Alpharetta, Ga. — PGIM Real Estate has acquired Avalon, a 1.1 million-square-foot mixed-use lifestyle center in the Atlanta suburb of Alpharetta.
North American Properties developed Avalon in 2014 at an estimated cost of $600 million. The sale price was not disclosed. PGIM acquired the center on behalf of institutional investors. The open-air lifestyle center contains 390,543 square feet of retail space, 105,364 square feet of Class A office space, 250 luxury apartment units and a 3.3-acre office development parcel. It is part of an 86-acre master-planned community about 20 miles north of Atlanta that features an additional 100 single-family homes, office tower, hotel, conference center and medical office building, which are all in various stages of construction.
The retail and office components of Avalon are fully leased, while the apartments are 98 percent leased. PGIM Real Estate plans to also purchase a second phase of the development, which will include about 90,000 square feet of retail and 276 luxury apartment units. The second phase is under construction with a planned completion date of mid-2017.
“Avalon is one of the premier mixed-use development projects in the United States,” says Kevin Smith, head of Americas at PGIM. “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.”
Whole Foods Market, Regal Cinemas, The Container Store and Crate & Barrel anchor the retail portion of Avalon. The second phase is pre-leased to Pottery Barn, Urban Outfitters, Williams Sonoma, Brooks Brothers and an unnamed technology tenant. The property also includes several local, chef-driven restaurants, as well as national restaurants like Kona Grill and Ted’s Montana Grill. PGIM Real Estate is the real estate investment business of PGIM Inc., the global investment management business of Prudential Financial.
— Nellie Day