Allen Snow: 2019 Market Update and New Construction News Flash

M E T R O AT L A N TA

NEW CONSTRUCTION NEWS FLASH WINTER 2019

PRESENTED BY

A t l a n t a F i n e H o m e s S o t h e b y ’s I n t e r n a t i o n a l R e a l t y

DAV I D B O E H M I G

P r e s i d e n t & C E O a n d Fo u n d e r

JENNY PRUITT

E x e c u t i v e C h a i r m a n a n d Fo u n d e r

b u c k h e a d | o. 4 0 4. 237. 50 0 0 i n tow n | o. 4 0 4.874.030 0 co b b | o. 770.6 0 4. 10 0 0 no r th a t l a n ta | o. 770.4 4 2 .730 0 a t l a n ta f i n e h o m es.co m

The son of a nuclear physicist, Allen Snow was raised in the historic small town of Oak Ridge, Tennessee (“The Atomic City”), after which he attended Auburn University where he obtained a Bachelor’s Degree in civil engineering unique amongst REALTORS®. While working as an engineer for 10 years before switching to real estate sales in 2001, Allen spent time in many areas of the country, including cities such as Atlanta, Georgia, Boston, Massachusetts, Fort Lauderdale, Florida, Memphis, Tennessee, Miami, Florida, Raleigh, North Carolina, Providence, Massachusetts and San Francisco, California. Each time Allen visited Atlanta, he felt a deep connection to the city where he ultimately found both business and personal success.

ALLEN S N OW

Allen has now resided in Midtown for over 18 years where he enjoys the outdoors in Piedmont Park, bikes the Atlanta BeltLine and embraces the diverse culture and fantastic local cuisine. Allen’s pride, passion and enthusiasm for the City of Atlanta are reflected in his successful real estate business. “Every time I open the Atlanta Business Chronicle, an exciting new project is being planned, and I love sharing that information with my clients and getting them as excited about it as I am.”

Since 2001, the year Allen decided to delve into real estate sales full time, he began earning notable awards such as “Rookie of the Year,” “Agent of the Year” nearly every year, ranking in the top 1% of sales associates at NRT Worldwide and ranking as the no. 1 individual agent, units sold at Atlanta Fine Homes Sotheby’s International Realty’s Intown Office. Currently, he is on track to meet or exceed these same goals for 2019. Allen owes his success to loving what he does, building interpersonal relationships and connections.

It was with Allen’s degree and 10 years of experience in civil engineering that his interest and insight in real estate sales and development grew to where he began leveraging that into individual buyer and seller services.

Over the years, Allen has expanded his portfolio by working with reputable developers, such as Minerva Homes, Cablik Enterprises, Thrive Homes, PacificPoint Realty, Daniel Corporation and Jamestown, to mention a few. Allen’s experience and ever-expanding skill set provide him with the necessary tools to assist individual buyers and sellers through the challenging process of buying and selling their home, but also the unique tools to help developers navigate the complexities of new home, residential project sales and sales management.

Today, Allen Snow Associates is working with Atlanta Fine Homes Sotheby’s International Realty and is continuing to build upon the new energy that has taken the city of Atlanta by storm. Allen is excited by the multitude of upcoming projects he has on his plate, as well as those to come.

BU C K H E A D/ B RO O K H AV E N

KEY STATS

The Buckhead/Brookhaven submarket recorded 100 sales in the second half of 2018, down from 150 sales in the first half of the year. The sales’ leaders were two townhome communities - Skyland Brookhaven and Townsend at Lenox Park - each recording 15 sales.

The sales pace at The Townes at Chastain slowed dramatically, dropping from 57 sales in the first half of the year to seven sales in the second half. In the luxury sector, The Charles recorded six sales in the past six months, and 40 of the 56 units are now under contract with delivery scheduled for August 2019. The proposed pipeline is thin with only 168 units planned. Kolter Urban is eyeing a 47-unit luxury tower on the site where Emerson was once envisioned. The submarket has a decent inventory of townhomes but little luxury product and few reasonably priced flats.

250

ACTIVE PROJECTS

sales in the last 12 21

months

480

PROPOSED UNITS

unsold first-generation units

168

Haddow & Company, January 2019. Used with express permission.

MIDTOWN/BROOKWOOD

KEY STATS

112

The Midtown/Brookwood submarket posted a paltry 31 sales in the second half of 2018, following 81 sales in the first half of the year.

J5, a 150-unit mid-rise building under construction, enjoyed a fast start with 40 sales to foreign investors. However, the pace slowed to 14 sales in the past six months as the marketing effort shifted to conventional buyers. Two active luxury developments – 1065 Midtown and One Museum Place – have experienced a slowdown.

1065 Midtown reported two sales in the past six months, while One Museum Place had one sale. The six unsold units at One Museum Place have an average list price of $800 per square foot. Selig Enterprises broke ground on 40 West 12th Street, which includes 64 luxury units that are part of a mixed-use development. Prices start around $1.2 million, but marketing has not commenced. The most significant proposed project is No. 2 Opus Place, which has been redesigned to include office space and now has 186 rather than 235 units. Another noteworthy proposed development is the conversion of 111 units at Ivy Hall from apartments to condominiums, priced at an average of $400 per square foot.

ACTIVE PROJECTS

sales in the last 12 months

408

9

PROPOSED UNITS

unsold first-generation units

407

Haddow & Company, January 2019. Used with express permission.

DOWNTOWN

KEY STATS

The Downtown submarket had four active projects at year-end 2018.

A total of 101 sales were recorded in the second half of the year, but 96 of these sales were to foreign investors at 525 Parkway, a fivestory building under construction. This project features an average unit size of 650 square feet, with prices ranging from $250,000 to $450,000. Brownstones at Central Park registered five sales, depleting its unsold inventory. The other two active developments, Castleberry Station and ParkHaus, are townhome communities slated to deliver in the second half of 2019. The only proposed project is The Otis Building, an eight-unit development in Castleberry Hill where prices will range from $475,000 to $1.25 million. While the Downtown condominium market has been subdued in recent years, the area’s growing momentum may spark more activity. CIM Group’s planned development of the Gulch, along with Newport’s revitalization of south Downtown, is heightening developer interest.

The bulk of new for-sale housing will likely be townhomes on the fringe of the submarket, but the conversion of upper floors of older buildings to condominiums may become more prevalent.

121

ACTIVE PROJECTS

sales in the last 12 months

64

4

PROPOSED UNITS

unsold first-generation units

8

Haddow & Company, January 2019. Used with express permission.

AT L A N TA E A S T

KEY STATS

Atlanta East led all Intown submarkets with 150 sales in the second half of 2018. This figure is down from 218 sales in the first half of the year. Morningside Towns was the leader with 17 sales, followed by Parkside at Mason Mill with 15 sales. Both of these projects offer reasonably priced townhomes. Airline, a 29-unit building that is underway along the BeltLine, is off to a promising start. This project, where units range from $360,000 to $660,000, recorded eight sales in the past six months. More luxury townhomes are being introduced to the submarket after the success of the Residences at Studioplex. Thrive Homes has broken ground on Emerson on Krog (22 units), where prices will start at more than $1 million, and The Providence Group is underway on The Boulevard at Glen Iris (16 units), where prices start at $950,000. Atlanta East has a robust pipeline with 721 proposed units. The largest proposed project is Skylar, a 120-unit blend of flats and townhomes in the Grant Park neighborhood that is being developed by Stanley Martin Homes.

368

ACTIVE PROJECTS

sales in the last 12 43

months

1,122

PROPOSED UNITS

unsold 721

first-generation units

Haddow & Company, January 2019. Used with express permission.

AT L A N TA W E S T

KEY STATS

Condominium development is accelerating in Atlanta West.

One year ago, there were two active projects with 319 units, compared to five active projects with 628 units at year-end 2018.

The submarket recorded 116 sales in the past six months, with 100 sales occurring at Seven88 West Midtown, a 279-unit highrise under construction. Many of the initial buyers are foreign investors, according to the sales agent. McKinley Homes is developing this project, which has an average unit size of 1,221+/square feet and an average price of $504 per square foot. The four additional active projects are all townhome developments.

One notable proposed project is a five-story building with 90 flats that Monte Hewett Homes is planning near the intersection of Howell Mill Road and Eighth Street. The Howell Mill Road corridor is exploding with activity as several office buildings, as well as two hotels and retail space, are underway. Atlanta West is a dynamic submarket that should continue to attract strong interest from residential developers.

143

ACTIVE PROJECTS

sales in the last 12 months

470

5

PROPOSED UNITS

unsold first-generation units

273

Haddow & Company, January 2019. Used with express permission.

A L L E N S N O W, R E A LTO R ® # 1 I N D I V I D U A L AG E N T - U N I TS S O L D • I N TO W N O F F I C E • 2 0 1 7, 2 0 1 8 c. 404.931.1176 • o. 404.874.0300 ALLENSNOW@ATLANTAFINEHOMES.COM • ALLENSNOWREALTY.COM • SIR.COM

©MMXIX Sotheby’s International Realty and the Sotheby’s International Realty logo are registered (or unregistered) service marks used with permission. Each Office Is Independently Owned And Operated. Equal Housing Opportunity.