Atlanta Project Thread IV

[smArTaLlone]

Originally Posted by Triptychtwo

Letter of Inducement for 811 Peachtree LLC (“811 Peachtree”): Mr. Matthew Nichols of Sutherland Asbill & Brennan and Ms. Rian Smith of The Integral Group appeared in connection with the request for a letter of inducement for the issuance of $116,000,000 in taxable revenue bonds for the development of a mixed use project to be called EVIVA Peachtree. 811 Peachtree intends to develop and transform an underutilized surface parking lot into a mixed use development composed of 383 competitively priced rental units, a wrapped parking structure in a 32-story high rise building, and 22,000 square feet of ground floor retail to be located at 811 Peachtree Street NE, at the intersection of 6th Street NE and Peachtree Street NE along the Midtown Mile.

Mr. Nichols informed the Authority that the average residential unit size will be approximately 789 square feet. Ms. Smith explained that EVIVA represents one of Integral’s first market-rate projects in Atlanta, but maintains affordability for residents by featuring smaller, efficiently designed floor plans creating "affordability by design," such that monthly rents will start at $1,500.00, an amount far lower than comparably appointed buildings on the Midtown Mile, which start at $1,717.00. Ms. Smith stated that this lower price point essentially offers an approximately $200 per month discount off the average unit prices in the area, which will allow for a more diverse group of residents to live in the area. The housing units will provide a lower cost housing option for new employees that are being relocated nd/or recruited to Midtown and will satisfy a growing need for this modern workforce. Upon questions from the Authority, Ms. Smith confirmed that parking spaces are allocated to each unit and that the traffic analysis has been completed by the City of Atlanta. Upon a motion made by Dr. Maupin, which was seconded by Ms. Page, the Authority unanimously approved, with the exception of Dr. Bell, the letter of inducement for 811 Peachtree.

Awesome thanks!

[smArTaLlone]

5:30 FOLLOW UP: Midtown Medical Office Building,
1130 West Peachtree Street (formerly 1117 Spring Street)
Project Type: This project was originally reviewed and approved in January 2014. Since then, the project team has acquired more land, and revised the site plan and project plan to enhance overall efficiency, presentation and urban design quality of the project. The revised design relocates the 10-story tower to front West Peachtree Street and additional restaurant and retail space has been incorporated to activate the street fronts.

6:00 NEW APPLICATION: 33 Peachtree Place, Restaurant – Babalu Tacos and Tapas
Project Type: Babalu Tacos and Tapas is a 5,200SF, first generation tenant build out of a restaurant. The restaurant is located at the southeast corner of Peachtree Place and West Peachtree in the development known as 33 Peachtree Place, in retail space #1. The shell building is currently under construction, and the final exterior materials on the shell building will be stone and stucco veneer. The Babalu design will include operable storefront windows, patio seating with metal patio railing, wood planters, and an
aluminum louvered architectural shelter to cover some of the patio seating. There will also be an indoor/outdoor bar area with seating.

6:30 NEW APPLICATION: 640 Peachtree Street, Hotel Project with Public Parking
Project Type: Proposed development located at southwest corner of Peachtree Street and Ponce de Leon Avenue, consists of a hotel with approx. 238 rooms, a public parking garage with approx. 250 spaces, and street level amenities. Total proposed height of the building is 18 stories.

[Atlanta3000]

Originally Posted by Triptychtwo

Letter of Inducement for 811 Peachtree LLC (“811 Peachtree”): Mr. Matthew Nichols of Sutherland Asbill & Brennan and Ms. Rian Smith of The Integral Group appeared in connection with the request for a letter of inducement for the issuance of $116,000,000 in taxable revenue bonds for the development of a mixed use project to be called EVIVA Peachtree. 811 Peachtree intends to develop and transform an underutilized surface parking lot into a mixed use development composed of 383 competitively priced rental units, a wrapped parking structure in a 32-story high rise building, and 22,000 square feet of ground floor retail to be located at 811 Peachtree Street NE, at the intersection of 6th Street NE and Peachtree Street NE along the Midtown Mile.

Mr. Nichols informed the Authority that the average residential unit size will be approximately 789 square feet. Ms. Smith explained that EVIVA represents one of Integral’s first market-rate projects in Atlanta, but maintains affordability for residents by featuring smaller, efficiently designed floor plans creating "affordability by design," such that monthly rents will start at $1,500.00, an amount far lower than comparably appointed buildings on the Midtown Mile, which start at $1,717.00. Ms. Smith stated that this lower price point essentially offers an approximately $200 per month discount off the average unit prices in the area, which will allow for a more diverse group of residents to live in the area. The housing units will provide a lower cost housing option for new employees that are being relocated nd/or recruited to Midtown and will satisfy a growing need for this modern workforce. Upon questions from the Authority, Ms. Smith confirmed that parking spaces are allocated to each unit and that the traffic analysis has been completed by the City of Atlanta. Upon a motion made by Dr. Maupin, which was seconded by Ms. Page, the Authority unanimously approved, with the exception of Dr. Bell, the letter of inducement for 811 Peachtree.

Can somebody explain how this works?

Is the Development Authority of Fulton County funding this project (in place of a bank or other financial vehicle) with a $116,000,000 bond and Integral pays back the bond over a certain term period? What happens if Integral cannot pay back the bond back? Are Fulton County tax payers on the hook? Please tell me this is not the case? It seems every new development (under construction or proposed) is using this structure/"scheme".

[smArTaLlone]

Originally Posted by Atlanta3000

Can somebody explain how this works?

Is the Development Authority of Fulton County funding this project (in place of a bank or other financial vehicle) with a $116,000,000 bond and Integral pays back the bond over a certain term period? What happens if Integral cannot pay back the bond back? Are Fulton County tax payers on the hook? Please tell me this is not the case? It seems every new development (under construction or proposed) is using this structure/"scheme".

No this is not direct financing by Fulton County. I've read a detailed explanation on it but I can't seem to find it now. This is the way I understand the process.

Per state law, the development authority (DAFC, Invest Atlanta, etc) must have title to the property/development in order to give the tax breaks. That's the reason bonds are issued for the total cost of the project. Rather than being sold on the market in order to fund the project, the bonds in this type of transaction are purchased by the entity(s) that is funding the development. The developers are only getting a 10-year tax break from Fulton county.

The good news is that this means the Eviva and Ascent Midtown are basically good to go once this transaction is executed.

Speaking of Ascent Midtown, their land development permit is now approved pending arborist final approval.

[Atlanta3000]

Originally Posted by smArTaLlone

No this is not direct financing by Fulton County. I've read a detailed explanation on it but I can't seem to find it now. This is the way I understand the process.

Per state law, the development authority (DAFC, Invest Atlanta, etc) must have title to the property/development in order to give the tax breaks. Rather than being sold on the market in order to fund the project, the bonds in this type of transaction are purchased by the entity(s) that is funding the development. The developers are only getting a 10-year tax break from Fulton county.

The good news is that this means the Eviva and Ascent Midtown are basically good to go once this transaction is executed.

Speaking of Ascent Midtown, their land development permit is now approved pending arborist final approval.

Thanks for the reply!

[Ant131531]

Has Eviva even bought the land yet? I still see the "For Sale" sign on the lot.

[Libertarian]

Somebody said the developer owns it but would accept an offer.

[smArTaLlone]

Originally Posted by Ant131531

Has Eviva even bought the land yet? I still see the "For Sale" sign on the lot.

The site is owned by Loudermilk. I'm sure they have an agreement either to purchase the property once the development proceeds or as a partner in the development. Loudermilk is partnering on the Hanover Midtown project, on property they also own.

[smArTaLlone]

Originally Posted by smArTaLlone

In March they presented their inducement letter for the tax abatement agreement on 811 Peachtree which will cost $116 million and they were scheduled to make a presentation last month. Unfortunately the DAFC only sporadically updates their website and they haven't posted any new information on the monthly meetings since March.

One day after posting this, the DAFC updates their website.
At any rate, from this process we can see several developments that are moving toward construction.

Ascent Midtown - final bond resolution was approved in March. The hotel brand will be Canopy by Hilton.

Eviva Peachtree - final bond resolution was scheduled for April 26.

The Parker (465 Memorial Drive) - final bond resolution was scheduled for April 26.

The Standard- Letter of inducement

Peachtree & Third - Letter of inducement

Hanover Midtown - Letter of inducement

AC Hotel / Moxy Hotel (14th Street) - Letter of inducement


Eviva and Ascent are now officially on construction watch!

[Atlanta3000]

Originally Posted by smArTaLlone

One day after posting this, the DAFC updates their website.
At any rate, from this process we can see several developments that are moving toward construction.

Ascent Midtown - final bond resolution was approved in March. The hotel brand will be Canopy by Hilton.

Eviva Peachtree - final bond resolution was scheduled for April 26.

The Parker (465 Memorial Drive) - final bond resolution was scheduled for April 26.

The Standard- Letter of inducement

Peachtree & Third - Letter of inducement

Hanover Midtown - Letter of inducement

AC Hotel / Moxy Hotel (14th Street) - Letter of inducement


Eviva and Ascent are now officially on construction watch!

Has the Hard Rock hotel/apartments began the zoning process? Thanks for the update!

[treepeach]

Interesting.

Does this mean Eviva/811 Peachtree is definitely happening? When will they break ground?

[smArTaLlone]

I would say that nothing is definite until there's dirt moving and concrete pouring but Eviva appears more likely than ever to get built.

I have not seen any permits for the Hard Rock project.

[smArTaLlone]

Here is a massing showing the 377 COP proposal and the remainder of the site which is being marketed as a hotel site.

[smArTaLlone]

Here early renderings from the DRC meeting last night.

From the property records, this looks like another Noble project. And since TVS is the architect, its probably an upscale-ish brand. Probably one of the new "lifestlye" brands such as Hyatt Centric.


This is a total redesign with a lot more retail which is understandable considering that it will be next to Whole Foods.

[shivtim]

Thanks for all of your updates, Smartallone. At first glance, the redesign of the northside medical office building looks much better than the first massings/renderings we saw. Still non-descript, but nearly 40K sqft retail is great, and should do well in this location.

[smArTaLlone]

[(four 0 four)]

Although its great to see another parking lot go, I hope the hotel at 640 Peachtree is more architecturally significant than the rendering. I remember a proposal from the early 90's for an office tower that complimented/coordinated with the neighboring historic buildings much better than this hotel. There's no was a new tower could copy the stunning architecture found on the other 3 corners but, it should be of the same quality.

[smArTaLlone]

Originally Posted by (four 0 four)

Although its great to see another parking lot go, I hope the hotel at 640 Peachtree is more architecturally significant than the rendering. I remember a proposal from the early 90's for an office tower that complimented/coordinated with the neighboring historic buildings much better than this hotel. There's no was a new tower could copy the stunning architecture found on the other 3 corners but, it should be of the same quality.

The DRC requested that the design reflect the surrounding historic buildings and the architects agreed to include similar materials when they present a more detailed design next month.

[smArTaLlone]

The design concept presented by the architect, TVS Design, was preliminary and the committee challenged the team to respect the project’s unique location within one of Atlanta’s most historic intersections. With architecturally significant neighbors like The Fox Theater, the Georgian Terrace and the Ponce Condominiums on the other three corners, the design of the hotel should embrace a contextually sensitive approach. The applicant was asked to continue to develop the concept and present a more detailed set of elevations at a subsequent meeting.

This project was previously reviewed and approved in January 2014. Since then, Brand Properties has acquired more land and revised the plans to enhance overall efficiency and incorporate additional active uses at the street level. The revised design relocates the 10-story tower to front West Peachtree Street and will include 154,207 square feet of office use and 25,412 square feet of retail and restaurant use. The architect, Cooper Carry, was asked to provide additional detail about the façades and a proposed building arcade that addresses topography along the West Peachtree frontage. A new variation was requested to allow generators to be located within the first 20 feet behind the building façade on 13th Street. The committee opted to withhold support for this request until a more perspicuous set of the building elevations is provided by the applicant.

[cardjazz]

I salute the committee when requesting the developer make a better effort in matching the other 3 Historical buildings at the intersection. Only wish the committee made the same request for the Emory Proton Cancer Center presentation. I guess, no asked the question … do you have the funding to complete this project? 2nd question, can you redesign the building especially on the Juniper St. side. Better yet, can you just move this project to Linden and West Peachtree St., across from Emory Emergency building. This way, people can drive by very fast without looking In my opinion, 640 Peachtree St. design has potential, they need to add some bricks.