A $400 million mixed-use office conversion is being sought in Atlanta

A 1960s office tower in downtown Atlanta is set to be converted into an office space for $400 million by Invest Atlanta and an investor group that includes Integral Group, the Atlantic Companies, T. Dallas Smith & Company and Lalani Ventures – to be converted into a residential building.

The group, known as Two Peachtree Partners, could convert the 40-story office building at 2 Peachtree Street and adjacent properties at 1 Peachtree and 14 Marietta into 600 residential, retail and office units, Atlanta Business Chronicle reported.

The redevelopment plan calls for more than 200 affordable apartments located just steps from the Five Points MARTA station.

The project would be funded through a combination of private and public sources, including up to $250 million in low-interest loans from the U.S. Department of Transportation. Invest Atlanta is the development authority of the City of Atlanta.

The project’s $400 million price tag has raised concerns among City Council members, particularly when compared to new construction. But the uniqueness of the renovation justifies the price, said Eloisa Klementich, president of Invest Atlanta.

“To build something equivalent would take a long time,” said Klementich. “We want new things; we want to be renovated; and we want to be converted. We must be a city that embraces what we have and considers all options when it comes to development.”

Although expensive and complex, the conversion of 2 Peachtree, built in 1966, into a modern mixed-use building is seen as a critical step in meeting Atlanta’s growing housing and development needs.

“Given the city’s ambitions for what it wants the building to look like, the cost may not be that surprising,” said Geoff Koski, president of KB Advisory Group, who is not involved in the project.

“These things are expensive,” he told the outlet. “For this reason, mid-century office-to-residential conversions are not occurring more frequently, in Atlanta or elsewhere.”

—Andrew Terrell

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