ATLANTA | Development Thread VI

[arctk2014]

Originally Posted by Hokiehaven

Not development, but restaurant related, was in Nashville and things are growing quickly around the core.

Anyway, Biscuit Love is one of the hottest breakfast places there, their host said they will be coming to Atlanta soon. They were named Bon Appetit's top sandwich in the country this year.

Where they are in Nashville is hip/urban, so thinking Beltline or Midtown, but we'll see.

The real question is are they coming to Atlanta or "Atlanta" ? - ie a lot of restaurants like this have failed to make it in the urban core of Atlanta so instead they try to setup shop in some suburban place like Sandy Springs, Alpharetta, or Roswell because they can compete with a lower tier of chain restaurants.

[micropundit]

On Oct. 21, Atlanta issued a Request for Information to solicit ways to allow for the “testing and deployment of autonomous vehicles systems in specific areas within the city.”The city wants information on autonomous vehicles and vehicle-to-infrastructure technologies and seeks industry partners for the project.

The city is seeking to be a leader in autonomous vehicles and vehicle-to-infrastructure (technologies) and...to leverage its Smart City program to deploy autonomous vehicles and V2I technologies," according to a filing on Oct. 21.The pilot project, which would take place along North Avenue between the Georgia Tech campus and Ponce City Market, would be a critical step to eventually having cars autonomously drive around the city. It is part of the national "Smart City" program that Atlanta is participating in.As part of the North Avenue Smart Corridor project, the city will install fiberoptic cable to internet-enable cameras, sensors and traffic signals. A "smart intersection" demonstration is also underway within this corridor with live camera feeds providing traffic data collection and analysis.


http://www.bizjournals.com/atlanta/news/...s-smart-corridor-in-midtown-to-help.html

[sbrptree]

Originally Posted by Atlanta3000

With regard to Atlanta condo market - it is not over built. Those condos were over-priced.

Agreed. Look at any condo building in Midtown on Zillow or Redfin....prices have been steadily rising since 2012. Perhaps a bit of a leveling off, but by no means steep price cuts.

[Martinman]

Originally Posted by DWNTWN

Atlantic House & 22 14th Street

As of October 20th Atlantic House is officially open.

[ATLmangum]

What's the deal with the Arts Center Hampton Inn?

[ATL_J]

Originally Posted by ATLSkyPalaceOwner

I am wondering if the condo market in Midtown is really as strong as the conventional wisdom here on the board. I have seen a number of posts here that reference the fact that Seventh has been sold out; however on Zillow, there are units still available, and they have cut the prices by 5%. For example, unit 401 was originally listed at $959,000 and has been cut to an ask of $899,000.

Those units appear to be resales. I know that all the original condos sold and in the pictures made available for the two units for sale, they're both furnished, which they did not furnish these condos or add fixtures during the selling process.

[scania]

Originally Posted by ATL_J

Those units appear to be resales. I know that all the original condos sold and in the pictures made available for the two units for sale, they're both furnished, which they did not furnish these condos or add fixtures during the selling process.

That's not a good sign...this means that developers/investors, are losing money. That's a $60k hit already.

[arctk2014]

Originally Posted by scania

That's not a good sign...this means that developers/investors, are losing money. That's a $60k hit already.

"losing money" or losing the potential cost of money; They could have marketed these at $2million and cut them to $899,000 but that doesn't mean they're losing over $1million- just the potential cost was lost because they over-valued these condos.

[ATL_J]

Originally Posted by scania

That's not a good sign...this means that developers/investors, are losing money. That's a $60k hit already.

How is the developer losing money? They built the project and sold all the condos, they got their money. Now the investor / home owner, maybe? But I don't think so. Looking at the original sales, the 2 bedrooms sold for an average of $780,000. The current one is listed at $899,000. These started selling in 2014, delivered late 2015, about a year ago. Not sure why they're reselling so quickly, but assuming they get over $880k, they'll make $100k minus selling expenses in about a year.

The larger unit, the 3/3, had an average sales price of $970,500. Its now listed at $1.27 million.

So take that for what its worth.

Edit: If you meant the developers / investors lost money because they "left money on the table", that might be true, but I'd argue these were at the right price for the market at that time. Even if they could have held out for slightly more money, there is a cost to debt and equity and I'm sure they had time sensitive obligations.

[DWNTWN]

Originally Posted by ATL_J

How is the developer losing money? They built the project and sold all the condos, they got their money. Now the investor / home owner, maybe? But I don't think so. Looking at the original sales, the 2 bedrooms sold for an average of $780,000. The current one is listed at $899,000. These started selling in 2014, delivered late 2015, about a year ago. Not sure why they're reselling so quickly, but assuming they get over $880k, they'll make $100k minus selling expenses in about a year.

The larger unit, the 3/3, had an average sales price of $970,500. Its now listed at $1.27 million.

So take that for what its worth.

Edit: If you meant the developers / investors lost money because they "left money on the table", that might be true, but I'd argue these were at the right price for the market at that time. Even if they could have held out for slightly more money, there is a cost to debt and equity and I'm sure they had time sensitive obligations.

Unit 401 sold on April 19, 2016 for $819,900, and is for sale at $899,000

Unit 201 sold on February 26, 2016 for $979,900, and is for sale at $1,199,000

[DWNTWN]

Originally Posted by Martinman

As of October 20th Atlantic House is officially open.

I thought I could see some furniture on a balcony! I think this building looks good, and the neighborhood is on fire. It will be exciting to see it fill up quickly, but time will tell. There sure are a lot of other units in the vicinity that will be coming online within a year or so.

If I did not already have a condo in the city center, I would be looking at renting in Atlantic House, Azure, or hold out for lilli.

[DWNTWN]

Originally Posted by ATLmangum

What's the deal with the Arts Center Hampton Inn?

As of yesterday it is a fenced off concrete and gravel lot. They tore down the old Jaguar Club like they were going to do something quick with it, but nothing yet.

Maybe someone that gets permit info can update us.

I would like to see this one come to fruition, since it is an 18 floor building on such a small lot. The rooms would have a nice view over the OAC park, or of Midtown. It is super accessible. There are myriad reasons why it could be held up, and maybe someone can shine a light on it for us.

[clexmond]

Originally Posted by DWNTWN

Unit 401 sold on April 19, 2016 for $819,900, and is for sale at $899,000

Unit 201 sold on February 26, 2016 for $979,900, and is for sale at $1,199,000

I think a better question is what could possibly justify >$500 / sq. ft. prices for those units. There's a beautiful penthouse for sale in 805, one block over, for just over half the price per sq. ft., roughly the same floor area.

[West Peachtree]

Originally Posted by jwbab

One of the building permits refers to it as "Alexan 880". I think I have seen it referred to as Alexan 880 in some news articles as well.

Thank you, jwbab !

btw, over the weekend, the big billboard right across the street from "Alexan 880" - above the building shared by Atlanta Gold & Silver and Five Star Professional Cleaners - was removed.

Should offer much nicer views from Alexan 880, and ALTA Midtown for that matter.

[Ant131531]

Anyone got any insider information on when work will begin on the Hanover project on Peachtree? I wish the Canguy poster was giving us a few tips.

[RocketSurgeon]

Originally Posted by clexmond

I think a better question is what could possibly justify >$500 / sq. ft. prices for those units. There's a beautiful penthouse for sale in 805, one block over, for just over half the price per sq. ft., roughly the same floor area.

A converted building from the 1950s isn't comparable to a new purpose-built building. Viewpoint and Spire are also more than 805 (in the $300-400 range). However, I do agree that $500 is a lot for that building. It has big floor plans and nice fixtures, but the units are at street level and the building doesn't have its own amenities. The HOA dues are high as well, which is odd. I wonder what kind of arrangement they have with Viewpoint. If there are two HOAs, do they split assessments and voting power somehow, or is Seventh just paying to use Viewpoint's amenities? Anyway, it's not a totally absurd price, but I think Seventh will appreciate more slowly than its neighbors. Being the newest and "best" is a good sell for the developer, but the building probably won't seem so impressive in 5-10 years... especially if something like 98 14th pans out.

Edit: I forgot to mention, I don't think the drilling rig is at the lilli site anymore... I bet the tower crane will be going up soon.

[DWNTWN]

Originally Posted by clexmond

I think a better question is what could possibly justify >$500 / sq. ft. prices for those units. There's a beautiful penthouse for sale in 805, one block over, for just over half the price per sq. ft., roughly the same floor area.

The price is high, no doubt. One of the units is directly above the Starbucks, and will have a view of the commercial portion of Hanover Midtown within the year if we get our way. If these parking lots fall to highrise development, Atlanta will start having a problem with New York views, or staring at other buildings right next to you.

[DWNTWN]

Originally Posted by RocketSurgeon

A converted building from the 1950s isn't comparable to a new purpose-built building. Viewpoint and Spire are also more than 805 (in the $300-400 range). However, I do agree that $500 is a lot for that building. It has big floor plans and nice fixtures, but the units are at street level and the building doesn't have its own amenities.

Being the newest and "best" is a good sell for the developer, but the building probably won't seem so impressive in 5-10 years... especially if something like 98 14th pans out.

Edit: I forgot to mention, I don't think the drilling rig is at the lilli site anymore... I bet the tower crane will be going up soon.

The finishes make a lot of difference at that price point. My wife won't consider anything without finished ceilings.

If 98 14th Street pans out, I will be selling whatever I can to go put down a deposit.

I sure hope you are right about the tower crane at lilli. I am as excited about this one as most are about Eviva, though I wish it were to be as tall as Eviva is planned to be. Both JPX towers are tops on my list of hoped for projects, and I hope he has something tall and beautiful up his sleeve ready for Downtown, preferably overlooking the park.

[Ant131531]

I was walking by the Lilli site the other day and I couldn't help but notice how small the actual development area is...it's not very often we get new projects with small footprints like that...the other being Seventh Midtown of course....it's going to be interesting to see how that intersection feels once this project is near completion.

[RudyJK]

Originally Posted by Ant131531

I was walking by the Lilli site the other day and I couldn't help but notice how small the actual development area is...it's not very often we get new projects with small footprints like that...the other being Seventh Midtown of course....it's going to be interesting to see how that intersection feels once this project is near completion.

I'd love to see the parking lot across Peachtree and next to the Fox go next. And then the lot south of the Fox!