June 24, 2021
A Texas-based real estate developer has paid $19 million and secured a construction loan for a Midtown high-rise apartment site.
The Hanover Co. purchased a former Boys and Girls Clubs of America location on West Peachtree Street, according to Fulton County property deeds. It also landed a four-year, $92 million construction loan from Wells Fargo & Co. Hanover ‘s capital partner is United States Automobile Association (USAA).
Hanover will begin developing the tower soon, sources close to the project say.
Pope & Land Enterprises Inc., an Atlanta real estate firm, sold the development site.
What it means: Lenders continue underwriting high-rise rents at levels they believe new projects can achieve. Capitalization rates also remain aggressive. Developers are willing to pay high prices for prime Midtown real estate. In April, Greystar purchased the former Big Brothers Big Sisters headquarters at nearby 1382 Peachtree Street for $305 per land square foot, a common real estate metric. Hanover is paying $381 per land square foot for just a slightly larger property. Rockefeller Group also paid $25 million for the 1.1-acre development site.
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