North American Properties to Sell Cascades Development
from Press Release
Indiana-based Becovic Management Group to proceed with Phase II construction
TALLAHASSEE, Fla. – April 13, 2022 – Having recently completed Phase I of construction at Cascades, developer North American Properties (NAP) is selling the project to Indiana-based Becovic Management Group (BMG). The sale includes the Millstream apartments, the Merestone office building and three land parcels slated for future development. Closing is anticipated to occur by the end of May.
Cascades is the culmination of Tallahassee’s deliberate, decades-long plan to create a thriving live-work-play-stay destination in the heart of downtown. The project, spearheaded by NAP, spans a two-block area on East Gaines Street, directly across from Cascades Park, and features Marriott International’s AC Hotel Tallahassee, locally-owned Charlie Park rooftop restaurant, the Millstream apartments, the Merestone Class A office building, nearly 13,000 square feet of city-owned multipurpose event space, nearly 30,000 square feet of retail and restaurant space, more than 800 new parking spaces, an outdoor public plaza, and a community-envisioned historical plaza.
NAP began construction on the project in 2019 following a nearly 3-year public review process facilitated by local government and multiple citizen-led committees. Phase I opened in Spring 2021.
“We believe in Tallahassee, and we’re thankful for the opportunity to help the city tackle so many of its priorities with this unprecedented project,” said Shawn McIntyre, NAP’s managing partner for Florida. “After fully meeting our Phase I commitments, we’re confident that we’ve brought the project to a point where it can continue thrive when BMG takes the reins.”
McIntyre said it’s common in his industry for assets like this to change hands.
“Sometimes, we come in and finish what someone else started, like we did in Atlanta with Atlantic Station,” he said. “Other times, another developer sees the value in what we’ve built and wants to carry it forward. In this case, BMG saw an incredibly successful project in Cascades and desired to see it through.”
“We see great potential in what North American Properties has created at Cascades, and we’re excited to forge ahead with phase two plans,” said Muhamed Becovic, president of BMG. “Tallahassee is a unique and growing market, and we’re eager to foster a long-term partnership with the city and positively impact the community.”
An economic study conducted by FSU’s Center for Economic Forecasting and Analysis anticipates Cascades will create more than 700 permanent jobs and generate more than $64 million in ongoing, annual economic output. And, according to city staff, the development will generate millions of dollars in new tax revenue to benefit the community.
“This development advances our long-standing vision to leverage Cascades Park as both a stormwater project, and as an economic driver that would attract housing, offices and gathering spaces downtown,” said Wayne Tedder, Tallahassee Assistant City Manager. “NAP’s commitment to collaboration with city staff and the community over the last five years was the key to bringing that vision to life, and we’ve sincerely appreciated their partnership.”
Beyond its economic impact, Cascades follows smart growth principles by keeping development within the urban core rather than pushing it into the suburbs. According to the city’s planning department, if this 5-acre, high-density development were built in a more suburban area, it would impact an astonishing 195 acres of greenspace.
The project also honors the rich history of the Cascades area, from preserving the architecturally significant former county health unit and Old City Waterworks buildings, to creating a community-envisioned historical plaza, where a Civil Rights Memorial will be installed this Spring. NAP has also outlined a brief history of Cascades on the project website for the community to enjoy.
“In partnership with the community, we’ve created a development that strengthens the economy, helps prevent urban sprawl, encourages biking and walking instead of driving, and acknowledges the area’s history,” McIntyre said. “But best of all, we’ve created a place that is distinct to Tallahassee, where people can gather and just enjoy being together. And that’s something we can all be very proud of.”
NAP has invested more than $400 million in large-scale, mixed-use developments in Tallahassee since 2013, both at Cascades and along the Gaines Street corridor. These projects have collectively created more than 2,000 construction jobs and nearly 300 permanent ongoing jobs, with a total annual economic impact of more than $54 million. The sale of Cascades marks NAP’s last project in Tallahassee as the company pursues new development opportunities, specifically on Florida’s Space Coast.
“Tallahassee has been our home for nearly 10 years,” said McIntyre. “Our team has become personally involved and engaged in the community during that time, and we’ve made many friends along the way, which will make it difficult to leave when the time comes.”
ABOUT CASCADES
Cascades is a vibrant live-work-play-stay experience spanning a two-block area on East Gaines Street, across from the 24-acre Cascades Park. In addition to generating more than $350 million in economic impact and creating nearly 700 permanent jobs, this transformative urban development honors the area’s rich history through the preservation of the architecturally significant former County Health Unit, the restoration of the Old City Waterworks building, and the creation of a community-envisioned historical plaza. Additional components include market-rate mid-rise residential, retail, office, restaurant and hotel space built to maximize views of the park and the Capitol building, along with pedestrian-friendly paths connecting the development to downtown, a range of public amenities, event space to support performances at the Capital City Amphitheater, and nearly 800 new parking spaces. The Cascades development team includes local, regional and national partners including Nelson Mullins, DAG Architects, Genesis Engineering, NAI Talcor, The Taproot Agency, and Baker Barrios Architects. For more information visit CascadesTLH.com.
ABOUT NORTH AMERICAN PROPERTIES (NAP)
Founded in 1954, North American Properties (NAP) is a privately held, multi-regional real estate operating company that has acquired, developed and managed retail, multifamily, mixed-use and office properties across the U.S. The company also holds extensive experience developing successful mixed-use projects surrounding public parks, including the Historic Fourth Ward Park in Atlanta and Centennial Park in Nashville. With a full-time staff working out of its Tallahassee office, NAP has invested more than $400 million in large- scale, mixed-use developments in Tallahassee since 2013, specifically at Cascades and along the Gaines Street corridor. These projects have collectively created more than 2,000 construction jobs and nearly 300 permanent ongoing jobs, with a total annual economic impact of more than $54 million. For more information visit naproperties.com.
ABOUT BECOVIC MANGEMENT GROUP (BMG)
Becovic Management Group is a private family-owned Indianapolis (U.S.) based real estate development and property management services firm with varied interests in land, commercial property, and residential real estate. Its property management services affiliate manages quality commercial and residential properties located in Indiana, Illinois and Florida. As a family owned business, we believe that growth develops through building quality relationships, knowledge, service and business innovation. Our superior operations are exemplified through consistent implementation of our core values, which include the belief that customer relationships determine our worth, quality service is essential, reputation is our reward and integrity defines us. Our vision is to remain a prominent real estate property management firm by providing the best quality housing, coupled with excellence in customer service. BMG was founded more than 45 years ago by the Becovic family after emigrating to the U.S. For more information about Becovic Management Group, please visit becovicmgmt.com.
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