ATLANTA-A 93-year-old, Downtown commercial property will shortly start a new life as a student housing community on the corner of Peachtree Street and Upper Alabama Avenue. Locally based Place Properties LP has acquired the 16-story Howard Johnson's Suites Hotel at Underground Atlanta for $9 million and plans to convert the building into a 280-bed student housing community. The seller was Birmingham Asset Management Inc. of Birmingham, AL.
Place is investing $4 million in renovations, bringing the effective cost of the property to $13 million. The hotel will be renamed University Place at Underground. The all-suites hotel was built in 1990 atop the original five-story building constructed in 1913. Place plans to shut down the hotel within the next 30 days and begin renovations immediately, says Bob Clark, the company's chief financial officer.
"We are very pleased with this project's fantastic proximity to the Georgia State University campus," Clark says. "The acquisition and renovation of University Place at Underground is a part of our strategy to grow our student housing portfolio." He adds the company "remains focused on offering high-quality student housing to colleges and universities experiencing high enrollment surges."
Clark says leasing activity will begin this spring with expected occupancy in time for the summer semester at Georgia State University. The first-floor of the building will remain street-front retail. The second floor will be modified to include an activity area, community kitchen, game lounges and a computer-study lounge. A self-serve laundry facility will be provided on the basement level.
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