This Week in Real Estate: Atlanta mayor’s office releases new terms for $5 billion dollar development of the Gulch and more

by Zachary Wright

Mayor Keisha Bottom’s office released new terms for a proposed public financing package for the $5 billion development of downtown’s Gulch, which included removing a controversial extension of a special taxing district. After re-advising the proposal, the new terms will reduce its dependence on bond financing and reduce long-term borrowing costs, including interest, that tax dollars would have covered.

CIM Group, the developers behind the expensive development, would not be able to tap into future tax revenue created by the site for as long — requiring CIM to build faster in order to create the future tax revenue it can use to regain some of the project costs.

In an email, Richard Ressler, CIM Group chairman, said taxpayers face no financial risks. “Taxpayers will pay nothing for this development and will benefit them in the near-term through public benefits package and in the long-term through the future tax revenues that this project will create.”

However, CIM plans to build a variety of buildings from office, housing and retail spaces over parking lots and railroad tracks between Mercedes Benz Stadium and the Five Points MARTA station.

Some critics said the new changes do not match the commitment of future tax dollars that would benefit the public — including affordable housing, job training, an economic development fund and a future fire station.

In other real estate news:

  • Gables Residential plans to debut their newest creation, The Ashley, in the next few weeks in Buckhead. At 15 stories tall, the Ashley boasts a solar canopy and the largest elevated pool. In this mixed-use apartment, potential residents will be able to choose from studios to large townhouses. Prices will range from $1,356 to up to $7,000 a month. In exchange for the high prices, residents are able to use the pool, the rooftop dog park, courtyard, movie wall and sky lounge. The units also spare no expense with customizable closets, wine fridges, stainless steel appliances and quartz countertops.
  • Grubb Properties finally won approval by the Dunwoody Planning Commission after two years of re-planning. The commission will allow Grubb Properties to construct 900 condos — 300 less than their original proposal. The new redevelopment will replace three buildings: 41, 47 and 53 Perimeter Center. It will also include 500,000 square feet of office space, retail and a three-acre park in the middle of the site.
  • Temple Square developers have received a financing loan to create transit-friendly townhome communities in Historic Downtown College Park. Developers plan to break ground in December and it is expected to be complete in the second half of 2019. Temple Square will consist of 17 homes, ranging from 1,850 to 2,500 square feet, and prices will range from the low to high $300,000s. The total cost of Temple Square is predicted to be $4.8 million.
  • The 320-unit multifamily development NOVEL Perimeter by Crescent Construction was finished. This apartment contains a mix of one-, two-, and three-bedroom units with floor plans between 723 to 1,500 square feet. Amenities include a coffee a bar, a 2,500-square-foot fitness center and a salt water pool.
  • Berkshire Hathaway HomeServices Georgia Properties’ CITY HAUS announced their final plans for No.2 Opus Place. The 53-story residential tower will now also include 214,000 square feet of high-end commercial space. Residential units will now start on the 18th floor of the building. Interested buyers will be able to choose from 23 different floor plans when construction is complete.