Uncategorized Archives - Ardent

Vision unveiled for Buckhead retail hub below Piedmont Center offices

The Ardent Cos. plans to replace ground-level offices at Piedmont Center with retail space. A loading dock will be knocked out to make room for an entrance to a central courtyard surrounded by food and beverage options.

As suburban-style office parks fall on hard times, The Ardent Cos is infusing Buckhead’s largest one with an entertainment district in hope of appealing to workers and nearby residents.

The Atlanta-based firm plans to convert 35,000 square feet of ground-level offices at Piedmont Center into Oxton, a food-and-beverage hub that could be filled with a brewery, coffee shop, casual dining options and more. The retail space will be centered around a courtyard on almost 1 acre between Buildings 1-4 of the campus.

The project involves knocking down a loading dock to make room for a courtyard entrance at Piedmont Road. It will enhance visibility for future retailers, as well as provide a more comfortable way for pedestrians to access them from a nearby sidewalk. The office park is already a short walk from multi-use trail PATH400 with the potential for a closer connection in the future.

“It needs some modernization, sure, but it’s a heck of a location and heck of an opportunity,” said Mike Guynn, managing director at Ardent. “We have great facilities, open space and nature trails. But in today’s environment, you need something that sets you apart.”

Transformation of office

Ardent started rehabilitating Piedmont Center, spread across 45 acres, after gaining control of the 14-building campus a few years ago. The firm padded the property with eight spec suites, which are pre-built offices for companies in need of fast, flexible space. Switchyards, a members-only coworking space, is now open on the ground floor of Building 3.

The transformation of Piedmont Center is an example of the effort to attract and retain tenants at aging properties. More than 200 companies, including anchor tenant Kaiser Permanente, lease space at the 1980s-era office park. A bit more than 70% of the 2.2 million square feet of space is occupied, Guynn said.

In the era of hybrid work, companies are trading large workspaces for smaller ones in lively environments. Most of the sought-after office properties are surrounded by publicly accessible amenities. The Atlanta BeltLine’s Eastside Trail and West Midtown have landed corporate relocations by placing restaurants, shops and bars at workers’ fingertips.

“A lot of people I know in Buckhead go down to Ponce City Market and West Midtown all the time,” said Westbridge Principal and Partner Chris Faussemagne, who serves as a consultant for Oxton. “There is an opportunity to put all those people here in one central spot.”

Faussemagne helped create Westside Provisions, Stockyards and other adaptive-reuse projects.

In recent quarters, office leasing in Buckhead trailed behind Midtown and other parts of Intown Atlanta. Real estate experts say enhancing walkability, focusing on street-level experience and beefing up dining options could help reclaim its appeal.

Reimagining Buckhead

Buckhead developers are slowly reshaping the single-use, car-centric design of the commercial district.

Citizens Market, a 25,000-square-foot food hall, is expected to open at Phipps Plaza in April. It’s one of several components aimed at reenergizing the shopping mall. Simon Property Group is densifying the site with a Nobu hotel and restaurant, health and wellness club, modern office tower and a large greenspace.

Selig Enterprises plans to upgrade Lenox Marketplace, a 1990s-era retail center now rebranded as The Block at Phipps. The firm is redoing storefront façades along Peachtree and Oak Valley roads, creating an open-air corridor to enhance the pedestrian experience and bringing new dining and shopping options.

The Arden Co.’s team

Ardent also tapped Merritt Lancaster, principal and cofounder of Bridger Properties, to serve as a consultant. The firm will be responsible for leasing the retail space. The project team is in active negotiations with potential tenants, many of which have an existing presence on the BeltLine or West Midtown, Faussemagne said.

Square Feet Studio Architects is the lead designer of the project. Ardent expects to start construction on the multi-million-dollar project by the third quarter of this year with the first set of tenants expected to open by summer 2024. It’s exploring the potential of adding multifamily or other uses to the site, though that would come after Oxton is settled, Guynn said.

Developer eyes Durham facility for new homes, grocery store, retail

A bottling facility in Durham could be transformed into a new development with apartments, townhomes, a grocery store and retail space.

The Ardent Companies, an Atlanta-based asset management firm, has filed a rezoning request with the City of Durham for 3214 Hillsborough Road, site of the Durham Coca-Cola Bottling Company warehouse, to allow for a mixed-use development. The bottling company plans to move its operations to a new facility in Chatham County.

The current zoning is industrial light. The requested zoning is for the northern portion of the site to be planned development residential and the southern portion to be commercial general.

“This stretch of Hillsborough Road is a thoroughfare in the truest sense of the word, people are passing through,” said Ardent Executive Director Jay Douglas. “What we want to do is create something that creates a sense of place, and a mixed-use project will allow for that. … Our goal is to create a first-class experience for those who use this project, and help people recognize the value of this corridor and lead to additional reinvestment in the city.”

A traffic impact analysis shows an anticipated buildout of 2027 for the project. Other details for timeline and cost are unknown as Ardent did not provide them.

The development plan shows 370 apartments, 24 townhomes and 68,356 square feet of commercial space. There would be a 5.5-story parking deck wrapped by residential and retail buildings with 495 parking spaces. The commercial side of the site would have 400 parking spaces in a surface lot.

The apartments will be in two 5-story buildings — one along Bellevue Avenue and one along Mountain View Avenue — and will be market rate. There will also be three floors of residences above the ground-level retail shops. The townhomes will be spread across four buildings along Rosemary Avenue and could be for-sale townhomes. Notes from a neighborhood meeting for the rezoning show the townhomes will most likely be three stories.

A letter to the City of Durham Planning Department said the company is planning to develop 15 percent of the townhomes as affordable housing at 80 percent of the area’s median income. This would be done in partnership with a nonprofit organization.

The residential side will also have two green spaces and an amenity courtyard.

Development plans show the grocery store will be 23,296 square feet on Hillsborough Road and will replace the existing warehouse space. It would most likely be a neighborhood grocery store similar to the Durham Co-op Market.

The remaining commercial space of 41,600 square feet would be spread among four retail buildings. Douglas said the company is aiming for a mix of food & beverage retailers along with soft goods retailers and services.

Douglas said the existing facility will be removed, but the adjacent 3,500-square-foot First Citizens Bank branch will remain. The company is looking to see if there are any parts of the facility that can be repurposed.

The site currently has a 106,420-square-foot warehouse on 11.696 acres. Last year, the bottling company announced plans to move to Chatham County in order to merge its Durham and Sanford operations into one large headquarters in Apex. Both the Durham and Sanford sites will close, with employees moving to the new facility.

Durham Coca-Cola still owns the property in Durham. It has an assessed value of approximately $4.5 million. Douglas said Ardent’s plan is to take possession of the site by the end of this year, and lease back the site if Durham Coca-Cola still needs to use the facility.

The Ardent Companies is an investment firm that focuses on commercial, residential and debt financing. It manages 5.5 million square feet of commercial space, with $725.5 million in assets under management. The company says it has acquired, entitled or developed more than 8,500 single-family lots and 2,300 multifamily units.

Restaurant-bar with gaming element set for downtown

The downtown building once housing the since-closed The George Jones museum, restaurant and bar is slated to house DraftKings Sports & Social and a cowboy-themed bar, according to a Metro permit related to signage.

The effort to get the business operational comes after a partnership comprising Atlanta-based The Ardent Companies and local real estate investor Jeffrey Welk paid $28.5 million for the building in July 2022 (read here) — only seven months after it changed ownership hands for $21 million.

The three-story brick building is located in The District at 128 Second Ave. N. and home to no tenants. The Post was unable to determine an opening date.

Detroit also offers a DraftKings Sports & Social.

Based in Boston and founded in 2012, DraftKings bills itself as a fantasy sports contest and sports betting company. A release notes DraftKings Sports & Social — a partnership between the company and Baltimore-based The Cordish Companies Live! — will bring DraftKings’ sports gaming products “to life by offering engaging, interactive fan-first destinations to its customers.”

Signage designs submitted to Metro note “PBR” — a reference to the Professional Bullriders Association. The PBR and Live!, a division of The Cordish Companies Live!, co-operate multiple PBR Cowboy Bar locations, according to trade publication Chain Store Age (read here).

The DraftKings Sports & Social concept is likely to be similar to what Penn Entertainment Inc. (which has some ownership in sports- and pop culture-focused digital media company Barstool Sports) has planned for the downtown building last home to Joe’s Crab Shack (read here).

Brewery And Restaurants Could Be Coming To Buckhead’s Piedmont Center

A brewery and restaurants could be coming to North Buckhead’s Piedmont Center office complex as part of a large-scale retail conversion.

The plans for the doughnut-shaped Buildings 1-4 in the sprawling complex at 3565 Piedmont Road involve converting nearly 32,000 square feet of ground-level offices into retail space to serve workers and the public.

The plans by owner Ardent Companies also involves remaking the circular courtyard and adding patios and outdoor dining. The Piedmont facade would get some improved screening as well.

The plan, which would need a special administrative permit from the City, was presented Nov. 2 to the Development Review Committee (DRC) of Special Public Interest District 12, a zoning area aimed at design details and walkability that Arden voluntarily joined in recent years.

Representatives of Ardent’s team told the DRC that no tenant deals have been struck yet, but that a brewery is in discussion. The brewery would not serve food, they said. DRC members and City planner Nathan Brown said a brewery might not be an automatically allowed use in the local zoning, something for the team to check.

A site plan in the presentation showed other spaces, including one labeled “market deli.” Others are designated for retail or “food and beverage,” while some would remain offices.

The Ardent representatives said a general contractor is in place and work could start soon after permitting. The work would involve only renovation, with no additions, they said.

The plan would continue to allow room for a stop on the Buc shuttle, an on-demand van service offered by the local nonprofit Livable Buckhead.

The plan drew praise from DRC members. Member Peter Davis called it a “badly needed” improvement to a complex that has long had a “barren feel.”

Ardent last year completed its acquisition of all 14 buildings in the sprawling, maze-like office park. Since then, it has embarked on a campaign to enliven it, make it easier to navigate, and open it up to the public. Among new tenants in that regard is the co-working space Switchyards, which opened early this year in Building 2.

Ardent Launches $500 Million Debt Fund

Ardent, a privately held real estate firm focused on opportunistic and diversified investment strategies, is celebrating its ten-year anniversary – a period highlighted by dynamic growth of the firm’s team, its investment strategies, and its investor base. But the industry leader is just getting started. Today, Ardent announces the launch of its $500 million credit Fund V.

Ten Years of Exponential Growth

In the past ten years, Ardent has experienced significant growth both financially and geographically. To date, Ardent has invested more than $4.4B in real estate transactions, with more than $1.6B in assets under management, even after selling roughly half of its portfolio last year which led to sizable returns to its investors. In early 2021, the firm expanded into Europe with the opening of an office in London, which follows further growth in both New York and Charlotte.

“Ardent has a strong track record of outperforming the markets and we believe we can continue this trend,” said Ardent CEO, Matt Shulman. “With our substantial market intelligence and investment experience across all asset classes, we’re truly at the infancy of our business growth and are looking forward to what these next ten years bring, starting with the launch of Fund V.”

More than Numbers

With a handful of impressive new hires in origination and underwriting to support the Fund’s launch, Ardent is now a collection of over fifty talented professionals both in the United States and United Kingdom who share a singular focus to be an industry-leading real estate investment and asset management firm – one that is recognized for the integrity of its people, the ethics of its business practices, and the quality of the service it provides to our investors and business partners.

As the firm continues to build upon its infrastructure, portfolio, and footprint, Ardent is committed to creating a positive impact on its employees, investors, and communities. Ardent provides both time and resources to nonprofits that align with employees’ values including Children’s Healthcare of Atlanta, Mary Hall Freedom House, Pebble Tossers, Operation Hope, and Open Doors Atlanta.

What’s Next

Building off a strong and consistent track record across more than $2B in prior debt originations, Ardent’s newest credit fund – Fund V – will target middle market senior debt ranging from $5MM-$75MM. The debt fund will lend on value-add and opportunistic repositioning, development, and redevelopment of all types of commercial properties in the US. Consistent with prior Ardent credit funds, the seasoned investment team will continue to seek out less efficient segments of the property and capital markets.

“We take an innovative and disciplined approach to investing, with the hopes that we are able to make the world a little better for our investors, our employees, and the community at large,” says Shulman. “We’re humbled by the impact we’ve been able to make for all these important stakeholder groups over the past ten years and are motivated and driven to keep the momentum going in the next decades.”

Ardent Launches Fund, Adds Staffers

Ardent Financial has kicked off fundraising for its latest bridge-loan vehicle earlier than expected and added four seasoned pros in a bid to capitalize on rising demand for commercial real estate debt investments.

The investment manager originally planned to start raising about $500 million of equity for Ardent Financial Fund 5 in the fourth quarter. It opted instead to launch the capital-raising campaign in late August amid a marked increase in investors seeking debt opportunities versus investments tied to equity stakes in commercial properties.

Debt is being viewed as a safer bet amid widespread concerns about rising interest rates, inflation and the economic impact of the war in Ukraine. Those factors also have fueled rampant capital-market volatility over the last six months, constraining lending by banks and commercial real estate CLO issuers. That, in turn, has created additional financing opportunities for fund shops.

Ardent’s new staffers started last month. Managing director Jennifer Wimmer, director Peyton Knisley and senior associate Grayson Jacobs report to managing director Christopher Kelly, head of loan originations. Director Monica Ortego works under managing director Michael DeGance, who oversees fundraising and investor relations.
Knisley is based in New York, while the other hires joined Ardent’s Atlanta headquarters.

Wimmer handles loan originations and asset management. She spent the last three years at Atlanta-based Access Point Financial, where she was a director focused on asset management and special servicing. Before that, Wimmer worked at iBorrow, Rialto Capital and SunTrust Bank.

Knisley, who concentrates on originations and underwriting, was previously a senior associate at Ruben Cos. Prior to joining that New York firm in mid-2021, she spent about three years at HUBB NYC Properties. Knisley previously worked at DHA Capital and Cushman & Wakefield.

Jacobs joined Ardent as an underwriter. He previously was an associate at New York-based iStar and Safehold, a ground-lease REIT managed by iStar. Prior to joining iStar in 2013, Jacobs was a senior underwriter assistant at Builders, an Atlanta-based insurer.

Ortego focuses on fundraising and client services. She had been vice president of operations at Skyfire, a Marietta, Ga.-based consulting firm that focuses on the use of drones for public safety purposes. Before joining Skyfire in early 2019, she spent almost two years as an investment analyst at Stan Johnson Co., a commercial real estate brokerage and advisory firm that on Aug. 31 announced a deal to sell to Northmarq.

Ardent is on track to write $400 million to $500 million of construction and bridge loans this year, up from about $330 million last year. Loans range from $5 million to just under $100 million but tend to be $25 million to $30 million.

With leverage, Fund 5 should have at least $1 billion of lending power. Ardent closed in March on the final round of equity for Fund 4, which raised $363 million and uses a similar amount of portfolio leverage. About 85% of that vehicle’s capital has been deployed.

For Fund 5, Ardent is targeting a return of 10% to 13%. Like its predecessor, the vehicle will charge a 1.5% management fee on invested capital. After the preferred return to investors reaches 8%, the manager is entitled to 20% of additional profits.

Ardent UK Positions for Growth with Senior Hires

The Ardent Companies UK (“Ardent UK”), the acquisitive subsidiary of US-based real estate investment and asset management firm The Ardent Companies, has strengthened its team and positioned itself for further growth with the appointment of development and investment directors into two new roles.

Joe Swindells arrives as development director, having previously held senior roles at Battersea Power Station, Capital & Regional and Ballymore. Drawing on extensive experience in the residential, retail and industrial sectors, Joe will manage Ardent UK’s development activity in line with the asset management strategies for existing holdings, as well as new regeneration and development-led opportunities.

In parallel, Gary McNamara joins as investment director, following a period of working for Ardent UK on a consultancy basis, during which time he has advised on the expansion of the firm’s industrial platform and potential regeneration and redevelopment projects. In the new role, Gary will oversee Ardent UK’s investment activity as it continues to expand its nationwide portfolio.

The new arrivals give Ardent UK an even stronger base for growth and expansion into new projects, sectors and business areas, alongside the existing senior team of managing directors Richard Benson and Andrew Hilston, and finance director Suzie Cooper.

Since its launch in early 2021, Ardent UK has been highly acquisitive and opportunistic, establishing an industrial and logistics platform of over 2.25 million sq ft and undertaking the market-calling acquisition of Touchwood shopping centre in Solihull. The firm remains highly acquisitive, looking to expand its portfolio and take on new regeneration and development opportunities.

Matt Shulman, CEO of The Ardent Companies, said: “The acquisitions we have made in the UK underline our ambitions in this market, and as such it is hugely pleasing that Joe and Gary have chosen to join Ardent. They are both excellent additions to the team, bringing broad skillsets and a depth of experience that will further strengthen our already formidable UK capabilities, enabling us to expand into new sectors, geographies and business lines.”

In line with its expansion, and reflecting the firm’s new requirements, Ardent UK has moved to a new London headquarters at 18A St James’s Place, London, SW1A 1NJ

Ardent UK Acquires Four Industrial Assets for £25 Million

London, 16^th August 2022: The Ardent Companies UK (“Ardent UK”), the acquisitive subsidiary of US-based real estate investment and asset management firm The Ardent Companies, has acquired four light industrial assets for £24.7 million.

The buys – split between the Shelby Portfolio of three Birmingham estates and a standalone asset in Crawley, West Sussex – provide a total of over 250,000 sq ft of space, increasing the size of Ardent UK’s industrial platform by more than 10%.

The Shelby Portfolio was acquired from LondonMetric Property for £21.6 million, reflecting a net initial yield of 5.7%. The portfolio provides a total of 235,314 sq ft of industrial space, split across three key strategic Birmingham locations: Forge Trading Estate (77,036 sq ft of space across 26 units) in Halesowen; Mucklow Hill Trade Park (96,369 sq ft across 19 units), also in Halesowen; and Long Acre Trading Estate (61,909 sq ft across eight units) in Aston. The portfolio has a current occupancy rate of 99%, with excellent reversionary potential.

51-55 Gatwick Road, part of Crawley’s Manor Road Industrial Estate area and within a mile of Gatwick Airport, comprises three light industrial units totalling 17,342 sq ft, 1,994 sq ft of retail space and 1,575 sq ft of offices, with occupancy standing at over 95%. It was Ardent UK’s second purchase from the Pears Group, acquired for £3.1 million which reflects a net initial yield of 6.62%.

The new acquisitions bring Ardent UK’s national industrial and logistics portfolio, which made its first buy in March 2021, to over 2.25 million sq ft of space. The Shelby Portfolio and Crawley assets represent new geographic expansions for the platform, which has targeted properties in strategic locations that offer the opportunity for significantly enhanced performance and value through active asset management and development.

Richard Benson, managing director of Ardent UK, said: “Our focus when building this industrial platform has been on quickly achieving scale and geographic balance with assets that offer asset management potential, and to grow the portfolio to over 2.25 million sq ft in less than 18 months is a sign of our ambition. Demand for these assets remains high, and as such it is particularly pleasing to secure the Shelby Portfolio, which was not only highly competitive but also partly due to our reputation for acting swiftly and with integrity when acquiring.”

Ardent UK was advised by Knight Frank on the Shelby Portfolio and Cushman & Wakefield on 51-55 Gatwick Road, with legal advice from Greenberg Traurig on both deals. ACRE Capital Real Estate acted on behalf of LondonMetric Property and the Pears Group was represented by Ereira Mendoza.

AgFe Grants Ardent UK £100 Million in Financing for Industrial and Logistics Fund

The Ardent Companies UK, the subsidiary of US-based real estate investment and asset management firm The Ardent Companies, has secured £100 million in acquisition and accordion financing for its UK Industrial and Logistics fund from AgFe.

The financing included an acquisition facility for a portfolio of four core industrial assets with an in-place occupancy of 99%, a weighted average unexpired lease term to break of 7.1 years, and a WAULT to expiry of 8.3 years. The financing also includes an accordion facility, which will enable Ardent UK to acquire more assets under the same strategy.

The senior loan was provided by AgFe on behalf of one of its European insurance account mandates. The loan represents 65% loan-to-value and has been provided for a three-year term.

The four assets, acquired between December 2021 and February 2022, are: a 234,685- square-foot unit in Pickering, North Yorkshire; a 50,124-square-foot unit in Peterlee, County Durham; Tokenspire Business Park, a 305,885-square-foot multi-let estate in Beverley, East Riding of Yorkshire; and a 18,841-square-foot unit at 717B North Circular Road in north west London.

Richard Benson, managing director of Ardent UK, said: “This financing is a major step forward in the growth of Ardent UK’s industrial and logistics fund, reflecting the ongoing opportunities presented by the sector and the strength of our acquisition and asset management strategies. It is exciting to establish a new relationship with AgFe and we look forward to deploying this facility with further acquisitions of strategically-located assets with strong leasing fundamentals.”

James Wright, head of real estate at AgFe, added: “AgFe is very pleased to be working with JLL and Ardent UK, and supporting the growth of their UK industrials portfolio over the next few years. The fundamentals of this sector continue to be very attractive – the granular, diversified exposure coupled with significant asset management potential offered by this portfolio make this a very compelling lending opportunity, and we look forward to helping Ardent UK grow with additional acquisitions.”

JLL Debt Advisory advised Ardent.

By Sharon Smyth CoStar News

VineBrook Acquires Single-Family Portfolio Held by The Ardent Companies and The Prager Group

A joint venture between The Prager Group (“Prager”) and The Ardent Companies (“Ardent”) announces the sale of just under 3,000 single-family rental homes to VineBrook Homes Trust, in a deal totaling $350 million. VineBrook, a private real estate investment trust, will acquire the companies’ entire portfolio of single-family residential assets.

Prager was established in 2009 and formed a Co-GP joint venture with Atlanta-based Ardent, an asset management firm focused on debt and equity investment, in January 2017. Since the initial partnership with Ardent in 2017, Prager has sourced and managed additional portfolios to continue growth under the joint venture and realized strong investor returns with the portfolio sale.

“We are thrilled to see the success of our partnership with The Prager Group,” said Matt Shulman, CEO at Ardent.

With the majority of units spread across the southeast, the deal allows VineBrook Homes Trust to expand its presence in the Southeast. In addition to the assets, Prager agreed to sell the operating company as well that was established in 2010.

“Today marks an exciting day in our company’s evolution and the success of this deal would not be possible without all of the hard work by everyone on the Prager Team and our partnership with and support from Ardent,” said Merek Shoob, Managing Director of The Prager Group.

The deal, which went under contract in October of 2021, originated earlier last year when VineBrook approached Prager in its efforts to grow their single-family rental portfolio. Raymond James served as financial advisor throughout the transaction process.