Oct 24, 2022 - Real Estate

Atlanta to buy state-owned building for affordable housing

2 Peachtree building

The city of Atlanta will purchase 2 Peachtree Street from the state of Georgia. Credit: City of Atlanta

The city of Atlanta will pay $39 million to purchase a state-owned building as part of its plan to bring affordable housing and economic activity to Downtown.

Driving the news: Invest Atlanta, the city's economic development arm, approved using $39 million from the Eastside Tax Allocation District to buy the 41-story tower at 2 Peachtree Street.

  • The city said last week in a press release that Invest Atlanta will purchase the building and hold it as an asset until a developer for the project has been selected.
  • Atlanta wants to convert the building into a mixed-income and mixed-use development.

What they're saying: Mayor Andre Dickens said the purchase is a "huge leap forward" in his plan to create 20,000 affordable housing units by 2030.

  • "I am grateful for the partnership with Invest Atlanta on the acquisition of 2 Peachtree Street, which provides us with a unique opportunity to address both our need for mixed-income housing at MARTA stations and move us closer to our vision of a world-class downtown area," he said in a statement.

Context: Built in 1968, 2 Peachtree Street is home to the Department of Community Health and is next to the Five Points MARTA Station.

  • According to the AJC, the state of Georgia put the building up for sale in 2015 because the cost to renovate the structure was more than what it was worth.
  • In February, state House leaders set aside $45 million to begin moving state employees out of the building, the AJC reported.

Of note: Atlanta has other projects on its shortlist to spur activity downtown, including:

  • Preserving the building that once housed the Atlanta Constitution to create affordable housing units;
  • Redeveloping the city-owned lot next to the Garnett MARTA station;
  • Overhauling the Five Points MARTA Station;
  • And choosing a developer to construct 228 affordable housing units at 104 Trinity Street.

Invest Atlanta also approved $10 million for a proposal that would top the Downtown Connector with greenspace, the city said.

Go deeper: The megaprojects that will “redefine” Downtown


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