Integral Plans November Closing on Pricey Apartment Land Deal

ATLANTA-Rejected four months ago by Houston-based Hanover Co., a prime 1.7-acre, block-long parcel near Centennial Olympic Park is going for $4.4 million to locally based Integral Group, which plans to build a $47.5-million, twin-tower, 385-unit multifamily/retail complex on the site.

The land price equates to $2.59 million per acre or $59.42 per sf. Integral plans to close the deal in November with the seller, Copa Inc., a nonprofit consortium directing redevelopment projects near Centennial Olympic Park. A tentative ground-breaking is scheduled for first quarter 2002. The units are being built at a hard construction cost of $123,377 per unit.

The complex will offer a mix of studio apartments and two-bedroom units at so-far undetermined rents. A parking garage of undetermined size will link the two towers. Ground-floor retail will front Centennial Olympic Park Drive and Williams Street.

Hanover had planned to build a 20-story, 265-unit apartment building but backed out after it couldn’t strike a deal with the city on a development incentive package. Hanover was looking for about $3.1 million to pay for a parking garage, lighting and landscaping.

The Texas developer also decided the project wouldn’t be cost-effective if it had to set aside 15% of the units for low-income and moderate-income tenants stipulated by the Atlanta Development Authority.

Integral plans to reserve 20% of its units for low-income tenants. That would qualify the project for city financial assistance. Integral also will be applying for tax-allocation funds.

Integral has partnered with the city previously on Centennial Place apartments and the $130-million Historic Westside Village mixed-use development under construction in Vine City.

In a separate deal, Integral is partnering with locally based H.J. Russell & Co. to improve the 105-acre Carver Homes public housing community. H.J. Russell is one of the largest affordable home developers in the US.