Atlanta Real Estate News category interest

Lalani Ventures has partnered with Exact Capital to build a mixed-use, mixed-income, 30-story residential tower at Underground Atlanta, a shopping and entertainment district located in the city’s Five Points neighborhood.

It marks the first new development at the site in decades and fulfills a vision to create a vibrant community in the heart of downtown Atlanta.

Last week, Invest Atlanta’s board voted to approve an inducement for a $40 million tax-exempt bond issuance to help finance 163 affordable units. These units will be part of a mixed-income tower that will ultimately contain about 405 units.

The $160 million high-rise will be developed by two minority-owned groups: Shaneel Lalani, CEO of Lalani Ventures andamp; Underground’s owner, as well as Craig Livingston and Michael Callaghan of Exact Capital. The project is expected to break ground by the end of next year.

The building’s affordable units will be available to households at or below 60 percent of the area median income and will share the same amenities as the others.

It’s not the first such project for Exact Capital. Skyline, a transit-oriented development mixed-income multifamily project on the Atlanta BeltLine, is across from the southern terminus station of MARTA’s Summerhill Rapid Bus Rapid Transit project and a new transit-oriented development at Bankhead MARTA station.

Mixed-use, mixed-income play a crucial role

Doug Ressler, manager of Business Intelligence at Yardi Matrix, told Multi-Housing News that mixed-use, mixed-income apartment communities play a crucial role in urban settings for several reasons:

Economic Diversity and Stability: These communities bring together residents from various income levels, fostering economic diversity. This can lead to greater economic stability and resilience within the neighborhood.

Social Integration: By integrating different income groups, these communities promote social cohesion and reduce economic segregation. This can enhance social networks and support systems among residents.

Access to Amenities and Services: Mixed-use developments often include residential, commercial, and recreational spaces. These provide residents with easy access to essential services, shops, and entertainment, reducing the need for long commutes and enhancing the quality of life.

Urban Revitalization: These developments can revitalize neglected urban areas by attracting investment and increasing property values. They can breathe new life into city centers and contribute to urban renewal.

Environmental Benefits: Mixed-use communities can help lower traffic congestion, reduce infrastructure costs, and improve air quality by reducing car dependency through better public transit and amenities access.

Enhanced Property Values: Mixed-income housing can increase property values in the surrounding area, benefiting residents and local governments.

Mixed-use, mixed-income communities are vital for creating vibrant, inclusive, and sustainable urban environments.

Public-private partnerships can work

Peter L. Curry, a commercial real estate and economic development lawyer at the New York firm Farrell Fritz, told MHN, “As proposed, this project would be an excellent example of a public-private partnership where the developer invests significant capital and leverages the city’s financial assistance to enhance an under-served community greatly.

“A key to its success will be that all units are contained in one building, and all residents have access to the same amenities. Publicly assisted residential projects where the developer can establish separate building entrances for the affordable unit renters or restrict services serve to divide the residents more than provide a true mixed-income experience. It will be interesting to see if the project can obtain the construction financing necessary to bridge the gap between the tax-exempt bond proceeds and the developer’s equity.”

Bob Lisauskas, principal at RDC, said “Mixed-use, mixed-income, multifamily projects play a significant role in the city’s commercial and social landscape. In California, there is a growing trend not only to offer a variety of residence types to accommodate a mix of demographics and affordability, but also a demand from residents to be adjacent to amenities the city offers.”

He added cities like San Diego have incentivized this growth, providing developers with municipal codes offering affordable housing density bonuses.

“On large-scale multifamily projects, it is scarce these days that a client approaches our firm with the idea of a single-use building that does not take advantage of affordable housing incentives. We often begin by identifying placemaking opportunities that benefit both the city and the project: a streetscape for outdoor cafes and shops to satisfy daily needs, an urban park, or a parklet that can enhance not only the city but the quality of life for the residents.”

Mixed-affordability plans must be done judiciously

Excelsa Properties Managing Director David Fletcher noted that “Attempts to engineer societies and communities through top-down incentives and county, state, and federal planning goals have proven blunt and inexact.

“Vacant retail units, community spaces used by houseless people instead of residents, and rent control policies that limit the supply and availability of affordable housing abound.

“Mixed use and mixed affordability plans are not one size fits all and must be used judiciously. When they work, mixed-use and mixed affordability revitalize communities and support hiring and economic growth. Unfortunately, not all work well,” Fletcher concluded.