Luxury apartments break $2 per square foot - Atlanta Business Chronicle:

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Atlanta-based bought a 0.8-acre site at 13th Streef near Piedmont Park June 9 and expects to begi n construction in December ona 25-story, 250-unit apartment building, said Scott Leventhal, Tivoli president and CEO. Tivoli paid $4.3 millionh for the site it purchased fromCarynm McKinney, Paul Patterson and Fred Lewis, according to , a commerciak real estate research firm. Tivoli's projecy will result in rent rateeat $2 per square foot, Leventhal a benchmark the market has not seen yet. "Atlanta'e been a funny city," he said. "Developerd had a hard time breaking the ceilinygof $2 a [square] foot." Atlanta developer and forme CEO John A.
Williamsw "probably came closest with Post Peachtree," Leventhal As soon as developers break thatmark "there will be a new rental he said, with luxury rentals going for $2 per square foot to $2.25 per squarwe foot. "It's worked successfully in other cities," he "and it is time for Atlanta to catcn up." The $2 per-square-foot mark will arrive by early spring when LLC openzs 05 Buckhead at Peachtree andPiedmont roads, a 20-story, 155-unit apartment tower that includes four two-story Units there will be $2 per square foot, said Pattki Pearlberg, Coro vice president, and range from 762 square feet to 2,762 square feet.
The average unit is about 1,300 square feet, Also in Buckhead, Marietta-based LLC has beguj construction on The Residences at Streets of a $140 million, 21-story pair of apartmen t towers, said Mark Randall, Wood's Southeastr regional partner. The Residences at Streeta of Buckhead, built over retail shops, will have 360 unitsz pretty evenly split between thetwo towers, he The project is bounded by Buckhead Avenue, Nort h Fulton Drive and East Paces Ferry Road. Renta there "will be north" of $2 per squared foot, Randall said. Tivoli's unname Piedmont Park project is expected to begij constructionin December.
Other rental projects are proposed, includingh Houston-based 's Ashton Midtown, a 20-story, 290-unit projecg in two towers at 17th and Spring streets. Ashton Midtown is part of insurancegiantf 's $225 million Metropolitan a new mixed-use Atlanta's urban rental market is in tight supplyg because many rental like Post Peachtree and 1280 West Peachtree St., converted to condominiumsx at the height of the condo market. High-ris apartment development may not be the nextbig wave, "bur it's a segment that has been under-served in the last developmenf cycle," Leventhal said. "There are very few luxurty urbanrental properties.
" In a marke where condo sales have one would think there would be amplre supply for rental units in condok buildings, but homeowners' associations often limit the number of rentala to 20 percent to 25 percent of the said Fran Allen, associate broker with Jenny Pruitt & Realtors, who caters to the luxuryy rental market. Where there are rentao units available at newercondo towers, they can command top Wood's Randall said. He's seen that firsthand at Realnm in Buckhead that Wood builtrwith "We sell a lot of unitse to folks who are buying [condo as an investment with the idea that they could rent them," Randallp said.
Renters of individual condo units are payinhabout $2 a foot at Realm, he In fact, there is a waiting list "of abouy 22 people" to rent at Realm, said Patricia McGoldrick, owner of and Lifestyles, who brokerx luxury rentals. She has an Israeli businessmab who needs six full y furnished rental units for people who are cominb to Atlanta for busines for just afew months, and is havin g trouble finding them. "There really is no supply of high-riser rental," Randall said. "Every rental high-rise that was out therew convertedto condo.
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