Why aren't there any new condos being built in Midtown?

[ATL Golfer]

There is plenty of demand for condos. Nothing to do with that.

The answer is "Highest and Best Use".

You make more money with Apartments vs Condos in this market. Turns out developers, like most people, are interesting in maximizing the $$$ they can make.

[thwg]

People in this thread thing they know more than developers and the banks that finance these projects.

Developers would love to build condos in Atlanta, but financing a condo building is difficult, right now. Condos were hit hard during the recession and banks were nervous.

However, the market is changing in Atlanta, and there are less proposals for apartments and more for spec office buildings right now. So condos will either be added to this office boom or after the office boom. ...unless a recession or housing correction happens first.

My guess is the condo boom is starting now with Opus, 1205 West Peachtree, 1125 Peachtree, and Juniper and 5th either under construction or expected to start construction at the end of this year.

[KingKanye]

Originally Posted by Leopoldbloom

It seems that NY, Chicago, SF, Boston, Seattle, and Miami are the only cities that are building high rise condos right now. NY in particular has added thousands of units in recent years. The big thing is very tall buildings between 1,000 and 1,600 feet tall. Some of the new towers are selling units at $10,000 per square foot.

Yup, NYC's building boom is crazy. Saw some article about all these super tall buildings going up. Where are all these rich people moving to NYC from? The population of NYC is at an all time high and keeps growing faster. Crazy. Need to find a job like that!

[ATL Golfer]

Originally Posted by thwg

People in this thread thing they know more than developers and the banks that finance these projects.

Developers would love to build condos in Atlanta, but financing a condo building is difficult, right now. Condos were hit hard during the recession and banks were nervous.

However, the market is changing in Atlanta, and there are less proposals for apartments and more for spec office buildings right now. So condos will either be added to this office boom or after the office boom. ...unless a recession or housing correction happens first.

My guess is the condo boom is starting now with Opus, 1205 West Peachtree, 1125 Peachtree, and Juniper and 5th either under construction or expected to start construction at the end of this year.

While financing could have an impact, capital is not an issue in this environment. No appraisal is going to come back with the "highest and best use" being a condo project in this market. Its about making money, the most money out any one site. When you can build a project for X, get it leased up and sell it for multiples of X, that is what you're going to do.

[Atlwarrior]

Originally Posted by thwg

People in this thread thing they know more than developers and the banks that finance these projects.

Developers would love to build condos in Atlanta, but financing a condo building is difficult, right now. Condos were hit hard during the recession and banks were nervous.

However, the market is changing in Atlanta, and there are less proposals for apartments and more for spec office buildings right now. So condos will either be added to this office boom or after the office boom. ...unless a recession or housing correction happens first.

My guess is the condo boom is starting now with Opus, 1205 West Peachtree, 1125 Peachtree, and Juniper and 5th either under construction or expected to start construction at the end of this year.

West Peachtree is looking very good and dense.

[Gulch]

As a current condo owner near Midtown, I don't mind the lack of condo construction (I'm also a greedy person).

[waronxmas]

Originally Posted by KingKanye

Yup, NYC's building boom is crazy. Saw some article about all these super tall buildings going up. Where are all these rich people moving to NYC from? The population of NYC is at an all time high and keeps growing faster. Crazy. Need to find a job like that!

They aren't. They're money laundering havens for rich criminals.

[gasketeer]

Many of the apartment buildings are "condo ready"... Expect them to convert to condos in the future.

[gasketeer]

Originally Posted by Leopoldbloom

It seems that NY, Chicago, SF, Boston, Seattle, and Miami are the only cities that are building high rise condos right now. NY in particular has added thousands of units in recent years. The big thing is very tall buildings between 1,000 and 1,600 feet tall. Some of the new towers are selling units at $10,000 per square foot.

Contrary to popular belief (outside these cities), they are quite desirable places to live and wealthy people own apartments there. Atlanta is not nearly as expensive as NYC, but it ain't cheap! I think that many more people are wanting to move into Midtown and they cannot buy but they can afford the rent. I think that's why the building boom for apartments is taking place.

Once all these apartment dwellers get the money to buy, they'll convert the apartments to condos. As others said, there is a lot of demand for high-rise condos in midtown. There is not a glut in the desirable range.