A New York commercial real estate firm has started the process to rezone a nightclub in Buckhead to make way for an apartment tower.

Tidal Real Estate Partners filed an application with Atlanta's planning department this month to make way for a 403-unit apartment tower with a 500-vehicle garage. The development is scheduled to go before the Zoning Review Board Feb. 2, according to the application.

Tidal plans to tear down the building on the site, the Pharr Road Emporium in the Buckhead Village District, which is leased to multiple tenants including the Aura Bar & Lounge and School of Rock.

Tidal is expected to ask for $2,800 monthly rent on one-bedroom units, $4K per month on two-bedroom units and $5,200 per month on three-bedroom units, the Atlanta Business Chronicle previously reported.

The ABC reported the building, projected to deliver in 2025, was slated for 414 units, but Tidal's planning application indicated a slightly smaller project. Tidal didn't respond to Bisnow's request for comment.

As of the third quarter, Buckhead had some of the highest average rents in the city at more than $2,300 per month, according to Haddow & Co. Midtown is the only submarket achieving higher average monthly rents for apartments, at more than $2,600 per month.

Tidal is just adding to the slew of new, luxury apartments developers in Metro Atlanta are unleashing, which means increased competition for renters, Place Properties CEO Cecil Phillips told Bisnow. Roughly 11,800 units were under construction as of the third quarter, according to Haddow.

“Lots of units in Atlanta are coming online in 2023. All, or practically all, will be targeted at the 1% who can afford the rents that must result from continuing high, and rising, construction costs,” Phillips wrote in an email. “You will see lots of concessions and perhaps some rent compression for the new units, which will trickle down to existing Class-A units.”

Tidal, which is making its debut in Atlanta with the development, developed the Perry Lane Hotel in Savannah, and owns mixed-use projects in Brooklyn at 320 and 360 Wythe and the condominium and hotel project called The Boerum, according to its website. The firm also is developing a 282-room hotel in Downtown Nashville with Flank GP Fund I, which is set to deliver in 2024.

CORRECTION, DEC. 20, 7 P.M. ET: An earlier version of this story reported that Tidal owned the Perry Lane Hotel in Savannah. It sold the hotel in 2021. The story has been updated.