7/6/2007 - Two Buildings Slated for High-Growth Area
Two buildings slated for high-growth area
Birmingham Business Journal - July 6, 2007 by Lauren B. CooperStaff
Two Birmingham companies plan to build new office buildings on Cahaba River Road in an area real estate professionals say could be the next hot spot for commercial growth.
Hallmark Builders Inc. President Mark Hallmark said the company plans to build a new headquarters that will double the space it occupies currently in the Colonnade - from 3,000 square feet to 6,000 square feet in a single-tenant building.
Shannon/Waltchack Investment Real Estate Inc. plans to develop an 8,000 square foot class A office building, just down the street from Hallmark's new headquarters, said Andrew Patterson, a commercial broker with the company.
Hallmark and Patterson said they anticipate more construction along Cahaba River Road and nearby Acton Road, particularly since real estate giant Trammell Crow Co. purchased the HealthSouth campus, which backs up to Cahaba River Road.
The 85-acre campus on U.S. 280 was purchased last month for $60 million and included HealthSouth's 200,000-square-foot corporate offices and a 13-story hospital building.
At the time, HealthSouth said it would lease the space from Trammell Crow for at least another year before deciding whether to stay or relocate to other office space in the area.
So while HealthSouth makes up its mind whether to go or stay, many businesses, builders and developers are seizing the opportunity to be close to what could be the epicenter of an already tight multitenant office submarket.
Patterson said Shannon/Waltchack, which has several commercial and retail parcels in the immediate area that are either developed, planned to be developed or for sale, has seen a lot of recent activity from small companies that sublease space in the HealthSouth building and don't want to leave the neighborhood.
Another draw to the area, he said, is Vestavia Hills' purchase of the nearby 83 acre Patchwork Farm, which has not yet finalized and could include greenspace, commercial and retail.
Hallmark and Shannon/Waltchack aren't the only ones keeping an eye on the growing area. Numerous for-sale signs line Cahaba River Road directly behind HealthSouth and construction is active on nearby Acton Road, near the entrance to Colonial TownPark Colonnade.
Two buildings have been built in the new Acton Professional Office Park, with a third breaking ground.
The developer of the park could not be reached by press time.
Also, Lifeline Children's Services plans to build a new office building. Its building will sit directly across from a recently completed office building on Blue Lake Drive, which now houses Shannon/Waltchack and several other businesses.
Patterson said plans for Shannon/Waltchack's new building are still being finalized and negotiations are ongoing with a tenant that will lease half of the 8,000-square-foot building.
Hallmark is in the process of obtaining permits for its new headquarters and should begin construction in the next four weeks. Hallmark said the company plans to occupy its new offices by early 2008.
"This is the center of Birmingham for us with our workload," he said. "We can get anywhere in Birmingham in an equal amount of time. It works logistically for us and we love the area."
The company currently has 45 full-time employees, many of whom work in the field.