Atlanta real estate veterans see opportunity; new firm will target land for development.
By Amy Wenk – Staff Reporter, Atlanta Business Chronicle
Jul 8, 2024 Updated Jul 8, 2024 12:27pm EDT
A new Atlanta firm says it is raising $50 million to acquire land, hoping to scoop up development sites at a discount.
Artisan Land Cos. and the real estate veterans behind it aim to capitalize on high interest rates that have battered property values. Land prices are down 30% to 40% from a peak a couple years ago, according to real estate observers.
“We wanted an investment model that will be able to take advantage of market downturns,” said David Branch, senior partner and CEO of Artisan Land cos.
Branch, a long-time Atlanta broker, formed the new firm with his brother Barry, a development executive and real estate professor at Georgia Tech. They also run SSG Realty Partners, which Artisan Land Cos. acquired and will continue to operate.
Other principals and investors in the new firm include: Brent Reid, CEO of the Winter Cos.; Scott Light, a retired Georgia Pacific senior executive; Ravi Srinivasan, president of technology company Sunray Enterprise Inc.; Phil Skinner, senior member of Arnall Golden Gregory's real estate practice; and Duane Horton, president and CEO of McLemore Resort and Scenic Land Company.
Artisan Land Cos. plans to acquire land on an all equity basis and prepare it for vertical development. That could include establishing public-private partnerships, getting zoning approvals and master planning the sites.
The firm has raised about $2.5 million so far and will go out into the market for the rest around August. It is targeting high net worth individuals, family offices and private equity firms. They expect to be fully subscribed by early 2025.
The firm will look for opportunities to buy land within it about a four-hour drive from Atlanta, with a focus on the metro area.
“We like the suburban sites in emerging markets that are flying under the radar, where nobody has really connected the dots,” David said. “Our job is to acquire it, master plan it and then tell the story.”
The firm has three “pre-fund” sites from prior ventures. One sits near a future $5 billion electric vehicle battery plant in Bartow County. Another is in downtown Macon.
“We want to be responsible for creating projects that serve as a catalyst to transform the community that they're in,” David said.