The Atlanta Business Chronicle recently reported that the 1065 Midtown Apartments, with occupancy of nearly 100 percent, will convert to condos in the Loews Hotel. According to the report, prices continue to climb on the Atlanta real estate market for intown purchases which is forcing the hand of TriBridge Residential to covert 52 apartments at the top of the Loews Atlanta Hotel.
Rent here has maintained between $2,500 and $7,000 per month, but now that Daniel Corporation, the original developer of 1065 Midtown, sold to TriBridge, renovations and conversions will begin as tenants’ leases start to expire.
Prices are expected to begin at $600,000, up 14% from 2006-2007 levels.
Atlanta Condo Market
The condo market in Atlanta has improved since the housing bubble of 2008, something that is fueling the decision to convert the units that sit atop of the Loews Hotel. As the ABC reported, “Resale prices for intown condos surged 71 percent in the last four years, from an average of $140,000 a unit to $240,000 a unit."
This is a remarkable development as just a few years ago, high rise condo development had completely shut down in the Atlanta real estate market. Now that lenders are seeing their increase in value, they have relaxed restrictions on condo financing, and thus the Loews project has sparked the latest big development in the Atlanta condo market.
What to Watch For
According to Realtor.com, Atlanta is a favorite U.S. city for household growth and homes sales growth. And Atlanta is still affordable despite widespread predictions that prices would rapidly increase throughout the Atlanta market. With employment rising in Atlanta that provides incomes to residents on par with the rest of the country’s major cities, it’s no wonder the Atlanta condo market has rebounded and will inevitably grow in size from 2008 levels.
Now townhomes, small condos, and high rise condos are all making a comeback in Atlanta and surrounding cities and suburbs. Investors will be pleased at their increasing value over the short term, and those looking for Atlanta real estate who are entertaining condos will be pleased with their diversity in size and price, overall affordability, location, and eventual resell value.
Are you interested in learning more about the Atlanta condo market? Get in touch with The Atlanta Homes Team today!