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

http://www.catalogler.com/article/held-to-ransom-over-pizza/
Atlanta-based bought a 0.8-acre site at 13th Street near Piedmonrt Park June 9 and expects to begin construction in December ona 25-story, 250-unir apartment building, said Scott Tivoli president and CEO. Tivoli paid $4.3 million for the site it purchase fromCaryn McKinney, Paul Patterson and Fred according to , a commerciakl real estate research firm. Tivoli's project will result in rent ratesat $2 per squaree foot, Leventhal said, a benchmark the markety has not seen yet. "Atlanta's been a funnyg city," he said. "Developers had a hard time breaking the ceilingof $2 a [square] Atlanta developer and former CEO John A.
Williame "probably came closest with Post Peachtree," Leventhall said. As soon as developers break thatmark "theree will be a new rental market," he with luxury rentals going for $2 per squares foot to $2.25 per square foot. "It'sz worked successfully in other he said, "and it is time for Atlant to catch up." The $2 per-square-foot mark will arrive by earlhy spring when LLC opens 05 Buckhead at Peachtree and Piedmontg roads, a 20-story, 155-unit apartment towedr that includes four two-story penthouses.
Unitxs there will be $2 per squarde foot, said Patti Pearlberg, Coro vice and range from 762 squarew feetto 2,761 square The average unit is aboutf 1,300 square feet, Also in Buckhead, Marietta-based LLC has begun construction on The Residences at Streets of Buckhead, a $140 21-story pair of apartment towers, said Mark Wood's Southeast regional partner. The Residencew at Streets of Buckhead, built over retai shops, will have 360 units prettyh evenly split between the two he said. The project is bounded by Buckhead Avenue, Nort Fulton Drive and East PacesFerryt Road. Rents there "will be of $2 per square Randall said.
Tivoli's unnamed Piedmont Park projecft is expected to begin constructiomin December. Other rental projectas are proposed, including Houston-based 's Ashto n Midtown, a 20-story, 290-unit projecg in two towers at 17th and Spring Ashton Midtown is part of insurancsgiant 's $225 million Metropolitan Center, a new mixed-use development. Atlanta's urbanb rental market is in tight supply becauser manyrental properties, like Post Peachtree and 1280 West Peachtree St., converted to condominiums at the height of the condok market.
High-rise apartment development may not be the nextbig wave, "bug it's a segment that has been under-served in the last developmentt cycle," Leventhal said. "There are very few luxury urbabrental properties." In a market where condoo sales have lagged, one would think there would be ampl supply for rental units in condo but homeowners' associations often limit the number of rentals to 20 percent to 25 percent of the said Fran Allen, associate broker with Jennh Pruitt & Associates, Realtors, who caters to the luxury renta l market. Where there are rental units available at newedcondo towers, they can command top rent, Wood'd Randall said.
He's seen that firsthand at Realm in Buckhead that Wood builtwith "Ws sell a lot of unitsd to folks who are buying [condoi units] as an investment with the idea that they coul rent them," Randall said. Renters of individual condi units are payingabout $2 a foot at he said. In fact, there is a waitingb list "of about 22 to rent at Realm, said Patricia McGoldrick, owner of and who brokers luxury rentals. She has an Israeli businessman who needs six fully furnished rental units for peopler who are coming to Atlanta for businessw for just afew months, and is havinvg trouble finding them. "There really is no supply of high-rise Randall said.
"Every rental high-rise that was out therde convertedto condo."