The Atlanta Braves are putting the three apartment projects at SunTrust Park on the market, with the potential to bring close to $170 million from the sale.
The three buildings that make up the offering are called Home at the Battery Atlanta and include 531 units at “Parkside,” “Residences” and “Flats.”
The project is more than 80 percent leased, said Mike Plant, president and CEO of Braves Development Co.
The Braves and real estate company Pollack Shores developed the apartments at The Battery Atlanta, the mixed-use project just outside the ballpark. They have hired Walker & Dunlop to market the units.
“The residential component [is] on the market for sale,” he said.
“This was always part of the plan, as we are not in the residential management business.”
A sale could be announced within 120 days, Plant said.
Offers could exceed $320,000 a unit, or about $170 million, according to people familiar with the offering.
As rent growth in Atlanta’s high-rise apartment market declines because of too much supply at once, developers and their capital sources have looked to the suburbs for better yields.
Some planned projects are slated for suburban downtowns, with walkable settings that are close to new amenities. For example, Novare Group is working on a $200 million apartment development in downtown Lawrenceville.
SunTrust Park and The Battery Atlanta have attempted to create more of a downtown feel for the Cobb Galleria area of Cobb County, even sparking more discussion about transit connections.
The $1.3 billion investment also brings a new source for revenue for the Braves that can be reinvested into the team.
The 1.5-million-square-foot Battery Atlanta includes One Ballpark Center, an office tower anchored by Comcast; the Omni Hotel; and apartment units that overlook the ballpark. There are also restaurants, stores and the Coca-Cola Roxy Theater.
“We are in the real estate and development business,” Plant said.
Last month, Atlanta Business Chronicle reported the Braves (owned by Liberty Media) saw revenue soar 47 percent in the first year at SunTrust Park. Revenue grew from $262 million in 2016 to $386 million.
The team also benefited from the financial performance of The Battery, which was more than 70 percent leased.
Liberty Media did say the Braves made just a $7 million profit last year, though that improved from a $16 million loss in 2016. So far, the team has not significantly increased its payroll, which is reportedly around $112 million.
Time will tell if next year is a different story. With the season barely underway, speculation is already swirling that the Braves may pursue Washington Nationals star Bryce Harper in the off-season.
Richmond Honan isn’t the only developer taking a suburban office site in a new direction.
Atlanta Senior Care Services will develop a residential project just southeast of Georgia 400 along Morris Road.
It would build 200 condominiums on 17 acres, according to documents filed with the city of Alpharetta.
The development includes six-story stacked flat condo buildings.
About 10 acres would be preserved as greenspace and trails that could connect into the Alpha Loop, a series of multiuse pathways linking with the downtown City Center and Avalon. The project was set to appear before the Alpharetta Planning Commission April 12.