Risk-taking Bowers is right where he wants to be
Atlanta Business Chronicle - by Erica Stephens Contributing Writer
Richard Bowers is a Renaissance man, at least in the sense that he is leading redevelopment efforts in Atlanta's central business district while long-established developers still are working the suburbs. Called a risk-taker by some, Bowers believes in the city's urban rebirth enough to put his money and his reputation on the line -- and it's paying off with the purchase of three downtown buildings.
Richard Bowers & Co. is a commercial real estate brokerage firm first and foremost, but Bowers' forays into the development arena have proven lucrative. Shortly before the 1996 Olympics, Bowers acquired and renovated 40 Marietta St., Five Points Plaza. He then quickly penned a 20-year lease with the Department of Housing and Urban Development, which took the building from zero percent to 100 percent occupancy.
Later he purchased 270 Peachtree St., Southern Co. Center, from Mariefast AB of Stockholm, Sweden. Combined with 260 Peachtree, the old Coastal States Building, which Bowers also recently purchased, the two buildings will be the largest contiguous block of office space in the central business district. When renovation and modernization is complete, he said, both will offer rates that will be "extremely competitive with alternative class A options as well as new construction."
The combined ownership of 260 and 270 Peachtree will allow 260's tenants to benefit from available parking at 270 and create economies of scale that will allow for more attractive amenities packages for both buildings, Bowers said.
Diversification station
Bowers & Co. began diversifying with developments in northwest suburban projects which Bowers said have "fared very well." Citing waning opportunities in the suburbs, today he is focusing on intown redevelopment efforts, much to the pleasure of those marketing Atlanta's reurbanization, including Paul Kelman, acting president of Central Atlanta Progress.
"We have in recent years been the beneficiary of a number of his development projects. He has expanded into the downtown area and taken on some projects that I guess some other folks thought were daunting," Kelman said.
At least one developer passed on buying the old Coastal States Building because asbestos-removal costs were estimated at more than $8 million. But Bowers claims he has gotten a deal on all three intown properties.
"The central business district, which had the greatest amount of availability and was looked upon with somewhat less favor a few years back, created an opportunity that we felt was unique at prices that were well below replacement costs," Bowers said.
Kelman believes Bowers' willingness to take a chance will have a long-term impact on future redevelopment efforts.
"He's good at seeing opportunities where I think other people just see problems," Kelman said. "Of course, if you contrast him to some of the smaller, edgier developers who are out there doing little projects, Richard is certainly mainstream. Yet here he is tackling these difficult projects.
"For the last decade the herd has been out in North Fulton, Forsyth County, etc., making the easy money. But he's doing things that over the long run will prove to be very important, both as an inspiration to other people and lucrative for him, too, which is the bottom line," Kelman added.
Right where he wants to be
With about 750,000 square feet of space in the central business district either owned, leased or managed by the company he founded, Bowers said he's right where he wants to be: "an active player and participant in the Renaissance."
"It's an exciting time for the city," Bowers said. "It is changing and transforming from a [largely] suburban-dominated city to a more balanced city with more people considering living inside 285 in older neighborhoods, apartment lofts and high-rise condominium projects that heretofore would have never been considered."
Metro Atlanta Chamber of Commerce President Sam A. Williams said Bowers' influence has been twofold: as one of the leading brokerage firms to bring tenants to downtown properties, and more recently as a developer himself.
"I'd say it's parallel to what I saw the loft developers doing right after the Olympics. [They were] doing loft housing when the major developers stood around and said `these guys are going to fail'," Williams said.
Williams also characterizes Bowers as a risk-taker.
"He took a risk when other big developers shied away, just the same as there were risk-takers in the loft business three years ago," Williams said.
"Now they are calling those risk-takers brilliant ... and rich. And guess what? Now the mainline developers are coming in to do loft housing. I bet you in another two or three years we'll see some mainline developers coming in to do what Richard is doing, too."
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