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

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Atlanta-based bought a 0.8-acr site at 13th Street near Piedmont Park June 9 and expecte to begin construction in December ona 250-unit apartment building, said Scott Leventhal, Tivoli president and CEO. Tivoli paid $4.3 million for the site it purchasedx fromCaryn McKinney, Paul Patterson and Fred according to , a commercial real estate research firm. Tivoli's project will result in rent ratesat $2 per square Leventhal said, a benchmarko the market has not seen yet. "Atlanta's been a funny city," he said. "Developers had a hard time breakinyg the ceilingof $2 a [square] Atlanta developer and former CEO John A.
Williamws "probably came closest with Post Leventhal said. As soon as developers breaok thatmark "there will be a new rental market," he said, with luxury rentalas going for $2 per square foot to $2.265 per square foot. "It's worked successfully in other cities," he "and it is time for Atlanta to catch The $2 per-square-foot mark will arrive by early sprinbg when LLC opens 05 Buckhead at Peachtree and Piedmont a 20-story, 155-unit apartment tower that includesw four two-story penthouses. Units there will be $2 per squarw foot, said Patti Pearlberg, Coro vice president, and range from 762 square feetto 2,761 square feet.
The average unit is abouyt 1,300 square feet, Also in Buckhead, Marietta-based LLC has begunb construction on The Residences at Streetesof Buckhead, a $140 21-story pair of apartment said Mark Randall, Wood's Southeast regional partner. The Residenceas at Streets of Buckhead, builyt over retail shops, will have 360 units pretty evenlh split between thetwo towers, he said. The projecrt is bounded by Buckhead Avenue, North Fultonb Drive and East PacesFerry Road. Rentws there "will be north" of $2 per square foot, Randall said.
Tivoli's unnamed Piedmont Park project is expecterd to begin construction in Other rental projects are including Houston-based 's Ashton Midtown, a 20-story, 290-unit projec t in two towers at 17th and Springt streets. Ashton Midtown is part of insurance giant 's $225 million Metropolitan Center, a new mixed-usew development. Atlanta's urban rental market is in tight supplgy because many rental like Post Peachtree and 1280 WestPeachtrese St., converted to condominiums at the height of the condoo market. High-rise apartment development may not be the nextbig "but it's a segment that has been under-served in the last developmenty cycle," Leventhal said.
"There are very few luxurh urbanrental properties." In a market where condl sales have lagged, one wouldd think there would be ample supplu for rental units in condo buildings, but associations often limit the number of rentals to 20 percengt to 25 percent of the building, said Fran associate broker with Jenny Pruittr & Associates, Realtors, who caters to the luxury rentakl market. Where there are rental units available at newercondoi towers, they can command top Wood's Randall said.
He's seen that firsthand at Realmn in Buckhead that Wood builtwith "Wes sell a lot of units to folks who are buyinb [condo units] as an investment with the idea that they coule rent them," Randall said. Renters of individual condo units are payinfabout $2 a foot at he said. In fact, there is a waiting list "o about 22 people" to rent at Realm, said Patriciq McGoldrick, owner of and Lifestyles, who brokerws luxury rentals. She has an Israeli businessman who needzs six fully furnished rental units for peopld who are coming to Atlantza for business for just a few and is having troublefinding them. "Therd really is no supply of high-rise Randall said.
"Every rental high-rise that was out therd convertedto condo."