Yoo Know Who Eyeing Two More
The Trillist Cos is planning another Yoo. And maybe another after that for Atlanta.
We spoke with Trillist's Scott Leventhal (right with Cortland Partners Steven DeFrancis) during our Atlanta State of the Market event last week, where he was a panelist. Trillist, which has begun work on Yoo on the Park, a 25-story, 245-unit luxury apartment tower at 207 13th St, is already dusting off plans for a second Yoo project at 1138 Peachtree St, a site owned by the company, Scott says. Asked when Trillist will break ground on that parcel, Scott says, “We're planning on next year.”
And that may not be the last Trillist multifamily project. Scott says the firm is eyeing another unidentified site in Midtown, as well as sites in Charlotte, Dallas and Denver for Yoo projects. Still, Scott told our audience of more than 400 commercial real estate pros that construction costs for developers probably won't moderate until the Braves and Falcons stadiums are finally delivered. Still, there are enough projects in the pipeline around the city to keep labor in a shortage, he says.
Scott was part of a panel that included CohnReznick's Robert Haley, Novare Group CEO Jim Borders, Steven DeFrancis, and Integral CEO Egbert Perry. Talk during the development trends panel focused on the effect the supply of more than 12,000 new apartment units—mainly inside the Perimeter—will have on key fundamentals. Jim says rent growth—which spiked 7.5% this year compared to last, the highest growth rate since the 1990s—will not match that rate as new product hits the market. That said, Jim adds the industry is in a “tailwind” with homeownership having dipped below 62% and more wanting to rent and live intown.
Egbert (right with Jim) says the biggest difference this time around is the focus on submarkets in Atlanta—development is cornered on certain areas where they're seeing the most demand. It's why developers have shied away, for the most part, from adding multifamily to the suburbs. “That's our equivalent to having barriers to land development,” he says.
We also hooked up with Goddard Investment's Steve DeVinney along with Cushman & Wakefield's Carolyn Nolen and Will Porter, who got the leasing assignment for Goddard's Overlook III six months ago. We held our event in shelled-out floor that C&W is marketing for Goddard. Will says there's also 75k SF on the upper floors with tremendous views of the Cumberland/Galleria and Atlanta skyline.