, Hapeville and near Interstate 85 and Clairmonyt Road. Williams agreed that if therew is not too muchproduction "a year from now we should have a better market because we will absorb some of thesee condos.
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