The stalled mixed-use project called 12th and Midtown is about to see some new construction. All over the country the apartment market is doing very well because very few people can get mortgage loans to buy houses due to increased lending standards or they just refuse to buy because they think housing values have further to fall. This is been boosting occupancy and rent in apartment communities nationwide. Atlanta, of course, has not been immune to this trend. The vacancy rate in Midtown Atlanta has fallen to 7.2% in the third quarter, which is down from an 11.4% vacancy rate in the third quarter of 2010.
The new apartment tower to be built at 12th and Midtown will be a 330 unit apartment community. The developers, Selig Enterprises and Daniel Corporation, estimate that the cost of construction will be approximately 10 to 15% lower than it would have been at the peak of the market. The building will be "a quality rental" and one-bedroom apartments will start at $1500 a month. The developers believe that the new residents will boost demand for office space, restaurants and stores in the larger project, which currently has a 35% office vacancy rate.
