Post Properties Moving Ahead with Midtown Tower
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Two Atlanta apartment towers are taking steps toward becoming reality. Post Properties filed for permits to begin construction of Post Midtown Millennium Apartments, a 356-unit apartment tower at 33 11th St, right next to the Atlanta Federal Reserve building. According to the permit, Brasfield & Gorrie has been tapped to build it. Separately, Atlanta Realty Partners has filed permits with the City of Atlanta to begin site work for its Azure on the Park, a 25-story apartment tower with some 330 units at 1020 Piedmont Rd, sandwiched between 10th and 11th streets overlooking Piedmont Park.
Last month, Post CEO David Stockert told investment analysts during a quarterly call that Atlanta was targeted for a $450M development pipeline. “Atlanta is our strongest market with a still modest level of overall housing production, and we are excited about the opportunity here,” David said.
David is bullish on the second phase of the Post Alexander high-rise project in Buckhead as well, saying the firm will likely achieve the rents it underwrote when penciling out the project. “We underwrote $2.15 a foot, which is about $1,800 nominal rents, which is very similar to what we are getting currently at the five-story mid-rise product next door (pictured here) that's obviously much older and doesn't have the view,” he told analysts. “So we feel good about that and we will know this summer when we open it.” He also predicts Atlanta's overall multifamily pipeline won't have a “dramatic” effect on rents going forward. “We'll probably see more supply heading into ‘16, ‘17, and that may modestly impact the rent growth, but it’s not looking dramatic.”