As Carter enters new chapter, retired chairman reflects on storied history and what's next for Atlanta real estate firm
Bob Peterson, former real estate executive at Atlanta-based Carter, said the firm should benefit from new business following the recent merger with Texas-based Hunt Cos.
Carter — one of Atlanta's most celebrated real estate companies — is now in the hands of a Texas investment firm, but its retired chairman said it will only grow in stature after the merger.
Bob Peterson helped refine Carter's focus in the 21st century from a full-service real estate company to an investment and development company. Hunt Cos. bought a controlling interest last month for an undisclosed sum after working with Carter on two multifamily projects in Florida. Carter currently has about 25 employees, a spokesperson said.
The deal is expected to scale Carter's business, which is focused on mixed-use and multifamily development in the Sun Belt.
"I'm particularly proud that Hunt saw in Carter a company that could really be successful and grow much larger than we are," Peterson said in an interview.
Hunt acquired a firm with a long history. Frank Carter established Carter and Associates in 1958 after other ventures with Ewell Pope and Trammel Crow. Carter went on to develop some of Atlanta's earliest shopping centers, such as Greenbriar Mall and Cumberland Mall, along with Midtown buildings like 1275 Peachtree St., 1100 Peachtree and the Campanile building. Carter, who died in 1991, was known as the "Mayor of Midtown."
Outside of Atlanta, the firm played roles in building office towers across the Southeast, including the Nashville, Tennessee, tower known colloquially as the "Batman" building.
Now, Carter is recognized primarily for its large-scale, mixed-use work. It helped build Atlantic Station, Sandy Springs' new city center and several projects in Summerhill as part of a revitalization effort in the wake of the Atlanta Braves' departure from Turner Field. The firm also led the redevelopment of Cincinnati's riverfront near two professional sports stadiums and is currently transforming Wake Forest University's athletics campus.
Peterson joined Carter in 2001 to run the company's brokerage business after he sold Peterson Properties a few years prior. He became chairman and CEO in 2002, stepped down as CEO in 2017 and has now retired his chairmanship following the merger with Hunt.
Scott Taylor will remain as CEO. He praised Peterson's nimbleness and proficiency in raising capital, as Peterson helped lead Carter's investment of roughly $3.5 billion in medical and data center assets across two nontraded real estate investment trusts and another $1.5 billion in multifamily, mixed-use and office real estate.
"He's been a cornerstone of the company, not only as a chairman and CEO, but as a trusted advisor, mentor and respected community leader," Taylor said. "Bob has great humility, wisdom and just an amazing willingness to always give people the benefit of the doubt. That was something that we all learned from."
Peterson shared more with Atlanta Business Chronicle about his career and his time at Carter. This Q&A has been lightly edited for brevity and clarity.
How did you get your start in real estate?
I was primarily an industrial real estate broker. It was the 1970s, when commercial real estate brokerage companies were starting to create national platforms. I got very interested in investment. Really my passion is investing in real estate. I started my company in 1980, and we grew that until 1996. We developed, managed and leased industrial and office buildings — mostly in Gwinnett County. I then sold my business to a public REIT called CarrAmerica. I worked for them for a few years, and I loved it. But it was a lot of travel and conference calls. So, I retired and was wanting to get back into having my own business in commercial real estate. Then Carter and Associates called.
How were you recruited?
I had known Carter for years — they're very respected. I was kind of betwixt and between, and I decided it was a great opportunity. But I wasn't really recruited. We all knew each other in the industry, and so I just got a call one day and they said, "Hey, you want to come work here?" And a year and a half later after [former CEO] Billy Mitchell retired, they said, "Hey, you want to run the place?"
Where does your passion for investing come from?
It started when I was cold-calling industrial properties throughout the Fulton industrial district in Atlanta. I decided in addition to getting to know the tenants, I should get to know the owners of the buildings. Back then, it wasn't so easy. You'd check big old gigantic books in our research room. I started calling them, and I took a valuable course called CCIM. Then I actually bought a building with a partner out of Kansas City that I had met at the Society of Industrial and Office Realtors. That started Peterson Properties.
What was the building that started it all?
It was at 3480 Oakcliff Road in Doraville. I bought it during one of the many recessions I've been through. It wasn't technically distressed, but it was a good property for less than it would cost to build. A couple years later, the market got stronger and we refinanced it, which gave us our money back that we'd invested. Then we sold it and parlayed that one investment into more investments.
What were your biggest failures or challenges?
The real estate recession in the late 1980s and early ’90s was very challenging. The banks went bankrupt, so I had a number of lenders that became the federal government. We came out of all the different recessions stronger because you have to adapt and make changes. You buy into the realities of what's going on — things such as having to reduce salaries for a while. All the large brokerage companies get better at business during recessions.
How did you and Scott Taylor lead together?
We worked together to create a culture that's based on candor. We created a place that people love working for. We insist on performance and excellence — but we don't manage anybody's time.
How has commercial real estate changed over the decades?
It's kind of obvious, but building new projects has become much more sophisticated. It takes much more capital. But the market overall is much healthier. Today you see properties that are maybe not as successful as the developer would have liked, but they are financed conservatively with large amounts of equity invested. So they're able to withstand the test of time.
What will Hunt do for Carter?
Having Hunt and their financial strength will improve our capabilities. They're also in a number of businesses and have relationships that they can introduce us to. It'll be a little different, but we will remain the same name and chase the same type of business — but we should be able to do more of it.
By Henry Queen – Staff Reporter, Atlanta Business Chronicle