Avalon Purchased By Real Estate Company

ALPHARETTA, GA -- PGIM Real Estate said Monday that it has acquired Avalon, an 86-acre mixed-use development based in Alpharetta.

PGIM Real Estate is the real estate investment business of PGIM Inc., the global investment management businesses of U.S.-headquartered Prudential Financial, Inc.

PGIM Real Estate’s investment includes 390,543 square feet of Class-A retail space; 105,364 square feet of Class-A office space; 250 luxury apartment units; and a 3.3-acre office development parcel. The retail and office components are 100 percent leased while the apartments are 98 percent leased, PGIM said.

PGIM Real Estate will also purchase a second phase of Avalon, which will include approximately 90,000 square feet of Class-A retail and 276 luxury apartment units. The second phase is under construction with completion scheduled for mid-2017. Terms of the transaction were not disclosed.

“Avalon is one of the premier mixed-use development projects in the United States,” said Kevin R. Smith, head of Americas at PGIM Real Estate. “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.”

The existing retail is leased to a strong roster of national tenants and is anchored by Whole Foods, Regal Cinemas, The Container Store and Crate & Barrel, while the second phase retail is pre-leased to a robust mix of tenants including Pottery Barn, Urban Outfitters, Williams Sonoma, Brooks Brothers and a technology tenant.

The property also includes several high-quality, local chef-driven restaurants, as well as national restaurants such as Kona Grill and Ted’s Montana Grill.

The apartments and existing office space are located directly above the retail space. The retail and restaurants located in Avalon provide residents and office tenants with a unique walkable amenity.

The Avalon master-planned community also includes more than 100 single-family homes, an office tower, a hotel and conference center and a medical office building, each of which are in various stages of construction.

---

Image via Avalon's Facebook page