An office tower in DeKalb County that has lost its luster as desirable workspace is positioned to get a second lease on life as an apartment building.
Real estate developers Highwoods Properties and Brand Properties are partnering to convert the 18-story tower at 1800 Century Blvd. in Chamblee into 289 multifamily units. On Thursday, the Decide DeKalb development authority approved the $91 million project for a $6 million property tax break.
The office building was the longtime home of the Georgia Department of Revenue, which occupied most of the 298,000 square-foot tower until earlier this month. The government agency’s lease expired and its offices have been vacated, making it a prime candidate for residential conversion, according to Brand President Michael Hoath.
“This is a very intriguing opportunity,” Hoath told the Decide DeKalb board. “We’ve looked at 30-plus office-to-residential opportunities in the metro Atlanta area, and this is the most compelling.”
Credit: Courtesy Decide DeKalb
Credit: Courtesy Decide DeKalb
Located near Clairmont Road between I-85 and Buford Highway, the glass tower has stood since the mid-1970s as one of the area’s tallest structures. But earlier this year, Children’s Healthcare of Atlanta’s new 19-story Arthur M. Blank hospital opened nearby and has become a new center of gravity for DeKalb just northeast of Atlanta. Emory University is also developing a $1 billion medical campus nearby.
The Georgia Department of Revenue indicated in early 2023 it would likely vacate its 255,000-square-foot office lease within 1800 Century Blvd., according to a Highwoods earnings report. A department spokesperson said it will relocate to 2595 Century Blvd. and occupy 105,000 square feet.
Plans to potentially convert the building to housing became public in May 2023, contributing to a mounting trend of office conversions in downtowns and suburbs. The state sold 2 Peachtree St. in downtown Atlanta to the city of Atlanta last year for an overhaul including affordable housing.
In Brookhaven, developers have proposed a redevelopment of a 32-acre Corporate Square office park close to the new Blank pediatric hospital.
North Carolina-based Highwoods and Atlanta-based Brand said the 10-year tax abatement from DeKalb’s development authority will help the developers obtain the financing needed to begin the conversion project. The developers said they’ll seek a $59 million construction loan and $32 million in investor equity to finance the project at roughly $317,000 per residential unit.
The site plan includes converting the existing building into 289 apartments ranging from one-bedroom units to three-bedroom townhomes, in addition to an adjacent amenity area with a dog park, food truck park and small amphitheater. A fifth of the units will be reserved at below-market rate rents (roughly $1,505 to $2,236 per month based on unit) or for DeKalb health care, public safety, education and first response workers at monthly rates between $1,790 and $2,684.
Credit: Courtesy Decide DeKalb
Credit: Courtesy Decide DeKalb
“(This) takes a potentially empty building and making it habitable for people,” said DeKalb Commissioner Robert Patrick, a Decide DeKalb board member. “… I hope that this is not just a unique building on its own and there are other developers and investors looking at similarly vacant office buildings that could be rehabilitated or (converted) into housing.”
Decide DeKalb estimates that the project will have a $2.5 million positive fiscal impact for the county’s school district and county tax collections during the tax break period, but it will negatively impact Chamblee’s tax rolls by about $355,000 during that span. The authority’s staff said this is due to extra city services needed by new residents rather than commuting office workers, but they added that Chamblee representatives are supportive of the conversion project.
The developers expect to obtain their financing by the end of 2025, and construction is estimated to last between 15 and 20 months.
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