Source: bizjournals.com

BIRMINGHAM, ALABAMA — Looking back over the year, Birmingham-area office building brokers said their market has seen steady improvement with fewer vacancies and higher rents.

Although new office construction is at a standstill, relocations and expansions are expected to grow through next year, said Dan Lovell, director of Graham & Co.’s office division.

“It’s not 2009, which is a saying we have around our office. That’s a good thing,” Lovell said. “I predict it’ll be a very active 2012.”

Since the fourth quarter of 2010, the overall metro area vacancy rate has steadily dropped 1.6 percentage points to 13.3 percent in the third quarter of 2011 from 14.9 percent, according to the latest report by real estate trends researcher Xceligent.

Meanwhile, the area’s average asking lease rate was at $18.03 per square foot in the third quarter, which is the highest it’s been since the fourth quarter of 2010, the report says.

While the numbers aren’t nearly as good as the pre-recession numbers, Meredith Ray Calhoun, vice president of brokerage and corporate oversight for Corporate Realty, said there was a “lot of opportunity” in the Birmingham office market, especially for smaller tenants.

“It’s a great time for buyers to get out and expand, relocate or renovate because landlords are getting creative,” she said.

Sorrell Chew of Liberty Park’s Richey Management Co. said the market was slightly better this year than he would have predicted, and he expected to see modest activity in 2012.

“It’s not going to be gangbusters, but it’ll be slightly better,” he said of next year.

As the market heals, Chew said he expects competition to heat up as landlords grow more aggressive in marketing their properties and offering concessions.

Perhaps the best example of a landlord getting “creative” is the Regions Plaza, where the Federal Emergency Management Agency rented 140,000 square feet after the April 27 tornadoes.

The 613,746-square-foot Plaza, which was purchased for a discounted $5 million in March by West Second Street Associates, has 114,520 square feet available for lease, or 18.6 percent of the building.

But FEMA is winding down its Birmingham operations now, and will likely be out of the plaza within six months, Calhoun said. Just in the third quarter, the Plaza released 89,615 square feet of sublease space into the market.

The FEMA lease is skewing the overall vacancy rate of the central business district, which saw its first improvement this year to 12.9 percent in the third quarter, down from 17.2 percent in the fourth quarter of 2010.

Despite the numbers, Calhoun said she saw the CBD as an opportunity zone.

“There’s definitely activity,” she said. “It’s not dead – just really steady movement.”

The strongest market for the office sector is Midtown, which includes Homewood and Mountain Brook. It has consistently had the lowest vacancy rate in recent years, at about 7.2 percent in the third quarter of 2011.

In the third quarter, several companies signed leases for large blocks of space, including BASS LLC, which leased 15,662 square feet in the Colonial Center at Blue Lake in the 280/459 district for a new headquarters, according to Xceligent.

Also in that district, home and crafts publisher Hoffman Media continued its expansion, taking 21,769 square feet at 1900 International Park in the third quarter, the research firm said.

On the brokerage side of the industry, Xceligent reported several major transactions in the third quarter.

AREA Property Partners sold the city’s tallest building, Wells Fargo Tower, to an affiliate of Commonwealth REIT for $68.5 million in August.

Also, Legal Properties-Birmingham LLC – an entity registered to Dothan real estate investor Chase Givens – purchased the 43,581-square-foot class-C Farley Building downtown in the CBD from Farley Properties LLC in July, according to public records.

Counting sales and leases, the Birmingham metro area saw 63,864 square feet absorbed in the third quarter, bringing year-to-date positive absorption up to 295,579 square feet. That leaves 2.4 million square feet of the 17.8 million surveyed by Xceligent vacant.

[ Read article at al.com ]

Source: al.com

BIRMINGHAM, ALABAMA — The renovated two-story Legal Services Alabama Building at 1820 Seventh Ave. North has a new tenant for the largest space on the ground floor.

Aletheia House, a substance abuse treatment organization, has leased nearly 1,800 square feet for its offices in the 24,500-square-foot building with plans to move in Dec. 1. Legal Services has 12,850 square feet on the second floor and the second floor mezzanine, according to David Watts of Watts Realty, which manages and leases the building.

Red Rock Realty Group completed a number of deals.

Charles Robinson of Red Rock represented Mildred Gray in the sale of the former Adamsville Winn Dixie to Jack’s Family Restaurants Inc., which was represented by Will Akin of the Shopping Center Group. Jack’s plans a new restaurant on the stand-alone outparcel of the property but as of yet has not announced plans for the grocery space.

Robinson represented Matsos Family Partnership in a sale-leaseback transaction of the Golden Rule restaurant in Pinson. Parrish Holley of Shannon Waltchack represented the buyer, a local investor.

Robinson represented landlord Jmam Investments in a five-year office lease to a local group of financial advisers in Building 10 of Edenton. Robinson represented the seller of the 14-unit Continental Apartments in north Birmingham to a local investor for $125,000.

Bo Gresham of Red Rock represented seller 4031 Enterprises LLC in the $365,000 sale of the Overton Commissary. Sam Carroll of Graham & Co. represented buyer Commissary Properties LLC, which plans to renovate the building into office space.

Tom Carruthers represented the landlord Inverness Heights Shopping Center LLC in a lease of 8,156 square feet to Pennant Sports LLC in Inverness Heights Market. Billy Eyster with Eyster Properties represented Pennant Sports, which sells retail sporting goods in large quantities to institutions, schools, teams, and other organizations.

Southpace Properties brokers have been putting together their own sets of deals.

Southpace’s Marcus Bruchis represented Rainbow Fashion in leasing space at the Palisades Shopping Center in Birmingham as well as multiple locations in North Carolina. Bruchis is the exclusive broker for Rainbow Fashion in six Southeastern states.

David Thornton of Southpace signed Flooring Solutions to 4,100 square feet of showroom and warehouse space at 2013 Old Montgomery Highway in Birmingham.

Southpace’s David Trott represented Bonds Brothers LLC in leasing 1,900 square feet of land to Full Moon BBQ at 2450 Fifth Ave. South. Trott also represented Acker Investment Properties in leasing law office space to May and Associates at 3535 7th Court S.

Trott represented the landlord, Bonds Rentals LLC in leasing 5,788 square feet of office and warehouse space at 2309 Second Ave. South to Nathcare Inc., which was represented by Retail Specialists Inc.

Rich Vanchina of Southpace represented the tenant in leasing 2,250 square feet of office and warehouse space at 610 Cahaba Valley Circle in Pelham. Stuart Brock of EGS Commercial Real Estate. represented the landlord. Vanchina also represented the landlord in leasing 2,880 square feet of retail and office space for a print shop at 1935 Hoover Court in the Hoover Court Town Center.

Southpace’s Tyler Bradford represented 32 Degrees Yogurt Bar in leasing space in Pensacola.

[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][ Read article at al.com ]
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Source: al.com

The Apostolic Overcoming Holy Church of God has bought the 5,100-seat Cathedral of the Cross in Center Point and plans to make it the headquarters of the international Pentecostal denomination.

“It’ll fit our needs,” said AOH Presiding Bishop George W. Ayers, senior pastor of New Jerusalem AOH Church of God in Center Point and Phillips Temple AOH Church of God in Mobile.

The AOH Church of God holds a Pentecost celebration June 1-10 every year which draws about 6,000 people. The Cathedral of the Cross is a large enough building to host that meeting, Ayers said.

The AOH Church of God has about 24,000 U.S. members and 230 churches in America, mostly in the South. It has about that many members in Africa also, Ayers said.

Ayers was elected by the AOH board as presiding bishop of the denomination in 2002 after the late Bishop Jasper Roby became ill and was no longer able to serve. That set off a long legal battle over control of the denomination, which ended when the Alabama Supreme Court ruled in Ayers’ favor.

Ayers said the AOH Church of God closed the purchase of Cathedral of the Cross on Friday after the congregation there had essentially discontinued, although an offshoot continues to meet in the Pinson area. AOH Church of God agreed to pay more than $2 million for the Cathedral of the Cross building, which Ayers said will need several hundred thousand dollars worth of renovation work. Ayers said the AOH Church will reopen a Christian school at the Cathedral of the Cross.

AOH Church of God worship services could be held in the building as soon as Nov. 20, he said.

Roby was the longtime presiding bishop and pastor of the AOH Cathedral in downtown Birmingham, which was sold to make room for an expansion of the Birmingham-Jefferson Convention Complex.

Ayers renamed the congregation New Jerusalem AOH Church of God and moved the congregation and church headquarters in 2004 to the former Center Point Church of Christ building. That building will now be sold, Ayers said.

Ayers said the AOH Church of God had been planning a $3 million expansion at Phillips Temple AOH Church in Mobile that would have been the headquarters, but after delays in construction, it was able to get the Cathedral of the Cross for less than the planned expansion cost.

Ayers, who will turn 84 on Nov. 24, has homes in both Birmingham and Mobile and alternates preaching at his churches in both cities with his assistant pastor, the Rev. Reginald Davis.

He said Birmingham will be a more convenient meeting place for events such as this weeks bishops’ board meeting at New Jerusalem, which has drawn church leaders from Ohio, Washington, Michigan and other states. The June meetings have been held on the campus of the University of South Alabama the past several years but will be moved back to Birmingham, Ayers said.

[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][ Read article at al.com ]
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Source: al.com

In the current economic climate, sometimes the greatest success is in deals that equate to hitting singles and doubles rather than in trying for home runs that are hard to come by.

That has almost always been the approach of the Barber Companies, which is one of downtown’s largest property owners but has opted to do deals as they come rather than tackle much in the way of speculative development.

A new $1.5 million development as part of a block redevelopment in the Lakeview neighborhood is a perfect example.

“We believe in downtown Birmingham and will continue to invest there,” said Charles Miller, president of Barber Companies. “As part of a 30,000-square-foot lease renewal, we are repaving one tenant’s parking area, adding new curbs and islands, and installing new lighting and landscaping. We are also constructing a 7,500-square-foot building for a new tenant, DSI Renal, at the corner of Third Avenue South and 32nd Street.”

The end result will be a transformation of the block between Third and Fourth Avenues South and 32nd and 33rd Streets.

Nashville-based DSI Renal will open a dialysis services clinic on the site, in keeping with the growing number of medical-related companies in that part of downtown. DSI Renal plans to employ around 25 people at the new downtown Birmingham location when it opens early next year.

It’s just the kind of infill development that property owners like Barber hope to bring to life in properties like the ones downtown that may be experiencing their fourth or fifth life.

For instance, the block Barber is working in now is known as Block 479. In the city’s early years, the block was a coal yard. It then became an area for iron works and steel fabrication. In the 1940s and 1950s, it developed into an entertainment venue, with a bowling alley and restaurant.

Now it is in its new life as a center for medical services.

“We’re always looking for opportunities to develop downtown properties or repurpose downtown buildings,” said Merrimon Epps, who handles leasing and development in the area for Barber Companies.

Graham deals

Graham & Co. is coming off a strong third quarter in property sales and leases and said the fourth quarter is looking equally strong.

Graham’s office and industrial brokerage teams combined to complete 14 commercial property sales and 33 lease deals during the third quarter.

The combined value of the third quarter transactions exceeded $27.8 million, Graham said.

Among some of the sales:

• A three-building industrial complex at 200 Parker Drive in Pelham totaling 131,462 square feet on 10 acres. EGS Commercial Real Estate represented the buyer, Faces Inc.

• A 74,800-square-foot, crane-served warehouse in Bessemer at 201 Kilsby Circle on 10.21 acres. The buyer was Precision Grinding Co., which will expand its local operations.

• Office buildings at 400 and 700 Caldwell Trace. The Page T. Smith Foundation purchased the 3,000-square-foot No. 400 building. The American Red Cross bought the 23,470-square-foot No. 700 building; it was represented by Sandner Commercial Real Estate.

• Two industrial buildings in the Academy Drive Industrial Park. One was a 10,800-square-foot building at 1100 Powder Plant Road and the other was a 10,400-square-foot building at 5611 Shirley Park Dr.

On the leasing side, deals included:

• 61,195 square feet of warehouse space at 200 Citation Court, co-brokered with J.H. Berry & Gilbert.

• Representing Atherotech Inc. in an expansion and long-term renewal of 41,000-square-foot office and lab space at 201 London Parkway in the Lakeshore Crossings Business Park. Engel Realty represented the landlord.

• A 27,500-square-foot warehouse at 288 Snow Dr. in Pelham to New Latitudes Moving Co., which is expanding its operations.

• Representing Dixon Hughes Goodman LLP accounting firm in an expansion and renewal of 12,500 square feet of office space at 2140 11th Ave. South, known as the Park Building.

The fourth quarter may bring some bigger projects, according to Mike Graham, president of Graham & Co.

“Our pipeline for the fourth quarter is very strong with some exciting pending projects,” he said.

[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][ Read article at al.com ]
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Source: bizjournal.com

Get the tropical shirts ready. A new wave of beach-themed restaurants is crashing into Alabama.

Hurricane Grill & Wings area developer Tom Petska is seeking investors to open a minimum of 10 franchises across Alabama, including four in Birmingham, over the next eight years, as I reported this week.

For the real estate market, this signals something special, I was told by Alabama Restaurant Association .Alabama Restaurant Association Latest from The Business Journals Hurricane Grill swirling into Alabama with 10 restaurantsVirginia College cooks up Mobile Culinard schoolTide football announcer Eli Gold to open Italian eatery in Pelham Follow this company .President Lawrence Fidel: “The worst is behind” the restaurant industry.

Emphasizing that point, a Leeds restaurant is relocating to Birmingham with plans to expand, as I also reported today.

Black Jack Bar & Grille, which leased 2,200 square feet at a price of $18.50 per, is taking over the former location of O.T.’s Neighborhood Sports Grill in the Dolly Creek Station shopping center.

I spoke with a longtime tenant there who declined to give me his name told me that the spot was bad Ju-Ju for restaurants. Black Jack, he said, would be the fifth eatery he’s seen go in there.

But even with that track record, the spot has its appeal. As Terry Ponder of Ponder Properties Inc. told me, his group had considered buying the shopping center before Barber Cos. took it.

The area, he continued, has several mega churches that contribute to a steady flow of Sunday traffic, and a good family restaurant there is sure to attract a few pewfuls.

In other news, Graham & Co. and EGS Commercial Real Estate Inc. .EGS Commercial Real Estate Inc. Latest from The Business Journals Real Estate Roundup: Metro Bar to open downtownReal estate roundup: What does the future hold for B&A?Real estate roundup: Notable CRE deals Follow this company .reported several recent leases and transactions.

Graham & Co. said these third quarter transactions exceeded $27.8 million:

• A three-building industrial complex at 200 Parker Drive in Pelham totaling 131,462 square feet on 10 acres. EGS Commercial Real Estate represented the buyer, Faces Inc.

• A 74,800-square-foot, crane-served warehouse in Bessemer at 201 Kilsby Circle on 10.21 acres. The buyer was Precision Grinding Co., which will expand its local operations.

• Office buildings at 400 and 700 Caldwell Trace. The Page T. Smith Foundation purchased the 3,000-square-foot No. 400 building. The American Red Cross bought the 23,470-square-foot No. 700 building; it was represented by Sandner Commercial Real Estate.

• Two industrial buildings in the Academy Drive Industrial Park. One was a 10,800-square-foot building at 1100 Powder Plant Road and the other was a 10,400-square-foot building at 5611 Shirley Park Dr.

On the leasing side, deals included:

• 61,195 square feet of warehouse space at 200 Citation Court, co-brokered with J.H. Berry & Gilbert .J.H. Berry & Gilbert Latest from The Business Journals Companies on the Move – July 29Real Estate Roundup: Hoar starts hospital constructionExperts sound off on economic hotspots Follow this company ..

• Representing Atherotech Inc. in an expansion and long-term renewal of 41,000-square-foot office and lab space at 201 London Parkway in the Lakeshore Crossings Business Park. Engel Realty represented the landlord.

• A 27,500-square-foot warehouse at 288 Snow Dr. in Pelham to New Latitudes Moving Co., which is expanding its operations.

• Representing Dixon Hughes Goodman LLP accounting firm in an expansion and renewal of 12,500 square feet of office space at 2140 11th Ave. South, known as the Park Building.

EGS brokers Brad Moffatt and Stuart Brock represented the landlord in each of these transactions:

The Scooter Store, America’s leading supplier of scooters and power chairs for people with limited mobility, has finalized plans to open a new location at Avondale Commerce Park. The distributor will now operate from 7,200 square feet of industrial space. Royce Emerson with Engel Realty Co. .Engel Realty Co. Latest from The Business Journals B&A Warehouse future uncertainBirmingham Business Hall of Fame inductees namedReal estate roundup: Cellular Sales takes former Movie Gallery space Follow this company .represented the tenant in the lease transaction.

Master & Associates, Inc. – electrical contractors for major commercial, institutional and industrial projects – has renewed its lease of 5,000 square feet of industrial space. The company will remain located at Cahaba Valley Business Park.

Crystal Mountain Water, water distributors catering to north and central Alabama as well as parts of Tennessee, has also renewed their lease at Commerce Square Business Park. They will continue to occupy 4,950 square feet of industrial space in Irondale.

[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][ Read article at bizjournal.com ]
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Source: bizjournals.com

Atherotech Diagnostics Lab has announced a 30 percent expansion of its Lakeshore Crossings Business Park lab facility to better meet rising demand for advanced cholesterol screening and other clinical laboratory services.

The announcement comes after the company boosted its employment level by an estimated 30 percent this year with plans to add 40 employees through 2012.

“Atherotech is engaged in a fairly aggressive growth pattern, which is good for the business community and good for Birmingham, especially in a down economy,” said Dan Lovell, director of the Office Group at Graham & Co. .Graham & Co. Latest from The Business Journals Real estate roundup: BASS lands on 280EGS inks deals in Avondale, GraymontReal Estate Roundup: Hoar starts hospital construction Follow this company ., which is representing Atherotech in the expansion.

Atherotech CEO Michael Mullen attributed the expansion to increased sales and new diagnostic testing capabilities.

[ Read article at bizjournal.com ]

Source: al.com

Vestavia Hills, Alabama — The Vestavia Hills City Center has had trouble attracting and keeping restaurant and retail tenants at the heart of the property, but officials hope a plan to mix in office and medical space with some vibrant new restaurants could change the center’s fortunes.

Excel Vestavia, which owns the center, has hired Birmingham’s Graham & Co. to lease part of the center for office users or medical clinic space.

ITAC Solutions is the first new office tenant to join the center. The staffing and recruitment firm just signed to take 7,200 square feet for its offices with plans to move into the space in late November from its renovated warehouse space in downtown Birmingham.

“We have very unique space downtown in a renovated warehouse,” said Brian Pitts, co-owner of ITAC. “We like that and wanted to find something similar over the mountain.”

Pitts said the company found that in the Vestavia Hills City Center. ITAC is able to build on the large space with personal flourishes like sliding barn doors, a break room with a bar, new furnishings and the glass walls that line the space.

“We’re building some incredibly unique space,” he said.

Pitts said he first thought Dan Lovell, the broker from Graham & Co., was crazy for showing him the space. But when he thought about how different it is and the convenience to the restaurants right there and the grocery stores, gas stations and other retailers, it all made more sense.

The company’s 32 employees can benefit from those conveniences, he said, and the added space will give ITAC room to add more workers as it grows.

John Abernathy, director of development and leasing for Blackwater Resources, likes the thought of businesses growing in the center after seeing too many businesses — retailers but especially restaurants — unable to last there.

“With each new restaurant tenant, it brings activity to the entire center and generates interest in the rest of the space,” Abernathy said.

Blackwater Resources manages and handles the retail leasing for owner Excel Vestavia, an entity created by San Diego-based developer Excel Realty Holdings, which bought the property after original owner AIG Baker Shopping Center Properties put it into bankruptcy following an ownership dispute.

Adding the office component along with a number of cosmetic improvements and updating the center are part of a renewed effort to try to fill up the empty space at the center.

Zoe’s is set to open its latest restaurant at the center today, joining the recently opened Frio en La Paz and the stalwart Panera Bread at the front of the property. The three restaurants give the center lots of color and splash but, more importantly, eliminate the vacancies.

Abernathy said getting the right mix is the key and Zoe’s, Frio, Mugshots Grill & Bar and Panera offer a good foundation. Adding medical clinic space and offices along with showroom space, real estate offices and other versatile uses will help.

An eclectic mix of uses has already proven to be somewhat successful at the center. “The Rick & Bubba Show” has the studios for its syndicated morning show at Vestavia Hills City Center.

Two spaces near the Rave Motion Pictures theater are slated for restaurant space but the rest of the vacancies at the center property could go for offices or retailers.

The Vestavia Hills City Center is actually made up of three centers — the central property, the strip center anchored by Publix Super Markets and the strip center anchored by Stein Mart.

Taken in total, the occupancy rate of the Vestavia Hills City Center doesn’t look so bad at 88 percent. But those numbers are boosted by the 98 percent occupancy at the Publix center and 97 percent occupancy at the Stein Mart center — where the latest addition, Newk’s Express Cafe, is slated to open Nov. 21.

The central property — which is the result of transforming a former enclosed mall into an open-air center — is only 75 percent full. Vacancy there at one time approached 40 percent, so the center’s fortunes are changing, Abernathy said.

“We’re seeing more interest from restaurants and office users,” he said. “The city is planning a tree-lighting ceremony here this Christmas. We’ve got a new more colorful, retro sign we’re going to put out front. It’s all starting to come together.”

[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][ Read article at al.com ]
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Source: al.com

Family-owned local retailer The Pants Store is expanding to Tuscaloosa in a project that will turn a vacant downtown building into new shops and restaurant space.

The apparel and shoe store partnered with Birmingham-based Shannon Waltchack Investment Real Estate and local commercial real estate broker John Coleman to buy the Kress building at University Boulevard and 23rd Street.

The $1.1 million purchase closed Wednesday, and now the partners plan to invest about $1 million in renovations to the 28,000-square-foot building.

Brothers Michael and John Gee, third-generation owners of The Pants Store, say they hope to have the Tuscaloosa location, their fifth, open by December.

“We’re going to follow the same concept that we’re doing here in Birmingham, a casual lifestyle store for the whole family,” Michael Gee said. “We feel like it will be a good match in Tuscaloosa.”

At 6,000 square feet, the Tuscaloosa store will be comparable in size to The Pants Store’s existing locations in Crestline and Trussville. Two other area stores — the original one in Leeds and another on Third Avenue West in Birmingham — are larger.

Student shoppers from the University of Alabama also should be a boost for the Tuscaloosa store, Gee said. But time will tell, as each location eventually takes on the personality of its customer base.

“I would think for sure we would sell more Alabama stuff, but every location changes from what I originally envision,” he said. “Not every store is exactly the same .¤.¤. We try and give the customer what they want.”

Coleman, of Graham & Co., has represented The Pants Store for about 10 years.

“We identified Tuscaloosa as a market for them to grow into,” he said.

After searching for individual locations, they found the Kress building and partnered with Shannon Waltchack to develop the larger project.

The Pants Store is taking up about 60 percent of the ground level of the Kress building, while the remainder of that floor is to be occupied by a restaurant, which will be announced in about a month, said Len Shannon, a principal for Shannon Waltchack.

The second floor will be either retail or office space, or a combination of both, Shannon said, adding that the renovation work will be done in phases.

The firm sees great potential in the Tuscaloosa market, with a strong city government and economy, as well as the growing student population, he said.

“You’ve just got a recipe for some great retail sales performances,” he said. “We think Tuscaloosa is one of the safest places to buy real estate.”

Shannon Waltchack has continued to acquire property during the market downturn, with other projects similar to the new one in Tuscaloosa.

Earlier this year, the firm completed The Hollywood, a redeveloped retail strip center at U.S. 280 and Hollywood Boulevard between Homewood and Mountain Brook.

Meanwhile, it is currently finishing work on Railroad Square, a renovated mixed-use building next to Railroad Park in downtown Birmingham.

“We think now is the right time to buy real estate, to take advantage of the down market and pick up some great trophy properties,” Shannon said.

As for The Pants Store, its last expansion came in spring 2008, when it opened the Trussville location. The roots of the business, now 61 years old, can be traced to the Gees’ grandfather, Taylor Gee, who started selling pants out of the trunk of his car. It later was run by their father, Mickey.

Like many retailers, the company saw its business fall in 2008 and 2009. And while nationwide consumer confidence is still sagging, Gee said he’s seen improvements in his customers’ outlook.

“We’ve seen a lot of growth in the last six to 12 months. We feel like people are back to spending money,” he said.

That growth has come even as a new outlet mall, The Shops of Grand River, opened in Leeds last year, a development that led some to think The Pants Store’s original location might suffer.

But Gee said the additional traffic brought into town by the mall and the nearby Bass Pro Shops, coupled with rising demand among his customers, has been good for the business.

“You’ve just got to show up every day and work,” he said. “You can’t worry about competition. You’ve just got to worry about yourself.”

[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][ Read article at al.com ]
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Source: al.com

Birmingham’s LAH Real Estate Inc., a high-profile firm with more than 150 agents, has new owners.

Tom Carruthers III, Charles Robinson Jr. and Mike Graham have purchased ownership stakes from founders Jim Lawrence and Keith Arendall — the “L” and the “A” in the company’s name. Maurice Humphries remains a partner and takes over as president. Financial terms were not disclosed.

Lawrence, 70, will become a consultant for the company, while Arendall plans to remain as a commercial broker.

Lawrence said 3½ years ago he gathered the LAH brokers together and told them a recession had started and home sales would likely suffer for six or nine months. Obviously, it has lasted longer than that.

“We reached a point where we felt like, in the company’s best interest, we should consider our options,” Lawrence said Wednesday.

Around the same time, Lawrence read a profile of Red Rock Realty in The Birmingham News and thought owners Carruthers and Robinson might make good owners for LAH. As talks progressed, Mike Graham, an owner of the Graham & Co. commercial real estate firm, became another potential investor.

“Mike and Tom and Charles will bring new energy, new vitality and new vision for the company,” Lawrence said.

LAH officials told the firm’s agents of the new owners Wednesday morning, and the principals sat down with The Birmingham News for an exclusive interview that afternoon.

Carruthers said he was floored when Arendall called him and presented the opportunity.

“I was blown away by the call,” Carruthers said. “I’ve always thought of LAH as the premiere real estate company in Birmingham. They may not be the biggest, but they are the best.”

Carruthers said when he met LAH sales managers and executives Dot Mash, Coke Williams Jr. and Jimbo Moore he and the other investors were even more determined to make a deal happen.

“That really made it super, super exciting,” Carruthers said. “Add to that Jim staying on as a consultant, Keith staying on on the commercial side and Maurice running things, it was a perfect opportunity.”

While the new ownership may seem like a big change, Humphries said he expects few changes.

“There won’t be much change,” he said. “My job will be to stay in the background and keep this machine running smoothly.”

Lawrence, Arendall and Humphries came together 19 years ago to form the company, building it into one of the largest residential and commercial real estate firms in the state.

Lawrence said the new owners’ willingness to keep the company’s name, logo, brokers, offices, staff and middle management in place made them the right choice.

“There were other suitors who would have changed too much of that,” Lawrence said. “We went with the right ones.”

Williams said the reaction from agents Wednesday morning was positive. He said the executives at the company want to see the company grow.

“There is a sense of excitement,” Williams said. “The job Dot, Jimbo and myself have is to grow this company. That’s the kind of change we envision.”

Lawrence said having fresh ownership and leadership in place positions the company for the moment when the housing market climbs out of the doldrums.

“This very positive move comes at a perfect time, as we are experiencing the recovery of the Birmingham real estate market,” he said. “For example, LAH is approximately 300 percent better in both unit sales and total dollar volume for the past three months than the same period of time a year ago.”

Red Rock will continue handling commercial and multifamily properties. Graham & Co. remains one of the metro area’s leading office and industrial real estate firms and is unaffected by Graham’s investment.

Mash said even as Lawrence and Arendall give up ownership, their legacy will continue at LAH.

“Our character has been defined for 19 years,” she said. “We don’t need to change our character. We just need to enhance it.”

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