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).
Ardent Launches $500 Million Debt Fund
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, 16th 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.
Atlanta Catches Up As A Growing Flex Office Market
After spending years below the top 20 largest flex office markets in North America, Atlanta is finally catching up.
Atlanta saw the sixth largest gross expansion of flex office offerings between Q4 2020 and Q3 2021, according to research from real estate services giant CBRE.
Flex space, or pre-built work environments that tenants can lease for shorter periods of time, represents just under 2% of Atlanta’s office market. But square footage is rapidly expanding as companies’ uncertainties in post-pandemic work strategies are driving their office decision making.
“The activity alone in the last 90 days on a couple of these flex providers is even pushing, if not already exceeding, where we were in Q4 2019,” said RJ Zurak, Vice President of Advisory and Transaction Services with CBRE. “That has everybody pretty darn bullish as to what’s going on.”
Incorporating flex offerings — which range from coworking spaces, spec or turnkey suites and schedulable meeting rooms — allows building owners a way to capture tenants reluctant to sign longer term leases with large swaths of space. They’re often using flex space as an amenity to differentiate themselves from similar product, Zurak said.
Landlords can also use them to attract tenants to ink longer term leases in traditional spaces elsewhere in the building.
“Smaller, new groups ultimately move in, fall in love with their building, and as they grow, they grow with the landlord,” Zurak said.
Major office towers throughout Atlanta are signing management leases with coworking giants We Work and Serendipity Labs, including the Interlock in West Midtown and Buckhead’s Three Alliance Center. A number of smaller, boutique flex operators have outposts in Atlanta office campuses, like Switchyards, Strongbox West and Roam Interactive Workplace.
Some landlords are offering multiple flexible options, like The Ardent Cos.’ massive Piedmont Center campus in Buckhead, which now includes a slate of spec suites and Switchyards’ newest location. Others are circumventing flex operators entirely and “getting into the game themselves,” Zurak said. If they’ve got idle space sitting on the market, landlords will lean toward spending their tenant improvement allowances to integrate spec suites, which have performed well in Atlanta.
Commercial services company Jones Lang Lasalle (JLL) predicts owner-operated platforms will gain scale within the next year.
“That’s creating ideas, creating new competitors for all the big boys in the market, and ultimately the tenant wins because he or she has more opportunity to find the right location for them,” Zurak said.
An increase in flex square footage can benefit Atlanta, which has attracted several major corporations over the past 18 months, Zurak said. Nevermind major players like Microsoft and Visa, both of which announced plans to open hubs in Atlanta — smaller companies sending down 10 employees to take advantage of Atlanta’s resource base can use flex space to house their operations until they decide on their next move.
“I think flex is in a big-time position to capitalize not only on the new jobs the specific companies have created but there’s a lot of different groups they’re going to draft on that,” Zurak said.
Adent UK Makes £21.3 Million Double Light Industrial Buy
The Ardent Companies UK , the acquisitive subsidiary of US-based real estate investment and asset management firm The Ardent Companies, has completed the acquisition of two light industrial assets for a total of £21.3 million.
The acquisitions, made as part of Ardent UK’s strategy to establish a geographically balanced logistics portfolio, comprise Tokenspire Business Park in Beverley, East Riding of Yorkshire and 717B North Circular Road in Brent, north west London.
Tokenspire Business Park comprises 306,000 sq ft of space across 36 separate units and was acquired from Vengrove Real Estate Management for £15.55 million, reflecting a net initial yield of 6.57%. The site includes planning permission for eight new units, including five trade counters, which will mark Ardent UK’s first move into development.
In London, 717B North Circular Road was purchased from Pears Group for £5.75 million. The 15,104 sq ft unit, set within a 0.75-acre site, is entirely let to Comptoir Group at an annual rent of £150,000, with a reversionary yield of 4.5%.
The latest additions bring Ardent UK’s industrial portfolio to over two million sq ft and are in line with its wider strategy of targeting assets in strategic locations that offer the opportunity for significantly enhanced performance and value through active asset management. In addition to further aggregation of its industrial platform, Ardent UK is exploring opportunities in the retail sector “ with repositioning potential or availability at discounted pricing “ and operational-led assets.
Richard Benson, managing director at Ardent UK, said: “While the industrial market is a hugely competitive space, there are still opportunities to be grasped for firms like Ardent UK that hold the asset management expertise to drive further growth. Both of these locations offer significant reversionary potential alongside wider asset management opportunities, particularly at Tokenspire with planning permission in place for eight new units that will be our first development activity in the UK.
“.Our industrial platform is now over two million sq ft and our wider portfolio includes assets in other sectors such as Solihull’s Touchwood shopping centre, underlining just how much has been achieved in the year since we launched. As we continue to build our platform, the opportunities presented by its geographical reach and the operational and management capabilities of our team leave us ideally-placed for future growth.
Ardent Companies Captures $38M For Midtown Urban Retail Center
The Ardent Companies, LLC, has sold 1010 Midtown, a 44,302-square-foot urban retail center Atlanta’s Midtown area, for $38 million. A JLL team of Brad Buchanan, Jim Hamilton and Andrew Kahn represented the seller; East Coast Acquisitions purchased the asset.
The center comprises the ground level of a 425-unit luxury condominium building that was not included in the sale.
The 2008-constructed property on Peachtree Street is 94% leased to a curated mix of high-performing tenants, including Sugar Factory, RA Sushi Bar, Piedmont Healthcare, Silverlake Ramen, Better Homes and Gardens Real Estate, Panera Brad, Sweathouz, Chipotle and Sage Dental.
1010 Midtown serves a dense customer base that, within a two-mile radius, includes a daytime population of more than 216,773 and a residential base of 109,750, which JLL states is anticipated to grow 12.2 percent by 2026.