ATLANTA-The 5.7-acre location at 40 Peachtree Valley Road in the affluent Buckhead district was too good to pass up for multifamily developer Archstone-Smith. So the Englewood, CO-based REIT bought the 112-unit Peachtree Valley Apartments sitting on the site and now plans to tear down the property and rebuild an apartment community three times as large.
The Colorado developer paid $10 million or $89,286 per unit. On a land-cost basis alone, Archstone-Smith paid $1.75 million per acre, or about $40.28 per sf, for the 5.7-acre parcel. The planned new project will have 350 units. Area brokers tell GlobeSt.com the estimated hard construction cost of the project will be about $90,000 per unit or at least a total $32 million. Construction is tentatively scheduled to start in the fourth quarter.
Brokers Gary Algers of Carter and Jim Bennett of Signet Corp. negotiated for the sellers. Matt Hawkins of Cushman & Wakefield of Georgia Inc. represented the buyer. "The demand for infill locations, particularly in Buckhead and Midtown, continues to drive residential development and this was a great opportunity for our client," Algers says.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.