ATLANTA | Development Thread V

[RocketSurgeon]

I wonder what the prices will be in 98 14th? If they're higher than Aqua or 1010 then this is truly uncharted territory and there's a good reason to be skeptical. Calling condo demand "astronomical" is optimistic. It's a healthy market, but it's still easy to find two bedroom units in highrises for $300k. This might be a good test of how much of a luxury market Midtown really has. Sovereign has proven Atlanta can bear it, and 98 14th will obviously be the tallest in the city, so that's something.

Speaking of skeptical This is only a hunch, but I don't expect to see any big spec office projects for awhile. The BOA tower is indeed pretty empty, and I'm still not even convinced Tech's HPC will happen. All the big office projects have been in the suburbs, especially Cumberland where three or four are in progress. For Midtown, this cycle is clearly focused on residential.

[bryantm3]

Originally Posted by Atlanta3000

They just need to put a spire on this and push it to 1,100 feet!

while adding a spire is not really going to make it taller than BoA, it looks naked and incomplete without one, like it's the type of building that needs a spire to complete the look.

[Ant131531]

Originally Posted by jwbab

Much of this has already been shared, but here are some things I jotted down during the DRC Meeting. (BTW Great Meeting! DRC was very complementary of all the projects presented)

98 14th Street
Original site plan was for underground parking. Determined underground was not feasible so all parking will be above ground, either internal or skinned.
Retail square footage has been increased from around 95k to 135k for the entire project.

Original site plan reduced from three towers to two. This allows for more open space. Also allows for continuation of planned Arts Walk between Arts Center MARTA and 14th Street through the center of the site.

Pedestrian connectivity and integration with existing buildings and plazas on the eastern portion of the block.

Building A – 74 Stories – On Eastern portion of site – 382 Luxury Condos on top of 180 Luxury Extended Stay Suites

Building B - ? Stories – On Western portion of the site – Hotel (did not mention if there would be residences in addition to the hotel)

SAP should be submitted by end of week. Also about to apply to set up condo pre-sale center. Expect groundbreaking in October – November 2016.

SLS
42 stories total – 9 level podium consisting of 7 levels of parking and 2 public floors – amenities on top of the podium

Much of this project is contingent upon a Selig project immediately to the west. Presumably this is the next phase of 12th and Midtown. Selig owns basically all the lots westward to West Peachtree St. from the SLS site between 12th and 13th Streets. SLS will share service loading with the Selig project to the west and the restaurant on the south. The service loading will enter directly across from the service area at the Four Seasons on 13th St. SLS parking deck abuts the property line, so they will also require an air rights easement from Selig.

The existing alley on Crescent between 12th and 13th street will be the access point for parking. It will not continue to the Selig site to the west. Selig plans to close and abandon the portion on their site. Only residents can access parking, all others must mandatory valet.

It looked like there was going to be a pedestrian plaza on the Selig site where the alley would end. No further information about the Selig project. Obviously they have been working closely together to coordinate the two projects. They cannot move forward with SLS until the Selig project is ready.

Only timetable provided was “as fast as possible.”

1138 Peachtree
SLS and 1138 Peachtree both have similar design cues. Located just across Crescent from one another.

There will be 56 units of premium residences on the top floors. These will average 2,300 square feet. At this point they are planned to be apartments but they have the flexibility to either change this to condos from the beginning or convert them to condos in the future.

The bottom floors will consist of 267 standard apartments. There will be separate elevators for the premium residences on top and the standard apartments below.

The parking podium will face the Crescent street side. There will be restaurant on top of the podium with its own dedicated elevator on Crescent.

All variances were approved at previous DRC meeting in 2014. Plan to break ground early 2017.

What does the retail space look like for 1138?

[Martinman]

That's interesting. I thought Selig had been unable to acquire all of the land they needed on that block. I guess that has now changed. This such an exciting time for Midtown.

[jwbab]

From where I was sitting I did not get a good look at the renderings but one will likely be posted with the official July DRC summary.

IIRC there were two retail areas fronting on the Peachtree side (east), divided by the residential entrance. The larger area of the two appeared to be on the south east corner. There was a third area (restaurant) on top of the parking podium overlooking Crescent (as mentioned above). I don't recall if there was any retail fronting Crescent at street level. I also don't recall any mention of total square footage so I assume it was 23,500 as stated in the meeting agenda.

[AtlantaMustang]

Originally Posted by jwbab

From where I was sitting I did not get a good look at the renderings but one will likely be posted with the official July DRC summary.

IIRC there were two retail areas fronting on the Peachtree side (east), divided by the residential entrance. The larger area of the two appeared to be on the south east corner. There was a third area (restaurant) on top of the parking podium overlooking Crescent (as mentioned above). I don't recall if there was any retail fronting Crescent at street level. I also don't recall any mention of total square footage so I assume it was 23,500 as stated in the meeting agenda.

There was one smallish retail space along the ground level of Crescent. Unfortunately was only able to stay long enough to see the large renderings of the project and the Crescent frontage. Was the same attention that was paid to the ground level of the SLS, which was amazing, paid to the ground level of 1138? If so these two projects will be amazing for that stretch.

[jwbab]

Originally Posted by Martinman

That's interesting. I thought Selig had been unable to acquire all of the land they needed on that block. I guess that has now changed. This such an exciting time for Midtown.

To be clear, they did not specifically say that Selig owned all that land during the meeting. However, looking at the Fulton GIS maps shows they own almost all of the parcels in that area.

[Atlanta3000]

Originally Posted by RocketSurgeon

I wonder what the prices will be in 98 14th? If they're higher than Aqua or 1010 then this is truly uncharted territory and there's a good reason to be skeptical. Calling condo demand "astronomical" is optimistic. It's a healthy market, but it's still easy to find two bedroom units in highrises for $300k. This might be a good test of how much of a luxury market Midtown really has. Sovereign has proven Atlanta can bear it, and 98 14th will obviously be the tallest in the city, so that's something.

Speaking of skeptical This is only a hunch, but I don't expect to see any big spec office projects for awhile. The BOA tower is indeed pretty empty, and I'm still not even convinced Tech's HPC will happen. All the big office projects have been in the suburbs, especially Cumberland where three or four are in progress. For Midtown, this cycle is clearly focused on residential.

Not sure about spec office happening, but there are several out of town companies looking at Midtown (2 that need 300K sqft), as well as, 4 Atlanta based companies needing 100 - 200K sqft each.

Tech's HPC is definitely going to happen. They are already 40% pre-leased and I believe the city is issuing bonds to finance the project and they are already approved. Not to mention this project is the top pick for GE's Atlanta Big Data hub which will employee between 250 - 450 employees. I actually work in this space and I am connected to the team at GE evaluating sites.

Speaking of Cumberland, a developer filed a DRI today for 600 apartments, 450K sqft of office and retail.

http://www.dca.state.ga.us/DRI/InitialForm.aspx?driid=2615

[shivtim]

Originally Posted by RocketSurgeon

Calling condo demand "astronomical" is optimistic. It's a healthy market, but it's still easy to find two bedroom units in highrises for $300k.

That's simply not true any more, at least not in Midtown. The prices have gone through the roof because demand is so high. A quick look at zillow shows there are only 4 two-bedroom highrise condos in midtown that are under $300K, and those are all in the Mayfair buildings. Just for comparison, the cheapest two bedroom unit in Viewpoint is only 982sqft and it's going for 400K. A 1200sqft unit in Viewpoint is $525K.

[shivtim]

Originally Posted by jwbab

To be clear, they did not specifically say that Selig owned all that land during the meeting. However, looking at the Fulton GIS maps shows they own almost all of the parcels in that area.

Trillist didn't say it was Selig, but one of the DRC members did.

[sbrptree]

I agree demand is high for quality "mid" price condos in Midtown. However be careful about pulling those numbers (i.e. like Viewpoint) and making broad price assumptions though....$525 K is a premium corner unit at VP with wrap around balconies. Other 2BRs at VP vary from $300s to mid $400s. Spire, Metropolis, Plaza are a bit lower...while 1010, 905, Aqua and Luxe higher. Condos are pretty specific by building, height and floorplan. My two cents. Still an under built condo market...IMO

[RocketSurgeon]

For $300k I was thinking of buildings like Parc Vue, 1280, or Mayfair like you said. The Novare towers are higher, and others higher still... but I'm thinking 98 14th could be at a whole new level like Sovereign, in the $1-3 million range, at least for upper floors. That's just based on the design and cache. I could be wrong.

I'm hopeful the market can handle ~400 ultra-luxury units--it's as good of time as any--but it will be a first for Midtown. Until now, everything has been mid-range except a couple botique buildings. I'm optimistic, but cautiously

[Keys]

Originally Posted by RocketSurgeon

For $300k I was thinking of buildings like Parc Vue, 1280, or Mayfair like you said. The Novare towers are higher, and others higher still... but I'm thinking 98 14th could be at a whole new level like Sovereign, in the $1-3 million range, at least for upper floors. That's just based on the design and cache. I could be wrong.

I'm hopeful the market can handle ~400 ultra-luxury units--it's as good of time as any--but it will be a first for Midtown. Until now, everything has been mid-range except a couple botique buildings. I'm optimistic, but cautiously

Just to provide a little recent data. Mayfair Renaissance is priced higher than the Mayfair Tower (two differently owned properties). My Mayfair Renaissance 2-bedroom condo of 1142 Sq Ft. appraised for 360k several months ago when I refinanced.

[skyscraper_inspector]

Originally Posted by TarHeelJ

Ok I'm anxious to see the new 1138 Peachtree renderings...anybody?

Not a great pic, but here's one.

[Ant131531]

How much space are at these meetings? Do a lot of regular people go there? It looks like a tiny room from that photo.

[ATLontheRISE]

Originally Posted by shivtim

Trillist didn't say it was Selig, but one of the DRC members did.

Thats correct. And they all agreed with the DRC member. I was really impressed with the committee. They were laser focused on the small details of each building. They spent a lot of time talking about valet parking issues, and making sure valet parking wasn't causing traffic jams. They spent a lot of time talking about activating the street level. At one point, one of the committee members instructed the folks for 98 14th street to get local restaurants. She said Atlanta is a local town, and big chefs wont get the job done.

I was really impressed with the 98 14th presentation. It was presented fantastically, and the committee loved it. SLS Hotel was exciting and offers the chance to bring a luxury boutique into the Atlanta market. That project was all about luxury, including the 56 condos that sit about the hotel. They think they can sell those condos fast. And I do too. 1138 was well received. The meeting ended at 8pm....long day for the DRC committee.

[skyscraper_inspector]

Originally Posted by Ant131531

How much space are at these meetings? Do a lot of regular people go there? It looks like a tiny room from that photo.

It's usually in a larger conference room, but this time it was in their smaller regular office board/conference room. It was hot as hell!

[Ant131531]

Originally Posted by ATLontheRISE

Thats correct. And they all agreed with the DRC member. I was really impressed with the committee. They were laser focused on the small details of each building. They spent a lot of time talking about valet parking issues, and making sure valet parking wasn't causing traffic jams. They spent a lot of time talking about activating the street level. At one point, one of the committee members instructed the folks for 98 14th street to get local restaurants. She said Atlanta is a local town, and big chefs wont get the job done.

I was really impressed with the 98 14th presentation. It was presented fantastically, and the committee loved it. SLS Hotel was exciting and offers the chance to bring a luxury boutique into the Atlanta market. That project was all about luxury, including the 56 condos that sit about the hotel. They think they can sell those condos fast. And I do too. 1138 was well received. The meeting ended at 8pm....long day for the DRC committee.

To be fair, this was the biggest Midtown DRC meeting in years in terms of the scale of the projects. It's not everyday you're getting the new 2nd tallest tower in Atlanta proposed.

[skyscraper_inspector]

Here are a few more renderings for 98 Fourteenth:







https://whatnowatlanta.com/74-story-tower-to-join-midtown-skyline/

[thepope117]

I'm cautiously excited to see what Selig has planned! I really hope it isn't just the dusting off of their original plans for that space 77 12th and 60 11th don't need more clones.