Atlanta Redevelopment Secures $73M
The third phase of this mixed-income project will include more than 150 units.
Pennrose, Atlanta Housing, the City of Atlanta and Hunt Cos. have closed on a financing package for the third phase of a multi-part mixed-income multifamily redevelopment in Atlanta. The project, Herndon Square, taking place at the former Herndon Homes public housing community, has secured $73 million in financing for its Phase III construction.
Phase III of Herndon Square is slated for completion in the second quarter of 2027. The site consists of more than 12 acres on the city’s Westside along Northside Drive. It is located approximately 1 mile north of the Atlanta Falcons’ new Mercedes Benz Stadium.
The third phase will include 178 one-, two- and three-bedroom units of mixed-income housing. It is set to feature 27 market-units and 151 affordable Low-Income Housing Tax Credit homes available to families at 30 to 80 percent of the Area Median Income. Seventy-one of the LIHTC units will be supported by Project-Based Vouchers through the Atlanta Housing Homeflex program.
On-site amenities will include supportive services, a fitness center, a computer business and learning center, a community room, an interior courtyard green space, an outdoor covered picnic area and an enclosed parking deck. The sustainable project will be designed to meet EarthCraft Multifamily and ENERGY STAR certification standards.
The Phase III funding was provided by several public and private partners including the Georgia Department of Community Affairs, the Urban Residential Finance Authority of the City of Atlanta, Atlanta Housing, Truist Bank and Grandbridge Real Estate Capital. The Atlanta Housing Board of Commissioners approved $15.9 million in financing for Phase III in July.
Master plan highlights
The redevelopment will be integrated with the adjacent Science Square, a bio-health and life science campus developed by the Georgia Institute of Technology and Trammell Crow Co. The project is anticipated to create about 5,000 new jobs.
Herndon Square is also located near several other commercial centers and community amenities. Downtown Atlanta, with strong multifamily fundamentals, is less than 2 miles away. Working in conjunction with Science Square, the goal is for Herndon Square to be a national model for an equitable workforce/affordable housing and bio-health innovation district.
The master plan for the multi-phase project calls for a total of: 379 multifamily units across two mid-rise buildings; 97 senior units that were completed in Phase I; 32 townhomes and a commercial-use building with a grocer along Northside Drive. Critical infrastructure improvements, including a redesigned street grid, modernized streetscapes and updated storm, water and sewer systems, are also part of the overall project.
The capital upgrades alongside the project are designed to improve pedestrian and vehicular safety, while also creating a sense of place within Herndon Square and the surrounding communities.
Redevelopment history
Construction on Herndon Square Seniors, the first phase of Herndon Square, began in January 2020 for seniors 62 and older earning up to 60 percent of AMI. Of the 97 one- and two-bedroom apartments, five have ADA-compliant accessibility features and two are set aside for residents with hearing or visual impairments.
The property is located at Cameron M. Alexander Boulevard and Northside Drive and offers services to residents including social gatherings, enrichment classes and health and nutrition courses. Herndon Square Seniors opened in June 2021.
The project partners held a groundbreaking for Phase II in March 2024. The second phase of the project is on track for completion in spring 2026, a Pennrose spokesperson told Multi-Housing News. The second phase includes 201 mixed-income apartments with one-, two- and three-bedroom floorplans.
Phase II, upon delivery, will feature a mix of 31 market-rate apartments and 170 affordable LIHTC units for individuals and families at 30 to 80 percent of AMI. Eighty of the LIHTC units will also be supported by Project-Based Vouchers through Atlanta Housing’s Homeflex program.
