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With one condominium tower nearly sold out and another nearing completion, Kolter Urban is looking for more opportunities in Buckhead.
“We’ve identified a few other parcels that would become the next project in Buckhead,” said Aaron Taulbee, development executive at the Florida-based residential firm. “We’ve had enough success with both Graydon and The Dillon that we think the market still supports additional considerations.”
Kolter Urban finished construction on Graydon, a luxury condo tower on Peachtree Road, early last year. The firm sold all but three of the 22-story building’s 45 condos as of Sept. 7, Taulbee said.
A half-mile south of Graydon, Kolter Urban expects to complete work on The Dillon by late 2024. The firm has sold 60 of 144 condos at The Dillon, which will rise 18 stories above Peachtree Street.
Kolter Urban, led by CEO Bobby Julien, is taking a unique approach to residential development in Buckhead. Since the Great Recession, most multifamily firms have avoided building large condo projects and opted for apartment towers.
That’s left a void in the market for affluent homebuyers who would be interested in buying a condo, such as downsizers, young professionals and those who simply prefer urban living. Over the past year, only 35 of the of the 745 condo units sold in Buckhead were in buildings constructed after 2010.
Sam Morgan, managing broker at residential real estate agency Engel & Volkers Atlanta, said the lack of new condo inventory adds to the allure of Graydon and The Dillon.
“There just aren’t any other options,” Morgan said. “If you want to be in Buckhead and you want something new, where are you going to go?”
Construction at The Dillon is ahead of schedule, Taulbee said. So far, investor financing has funded the project. Kolter Urban’s construction loan likely will go into effect near the end of this year.
The firm is confident financing going forward won’t be an issue despite rising interest rates, which have played a role in halting numerous development projects in Atlanta over the past year.
Outside of Buckhead, Midtown is the only other Atlanta district with a real luxury condo presence. Morgan said that most buyers narrow their choices within one of the districts. There are “Buckhead people” and “Midtown people.”
Those who choose Buckhead do so because of the shopping and restaurants in the area. People tend to pick Midtown for its arts scene and proximity to Piedmont Park and the Atlanta BeltLine.
“It’s definitely a lifestyle choice,” Morgan said.
Graydon and The Dillon are Kolter Urban’s first two developments in Atlanta. Taulbee said the firm would consider projects in Midtown, but for now it is focused on its home base in the city.
“Buckhead seems to be, at least currently, where the most demand is,” he said.
