CarterBlog

Carter Continues to Bring Tenants to The Banks

CarterBlog — 2012-01-12T17:28:28-05:00

By Laura Swadel, director, Carter

CINCINNATI (Jan. 12, 2012) - Carter continues to fill The Banks mixed-use development here with quality tenants, despite the tough environment for the commercial real estate industry.

Earlier this week, Carter announced that Mahogany's Cafe and Grill will open a new location in The Banks in April. Mahogany's is an upscale soul food restaurant that will increase the presence of minority-owned enterprises at The Banks. Co-owned by executive chef Liz Rogers, Mahogany's signed a lease for 3,500 square feet between The Holy Grail Banks and the spot where Tin Roof will open a location.

The Banks is an 18-acre mixed-use project rising on the banks of the Ohio River, between Paul Brown Stadium and Great American Ball Park. Carter serves as master developer of The Banks in partnership with The Dawson Co., an Atlanta-based development firm and one of the city's oldest African-American-owned commercial real estate firms.

The Banks is a prime examples of the new, narrowed focus at Carter. In December, Carter announced it would focus on successfully developing in urban locations - especially multifamily - and in investing in value-add office properties. Carter also will grow its strategic consulting and interiors businesses.

At The Banks, Mahogany's is the latest in a string of restaurants and entertainment venues to commit to the landmark development. Toby Keith's I Love This Bar & Grill, Christian Moerlein Lager House and Tin Roof will open this winter, and Holy Grail Banks and Johnny Rockets opened to much fanfare last year.

"The food [at Mahogany's] is fabulous. Liz is passionate about it and she's got a great product," Cincinnati City Manager Milton Dohoney told the Cincinnati Enquirer this week. "We continued to be pleased by the development at The Banks and we're getting a lot of positive feedback. We think this will only add to that."

For more information about leasing and other opportunities at The Banks, contact Laura Swadel of Carter at lswadel@carterusa.com.

Carter Interiors Team Volunteers to Support U.S. Troops

CarterBlog — 2012-01-09T15:34:27-05:00

By Sarah Peddar, Business Development Manager, Carter

ATLANTA (Jan. 9, 2011) - Last week, the Carter Interior Project Management Team rolled up their sleeves and volunteered to support the USO on one of the nonprofit’s busiest days.

Nearly 7,000 troops traveled through the Atlanta airport on Jan. 4 as they returned from holiday leave with their families. Buses picked up troops at the airport and headed to Georgia’s Fort Benning and Fort Gordon for training.

Furman Wood, long-time USO supporter and Managing Partner at Commercial Property Professionals, organized a 24-hour event where volunteers welcomed service men and women to Atlanta and helped support the USO’s mission. Jennie Rusciano, Allison Cummins and I staffed the event from 8 p.m. to midnight by checking-in troops and handing out meals.

Earlier in the day the entire Interiors Team met at Nan Loudon’s house to prepare 200 of these meals that included a turkey or ham sandwich, chips, a cookie and of course some Carter mints! The team even used their design background to decorate the bags.

That evening Nan Loudon and Amy Hunt both flew out of the Atlanta airport to attend meetings for a project Carter is working on with Starwood Vacation Ownership in Orlando, Fla.

“There were troops everywhere and I was so proud of our group for getting involved in the cause,” said Loudon. “Not only did we do a small piece to thank our troops for their service, we also had an opportunity to draw closer as a team.”

From left: Carey Poole, Nan Loudon, Diana Bradley, Shannon Kitzrow, Jennie Rusciano, Amy Hunt, Allison Cummins, Donna West, Sarah Peddar

More about the Interior Project Management Team

The Carter Interior Project Management team actively manages every aspect of our clients’ interior projects, including build-outs and renovations. Delivering over one million square feet of space each year, our team has a broad range of experience in a variety of product types and client situations. Our services include: strategic planning, work letter negotiations, budget and schedule development, design and construction management, bid and procurement services, furniture and equipment management, and relocation services. With several LEED- and Green Globe-certified interior projects, we are experts in creating sustainable interior environments. The team recently completed projects for: 22squared, King & Spalding, Starwood Vacation Ownership and Windham Brannon.

Carter Investments Turns Around Distressed Condominium Community

CarterBlog — 2012-01-04T09:25:00-05:00

By David Nelson, director, Investments and Advisory

ATLANTA (Jan. 4, 2012) - In August 2010, Carter Investments purchased 115 vacant units and an undeveloped pad site in Valencia, a condominium community in South Jacksonville Beach. The property was initially planned to include 245 units in an upscale, gated condominium community, but after completing construction on three of the five buildings and closing only 89 homes, the financial markets changed and the property went into distress. Carter purchased the remaining note from the lender, and entered into a friendly foreclosure agreement with the prior developer.

After a thorough review of the property, Carter Investments hired a new management company for the homeowners’ association oversight as well as Carter Program Development Services group to help manage the large projects. Since being taken over by Carter, the property has gone through a true transformation. There is now a focused effort on property maintenance and landscaping, a completed exterior painting project that added a waterproofing barrier to all buildings and a management staff that responds to homeowner needs. Financially and operationally, the property is now stabilized with the HOA budget and reserves being fully funded.

Carter Investments left no stone unturned during its review of the property and assessment of what it would take to bring Valencia back to market. In doing so, Carter invested significant capital in the addition of a park on the Building 5 pad site. What was once a construction site, is now being enjoyed by families and friends as they walk on a 1/8 mile walking trail, take their dog to the dog park, explore their green thumbs in the organic garden or compete with one another on the bocce ball courts.

Carter Investments also hired a new marketing and sales firm to execute its strategy of stabilizing Valencia and then releasing it for sales at today’s market pricing. Through a comprehensive marketing campaign that resulted in new pricing, an updated brand, new collateral and new model homes, Valencia was reintroduced to the buying community as an incredible value for someone looking for a place that feels like home but offers the luxurious simplicities of condominium living.

For the first time in a long time, Valencia has become a place that is attractive to someone looking for a home in the Jacksonville/Ponte Vedra Beach area. A buyer can now confidently submit an offer and know that they are buying into a stable community. Carter was even able to achieve FHA as well as FNMA approvals for the property, which has further signaled the strength and stability of the community as well as opened the buyer pool to people who require lower down payments.

Carter’s effort has been met with an extremely positive response from buying community. Prospects and sales agents have been impressed with the turnaround the property has taken, and Carter has successfully written more than 30 contracts in just the first year. With a healthy pipeline of prospects, the sales team feels very positive about 2012 and with enough sales, Carter Investments may even begin the interior construction completion of Building 4.

Carter is currently focused on value-add multi-family investment opportunities like Valencia. Carter closed four multi-family investments in the last year including two distressed condominiums and two apartments. Carter has a strong history and the capabilities to create and execute a strategy that will turn a property around. If you are looking for someone to invest in a value-add multi-family property, call John Akin or David Nelson at (404) 888-3000.

Strategic Planning - Now’s the Time

CarterBlog — 2011-12-27T08:45:11-05:00

By John Jokerst, senior vice president, Carter

In today’s challenging economic climate, colleges and universities are faced with a unique situation. While state-appropriated funds to support new facilities on public campuses are becoming scarce and endowments at private institutions have taken a hit, more students are attending institutions of higher education than ever before. This growth trend is anticipated to continue.

In response, institutions are working hard to determine how to recruit and retain the best students in a highly competitive environment. In the short term, many institutions need to provide competitive facilities, such as improved student housing. Thankfully, opportunities in the capital markets that were not available a few short years ago are beginning to emerge.

Staying competitive, however, is not just about the short term. It also requires a long-term vision and a strategic implementation plan to make the vision a reality. Even if some colleges and universities are struggling to bring facilities on line today, they must be thinking strategically about their futures and the needs of tomorrow’s students. That way, when funding opportunities become available, they are properly poised to execute and thrive instead of playing “catch up.”

Institutions typically are required to have master plans, which are important tools for mapping out the future growth of campuses. The master plan takes into account the campus infrastructure and reflects the objectives and goals of the institution’s development from a facility standpoint. Unfortunately, some colleges and universities go through the process of bringing on talented architectural teams to create or update master plans, secure input from multiple constituency groups, make numerous presentations and get necessary approvals. However, they do not complete the drill from a strategic implementation standpoint. What happens? The master plan sits on the shelf for three, five or seven years until it is time for the next update, and the potential strength of the plan largely goes unrealized.

A strategic implementation plan, however, takes the master plan to the next level. It shows the institution how to turn the master plan into a reality. At Carter, we start a strategic plan by looking at the master plan and then taking a step back.

First, we work with the institution to determine what pieces of the plan are most important to fulfill the overall vision for recruitment and retention. After this assessment, we work through the following:

Prioritizing needs.
Determining which individual building programs support the overall plan.
Creating realistic project budgets that take market conditions and inflation into account.
Evaluating financing / funding alternatives.
Creating a phased timeline with critical milestone dates for moving the plan through the detailed programming, design, pricing, funding and construction processes with all the required approvals.

One example of a strategic implementation plan involves an institution in the University System of Georgia. Through a public-private venture, Carter led the university from initial planning through completion of nearly $200 million in capital improvements to meet the demands of surging enrollment numbers and unprecedented growth.

The project was completed over the course of six years with no state-appropriated funds. Carter provided:

Strategic visioning sessions with administration and constituency groups.
Preparation for update and approval presentations.
Presenting on behalf of the institution as required.
Financial analysis and model formulation for potential projects.
Project conceptualization and planning.
Selection of design and construction teams including architects, consultants, contractors and developers at risk.
Budget and schedule development.
Financing coordination.
Design and construction management.
Project accounting.

The project added or renovated 1.5 million square feet including six residence halls, student health center, student union and two parking structures. The project was critical in helping the university attract and retain students.

A strategic planning process not only is required for a project of this scope, but for smaller, more targeted initiatives as well. For example, a project like a new student housing facility can raise questions that must be answered before the project can start. For example:

Do you need new facilities or can existing facilities be updated and utilized?
Will such an approach really support the programmatic needs of today’s students?
What are the cost implications?
What are the funding implications?
How would any potential new projects be phased to replace existing facilities without losing bed count?
How can you get all this done and not miss a critical fall semester opening?

Whether it is a short-term project or a long-term one, strategic planning is the critical to ensuring successful implementation of an institution’s capital improvement initiative. Even if the economic climate may still pose challenges, it is not the time to sit on the sidelines and wait. There has never been a more competitive time in recruiting and retaining students than now, and there is no better time to be strategically poised than today!

For more information about Carter’s Higher Education Program Development Services Team, please contact John Jokerst at jjokerst@carterusa.com.

I.C.E. Program Enjoys Successful First Fall

CarterBlog — 2011-12-21T13:35:39-05:00

By Dorris Hollingsworth, vice president of human resources, Carter

ATLANTA (Dec. 21, 2011) - Since Carter’s foundation in 1958, community involvement has been at the core of our mission, and this fall we added an exciting and successful component to our public outreach. Spearheaded by former Atlanta Falcon Floyd Hodge, now a community relations manager at Carter, the I.C.E. program visits Atlanta-area high schools and presents speeches by former professional athletes that urge students to demonstrate integrity, commitment and excellence while they pursue their education and careers.

Floyd, who did not have an easy road to the NFL, begins each event with a recap of how he was able to achieve a successful career with the Falcons through hard work and commitment. He then yields the microphone to a guest speaker.

In September, the I.C.E. program visited Therrell High School, and former Atlanta Falcon Jessie “The Hammer” Tuggle spoke to the students. Later that month, Floyd and former Harlem Globetrotter Michael Douglas visited Mays High School, and Buddy Curry, a former Atlanta Falcon who is the co-founder of Kids and Pros, traveled with Floyd to Carver High School. In October, former Falcon Bobby Butler spoke at Cross Keys High School.

November featured three I.C.E. events. Early in the month, Floyd and former Falcon Billy “White Shoes” Johnson visited McNair High School, and on the 17th, 55 students from Tucker High School visited Carter’s offices to hear Floyd and former Falcon Stacey Bailey speak. Lunch was provided by Chik-fil-A. The final event of the year took place when Floyd and former Falcon Mike Haynes traveled to Mundy’s Mill High School. (Picture from left: Mike Haynes, Mundy's Mill High School Principal William Greene and Floyd Hodge)

The program will start the new year off strong: Floyd and former Falcon and Georgia Bulldog D.J. Shockley will visit North Clayton High School on Jan. 12. Events at Lovejoy High School and Forest Park High School are slated for later in the month.

The effect that Floyd and his fellow speakers have on their audiences is obvious. An email from Romello Swain, a senior at Tucker High, to Floyd demonstrates the positive effect the I.C.E. program is having.

“I really appreciate how you took time out of the day to come and talk with me and my fellow peers,” Swain wrote. “I understood every word you said and learned a lot from your speech. You are a positive role model for me because I too want to be a manager or own a business or corporation. When I go to college, I want to major in Finance, Accounting, Economics or Business Administration. I really want to be a successful black man in this world, and I will do whatever it takes to climb to the top. I really hope we can stay in touch. Again, thanks a lot taking time out of your day to come and talk with me and my fellow peers.”

For more than 50 years, Carter has been committed to serving the communities were we live and work. Every year we volunteer thousands ofhours, including company-sponsored time, to support causes that move us. The I.C.E. program promotes education and encourages students in Atlanta-area high schools to exemplify integrity, commitment and excellence in everything they do. These are values at the core of Carter’s corporate mission and we believe it is our responsibility to share these ideals with our youth.

If you are interested in finding out more about the I.C.E. program and Carter’s involvement in the community, contact Floyd Hodge at fhodge@carterusa.com.

Federal Grant Will Allow Cincinnati Streetcar to Service The Banks

CarterBlog — 2011-12-16T17:42:39-05:00

The Cincinnati streetcar will receive an $11 million federal grant to extend the line south and reach The Banks, reports the Cincinnati Enquirer. U.S. Transportation Secretary Ray LaHood made the announcement on Thursday at a City Hall news conference. Mayor Mark Mallory expects construction to commence in the first quarter of 2012.

This is great news for The Banks where Carter serves as the master developer. By 2019, The Banks will be 1.9 million square feet of new development including 1,000 residential units, a hotel, a new office tower and at least 400,000 square feet of retail space. The development is rising between the Great American Ball Park and Paul Brown Stadium.

The new grant increases the streetcar project budget to nearly $110 million and helps extend the route to link three major sport and entertainment venues, the National Underground Railroad Freedom Center and other riverfront attractions.

“This is a day of celebration,” Mallory said. “This is a great day in Cincinnati.”

To read complete article, click here.

Carter to Complete Phase Two of $100 million project for University of Louisiana at Lafayette

CarterBlog — 2011-12-14T13:53:54-05:00

John Jokerst, senior vice president, Carter

With the second phase slated for completion later this month, the largest student housing project in the school’s history is well underway at the University of Louisiana, Lafayette. Carter’s Program Development Services Higher Education team serves as program manager for the approximately $100 million project that consists of nearly 2,000 beds and a new parking deck.

In August, Carter completed Phase One of the project. This was comprised of Baker Hall, a newly constructed 462-bed resident hall, and Oliver Parking Tower, an 850-car parking deck. Students moved into the facility at the beginning of the school year and are enjoying suite-style living, community kitchens, on-site washers and dryers and game rooms. Later this month, a second 468-bed residence hall, Huger Hall, will be finished. Students will move in January 2012.

Phase Three is already under construction and scheduled for delivery in August 2012. This part of the project is taking place in the historical Rose Garden section of campus and includes the construction of two new residence halls that will bring 882 beds online. An additional 122 beds are being renovated in Harris Hall and swing space is being updated in both Randolph Hall and Buchanan Hall.

Before the project started, UL Lafayette only had the ability to house 11 percent of its student body, as opposed to peer institutions, which typically house 20 percent or more of their student bodies. The new construction and renovations have transformed UL Lafayette’s campus living experience and housing capacity. The project has created individual neighborhoods on campus for freshmen and sophomore students, with close proximity to classes, dining facilities, the new student union and other campus services and amenities. The new and updated facilities will address both current waiting lists as well as recruitment and retention objectives for the university.

To learn more about how Carter's Campus Innovation team could help your college or university, please contact John Jokerst.

Check out pictures from Phase Two below.

Carter Pursuing $500 Million in Development, Investments

CarterBlog — 2011-12-08T09:21:09-05:00

Firm’s Focus Centers on Multifamily, Student Housing Projects and Office Investments

ATLANTA (Dec. 8, 2011) - With the sale of its brokerage and property management groups complete, Carter is focusing on new investment and development opportunities as well as growing its program management and strategic consulting groups.

Moving forward, Carter will leverage its 54-year-old brand to create value through its strong relationships. Specifically, Carter is focusing its efforts on the:

Development of mixed-use and for-rent multifamily projects in urban infill locations.
Equity development of student housing.
Acquisition of opportunistic and value-add investments in office.
Growing its well-established project management and strategic consulting businesses.

The firm’s more than 100 high-caliber associates will serve clients using a high-performance team-based approach that results in delivering maximum value for our clients and investors. This approach allows Carter to leverage the firm’s strong expertise and deep knowledge base in a wide variety of markets and product types.

“The sale of our brokerage services and property management businesses marks a milestone for Carter,” Chairman and CEO Bob Peterson said. “This transaction was a major step for us in executing our strategy to narrow Carter’s focus on building high-quality projects, investing in real estate and providing strategic solutions to our clients.”

Carter’s development business expects new opportunities to emerge as corporate and educational development begins to rebound. Carter is the No. 3 commercial developer in the United States, as ranked by National Real Estate Investor, and currently is overseeing The Banks, one of the largest mixed-use projects in the Midwest. Carter is master developer of The Banks, a $600 million development on the Ohio River in Downtown Cincinnati, Ohio. Late last month, Carter announced plans to double the size of the retail and multifamily components along with new marketing efforts for the proposed office component.

In the K-12 education realm, Carter is currently overseeing a $107 million public school building program in Enid, Okla.

The firm’s Interiors group continues to be a leading third-party provider to top law and financial firms and grown its business well beyond Atlanta. The Interiors group currently has more than 500,000 square feet under construction for clients such as AT&T, RockTenn and Starwood Vacation Ownership.

Carter’s Higher Education and Campus Innovation team is currently leading a $100 million program at the University of Louisiana Lafayette that comprises 2,000 beds and 900 structured parking spaces.

“Our 54-year history of development across the Southeast and beyond positions Carter to take full advantage of new development opportunities,” said Carter President Scott Taylor. “Our Development group is well positioned when it comes to developing and building out corporate, institutional and educational buildings and facilities.”

Carter’s Investments group is actively seeking new opportunities across the country. Vice Chairman Jim Shelton, who leads Carter’s Investments group, said he expects to see more high-quality assets to come to the market at distressed prices. Carter recently invested in City Federal condominiums in Birmingham, Ala., and Valencia condominiums in Ponte Vedra, Fla., and played a key role on Piedmont Office Realty Trust’s acquisition of The Medici office building in Atlanta.

The firm also serves as a service provider to Carter Validus Mission Critical REIT, which is focused on acquiring mission critical facilities such as data centers and healthcare facilities. John Carter, a Carter vice chairman, serves as CEO of Carter Validus Mission Critical REIT.

In other areas, Carter’s strategic consulting group has performed advisory assignments for seven major clients in 2011 alone. Carter will continue to deliver high-quality service and results from its asset management division, which oversees more than $2.5 billion of third-party and Carter-owned properties.

“Moving forward, you will see Carter aggressively leveraging our thought leadership and experience to pursue and participate in high-quality developments and investments on behalf of our firm and our clients,” Carter’s Peterson said. “We will do this while continuing to build on our core values of integrity, commitment and excellence.”

About Carter

Founded in 1958, Carter is one of the country's leading real estate development, investment, and advisory firms. The firm has headquarters in Atlanta and operations across the country. Carter focuses on development of mixed-use and multifamily projects in urban infill locations, equity development of student housing, acquisition of opportunistic office, project management and strategic consulting. Carter’s high-caliber associates create value for clients using a team-based approach that leverages strong expertise and a deep knowledge base in a wide variety of markets. Carter is the country’s third-largest commercial developer, according to National Real Estate Investor, with strong higher education, k-12, interiors, and corporate specialty practices. Carter also focuses on value-add real estate investment opportunities, currently overseeing a $550 million portfolio. Carter’s asset management division manages more than $2.5 billion of third-party and Carter-owned assets. Its strategic consulting practice provides clients with customized real estate solutions. As it has for 54 years, Carter will continue to build on the firm’s core values of integrity, commitment and excellence and strive for a culture based on trust and candor. For additional information on Carter, please visit http://www.carterusa.com.

Carter Says City Federal is 93 Percent Sold

CarterBlog — 2011-12-06T11:59:36-05:00

By John Akin, senior vice president, Carter

BIRMINGHAM, Ala.(Dec. 7, 2011) - The City Federal Building in Birmingham, Ala. is 93 percent sold with only six condominiums still available. Carter acquired the note for the 27-story, mixed-use building back in October 2010. At the time Carter took control of the building, 32 of the 84 condos were unsold. Carter also acquired 15,000 square feet of retail in the building that is currently being marketed by Harbert Realty.

In addition to condo sales, there have been some other exciting happenings at City Federal. Last month, six scrapbooks complete with photos, newspaper clippings, documents and memorabilia were found in a closet of the building. The books covering decades of City Federal Savings & Loan history were moved around the building during renovations until Ingram & Associates’ Tom Loyd examined the scrapbooks. Along with several real estate agents from Ingram, I had the honor of presenting the scrapbooks to Jim Baggett, head of archives at the Birmingham Public Library. For the complete story, click here.

Added to the National Register of Historic Places in 1984, City Federal remains the tallest neo-classical skyscraper in the Southeastern United States. City Federal remained an office building until 1995, when it closed its doors. The building stayed vacant until March 2005 when the new owner began a $20 million renovation to convert the building into condominiums.

The renovated condominiums feature nine-foot ceilings, large windows, gourmet kitchens with granite counter tops and stainless steel appliances, ceramic tile in the bathrooms, hardwood floors in the living areas and kitchens, elevator lobbies with original tile floors and a restored original Grand Street-level residential lobby.

Carter's Investments group is actively seeking new opportunities, especially in multifamily and value-add office across the country. For more information, check out Carter’s Investment page.

A Successful Finale to Carter’s College Football Pick’em Pool!

CarterBlog — 2011-12-02T12:50:54-05:00

By Sarah Peddar, business development manager, Carter

ATLANTA (Dec. 2, 2011) - Congratulations to Carl Mullins of CBRE for winning Carter’s First Annual College Football Pick’em Pool! With 97 wins throughout the 13-week season, Mullins surpassed the other 60 players and scored a pair of tickets to the SEC Championship Game tomorrow at the Dome. He is a dedicated and loyal Dawgs fan, so we wish him the best of luck as his team takes on the Cajun Tigers.

If you didn’t participate in this year’s pool, you missed out. Hosted by the Interior Project Management Team, the season kicked off at Five Paces with a happy hour event where guests (mostly commercial real estate brokers) met the Interiors team and signed-up to participate in the pick’em pool.

Each week participants logged into the customized pool website and picked winners based on the spread for the 12 games of the week. A weekly winner was awarded a $25 American Express gift card for making exceptional picks, which led up to the final prize of the SEC Championship tickets.

Mullins had nothing but great things to say about the pool when I went to deliver the tickets, (granted, I was holding his coveted SEC tickets in my hand). He found the weekly recap emails, which consisted of key highlights from the previous weeks games and entertaining YouTube clips, to be a fun read and he complimented us on the event’s overall organization.

The first annual pool was a great opportunity for me to meet many of you! Since Carter sold its property management and brokerage businesses to Cassidy Turley in September, there has been some confusion in the marketplace. This program provided Carter with a platform to let the commercial real estate community know our interiors team is still busy and strong, and we can team with any brokerage house. We have a proven process that is customized for each project, and appreciate any opportunity to present our skills and support the brokers’ efforts to maintain long lasting relationships with their clients.

I would like to offer a special thanks to everyone who participated in our pool, I hope you enjoyed it as much as I did. We are looking forward to stirring up the college rivalry again in 2012, in addition to a number of other exciting events. Stay tuned!