COVER STORY, JUNE 2004

DOWNTOWN RENAISSANCE
New developments make a splash in downtown Miami and Atlanta.
Dawn Pick Benson

Many central business districts in the Southeast are booming. As residents in suburbia have begun looking to move back downtown, numerous new developments are currently underway in cities like Atlanta and Miami. As a result, residential development is burgeoning in both of these downtown markets, and each city has a major office project underway as well.

Miami

Many of Miami’s oldest downtown neighborhoods, once left dormant after residents moved to suburbia, are waking up again and experiencing unprecedented growth. “Over the last 5 years, suburbia has started to look east again,” says Vicky Garcia-Toledo, a land use lawyer at Miami law firm Bilzin Sumberg Baena Price & Axelrod. As a result, she says, people are looking to come back into old neighborhoods such as Allapattah, Wynwood/Edgewater and the Miami River area.

“Exciting things are happening in Wynwood/Edgewater,” says Garcia-Toledo. Currently, there are 28 new projects worth approximately $1 billion being built in this area. In Edgewater, smaller apartment buildings are being replaced by high-rises, and Wynwood is experiencing new construction as well as conversions of old buildings into lofts.

A.R. Development Group is constructing Platinum, a 116-unit, high-end condominium tower on 30th Street in Miami.

New developments in the Wynwood/Edgewater area include Ice, a 36-story, 100-unit condominium tower on Biscayne Bay and 32nd Street. Saxon Development is developing this glass-walled waterfront tower, which is currently under construction. According to Garcia-Toledo, units are selling in the $400,000 range. A.R. Development Group is constructing Platinum, a 116-unit, high-end condominium tower on 30th Street. The 22-story project is expected to deliver in fall 2005.

In Allapattah, The University of Miami is developing its new 15-story Clinical Research Building. The $74 million, 338,000-square-foot facility will include an attached 11-level parking garage.

Garcia-Toledo says there are also at least 20 residential projects occurring along the Miami River. “The Miami River area has been dormant for years, but many people seem to have a real desire to move back toward the river,” she says. One project that’s attracting residents to the area is Neo Vertika, a $158 million condominium tower currently under construction. The 36-story, 443-unit building is developer Lissette Calderon’s second project on the river. Neo Vertika will feature “splits” — two levels of vertical living spaces with 20-foot ceilings and floor-to-ceiling windows that frame views of the Miami River, Biscayne Bay and downtown Miami. “Many people are finding it exciting to be a part of the change in this area,” says Garcia-Toledo.

Cabi Developers is developing Everglades on the Bay, a condominium development in downtown Miami. Fullerton-Diaz is the architect for the project, which will also feature retail space.

Other downtown Miami developments include Everglades on the Bay, a two-tower, 780-unit condominium development at 244 Biscayne Blvd. directly across from Bayfront Park.

According to Garcia-Toledo, downtown Miami is seeing unprecedented growth for several reasons. One reason is that empty nesters from suburbia are now choosing to move back into the inner neighborhoods of the city. Another incentive for residents to relocate downtown is that it allows them to be closer to their jobs and spend less time on the road traveling to and from their workplaces. There is also an influx of individuals who live in northern U.S. climates, as well as international residents, who are looking for second homes in Miami. These groups, says Garcia-Toledo, are especially attracted to higher-end, bay front developments. She also believes that the unique design and amenities offered in many of Miami’s condominiums are assets. “The appointments in these buildings are fabulous,” she says. “Many include marble, granite and very exotic wood finishes.”

Looking into Miami’s future, Garcia-Toledo sees a bustling 24-hour downtown. “For many years, the downtown area rolled up its sidewalks at 5 p.m.,” she says. This is changing as a result of the new residential developments, which in turn will create a need for retail that wasn’t there before. “These projects are bringing people back to downtown so that at the end of the day, downtown does not go to sleep anymore.”

Atlanta

The Georgia Aquarium is part of Atlanta’s downtown improvement plan.

Many of Atlanta’s residents are saying goodbye to long commute times and traffic gridlock. Instead of living outside of the city and commuting to work, many are now looking to relocate to downtown residential locations. This desire is helping to fuel an interest in new downtown residential development. “We’re currently seeing a resurgence in residential development due to a dearth of housing downtown,” says Greg Kindred, vice president at Lincoln Property Group. “With the access, amenities and current traffic congestion, Atlantans are again considering downtown and a more urban lifestyle.” Kindred also notes that downtown Atlanta offers some of the best office space in the metro area in terms of quality and affordability.

Craig Flanagan, senior vice president at Colonnade Properties, says the office market in Atlanta’s CBD is seeing an increase in interest from tenants located in heavy traffic corridors, specifically in the area just outside of Interstate 285 between Interstates 75 and 85. As leases expire, he says tenants are considering either moving further out or relocating in-town. “You cannot contemplate trends for downtown office space without considering the impact the growing residential base and attractions like The World of Coca-Cola and [the under-construction] Georgia Aquarium will have on recruiting efforts for downtown business,” says Flanagan. “As traffic gridlock builds in other submarkets, many companies perceive downtown as an attractive opportunity to either remain and expand their business or relocate from other submarkets.”

Recently, Central Atlanta Progress embarked on a comprehensive process to devise a plan for intelligent growth in downtown areas. This process involved downtown stakeholders from various backgrounds and disciplines that were all focused on seeing the area reach its potential. “This process has resulted in a comprehensive master plan for the area, which will undoubtedly attract new development and advance the natural strengths of the area,” Kindred says. “Atlantans overwhelmingly desire to have a strong, vibrant central business district, and recent leadership is moving to meet the challenges and make that goal a reality.”

The Integral Real Estate Group and Destiny Development are developing Sweet Auburn Village, a $30 million mixed-use development in the Sweet Auburn Avenue corridor of Atlanta.

Currently, there are several planned residential and mixed-use projects in the Sweet Auburn and Centennial Olympic Park districts of downtown. Sweet Auburn Village will be a $30 million mixed-use development with 150 residential rental units, 50,000 square feet of office space and 52,000 square feet of retail, restaurant and entertainment space. Located in the Sweet Auburn Avenue corridor between the CBD and Martin Luther King Jr.’s tomb and birthplace, Sweet Auburn Village is being developed by The Integral Real Estate Group and Destiny Development, which is an entity created by Big Bethel AME Church in Atlanta.

The Integral Group and the Atlanta Housing Authority are developing Centennial Park East, a $45 million, 250,000-square-foot mixed-use project at the intersection of Alexander Street and Centennial Olympic Park Drive.

Centennial Park East is a $45 million, 250,000-square-foot mixed-use project at the intersection of Alexander Street and Centennial Olympic Park Drive. The project will include 31,200 square feet of retail space, 200 housing units totaling 210,000 square feet and 426 parking spaces on 2.4 acres. The developers are The Integral Group and the Atlanta Housing Authority. The Gellerstedt Group recently announced plans to develop a $50 million mixed-used condominium tower featuring 250 housing units and 15,000 square feet of retail space. The development will be located across from the future site of The World of Coca-Cola near Centennial Olympic Park, and construction will start in early 2005.

Peachtree Portal is a high-rise mixed-use project by The Novare Group on 3.75 acres immediately adjacent to the Civic Center MARTA (Metropolitan Atlanta Rapid Transit Authority) station. Plans include two 500-unit condominium towers atop a 3.4-acre platform that will contain approximately 2,000 parking spaces, 30,000 square feet of retail, and a 100-room hotel along West Peachtree and Alexander streets.

Barry Real Estate Companies will soon start construction on Southern Company Center at Centennial Hill, a $50 million, 260,000-square-foot office building that will serve as the headquarters for the Southern Company. The 14-story building will be located on the southwest corner of West Peachtree and Alexander streets in close proximity to Centennial Olympic Park, as well as the future sites of the Georgia Aquarium and The World of Coca-Cola.

“Downtown Atlanta is bursting with momentum,” says A.J. Robinson, president of Central Atlanta Progress. “Our lease rates are as good as you are going to find right now. In terms of office space, this may be the bargain market today, but you can bet that will change, especially with the growth we see on the drawing board.”

Robinson also believes that the wave of mixed-use projects that are currently filling downtown Atlanta will drive peripheral development such as retail. He explains, “The downtown market is unique and we believe that this, coupled with our amenities, will make Atlanta tomorrow’s growth market.”

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