02/14/2012

Developer plans to build 346,000 square feet of retail space in Atlanta

Developer Oliver McMillan Inc.   plans to redevelop the former Streets of Buckhead, a project that in recent years became a high-profile victim of the slow economy and the lending freeze.

Oliver McMillan submitted a request Feb. 9 for two commercial land development permits valued at $7.4 million and $7.8 million, according to the city of Atlanta. The permits would allow partial demolitions of unfinished construction on two separate parcels -- as well as utility work and streetscape improvements -- within the eight-acre project at Peachtree, East Paces Ferry and Pharr roads.

Almost a year ago, OliverMcMillan, backed by up to $300 million from the Boston hedge fund The Baupost Group  , reached a deal to acquire the beleaguered $1.5 billion luxury project. Carter had assembled several blocks within a former nightclub district along Peachtree, East Paces Ferry and Pharr prior to the market’s collapse. Carter was able to land two tenants: French luxury retailer Hermes and casual tavern Fado’s Irish Pub.  But, his Streets of Buckhead project stalled after the economy faltered, retailers struggled and financing froze.

OliverMcMillan wants to move away from Carter’s ambitions to create a “Rodeo Drive of the South” and preferrs instead to develop a mixed-use community that would fit seamlessly within the existing Buckhead Village.

In December, the developer filed new plans for Buckhead Atlanta with the state, calling for 370 residential units, 98,360 square feet of office space and 346,006 square feet of retail space. The first phase is scheduled for completion in 2014.

P4P Comment

Recessions can be a good time for new businesses and developments to get started. Competition is less and many investors are nervous. Property can be bought for bargain prices and held until more normal market conditions return and prices rise.