Partner Sought for Mixed-Use Atlanta Project
A local developer is seeking an equity partner for the construction of a mixed-used project in Atlanta’s hot Midtown submarket.
Selig Enterprises, a century-old company, has mapped plans for a $470 million project at 1105 West Peachtree Street NW that would encompass three buildings: a 552,000-square-foot office tower, a 178-room hotel and a building with 64 luxury residential condominiums.
The project requires $170 million to $190 million of equity. Selig itself would kick in $5 million to $40 million and wants to line up a partner to supply the remaining $150 million to $165 million. The financing package would be rounded out with a five-year construction loan of $280 million to $300 million.
The developer prefers to work with a single equity partner, but would consider separate partners for the office, hotel and residential components. Likewise, it prefers to line up a single lender, but could divvy up the assignment. Cushman & Wakefield is handling both the equity and debt searches.
Construction is slated to kick off in the first quarter of next year and finish by the third quarter of 2022. The projected market value of the property upon completion is roughly $650 million. The 3.6-acre site is at 12th Street NE in the Midtown submarket, about two blocks north of the Midtown Transit Station.
The office component is already 40% pre-leased. The hotel, which would be the submarket’s first new boutique luxury hotel in more than a decade, is slated to be called The Epicurean Atlanta and would be part of Marriott International’s Autograph Collection brand.
The complex would also include some 25,000 sf of retail space, divided between the office and residential buildings, as well as 1,440 parking spaces. The 27-story office building will be designed for potential expansion by four floors totaling 110,000 sf.
The marketing pitch emphasizes the solid fundamentals of the Midtown submarket, which has seen strong office-rental demand from technology companies in recent years. Office space is almost 95% occupied, with virtually no large blocks of space available. The average Class-A rent of $36.11/sf is the highest in the city. The marketing campaign also touts the submarket as an untapped market for large condos. The units could also be converted to apartments.