EXECUTIVE SUMMARY
2
THE SPINE OF ATLANTA... PEACHTREE RD EXECUTIVE SUMMARY BUCKHEAD - 23M SF Office Space & 100K Jobs N Tuxedo Park Neighborhood Avg Home Value - $1,633,900 +8.9% YOY Buckhead Atlanta $1Billion; 800K SF Development Garden Hills Neighborhood Avg Home Value - $531,700 +12.5% YOY Peachtree Heights Neighborhood Avg Home Value - $513,500 +14.9% YOY Peachtree Battle Neighborhood Avg Home Value - $1,173,400 +10.9% YOY PEACHTREE RD 44,100 AADT Peachtree Square Shopping Center Peachtree Battle Shopping Center Peachtree Hills Neighborhood Avg Home Value - $417,400 +7.5% YOY 3
PROPERTY OVERVIEW Address: 2171 Peachtree Road NW City: Atlanta, GA 30309 Year Built: 2008 Class: Class AA Number of Units: 94 units Average Unit Size: 1,658 SF % Occupied 96% Number of Stories: 19 Net Rentable SF: 155,831 SF Retail SF: 2,825 SF / 1 bay Land Area: 1.26 acres Density: 75.4 units / acre Parking: 235 spaces 4
EXECUTIVE SUMMARY PROPERTY AMENITIES 24-Hour Concierge Heated Swimming Pool with Zen-style Landscaped Pool Deck Eucalyptus Steam and Dry Sauna Restoration Hardware furnished Clubroom with Flatscreen TV & Fireplace Billiards Room & Full Gourmet Catering Kitchen Interior Courtyard with Fire Pit, Flatscreen TV, Outdoor Kitchen & Grill, European Style Dining Area Oversized, Modern Fitness Center Wi-Fi Hotspots in Common Areas Controlled Access Parking Garage with 235 Total Spaces Potential for Guest Suite Pet Park & Grooming Station Package Locker System UNIT FEATURES K i t c h e n Sleek and Contemporary Kitchen Design Stainless Steel Professional Series Viking Appliances Stainless Steel Double Bowl Sinks European-Inspired Hardwood Cabinetry Welcoming Open Breakfast Bar Beautiful Granite & Marble Counter tops B a t h r o o m Walk-In Showers Oversized Fiberglass Soaking Tubs Efficient, Low-Flow Plumbing Fixtures Beautiful Granite & Marble Countertops S p e c i a l F e a t u r e s Exaggerated 9 and Above Ceilings Brazilian Hardwood Floors Spacious Walk-In Closets Expansive Terraces & Balconies Floor-to-Ceiling Windows Motion-Sensored Lighting 5
INVESTMENT HIGHLIGHTS (HIGH) RISE UP Shining prominently above Buckhead s Peachtree Road, Mezzo presents the rare opportunity to possess an inimitable, high-rise luxury asset in a premier urban setting. With a polish extending beyond its distinguished exterior design, Mezzo s amenity package features sophisticated offerings such as a 24- Hour Concierge, Heated Swimming Pool amid Zen-style Gardens and Skyline Views, Eucalyptus Steam & Dry Sauna Rooms, and stylish Clubroom curated with luxury furnishings. EXIT VERSATILITY WITH CONDO CONVERSION Displaying high-end finishes and expansive floor plans across its boutique 94-unit count, Mezzo provides investment versatility with its inherent potential for a fluid condo conversion. With four (4) month-month leases, ten (10) lease expirations between January-March 2018, plus one (1) guest rental unit, 16% of the asset s inventory is poised for condo conversion by end of 1Q19. INCREASING APPETITE FOR LUXURY CONDOMINIUMS A review of recent condo sale comps in the immediate area reveals a strong demand for luxury condominiums, with an average price of $448 PSF. Further, According to third party research, the proposed pipeline for the Buckhead/Brookhaven submarket is the smallest of any intown submarket, with overall supply in the submarket dwindling to 582 units (286 of which are townhomes) from 2,038 units in 2008. With resale prices approaching 2006 levels, Mezzo also offers the ability to acquire condo inventory at a notable discount due to its aforementioned lease schedule. BELTLINE ACCESS The Atlanta BeltLine is an ongoing, transformative redevelopment project - connecting a network of public parks, multi-use trails, and transit along a historic 22-mile railroad corridor circling the city of Atlanta. Mezzo boasts convenient access to the first segment of the BeltLine to open on the north side of Atlanta - delivering an amenity that few competitors can truly match. 6
EXECUTIVE SUMMARY PIEDMONT HOSPITAL Piedmont Hospital and its 5K healthcare professionals sit less than a mile from Mezzo. The hospital recently embarked on a $600 million+ expansion starting with a new 16-story tower, which will increase patient capacity by 22% and add numerous jobs to the existing 11K+ within a five mile radius. EXCEPTIONAL RESIDENT PROFILE Over 42% of Mezzo Residents earn an average household income greater than $150,000, with doctors, lawyers, and retirees enjoying the sophisticated style of living offered at the high-rise property, along with the exclusivity of only 94 units. AFFLUENT NEIGHBORHOOD WITH DYNAMIC DEMOGRAPHICS Replete with beautiful homes, top schools and a diverse employment base, Buckhead comprises about one-fifth of the city of Atlanta and continues to grow. The demographics surrounding Buckhead reveal why the neighborhood has been called the Beverly Hills of the East. The area within a one-mile radius of the property boasts an average household income of $141k, a median home value of $601k and over 78% educational attainment of a bachelor s degree or higher. 7
BROOKWOOD HILLS BROOKWOOD HILLS NEIGHBORHOOD AVG HOME VALUE: $1,175,328 ARMOUR YARDS 187K SF Loft Office PIEDMONT HOSPITAL BROOKWOOD HILLS NEIGHBORHOOD BELTLINE ACCESS 8
EXECUTIVE SUMMARY MIDTOWN 23M SF OFFICE SPACE 90,000 JOBS DOWNTOWN 28M SF OFFICE SPACE 125,000 JOBS 118,000 EMPLOYEES PIEDMONT HOSPITAL $603M EXPANSION. THE NEW 16-FLOOR TOWER HOUSES 408 BEDS / 3 OPERATING FACILITIES FURTHER INCREASING PIEDMONT S CARE CAPACITY BY 23% DOWNTOWN NEIGHBORHOOD MIDTOWN NEIGHBORHOOD 75 85 PEACHTREE RD 44,100 AADT COLLIER HILLS NEIGHBORHOOD 9
Jason Nettles Senior Managing Director jnettles@hfflp.com tel (404) 942-3186 Megan Thompson Senior Director mthompson@hfflp.com tel (404) 942-3185 Bo Moore Senior Director bmoore@hfflp.com tel (404) 942-3188 Atlanta Austin Boston Carolinas Chicago Dallas Denver Houston Indianapolis Los Angeles Las Vegas Miami New Jersey New York Orange County Orlando Philadelphia Phoenix Pittsburgh Portland San Diego San Francisco Tampa Washington London Jack Konas Associate jkonas@hfflp.com tel (404) 942-2206 HFF, L.P. 3399 Peachtree Road NE Suite 1000 Atlanta, Georgia 30326 tel (404) 832-8460 fax (404) 942-2181 www.hfflp.com Jackson Davis Associate jdavis@hfflp.com tel (404) 942-3190