Coro Embarking On 4 Self-Storage Projects

April 18, 2024 Jarred Schenke, Atlanta

An Atlanta-based commercial real estate investor is moving forward with a handful of new self-storage developments in the metro area.

Auburn Avenue Self Storage

Coro Realty Advisors is breaking ground on Lake Lanier Storage, a 75K SF facility and a 49K SF boat storage building at 6401 McEver Road in Flowery Branch after having recently completed the second phase of Auburn Avenue Storage, a three-story, 57K SF facility in Columbus.

The developer is in the planning phases of Ridgewalk Storage, an 83K SF, two-story facility at 295 Ridgewalk Parkway in Woodstock, and Georgetown Storage, a four-story, 120K SF storage facility behind a Kroger at 4470 Chamblee-Dunwoody Road in Central Perimeter. Both of which are set to break ground this fall. 

Coro President Robert Fransen said the firm targeted markets where entitlement for self-storage facilities is difficult to obtain in hopes of staving off competition, especially as the sector comes down from a development boom. Developers added 242M SF of self-storage space in the U.S. over the past four years, according to a Marcus & Millichap report. 

The self-storage vacancy rate in Atlanta is expected to rise this year to 9.5%, up 130 basis points from the fourth quarter, with developers adding more than 1.5M SF of new storage space to the metro area’s 59M SF of supply, according to Marcus & Millichap. But rents are expected to stay above the 2019 watermark at $1.03/SF as new construction slows down and people continue to move to Sun Belt markets. 

Fransen said the firm selected visible sites along high-traffic corridors and near an influx of build-to-rent communities. Renters of these homes often need self-storage to hold excess household items that don’t fit into purpose-built single-family rental homes, which often don’t have basements, he said. 

Fransen said Coro will look to sell its portfolio of self-storage facilities to an institutional investor, a group that has been active buyers of these facilities over the past few years. 

“I think there’s a very high risk of oversupply of self-storage,” Fransen said. “We’re taking kind of a longer-term view that the supply and demand equation will normalize in the long run.”

Coro Realty Adds Woodmere Trace Apartments

Norfolk VA (December 14, 2023) – Coro Realty announced the purchase of Woodmere Trace Apartments with Fulton Capital Peak.  Woodmere Trace is a 19-acre, 300-unit apartment community located at 6741 E. Tanners Creek Drive, Norfolk Virginia.  Ideally situated near the Norfolk Naval Air Station, the Port of Virginia and downtown Norfolk, Woodmere Trace offers quick access to multiple employment centers.

The property is part of Coro Realty’s value-add investment strategy.  “We believe that through operational and physical improvements, we can drive meaningful revenue growth and reduce operating expenses,” said Robert Fransen, President of Coro Realty. “We are pleased to add it to Coro Realty’s multifamily portfolio.”

Woodmere Trace was 98% leased at purchase.  Coro, together with its partner, Fulton Peak Capital, intends to upgrade Woodmere Trace’s common areas, unit interiors and amenities.

About Coro Realty

Coro Realty was founded in 1997 and is synonymous with intelligent real estate development and investment. With a commitment to smart growth, the urban landscape and innovation, Coro Realty continues to demonstrate its leadership in the market with the successful execution of quality investments. It provides investment, asset management, leasing and property management for a myriad of commercial and residential properties throughout the Southeastern United States. Coro Realty oversees approximately 50 properties valued in excess of a billion dollars. For more information, visit cororealty.com

Media contact: Thornton Kennedy, (404) 210-0363, thornton@prsouth.net

Coro Realty President & Managing Partner Named to Georgia Trend’s Georgia 500

Atlanta (Nov. 13) —  Coro Realty President and Managing Partner Robert Fransen has been named to Georgia Trend's prestigious Georgia 500, recognizing the 500 most influential leaders in the state. The annual list recognizes individuals who play pivotal roles in driving Georgia's economy to new heights year after year, contributing to innovation, vitality and overall success of the state's business landscape.

Fransen has been instrumental in shaping Coro Realty strategic vision. He oversees acquisitions, dispositions, financing activities and investment management. Fransen's leadership has been a driving force behind the company's growth and success.

Before assuming his current role, Fransen served as Coro's Chief Investment Officer from 2010 to 2017. He is an active member of the International Council of Shopping Centers, Urban Land Institute and Midtown Alliance. He serves as a director of the Buckhead Coalition and serves on the board of Central Atlanta Progress.

"We are thrilled to see Robert recognized among Georgia's most influential leaders," said John Lundeen, Coro Realty co-founder. "His dedication, strategic acumen and contributions have been invaluable, and this recognition is well-deserved."

About Coro Realty 

Coro Realty was founded in 1997 and is synonymous with intelligent real estate development and investment. With a commitment to smart growth, the urban landscape and innovation, Coro Realty continues to demonstrate its leadership in the market with the successful execution of quality investments. It provides investment, asset management, leasing and property management for a myriad of commercial and residential properties throughout the Southeastern United States. Coro Realty oversees approximately 50 properties valued in excess of a billion dollars. For more information, visit cororealty.com.

Media contact: Thornton Kennedy, (404) 210-0363, thornton@prsouth.net

Coro Realty Acquires Noonday Creek Crossing, Expanding Retail Portfolio in Metro Atlanta

Atlanta (Nov 3, 2023) — Coro Realty has acquired Noonday Creek Crossing, a fully leased, more than 153,000-square-foot retail center located on 15 acres in Kennesaw, Georgia.

Situated less than a mile from the heart of the Kennesaw State University (KSU) and adjacent to the growing school's sports and entertainment complex, the property boasts an impressive tenant lineup, including Burlington, PGA Tour Superstore and Medici Medical Arts Center.

"Noonday Creek Crossing represents a prime investment opportunity in a location with exceptional growth potential," said Coro Realty President and Managing Partner Robert Fransen. "We are excited to execute our value-add strategy, enhancing the property and creating lasting value for our investors.”

Constructed in 1996 and renovated in 2005, Noonday Creek Crossing is strategically positioned at 2911 George Busbee Parkway on the corner of Grace Street.

The highly desirable location is between Kennesaw State University and its 43,000 students and the Town Center at Cobb, a 1.3 million square foot super‐regional mall. Town Center at Cobb is the second most visited retail center in Georgia.

The property is in a high‐income area with a robust retail demand, presenting a unique investment opportunity.

Coro Realty will implement its value-add strategy, focusing on building improvements and enhancing the overall guest experience. This aligns with the real estate development and investment firm’s commitment to creating thriving retail environments and maximizing the potential of each asset in its portfolio.

Coro Realty acquired Noonday Creek Crossing from an affiliate of Fletcher Bright Company. Zach Taylor, Senior Managing Director of Investments with Institutional Property Advisors, brokered the sale.

About Coro Realty 

Coro Realty was founded in 1997 and is synonymous with intelligent real estate development and investment. With a commitment to smart growth, the urban landscape and innovation, Coro Realty continues to demonstrate its leadership in the market with the successful execution of quality investments. It provides investment, asset management, leasing and property management for a myriad of commercial and residential properties throughout the Southeastern United States. Coro Realty oversees approximately 50 properties valued in excess of a billion dollars. For more information, visit cororealty.com.

Media contact: Thornton Kennedy, (404) 210-0363, thornton@prsouth.net

Atlanta commercial real estate sales slow as buyers wait for prices to drop, By Tyler Wilkins

Transaction volume is dipping for Atlanta commercial real estate properties.

Atlanta (May 26, 2023) Robert Fransen is always on the hunt for shopping centers and warehouses to add to his commercial real estate portfolio. But he’s making fewer purchases these days.

Fransen, president of Atlanta-based Coro Realty Advisors, is one of many investors held back by elevated borrowing costs. Loan payments now gobble up a larger portion of returns than they did a year ago. Would-be buyers are waiting on real estate prices to plummet before they resume scooping up properties en masse.

“What sellers want for properties feels like what they were worth 12 to 18 months ago,” Fransen said. “Man, the market is not there anymore.”

Atlanta is experiencing fewer real estate transactions across property types, compared to the investment surge during the first few years of the pandemic. In the first quarter, the region posted an 80% year-over-year decline in total sales volume for multifamily and office properties, according to commercial real estate research firm CoStar Group. Volume fell by 44% and 55%, respectively, for retail and industrial properties.

Prices are slowly starting to moderate, both in Atlanta and elsewhere, for most building types. For example, the average buyer paid $179 per square foot for Atlanta retail space in the first quarter, about a 17% year-over-year decline, according to CoStar.

“There are retail buyers at today’s prices, just fewer of them,” Fransen said. “Deals that used to receive seven offers now get three. At the moment, many buyers are all-cash, [of which] there are only so many."

Fransen estimates that it would take an additional 10% price drop for previous levels of deal-making to kick back up. Some owners will be pushed into considering lower offers for properties with maturing loans, especially if refinancing is not an option, Fransen said.

Despite the slowdown in lending activity, appetite is still strong for retail, multifamily and industrial properties. Atlanta’s growth is straining the supply of places for residents to live and businesses to operate, which investors view as an opportunity for continued rent growth.

“Landlords are asking for one number and the bids are coming in much lower,” Fransen said. “Who blinks first? My money is on the owner. They’re starting to do that a little bit.”

In the first quarter, industrial investors actually paid slightly more for space than the average buyer paid a year earlier. Fransen attributes the anomaly to the recent construction slowdown, which boosts the value of existing, sought-after space. The office sector posted a 34% year-over-year decline in average sales price — the steepest drop among all major asset classes — partially due to faltering tenant demand.

As companies embrace hybrid work and reassess real estate needs, they’re swapping out large workspaces for smaller ones in walkable environments. That spells trouble for aging office buildings, especially those in suburban areas without close proximity to restaurants, shops or other amenities. Lack of interest could accelerate the decline of those properties, opening the door to redevelopment opportunities.

“The stress in office is much more acute,” Fransen said. “Multifamily buyers are waiting for prices to soften. Office buyers are waiting for them to soften a lot.”

An Insider’s View on Retail Demand in the Southeast, By Anda Rosu

"Almost every retail category is growing," according to Coro Realty's Robert Fransen. Yet some in the market are likely to feel the impact of a slowdown.

Atlanta (May 8, 2023) With its expanding population and business-friendly environment, the Southeast has been a magnet for investors in the past decade. Today, the region’s retail market seems to be as robust and dynamic as ever.

“Retail demand is booming,” according to Robert Fransen, president & managing partner with Coro Realty, a real estate investment and management company that concentrates in the southeastern U.S. Currently, the company owns and operates 36 retail properties, with 25 of them in the Atlanta metro area.

To scratch beneath the surface, Commercial Property Executive asked Fransen to talk about the trends he’s seeing in the sector and expand on the types of retail assets that are likely to do well in a recession.

What are the top trends in the Southeastern retail market today? Do you expect any of them to define the sector for years to come?

Fransen: Continued migration to the Southeast will continue to drive regional growth. The combination of quality universities, low cost of living, pro-business governments, low taxes and pleasant climate make it an attractive place for individual and corporate relocations. This will remain a long-term trend.

In addition, retail inventory will continue to decline. Rising interest, high construction costs, and pre-leasing challenges will constrain development. It will continue, but increased supply will likely be outstripped by negative absorption from the redevelopment of malls and power centers to lower-density or non-retail uses.

The Brookwood’s Botica Patio in Atlanta, one of the properties that Coro Realty operates. Image courtesy of Coro Realty

Grocery-anchored, well-located, neighborhood centers will remain the most coveted retail product types. High street retail will grow as cities densify and streets are activated with urban retail. Malls will likely continue to struggle. In the Southeast, where the climate is less of an issue, enclosed malls cannot compete on price, convenience or appeal with open-air retail. Power centers will remain hit-and-miss, depending on location and tenant mix.

To what extent has the pandemic-induced migration altered your retail investment strategy?  

Fransen: The pandemic has not altered Coro Realty’s strategy. We avoided retail uses that competed with e-commerce by focusing on grocers, drug stores, food and beverage, convenience and service retail and medical offices. Those uses bounced back well from the pandemic.

The pandemic accelerated the adoption of e-commerce as an alternative to brick-and-mortar retail. Computers, office supplies and apparel were struggling before the pandemic. The pandemic ended the slow death of certain retailers in those categories, leaving behind the best in class. Nonetheless, unless retailers have omnichannel distribution plans, products that can be purchased online will continue to lag retail sales that do not compete with e-commerce.

What type of businesses are most interested in retail spaces across the Southeast today?

Burkitt Commons in Nolensville, Tenn., a 36,000-square-foot retail asset that Coro Realty operates. Image courtesy of Coro Realty

Burkitt Commons in Nolensville, Tenn., a 36,000-square-foot retail asset that Coro Realty operates. Image courtesy of Coro Realty

Fransen: Retail demand is booming. Almost every retail category is growing. Restaurants want to add locations, grocers are increasing store counts, discounters are growing rapidly. Everyone is looking to expand—for now. We expect a slowdown in the U.S. economy to taper those trends as retailers reassess their growth plans.

Please tell us more about the improvements that you’ve implemented at your retail properties in the past few years to meet the dynamic needs of retail tenants. 

Fransen: Coro Realty has focused on three principal areas: a tenant mix that leads to cross-sales, creating a sense of place that offers more than shopping and controlling operating expenses.

Landlords and tenants need to provide customers with reasons to shop in person. Tenant mix is one key reason. If a parent can drop their child at a tutor, get a haircut and have dinner afterward in the same place, that makes a retail center convenient.

Atmosphere is another reason. Things such as attractive landscaping, ample seating, lighting, public art and convenient parking make for a desirable atmosphere.

Lastly, inflation continues to hurt margins. In most retail, operating expenses are passed through to tenants in CTI reimbursements. There are limits to what retailers can absorb. Successful landlords will view the landlord-tenant relationship as a partnership and help tenants control expenses. Profitable tenants pay their bills on time.

How is the retail market in Atlanta performing? Are there any specific challenges here when compared to other metros you operate in?

Midtown Place Shopping Center in Atlanta, a 143,717-square-foot property managed by Coro Realty. Image courtesy of Coro Realty

Fransen: Coro’s retail operations have never been better. Retailers surviving the pandemic improved their operations, improved their distribution channels and repositioned themselves. That, coupled with the stimulus poured into the U.S. economy from 2020 to 2022, led to a remarkable retail rebound. Our portfolio-wide vacancy rate is roughly 4 percent and rent delinquency is negligible.

Atlanta’s retail landscape is very strong, but it faces the same challenges as other southeastern cities. The biggest is the lack of quality mass transit, which inhibits urbanization. The sprawl was an issue pre-pandemic. The adoption of work-from-home took that issue off the table for a while, as fewer people commuted. As the U.S. enters a recession, unemployment rises and employers regain more influence over the employer-employee relationship, companies are likely to bring more employees back to the office—at least three days per week. This will raise sprawl, congestion, and pollution as significant development issues.

What are you most worried about when it comes to the retail industry’s near- and medium-term prospects: the rise of e-commerce, the overall deteriorating economic conditions or the increased competition for well-located retail assets?

Fransen: There is always a risk of being outflanked by new supply. Someone may build a nicer property. In general, though, oversupply is more unlikely than decreased demand. Construction costs rise fast but fall slowly. Add in rising interest rates, and the new construction will need rents exceeding most in-place rents.

With rising prices continuing to drive many shoppers to lower-cost online options, how do you expect brick-and-mortar retail businesses to be impacted in the long term?

Fransen: E-commerce should worry retail landlords. Large retailers have omnichannel distribution and can leverage their distribution channels to make e-commerce and physical stores work together. Unfortunately, landlords do not make money from large retailers. They make it from local, mom-and-pop tenants. The large retailers are just the anchors landlords need to get local tenants. Bookstores, candle companies, shoe stores and even malls are dying because of e-commerce and bloated operating expenses. Power centers sell at material discounts to comparable-quality grocery-anchored centers because of concerns about e-commerce. Retail, in general, will be fine but certain players will struggle.

How difficult is it today to finance new retail acquisitions or redevelopments? 

Signal Mill in Chattanooga, Tenn., a 44,764-square-foot adaptive reuse of an early 1900’s textile mill, managed by Coro Realty. Image courtesy of Coro Realty

Signal Mill in Chattanooga, Tenn., a 44,764-square-foot adaptive reuse of an early 1900’s textile mill, managed by Coro Realty. Image courtesy of Coro Realty

Fransen: Financing today is materially more challenging than a year ago. Leverage is lower, interest rates are substantially higher. Non-financial terms—recourse, debt service coverage ratios etc.—are tougher. The CMBS market has seized up. Due to rate volatility, borrowers are worried about the inability to lock a CMBS loan’s interest rate until closing, by which time they have spent considerable sums on earnest money and pursuit costs. CMBS originators are worried about an inability to sell the loans into the public markets. Life companies are extending fewer CRE loans and are doing so at lower leverage. Banks are lending less because they are receiving fewer loan repayments. Debt funds and credit unions have filled some of the gaps, but debt funds are expensive and credit unions struggle with larger loans.

Commercial real estate is likely to see significant de-leveraging. That means more equity will be needed. Equity is more expensive than debt, so retail asset values will continue to decline. It is a buyers’ market.

How do you expect the impending recession to impact the Southeast retail market?

Fransen: In a recession, people reduce expenses. The amount of people visiting restaurants remains high, but many restaurants report that per-ticket charges are declining. People are skipping the second glass of wine or dessert. This trend is likely to impact all classes of retail, with the retail market having been overheated. An occasional slowdown is healthy for the economy and a near-term correction is preferable to a long-term crash.

#CPETalks, Coro Realty Advisors LLC

Robert Fransen, President & Managing Partner, Coro Realty. Image courtesy of Coro Realty

Coro Realty, DG Real Estate Partners Sell Fairburn Self-Storage Facility

Fairburn 85 Self Storage Marks Joint Venture’s Second Successful Development

Atlanta (April 12, 2023) — Coro Realty and DG Partners have sold a state-of-the-art 800-unit self-storage facility in Fairburn, Ga. to Amsdell Companies.

The 2.65-acre site is less than a half-mile from Interstate 85 and approximately 10 miles south of Hartsfield‐Jackson Airport. It is on the heavily traveled route between I-85 and Peachtree City, the largest city in Fayette County.

The joint-venture partners delivered Fairburn 85 Self Storage in 2021. It represents their second successful self-storage development and exit. 

“Fairburn 85 Self Storage exemplifies Coro Realty’s value as a strategic partner,” said Robert Fransen, President of Coro Realty. “The team acquired a high-profile site in an underserved market, brought in a best-in-class general contractor and operator, and leased 70% of the units in under one year of opening, which is very fast for a self-storage development of this size. We congratulate Amsdell Companies on their acquisition as we look to our next opportunities.”

The 114,000-square-foot self-storage facility at 7935 Senoia Road is climate controlled with state-of-the-art security, elevator access and lighting. The partners developed two additional buildings for vehicles and similar storage on the site.

Luke Elliot with Cushman & Wakefield represented the seller.

Coro Realty will use the proceeds to expand its climate-controlled self-storage portfolio, including pending developments in Dunwoody, Flowery Branch and Woodstock, GA.

About Coro Realty 

Coro Realty was founded in 1997 and is synonymous with intelligent real estate development and investment. With a commitment to smart growth, the urban landscape and innovation, Coro Realty continues to demonstrate its leadership in the market with the successful execution of quality investments. It provides investment, asset management, leasing and property management for a myriad of commercial and residential properties throughout the Southeastern United States. Coro Realty oversees approximately 50 properties valued in excess of a billion dollars. For more information, visit cororealty.com.

Media contact: Thornton Kennedy, (404) 210-0363, thornton@prsouth.net

Coro Realty, H2RE Acquire Seven-Building Industrial Portfolio Between Birmingham Airport, Downtown

Birmingham, Ala. (February 21, 2023) — Real estate development and investment firm Coro Realty and joint-venture partner H2RE Capital have acquired Airport Highway Park, a 319,413-square-foot industrial portfolio in Birmingham, Ala.

The last-mile infill distribution center is located on Messer Airport Highway near Birmingham-Shuttlesworth International Airport and downtown Birmingham. The current tenant mix includes national operators and local business-to-business suppliers.

“As we have done with our other industrial properties, Coro Realty will make significant investments to improve the portfolio’s functionality and appeal for end users,” said Sam Wilmoth, Managing Partner. “The acquisition further diversifies our portfolio in terms of product type and geography. It is our first deal in Birmingham and our second in Alabama. We expect to be active in the market for years to come.”

The seven warehouses are 100% leased and situated in a prime location in a central distribution district between the airport and downtown. The buildings are highly functional, with ample dock‐high doors, truck maneuvering and parking space and outdoor storage.

Birmingham’s industrial vacancy rate has decreased to 2.1%, with only 1.2 million square feet currently under construction. The market faces a lack of new supply and increased warehousing demand from manufacturing, automotive and aerospace.

Tripp Alexander, the director of Industrial Services for Colliers International | Alabama, brokered the sale.

About Coro Realty 

Coro Realty was founded in 1997 and is synonymous with intelligent real estate development and investment. With a commitment to smart growth, the urban landscape and innovation, Coro Realty continues to demonstrate its leadership in the market with the successful execution of quality investments. It provides investment, asset management, leasing and property management for a myriad of commercial and residential properties throughout the Southeastern United States. Coro Realty oversees approximately 50 properties valued in excess of a billion dollars. For more information, visit cororealty.com

Media contact: Thornton Kennedy, (404) 210-0363, thornton@prsouth.net

Coro Realty, Pope & Land Sell Three Metro Atlanta Shopping Centers Totaling 120,000 SF

Posted on February 10, 2023 by John Nelson in Acquisitions, Georgia, Retail, Southeast

Another Broken Egg is a tenant at Brookside Station, a shopping center in Alpharetta, Ga., that Coro Realty and Pope & Land recently sold.

ALPHARETTA, KENNESAW AND ROSWELL, GA. — (February 22, 2023) Coro Realty and Pope & Land Enterprises have sold three shopping centers totaling 120,000 square feet in metro Atlanta. The joint venture acquired the properties as a portfolio in February 2020, purchasing them from Muntzing-Sattele. Most recently, the partnership completed the disposition of Brookside Station, a 23,500-square-foot retail center located on Old Milton Parkway in Alpharetta, a northeast suburb of Atlanta. In August 2022, the partners sold Town Center Oaks, a 52,000-square-foot shopping center in Kennesaw, roughly 30 miles northwest of Atlanta. Mimms Enterprises acquired Mansell Oaks, a 43,000-square-foot property located in Roswell, approximately 20 miles north of Atlanta, in November 2022. The sales prices and other buyers were not disclosed.

About Coro Realty 

Coro Realty was founded in 1997 and is synonymous with intelligent real estate development and investment. With a commitment to smart growth, the urban landscape and innovation, Coro Realty continues to demonstrate its leadership in the market with the successful execution of quality investments. It provides investment, asset management, leasing and property management for a myriad of commercial and residential properties throughout the Southeastern United States. Coro Realty oversees approximately 50 properties valued in excess of a billion dollars. For more information, visit cororealty.com. 

Media contact: Thornton Kennedy, (404) 210-0363, thornton@prsouth.net

Coro Realty Advisors, Southeast Capital Companies Sell The Mill in Atlanta

By: Lisa McDuffie, Content Director: Atlanta & Southeast, Boston & Northeast, Florida & Gulf Coast, Washington DC

Atlanta (February 1, 2023) Coro Realty Advisors and Southeast Capital Companies have sold The Mill, a single-tenant, 30,000-square-foot office redevelopment located in the Poncey-Highland neighborhood in Midtown Atlanta, GA. The building is fully occupied.

Esmael Hill, Ross Wood, Joe Durkin and Dane Bailey of Atlanta, GA-based investment advisory and brokerage firm The Net Lease Group represented owners Coro Realty Advisors and Southeast Capital Companies in the transaction. The Mill was sold to a foreign buyer.

The Mill was built in the late 1890s and has a history that includes serving as a musical venue between 1989 and 2016, hosting acts such as Nirvana, Cold Play and Radio Head.

Coro Realty Advisors and Southeast Capital Companies acquired the property in 2016 and undertook a redesign of the 120-year-old building. The renovation created 30,000 square feet of creative office space with a double-height lobby, refurbished interior and exterior walls, new windows, new mechanical and electrical systems, a floating “monumental” staircase, and state-of-the-art technology.

 About Coro Realty 

Coro Realty was founded in 1997 and is synonymous with intelligent real estate development and investment. With a commitment to smart growth, the urban landscape and innovation, Coro Realty continues to demonstrate its leadership in the market with the successful execution of quality investments. It provides investment, asset management, leasing and property management for a myriad of commercial and residential properties throughout the Southeastern United States. Coro Realty oversees approximately 50 properties valued in excess of a billion dollars. For more information, visit cororealty.com. 

Media contact: Thornton Kennedy, (404) 210-0363, thornton@prsouth.net