Atlanta Real Estate: The Olmsted Chamblee

Atlanta Real Estate: The Olmsted Chamblee

Welcome to the Olmsted. This is a Fund II asset. It’s located in Chamblee. We started building this project with our
partner CF Lane about three years ago and when I first stepped onto this
property it was a big empty piece of land that was a slab of concrete, some
grass, and what I loved about this in the beginning was its location within
Atlanta. We are a block and a half away from the MARTA station here. You’ve got a lot of retail here. Across the street is Walmart. But then just to give you an
idea of the neighborhood, we had a Whole Foods that just went in down the road as
well after we broke ground here. We are about ten minutes northeast of Buckhead
and then inside the 285 ring road. And the thing that we really liked about
this deal was the tax subsidy that came with it. And we talk about edge and
deals and I think there’s no bigger edge than what we got in this deal. When we
acquired the property with our partners we paid six million dollars for the land
and the tax abatement itself was worth about ten million dollars so we were
starting in a really good place and we put about 50 million dollars into the
overall development, where we are today, and now we’re going out to the market to
sell this property. Named one of Atlanta’s top developments
of 2018 and we’re gonna talk to Dave Welk, get more the story. Dave Welk was
responsible for sourcing this deal. Let’s go inside see some of the units and take
a tour of the property. [Michael] Mr Welk. [Dave] Michael [Dave] How are you?
[Michael] Good. [Dave] Welcome home. [Michael] Ah. It looks beautiful. Gorgeous. I did see it when we
were about 90 percent complete, but this is the first time I’ve seen it
completely done. [Dave] Yeah, this turned out incredibly well. I mean, again, huge credit
goes to our very creative development team Brett Oliver’s vision, largely his,
came to life. The whole inspiration of creating this differentiated space
environment feels like a boutique hotel. And one of
the more unique features of this project is we kind of got ahead of the curve and
created our own co-working space over in here. It flows here to this stairwell that’s
actually multi-functional. You can sit on here, read a book, relax looking to the
pool. These garage doors create this awesome indoor/outdoor
space. So these all roll up. In the summer usually those are opened up to create
this nice pathway to the pool. Really open and spacious, and we’ll walk down
here and take a look at the indoor bocce court that we have built. [Michael] Let’s go play some bocce. [Dave] Come on, baby! Daddy needs a new pair of shoes [whistles] [Michael] Ready? Blowing it up. [laughter] I remember when this was a hole in the
ground walking over here. [Dave] Yeah, this turned out really really well. I mean
just the small attention to detail the “Absolutely” sign that lights up. “No Horseplay.” This is honestly my favorite feature about the entire place, as
someone who’s got a Big Green Egg myself and loves to barbecue.. [Michael] What is it? [Dave] Big Green Egg? [Michael] Oh my god. [Dave] Yeah, so this is a smoker. So you can reserve it and literally smoke ribs, brisket, what have you. [Michael] Nice touch. Very nice touch. We took a tour through the lobby and through some
of the common areas and I don’t know that that really paints the picture of
how cool this place is to walk into. And Dave was saying about how it was
really built to feel like a boutique hotel it has that feeling and we’ve
walked hundreds of properties and this one really really came out great.
We’re gonna go now and tour some of the interior units, look at some of
the views, and then we’ll also talk about some of the other nuances of the
property and some of the challenges that we had during the development and
planning stages as well. Let’s go tour a unit. [Dave] Here’s our model. [Michael] All right! [Dave] Check out the old school turn table there. [Michael] That’s cool, what do they got rollin’ on that thing? [Dave] So we have a few different finish levels in here.
I would say this is certainly market level finishes. In terms of the subway
tile here, granite countertops. One thing you’ll note here that’s not included is
an island. [Michael] Yeah, but it opens it up a lot more [Dave] If a resident comes in and they
identify that, like something’s missing here and I want a
prep area. We have a rolling island that we can provide. [Michael] Versus the
galley kitchen. [Dave] Yeah. What I love here is that with the model furniture they’ve
chosen, it goes with the rest of the decor. Consistent throughout. [Michael] And you can see on the floor here this is called vinyl plank flooring is this is really the new
flooring of multifamily today and you really can’t tell the difference between
this and hardwood anymore and what’s great about a floor like this is that
when it gets scratched, when it gets damaged you can pull
up the planks and pieces and then replace them individually and renters
are willing to pay more for this than they would for a carpeted unit. [Dave] You know, it’s never too early for Christmas, Michael. You like this tree? [Michael] I do. [Dave] It’s all in a day’s work. [Michael] Yeah, another great amenity here though, this is the art room for the residents here, and it’s just a place where they
can kick back and draw and paint and we’ve got a wash station here. It’s
really cool. I don’t think I’ve ever seen this in any multifamily property that
I’ve walked through. The history of the project. Cities don’t generally give a
project like this a 10 million dollar abatement . [Dave] Yeah, I mean, many challenges along the way certainly. And when we came into this deal the abatement wasn’t fully approved. There was a memorandum of understanding that we could look at and say okay the city intends to give us this tax
abatement, but it wasn’t approved. There was a regulatory process involved… and we took risk. So there was a chance that those abatements would not get
ultimately approved and this big edge to deal could go away. So we took the
risk, we closed on the land, and then shortly thereafter Whole Foods announced that
they were coming to the market [Michael] Oh yeah, I remember. [Dave] They were also the only other recipient of an abatement of that size in the market, so I give the city a lot of credit for
forward thinking, and they realized that they were gonna have to help jumpstart
economic activity here, and if you go up and down the Peachtree corridor their
gamble worked. [Michael] It’s night and day from what it was three and a half, four years ago. [Dave] Absolutely. And there’s actually one project under construction right here, immediately
adjacent to us. Three brand-new institutional quality Class-A
developments now getting rents that are equal to some of the projects that are
in what we considered superior sub-markets. Chamblee is holding its own. That’s a wrap on the Olmsted. We’re
gonna head back to the airport right now. It was a great day visiting Atlanta.
Visiting Mr. Welk here. [Dave] Absolutely. Thanks for hanging out

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