ATLANTA | Development Thread V

[jnihiser]

[PremierAtlanta]

Originally Posted by simms3_redux

Atlanta's got an exciting amount of development happening now. Love that Related tower. Nothing special, but looks better than the Novare stuff, and taller than typical.

I agree about the amount of development. From small infill to midrise to highrise, it is hard to keep up with all that is actually under construction across the city proper.

I'm liking the Related tower as well. It will offer an interesting contrast to the post modern design of One Atlantic Center, OAC's mini-me and the 32 story Atlantic House currently under construction across the street. Having a 60,000 square foot Whole Foods will definitely add to the luster of this project.

I am also pleased that it's taller. I know we are supposed to crave all things urban but this is skyscraperpage after all. Looking at the rendering, when you add the adornment on top; it appears to be in the 40+ story range. That will make quite an impact on the skyline. Does anyone know if there has been an official floor count released on this proposal?

[PremierAtlanta]

Originally Posted by jnihiser

782 Peachtree:





60 11th Street:

Jnihiser, thank you for the construction photos for these two projects. I was wondering how there were coming along.

[jnihiser]

Originally Posted by PremierAtlanta

Jnihiser, thank you for the construction photos for these two projects. I was wondering how there were coming along.

Sure thing. I love grabbing quick shots to keep everyone up on progress of these projects.

[UrbanCosmopolitan]

I've been away for a while any updates on the following projects: Mims park, Southern music museum, civic center redevelopment or Auburn avenue Big Bethel plans for redevelopment

[micropundit]

According to a report in today's AJC, aerospace giant Boeing is scouting sites in Midtown Atlanta for a possible research center. The story states that two people with knowledge of the situation said Boeing and Georgia Tech officials have held high-level discussions about a potential research center near campus. Two others said that Boeing was in the market for space in Atlanta. How many jobs and what types of research wasn’t immediately clear.

The Fortune 500 maker of commercial airliners, military planes and other defense systems would join heavy hitters such as AT&T, Home Depot, NCR and Worldpay US in developing corporate outposts near one of the world’s top engineering schools.

http://www.ajc.com/news/business/sources-boeing-scouting-sites-in-atlanta-for-new-r/nkdQ6/

[PremierAtlanta]

Originally Posted by micropundit

According to a report in today's AJC, aerospace giant Boeing is scouting sites in Midtown Atlanta for a possible research center. The story states that two people with knowledge of the situation said Boeing and Georgia Tech officials have held high-level discussions about a potential research center near campus. Two others said that Boeing was in the market for space in Atlanta. How many jobs and what types of research wasn’t immediately clear.

The Fortune 500 maker of commercial airliners, military planes and other defense systems would join heavy hitters such as AT&T, Home Depot, NCR and Worldpay US in developing corporate outposts near one of the world’s top engineering schools.

http://www.ajc.com/news/business/sources-boeing-scouting-sites-in-atlanta-for-new-r/nkdQ6/

With Boeing's increased presence in Charleston, I can see this as a natural fit and very logical location. The R&D scene in Midtown is really maturing. The word is out amongst the decision makers that Midtown is a great location for a R&D center. Georgia Tech is a true asset to the Midtown area.

I'm crossing my fingers in hope that this comes to fruition.

[joecool]

Originally Posted by PremierAtlanta

With Boeing's increased presence in Charleston, I can see this as a natural fit and very logical location. The R&D scene in Midtown is really maturing. The word is out amongst the decision makers that Midtown is a great location for a R&D center. Georgia Tech is a true asset to the Midtown area.

I'm crossing my fingers in hope that this comes to fruition.

I'm guessing this will go in the GT office tower that is proposed?

[RocketSurgeon]

I believe the conversion of the Arthritis Foundation building to apartments has begun (West Peachtree near 17th). I saw a lot of work going on there today.

[cokezero]

Originally Posted by RocketSurgeon

I believe the conversion of the Arthritis Foundation building to apartments has begun (West Peachtree near 17th). I saw a lot of work going on there today.

I am a true lover of Midtown and think it's the best neighborhood in the whole metro area and I truly love what this project will do to add 24-hour vibrancy to that immediate area of Midtown but...you can call me an eternal pessimist or whatever you want, but I view this project as one of the biggest symbols yet of the unsustainable apartment bubble that is continuing to grow in the Midtown area. It's one of those projects that just makes you scratch your head and think, "what the heck is really going on here?" If you go back 10 years into the thick of the condo bubble, I think many people had very similar sentiments about "The Peach" office to condo conversion at 1655 Peachtree or the seemingly needlessly tall and crazily-priced Atlantic condo tower at Atlantic Station...those deals just made you take a step back and wonder how sustainable this all was in the mid 2000s.

[RocketSurgeon]

I wouldn't worry about that... the ratio of condos to apartments in Midtown is huge... I don't know the actual number but it must be at least 5:1. The market needs more rentals and that's what people want now. They're easier to get financing for because they're more viable. Also remember One Museum Place is just a couple blocks away, and that balances it out.

I promise you a lot of these will be converted to condos like the Atlantic has done recently and others like Parc Vue did before. It's not a hard transition to make as long as the construction quality is good, which it is for a lot of these projects... think Yoo on the Park or Eviva... if you ask me those buildings are not likely to be apartments for long.

If you're worried about Midtown in general, this boom is bound to cool eventually, but the area is hitting a critical mass of desirability and I doubt the growth will ever stop completely. What happened during the recession wasn't the result of overbuilding, but the result of a nationwide crisis that turned people off the idea of buying... I think that was made clear by the incredible speed at which those condos filled up once that recession was over. People wanted to move to Midtown; they just didn't want to buy anything, and at the time buying was just about the only option because rentals were few and far between. That's still true today, albeit to a lesser extent with all these new apartments opening.

[Atlanta3000]

Originally Posted by cokezero

I am a true lover of Midtown and think it's the best neighborhood in the whole metro area and I truly love what this project will do to add 24-hour vibrancy to that immediate area of Midtown but...you can call me an eternal pessimist or whatever you want, but I view this project as one of the biggest symbols yet of the unsustainable apartment bubble that is continuing to grow in the Midtown area. It's one of those projects that just makes you scratch your head and think, "what the heck is really going on here?" If you go back 10 years into the thick of the condo bubble, I think many people had very similar sentiments about "The Peach" office to condo conversion at 1655 Peachtree or the seemingly needlessly tall and crazily-priced Atlantic condo tower at Atlantic Station...those deals just made you take a step back and wonder how sustainable this all was in the mid 2000s.

Cokezeo - I thought the same thing until I did some research. Two things to keep in mind:

(1) Atlanta went almost 4 years without any multi-family construction. Even today, multi-family developments are lagging our historical average. With that said, the majority of the apartment developments today are occuring inside the Perimter which is a differnt pattern than what we have seen in the past.

See my post from early January
http://forum.skyscraperpage.com/showpost.php?p=6864419&postcount=12467

(2) During the last condo boom we didn't see the spike in company relocations or expansions that we are now seeing in Mindtown and Buckhead. These new jobs will further drive the need for multi-family developments.

[ATL_J]

I'm not sure what an apartment bubble entails. Currently there is high demand as, based on market reports, occupancy is high. Rents are also at all time highs and I would assume that these projects weren't planned and then financed assuming all-time high rents. While I haven't seen the "numbers", I'm almost positive that these communities, specifically the larger ones, would be successful with even much lower rents.

So what's the worst case scenario? Occupancy numbers start to dry up, competing complexes lower prices to attract tenants, and rents begin to lower. Once these trends start to kick in, multifamily development will cool. This is only natural and isn't some bubble akin to the mortgage crisis in the past.

[shivtim]

There's a small crane on site at Novare's 14th and W.Peachtree tower. Looks like they're setting up to start placing foundations/caissons.

[shivtim]

Originally Posted by ATL_J

While I haven't seen the "numbers", I'm almost positive that these communities, specifically the larger ones, would be successful with even much lower rents. So what's the worst case scenario? Occupancy numbers start to dry up, competing complexes lower prices to attract tenants, and rents begin to lower. Once these trends start to kick in, multifamily development will cool. This is only natural and isn't some bubble akin to the mortgage crisis in the past.

This is a really good point. For example, in 2009 Post Parkside was charging $1500 a month for a two bedroom. This increased to $1850 by 2011. Now similar units are going for $2100+. They're charging that much because the market is supporting it right now, but even if there's an apartment bubble and they're forced to lower prices by 30%, they'd still be making money. I don't think that bubble will even happen. There is a massive demand for apartments in the Midtown area. The few thousand units in the pipeline won't cause a price collapse.

[Verge]

Originally Posted by cokezero

I am a true lover of Midtown and think it's the best neighborhood in the whole metro area and I truly love what this project will do to add 24-hour vibrancy to that immediate area of Midtown but...you can call me an eternal pessimist or whatever you want, but I view this project as one of the biggest symbols yet of the unsustainable apartment bubble that is continuing to grow in the Midtown area. It's one of those projects that just makes you scratch your head and think, "what the heck is really going on here?" If you go back 10 years into the thick of the condo bubble, I think many people had very similar sentiments about "The Peach" office to condo conversion at 1655 Peachtree or the seemingly needlessly tall and crazily-priced Atlantic condo tower at Atlantic Station...those deals just made you take a step back and wonder how sustainable this all was in the mid 2000s.

Sorry to burst your bubble but I know for a fact that nothing is happening here (1330)-- and wont for a long time, if ever--

[Lebowski]

Just heard some news on 811 P'tree. It is still a go but in re-design. They had a property line dispute and are shrinking the footprint -- which means they are adding floors.

[boomtown]

Originally Posted by Lebowski

Just heard some news on 811 P'tree. It is still a go but in re-design. They had a property line dispute and are shrinking the footprint -- which means they are adding floors.

A more slender and taller tower might work out better as far as the proportions go...here's hoping...

[bigstick]

Originally Posted by shivtim

There's a small crane on site at Novare's 14th and W.Peachtree tower. Looks like they're setting up to start placing foundations/caissons.

When do you think the Tower crane will go up, it seems very slow to me if you look back 30 days ago..

[arctk2014]

Originally Posted by Lebowski

Just heard some news on 811 P'tree. It is still a go but in re-design. They had a property line dispute and are shrinking the footprint -- which means they are adding floors.

I believe it was the easement between the properties causing the dispute not the property line. The landowner should have known more about this before trying to market it but I suppose it's not as big of a deal-breaker for the developer as long as they can make their numbers work. The residential lobby for 811 fronts the South side of their site along or adjacent to this easement - which includes "some" parking and an entry canopy for 805 Peachtree. Which the original footprint was encroaching.