ATLANTA -– Hines, the Houston-based real estate firm, on behalf of an institutional investor, closed on the acquisition of Town Center at Atlantic Station retail center in the Midtown area of Atlanta.
The 586,000-square-foot Town Center anchors a mixed-use development, situated on the former Atlantic Steel site, which also includes three Class A office towers, several multifamily communities, a full-service hotel and freestanding Ikea, Target and Dillard’s locations.
Hines will serve as asset and property manager of property on behalf of Morgan Stanley, which purchased the property in a real estate fund for about $195 million.
“Atlantic Town Center is a key addition to our growing retail portfolio and marks our commitment to acquire, operate and add value to retail assets across the U.S. and internationally, on behalf of Hines funds and key investors,” said Hines Managing Director Kenton McKeehan, who leads the firm’s Retail Resources Group.
“We are already active and dedicated to the Midtown Atlanta submarket, and we look forward to continue positioning Atlantic Station as the model for experiential, mixed-use communities,” said Kurt Hartman, Senior Managing Director of Hines’ Southeast Region. “Hines will build on the momentum created by North American Properties (NAP) and ensure that Atlantic Station remains a compelling shopping and dining destination, as well as a community gathering place.”
The sellers, NAP and CBRE Global Investors, acquired Atlantic Town Center in 2010 for less than $100 million. NAP instituted a code-of-conduct policy, a re-merchandising plan and community event program to turn Atlantic Station into a desirable place to live, work and play. Over the past five years, NAP signed 34 new leases and hosted hundreds of signature community events.
“We poured our hearts and souls into the turnaround of Atlantic Station, and while it’s bittersweet, we are happy and proud to leave her in the very capable hands of Hines,” said Mark Toro, Managing Partner for NAP.
Hines formed the Retail Resources Group to expand the firm’s retail depth and expertise, and to assist company-wide retail development, acquisition and redevelopment efforts. Since the 1970s, Hines has been responsible for the development, acquisition and management of more than 23 million square feet of retail space around the world, including almost 10 million square feet in the last four years.
Hines’ Atlanta-based Southeast Regional office has completed, acquired or owns/manages more than 25 million square feet of real estate including 1180 Peachtree, the Atlanta Financial Center, One Atlantic Center, One Ninety One Peachtree Tower, the planned 205,000-square-foot timber-framed office building at Atlantic Station and the planned 220,000-square-foot office tower at Avalon in Alpharetta.
Hines is a privately owned global real estate investment firm founded in 1957 with locations in 185 cities in 19 countries. In 2014, Hines completed over $8 billion in transactions on behalf of its investment management clients.
Hines has 104 developments currently underway around the world.
Realty News Report: Oct. 2, 2015