Having just leased out three, brand-new retail spaces at The Place on Ponce in Downtown Decatur, Redstone Properties President, Lyle Fogarty, may currently have one of the best vantage points to report on the state of the city’s retail real estate market.

In a recent press release, Mr. Fogarty noted that “The demand for retail space in Decatur was greater than we projected,” He continued, “It is clear that restaurant owners and retailers recognize the uniqueness of the area and its value.”

I was curious for find out a bit more detail as to what this demand looked like, so I followed up.  His response should be quite interesting to many of you who like to follow and offer predictions on Decatur commercial real estate trends.

We simply had demand from many more tenants than the 10,000 sf of space could accommodate.  By far, the most demand came from restaurants.  We could have filled up 30,000 sf with restaurants if we had the space (and parking).

There was some demand for soft goods and apparel, but many of those retailers like to congregate together and need more critical mass to help them be successful.  If a location could be identified in Downtown where a developer could build 50,000 or more square feet of modern retail space, there’s sufficient demand from shop tenants to make a vibrant retail district in Downtown in addition to the renowned restaurant scene.

So basically, even though the restaurant market may already seem pretty saturated in Decatur, it sounds like we shouldn’t expect it to ease up anytime soon.  Also, for those expecting a greater variety of clothing stores in the city, you may need to wait for a very large project to come in and provide the necessary space to allow a “critical mass”.

I guess we’ll have to wait and see if any of the current projects in development (Arlo, Alexan Decatur residential only!) or planned (Calloway, Avondale MARTA Station) will make a move in this direction.

While much of the 315 West Ponce de Leon Avenue property has changed quite dramatically over the last couple of years, the one holdout has been the Wells Fargo drive-thru that’s long-remained on the eastern elevation of the property, due to a long-standing lease.

Now it sounds like Redstone, the property’s current owner is looking to swap out the banking drive-thru and ATM with a new concept.

A drive-thru juice bar.

On the agenda for the Decatur Planning Commission this month, a request from Redstone for “an exception to the special pedestrian area” to build a drive-thru juice bar in place of the Wells Fargo drive-thru.

Redstone’s note to the Planning Commission states that they plan to reduce the number of drive-thru lanes from four to just the one closest to the building to accommodate the new business.  In exchange for removing three of the four drive-thru lanes, Redstone is requesting 9 new angled parking spaces fronting Ponce de Leon Place.

Redstone’s note to the commission states that the parking space would be buffered by “newly installed landscaping between the sidewalk and asphalt area.”

The proposed plan is going before the Planning Commission because Decatur’s special pedestrian area regulations do not permit parking between a building and the street or “drive through facilities” within the Special Pedestrian Zone, which includes this stretch of Ponce Place.  However, the commission can grant an exception after a public hearing, in consideration of the following standards:

1. The suitability of the proposed exception in view of the use and development of adjacent and nearby property.

2. The effect that the proposed exception will have on the existing use or usability of adjacent or nearby property.

3. The impact that the proposed development will have on the public safety, traffic on the public streets, transportation facilities, utilities and other public services.

4. The impact that the proposed development will have on established property values and on the health, safety, comfort and general welfare of the residents of the city.

5. The economic or marketing impact that these guidelines may have on the property owner or developer.

Photos and plan images courtesy of the Decatur Planning Commission agenda materials packet

Neil Norton sends in a few pics and writes…

The five trees are dawn redwoods. FYI, during a recent tree survey the compensatory value for the five trees was $37,992. The structural or compensatory value of the trees was based on methods from the Council of Tree and Landscape Appraisers (1992). Compensatory value, which is based on the replacement cost of a similar tree, is used for monetary settlement for damage or death of plants through litigation, insurance claims of direct payment, and loss of property value for income tax deduction.

The five redwoods would be taken down if the developer of the 315 West Ponce “Decatur Court” property were to construct the proposed two-story retail building along West Ponce.  The plan still hasn’t been before any of Decatur’s boards or commissions.  Last we heard, the developer was “talking with the neighborhood” about the plan.

A couple other close-up shots of the trees after the jump.

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You know that home-sales chart from city-data that I’m always resurrecting?  You know, this one!

Well believe it or not, there’s a bit more to Decatur real estate than just a crummy mass-produced slide found in the bowels of the internet.

This evening from 5:30p-7p, Decatur residents and real estate agents, Terry Michel and Sean Dammann, are hosting a Decatur Real Estate Forum of area agents, residents and community leaders at Decatur’s Keller Williams office at 315 West Ponce to give an overview and discuss the health of Decatur’s real estate market.

While once an event geared exclusively to local agents from various realty groups around Atlanta, Dammann and Michel decided to open this quarterly event to the public and focus exclusively on the Decatur market as a service to their community.

According to Dammann, some of the questions to be answered during the forum include…

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Then check out www.decaturresidents.com!

The website is run by neighbors wary of the 315 West Ponce development and includes a letter (excerpted on InDecatur yesterday) expressing their concerns.

What I found most interesting is another letter linked to on the site from the new owners of the property (DPC Decatur Investors) to their current tenets discussing improvements to the property they are planning to make. Here’s a key quote…

We are so excited about creating a mixed use town concept that will include an apartment community and a boutique hotel on West Ponce de Leon with a wonderful restaurant concept on the corner of West Ponce and Ponce de Leon Place. We intend to work closely with the community and the city to make our project one of the most attractive live/work environments in the Decatur submarket.

I wonder whether they will be willing to work with this new neighborhood group and listen to their concerns, because this email makes it sounds like they are really only thinking to their property line and not really considering the residential neighbors along Montgomery St.

Want my uneducated/unsupported prediction? They might get a variance for a taller structure close to the Wachovia Building, but the project will have to step down the closer their development gets to Montgomery St. As to the parking issue, I think the city commission will hold them to sufficient parking requirements…they’ve been working too long and hard on creating adequate parking to let it be negatively affected by such a large project.

The neighborhood group meets tonight Thursday January 3, 2007 7:30 – 8:30 pm at 1st Baptist Church 308 Clairmont Avenue 3rd Floor conference room (enter right side of building under the portico, take elevator to the 3rd floor)