Cur Newsletter

Click here to view a PDF version of the complete newsletter

You will need Adobe Acrobat. For a free download

Welcome back! The financial journalists are having a field day searching for negative news on the economy and the housing market. What they do not report are the positive developments that are occurring in all areas of the economy. They report statistics of sales of existing homes being down 13% for 2007 over 2006, but do not report that 2007 was the 5^th best year for sales of existing homes. They report the number of foreclosures, but do not report the huge number of paid on time house payments. Headline statistics can present a very negative view of economic conditions and create a pessimistic outlook that hurts any recovery. It is important to dig deep and look at the numbers in a long term historical perspective. At South Pointe, we have looked at our statistics and believe the local commercial market is showing very positive signs of a turnaround. Chief among these is commercial absorption that doubled in the fourth quarter over the previous average for the first three quarters. In fact, commercial absorption of space in Lake Oconee and Madison is over 100,000 square feet for the three months. This is the highest level that we recorded in the four years that we began keeping statistics. The commercial construction pipeline is also slowing, which should result in the firming of rental rates.

There are many positive developments that are occurring in this area. We would like to report to you what we believe are some of the most notable developments that are occurring in Lake Oconee and Madison.

The Lake Oconee market being primarily a “baby boomer” retirement destination should really begin to hit its stride as the first of the baby boomers turn 62 this year. There are twenty years of this generation that will be seeking lifestyle communities such as Reynolds Plantation, Reynolds Landing, Harbor Club, Cuscowilla and Del Webb. This area should be in its sweet spot for the foreseeable future. The close proximity to Hartfield Jackson Airport and one stop connections make this an ideal location that is outside the congestion of a metro area.

This is an exciting concept that is under discussion and could ultimately result in a St. Joseph’s Regional Hospital in the heart of Lake Oconee. The discussions currently center on a proposal for St. Joseph’s to purchase Minnie Boswell Hospital in Greensboro. This is expected to be under contract in the first quarter. Putnam County Hospital and Morgan County Hospital are also being pursued to complete a tri-county St. Joseph’s Regional Hospital located in the Lake area. Acute Care Centers would be created in Greensboro, Eatonton, and Madison to serve emergency and walk in care. This concept would have numerous benefits for the taxpayers of the three counties, which currently fund the operating losses of the three hospitals. More importantly, it will deliver to the three county area a state of the art regional center that will attract top physicians in multiple specialties. St. Joseph’s would not be pursuing this project if the Cowles Clinic had not established its presence with 80+ specialty physicians and cancer center. Together these two organizations will drive this initiative.

The Lake Oconee commercial market increased in the quarter to a total inventory of 1,858,357 square feet, reflecting an increase of 68,766 square feet or 3.8% for the quarter. Absorption for the quarter was 60,680 square feet, which was twice the absorption

registered in the third quarter. The vacancy rate declined slightly to 19.0% versus 19.1% in the third quarter. Putnam County, which had a 21.0% vacancy decreased to under 20.0%. Greene County, where the bulk of the new construction is occurring had a very minor increase in vacancy. The commercial market is improving. The 73,600 square foot development in Lake Oconee Village, anchored by the 8 Plex Movie Theatre, should be a very positive driver for Lake Oconee. At present, the Lake Oconee commercial market has a construction pipeline of less than 100,000 square feet. This is the lowest level of new commercial construction in over three years, which should create a positive impact on the vacancy rate.

The Madison Town Park is officially under construction and should be completed by year end and in time for the Madison Bi-Centenial celebration in 2009. This Park is located between West Washington and West Jefferson Street by the Ice House. Plans for the Park include an outdoor stage for concerts and exhibits. The central location will be very good for the emerging retail district at the Icehouse, Madison Market and the Jefferson Square Parkside. A new Hotel, the James Madison Inn, is open for business as well as a number of high end loft condos above Jefferson Square and the Icehouse. Madison Town Park is expected to be a catalyst in driving Madison’s cultural focus.

A new development on Scott Road called Plaza at Stonegate offers 34,800 square feet of commercial space that can be purchased in suites as small as 2,100 square feet at prices in the $75.00 per square foot range. Space is also for lease. This location offers the lowest prices for fee simple commercial property in the Lake Oconee area.

Another exciting project that is progressing in downtown Madison is North Main Village (aka “The Pig”). This project is being developed by Classic Capital Partners, who also developed the Icehouse and Jefferson Square. Located in the former Piggly Wiggly Market on North Main Street and just several blocks from the Madison Town Park, this mixed use development features eight upscale lofts and four retail spaces. Two out parcels are also available on North Main Street.

he Madison commercial market inventory increased from 1,701,596 square feet to 1,736,600 square feet accounting for a 2.1% increase. The vacancy rate declined from 11.8% to 10.4% due to the absorption of over 46,000 square feet of space during the quarter. The construction pipeline declined to less that 18,000 square feet , down significantly from 55,000 square feet in the previous quarter. The strong showing for the quarter bodes well for continued reduction in the vacancy rate.

Oconee Financial Center-This property located at the intersection of Lake Oconee Parkway and Linger Longer Road is the only true Class A office building in the Lake Oconee market. A total of 4,000 square feet is available for lease and can be configured into professional suites of as small as 1,200 square feet.

213 W Jefferson Street—Located in Jefferson Square Parkside (built in 2005), the building overlooks the new Town Park, James Madison Inn, and the popular Icehouse Restaurant. A total of 1,040 square feet includes high ceilings, tract lighting, a restroom, and large windows on two sides. The space is located on the corner of “the Breezeway” so it includes a second entrance. This is a high visibility area generating walk-in traffic, perfect as a retail or office location. $1,400 per month.

Lakeman Drive Eatonton - Two new warehouses available for sale or for lease, located off Harmony Road in Putnam County. Each building has three 16 foot doors and three standard doors. Ceiling height of 19 to 16 feet. Septic system included. Each building is 6,300 sq. feet total, and can be divided into three 2,100 sq. feet units. One acre lots

Madison South Executive Park- Phase II of Madison South Executive Park. Several pad-ready sites approved for 3,025 sq. foot medical / office buildings. Prime location on U.S. Highway 441, and just a quarter-mile from I-20 at exit #114. Each site is 55’ x 55’ and has all city utilities available including sewer. This is a great opportunity for future expansion or a new location for your professional office.

The Plaza at Stone Gate– New shopping center in Lake Oconee area, located at the entrance of Stone Gate Townhomes (82 units). Each unit is for sale or lease with build-out allowance to be determined, with separate meters for utilities – including sewer. Currently under construction. Early bird special with $10,000 discount off purchase price or build-out allowance.

207 West Jefferson Street– New commercial building built in 2005. Features large windows on two sides of the building, awning, track lighting and security system. 23 feet frontage on West Jefferson with additional entrance and window display in the “breezeway”. Located directly across street from new Town Park site and James Madison Inn. A high traffic area perfect for retail or office.

Route #44--North - This property features 3.53 acres and is located on Route #44, just north of Linger Longer Road. This property is one of the most prime sites in the prestigious Lake Oconee Village. Potential uses include retail, restaurant, hotel or professional office.

Hwy 441 & Marion St Eatonton -20 acres zoned Commercial less than one mile from downtown Eatonton. Great corner exposure; approximately 1,040 feet frontage on Hwy 441 and 1,640 feet frontage on Marion Street. U.S. Hwy 441 is a very popular route between Florida and the Appalachian Mtns, and the entrance to Georgia’s lake country. Eatonton has a revived downtown with a growing artist community. Excellent location for a hotel, restaurants, retail and office center, or multi-family development.

East Broad Street Greensboro - PAD READY tract located ¼ mile from downtown Greensboro, with 331 feet frontage on U.S. Highway 278 East. Curb cuts with Accel / Decel lanes are in place. All city utilities. Phase I soil test has been performed. Owner will consider build-to-suit for retail building(s). Outstanding commercial location in growing Greensboro; approximately 3 miles from Interstate 20.

PRICE REDUCED - Madison - A 9.2 acre parcel next to the new Super Wal Mart. The property features a generally level topography with frontage of 570* on both HWY #441 and Fairgrounds Road. Zoning is C-3. $2.65 million.

PRICE REDUCED - Greensboro - A 1.63 acre located on Highway 278 east of Greensboro. The property is zoned B-2 and includes a small residential house. Potential uses include a used car dealership, storage units, or small retail development. Priced to sell at $159,900.

North Main Village Outparcels—Two commercial lots with frontage on North Main Street in historic downtown Madison. Located adjacent to North Main Village, a recently renovated former grocery store which is now a mixed use property containing residential lofts and retail/office space. Each lot is .25 acre and has preliminary approval for approximately 4,000 square foot office buildings. This premier location offers high traffic visibility and convenience coupled with a sophisticated, historic charm. All utilities available. $200,000 each.

Jefferson Square Parkside—This property is comprised of a pad ready site of land containing 3,600 square feet. Located just behind Jefferson Square Parkside and the new Town Park in downtown Madison. Zoning is C-1. It has approval for a 2,000 square ft. office building. Shares a public parking lot. $126,000.

Lake Oconee Village Outparcel—A 1.73 acre tract located at the corner of Linger Longer Road and Founders Row, at the gates of Reynolds Plantation and the Ritz-Carlton. Zoning permits a building of 17,300 square feet building. $525,000.

Icehouse Underground—Extraordinary investment opportunity! Located below the famous Icehouse Restaurant and overlooking the new Town Park in downtown Madison. The property is a total of 8,195 square feet and includes two entrances with a courtyard and public restrooms – which are sure to be in high demand when the Town Park is completed. The retail space is fully occupied, including unique gift and antique stores, and the Underground Café. The building is a complete adaptive reuse of an historic factory warehouse. This is a popular destination for locals and tourists alike, and presents a unique opportunity for an investor looking for a special property. Financial information available upon request. $983,500.

North Main Village—, a mixed use property consisting of residential and retail/office space, is located in downtown Madison’s Historic District. The recently renovated building is an amazing adaptive reuse of a former grocery store. Suites B and C are 2,400 square feet each, and can be combined for a total of 4,800 square feet. High ceilings provide the option of two-story custom buildouts. This premier location offers high traffic visibility and convenience coupled with a sophisticated, historic charm. Great restaurant site.

Victoria Hall—This gorgeous Victorian home, built circa 1820, is located in Madison’s Historic District – a short walk from downtown shops, businesses, and the new Town Park. A total of 3,600 square feet on a .35 acre lot, the zoning accommodates residential or commercial use. Amenities include original heart pine floors, fireplaces in most rooms, ceiling to floor windows, stained glass, two large porches and three balconies, and an impressive stairway in the foyer. Some renovation work is needed, but a new roof and other repairs have been made. This prestigious, historic property welcomes your business and/or your family! $399,000.

Parkside Commons -This unique property is the only building in Parkside Commons offering a work/live opportunity. Located just outside the entrance to Reynolds Plantation. A great opportunity for the discriminating professional who wants to tap into the lucrative Lake Oconee market. $470,000.

162 Scott Road Eatonton - New building with many potential uses located at entrance to 82-unit Stone Gate Townhomes. 7,200 sq. feet with plenty of parking on 1.12 acres. Building can be divided into three 2,400 sq. feet suites with separate meters – including sewer (not septic). One roll-up door. Approximately 127’ frontage on Scott Road.

To find out more about these outstanding properties, visit our web site at www.southpointecommercial.com or stop in to our office.