North American Properties - Atlanta, Ltd. (NAP), in a joint venture with Sarofim Realty Advisors, has closed on construction financing and begun construction on the large-scale Avalon mixed-use development in Alpharetta, GA.
The venture landed $126.5 million in financing for the first phase of the project, including an $86.5 million syndicated senior loan by Wells Fargo Bank and Bank of America, and a $40 million mezzanine loan provided by JP Morgan Asset Management. Eastdil Secured arranged the financing package.
Vertical construction has begun a month ahead of schedule. Avalon's first retail phase is now 75% leased, with recently added retailers Giovanni Di Palma's Antico Napoletana, Bantam + Biddy by Chef Shaun Doty, Tommy Bahama, Vineyard Vines,Exhale Spa, West Elm, Kinnucan's Specialty Outfitter, Sage Boutique, Free People, Janie and Jack, C. Wonder and L'Occitane.
Avalon has also signed leases with more than two dozen other retailers and restaurants, including Anthropologie, Banana Republic, Bocado Burger Bar, Cru Food and Wine, Gymboree, Kona Grill, Lululemon, Marlow's Tavern, Pinkberry, Regal Cinemas and Whole Foods. Pre-leasing for the second retail expansion, scheduled to open in fall of 2015, is under way.
The project includes 101 for-sale residential homes by town urbanist Lew Oliver, builder Monte Hewett Homes and Atlanta Fine Homes Sotheby's International. The first model homes will be available in June 2014, followed by the first move in the following October.
The project will also include 250 luxury multifamily dwellings built above the first retail phase, with the first units available for occupancy in January 2015.
Developers have leased more than 50% of the office space
built over retail, with tenants including Wakefield Beasley and Associates and Integrated Care Management. A second office phase will include 750,000 square feet of build-to-suit space.
NAP further plans a boutique hotel to be built over retail, and NAP is in discussions with several brands to create a unique offering to extend the Avalon brand. The developer is also working with the City of Alpharetta on a potential public-private partnership for a conference center and full-service hotel.
Hoar Construction is the general contractor for Avalon, with Plateau Excavation serving as site-work subcontractor and Precision Concrete as concrete subcontractor. Benning Construction will build Regal Cinemas, and Young Contracting will build Whole Foods. NAP's construction division, NAP Contracting LLC, will construct the multifamily.