ATLANTA, Ga., July 25, 2016 – PGIM Real Estate has acquired Avalon, a 1.1 million square foot mixed-use lifestyle center in Alpharetta, Ga., on behalf of institutional investors, the company announced today. PGIM Real Estate is the real estate investment business of PGIM Inc., the global investment management businesses of U.S.-headquartered Prudential Financial, Inc. (NYSE: PRU).
The open-air mixed-use lifestyle center is part of an 86-acre master-planned Avalon community in Alpharetta, a suburb located approximately 20 miles north of Atlanta. The property is prominently positioned in a vibrant shopping, dining and entertainment destination that serves the affluent northern Atlanta suburbs located in Fulton County, including Alpharetta, Roswell, Milton and Johns Creek.
PGIM Real Estate’s investment includes 390,543 square feet of Class-A retail; 105,364 square feet of Class-A office space; 250 luxury apartment units; and a 3.3 acre office development parcel. The retail and office components are 100% leased while the apartments are 98% leased. PGIM Real Estate will also purchase a second phase of Avalon, which will include approximately 90,000 square feet of Class-A retail and 276 luxury apartment units. The second phase is under construction with completion scheduled for mid-2017. Terms of the transaction were not disclosed.
“Avalon is one of the premier mixed-use development projects in the United States,” said Kevin R. Smith, head of Americas at PGIM Real Estate. “The acquisition provides our investors with a rare opportunity to acquire a trophy-quality mixed-use property in a strong demographic area, and is consistent with PGIM Real Estate’s strategy to acquire experiential retail centers in markets that are poised to continue to benefit from an increase in consumer discretionary spending.”
The existing retail is leased to a strong roster of national tenants and is anchored by Whole Foods, Regal Cinemas, The Container Store and Crate & Barrel, while the second phase retail is pre-leased to a robust mix of tenants including Pottery Barn, Urban Outfitters, Williams Sonoma, Brooks Brothers, and a technology tenant. The property also includes several high-quality, local chef-driven restaurants, as well as national restaurants such as Kona Grill and Ted’s Montana Grill.
The apartments and existing office space are located directly above the retail space. The retail and restaurants located in Avalon provide residents and office tenants with a unique walkable amenity.
The Avalon master-planned community also includes more than 100 single-family homes, an office tower, a hotel, a conference center and a medical office building, each of which are in various stages of construction.
About PGIM Real Estate
PGIM Real Estate is the real estate investment business of PGIM Inc., the global investment management business of Prudential Financial, Inc. (NYSE: PRU). Redefining the real estate investing landscape since 1970, PGIM Real Estate has professionals in 18 cities in the Americas, Europe and Asia Pacific with deep local knowledge and expertise, and gross assets under management of $65.4 billion ($48.3 billion net) as of March 31, 2016. PGIM Real Estate’s tenured team offers to its global client base a broad range of real estate investment vehicles that span the risk-return spectrum across core, core plus, value-add, debt, securities, and specialized investment strategies. For more information, visit www.pgimrealestate.com.
PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including fundamental equity, quantitative equity, public fixed income, private fixed income, real estate and commercial mortgages. Its businesses have offices in 16 countries across five continents and had more than $1 trillion in assets under management as of March 31, 2016. For more information, please visit http://www.pgim.com.
About Prudential Financial
Prudential Financial, Inc., a company incorporated and with its principal place of business in the United States, is a financial services leader with more than $1 trillion of assets under management as of March 31, 2016, and has operations in the United States, Asia, Europe and Latin America. PFI’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., the company’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/. PFI of the United States is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom.
25 July 2016
PGIM Real Estate Acquires Avalon Mixed-use Lifestyle Center in Atlanta Suburb
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