JV Starts $40M Redevelopment of Former Atlanta Co-Op
- Sep 16, 2020
The Benoit Group, Atlanta Housing and Invest Atlanta have started the redevelopment of the former co-op London Towne Houses in southwest Atlanta. The Benoit Group purchased the asset out of foreclosure for $5.5 million, public records show. The $40 million renovation project designed by Pimsler Hoss Architects will transform it into a 200-unit mixed-income community with long-term affordability status.
Situated on more than 17 acres at 308 Scott St. SW, the property consists of 31 buildings developed in the 1960s. Upon redevelopment completion, 180 units will cater to households earning at or below 60 percent of the area’s median income, while the remainder will be market rate.
The community’s renovation will also include new infrastructure, interior and exterior upgrades such as new energy-efficiency unit amenities and outdoor living spaces, as well as the addition of a new clubhouse with a media center, fitness center and clubroom. All residents will be relocated during the redevelopment process and they will be able to return to their units in approximately nine to 12 months.
The community is 7 miles west of downtown Atlanta, just east of The Perimeter. There are several restaurants and shops nearby, alongside Route 139, including West Ridge Shopping Center.
Project financing includes funds from public and private sources. Atlanta Housing provided a $1.1 million construction loan and a $6.3 million bridge loan, while Urban Residential Finance Authority (Invest Atlanta) issued $19.6 million in multifamily tax-exempt bonds. Both entities also financed a $166 million mixed-income project built on the site of the former Herndon Homes public housing community.
As for the private funds, PNC Bank National Association provided approximately $20 million in federal and state tax credit equity. Additionally, the property was financed with a $21.9 million first priority construction/permanent FHA-insured mortgage from Berkadia Commercial Mortgage.