Source: Atlanta Business Chronicle
Lately, there's a bit of a buying spree for the city's newest multi-million-dollar condos, offering sweeping views of the Atlanta skyline and an amenity terrace overlooking the Buckhead Village.
The recently completed $115 million project known as The Charles is on pace to sell out in the first quarter of next year.
Multiple units in the 20-story tower have sold over the past month, ranging from $1.4 million to $3 million, according to Fulton County property records. Up to 44 units are expected to sell by Thanksgiving, the developers said.
The rest should close by the end of March.
The Charles, which rises at Peachtree and East Paces Ferry roads in Buckhead, features 57 units. It was developed by Atlanta real estate firm The Loudermilk Cos. and its New York equity partner, Cross Lake Partners.
The tower was completed in late September.
Over the past several weeks, the project is validating demand in the upper-end of the Atlanta luxury condo market, where prices generally range from $700 a foot to $950 per square foot. Three penthouses at The Charles sold for just under $1,000 per foot — rarefied air in the Atlanta condo market.
Historically, it has proven difficult for developers to tap into a deep enough pool of buyers to sustain sales at an uber-luxury tower.
It will be interesting to see if other condo developers with proposed luxury towers can replicate the early success of The Charles. One thing going for the project is its location in the Buckhead Village, where hundreds of millions of new investment over the past decade has funded residential towers, shops and restaurants.
The Charles is located in walking distance of longtime Atlanta restaurants such as Chops, high-end retail in The Shops Buckhead Atlanta mixed-use development, and a shopping center anchored by Whole Foods Market.
While condos in the range of $1 million and up located in dense, walkable areas appear to be selling well, it remains to be seen whether condos in the $400,000 to $600,000 range can generate as much demand.
One challenge is the new supply of luxury, high-rise apartments. For now, it's possible to rent new apartments with hotel-like amenities for about what a mortgage on a $400,000 to $600,000 condo will cost.
Projects such as The Charles, on the other hand, are operating at the very upper end of the market. It was designed by Lord, Aeck Sargent architects. Brasfield & Gorrie was general contractor.
“In Buckhead there is a market for high-end luxury units in the right location, and I believe our project shows that,” said Robin Loudermilk, president and CEO of The Loudermilk Cos. “But, there is a ceiling.”
Brian Lu, vice president and director of development, said “The Atlanta buyers are sophisticated. Every stone gets turned. They are going to find the best value.”
The Charles is one of the few condo projects in Atlanta developed in the current real estate cycle.
In 2014, The Loudermilk Cos. completed Seventh Midtown, a nine-story, 20-unit luxury project at Peachtree and Seventh streets. The project sold out within weeks of construction finishing.