Crescent Resources Starts Construction of $67M M-F Project in Buckhead
- Mar 14, 2013
Construction is under way on Crescent Terminus, a $67 million luxury apartment community in Atlanta’s Buckhead section that will add 355 rental units to the restaurant, retail and office space in the Terminus master-planned development.
The project’s developer, Crescent Resources, is planning three eight-story buildings containing five levels of apartments above three levels of parking at the intersection of Peachtree and Piedmont Roads. The apartment community, previously called Circle Terminus, is located on a three-acre site that is the last vacant parcel available within Cousins Properties’ Terminus development. It is being financed by an equity investment from Crescent Resources and by a construction loan from JPMorgan Chase & Co. Completion is expected by spring 2014.
“Crescent Terminus will allow residents to take advantage of lifestyle amenities, while also helping to add to the sense of community within Terminus and the greater Buckhead area,” Ben Collins, vice president of Crescent’s multi-family group, said in a news release.
Designed by Lord Aeck & Sargent, an Atlanta-based architectural firm, the buildings will feature business centers, a salt-water, resort-style pool, rooftop terraces, a wine bar and tavern. Crescent Terminus will be a candidate for LEED certification. Crescent Resources has selected Greystar to serve as property manager.
“This is a quality plan by a quality team in a quality location,” Sam Massell, president of the Buckhead Coalition and a former mayor of Atlanta, said in the news release. “Crescent Terminus will fill an important need of Buckhead’s growing population.”
The rental market is hot in Atlanta, where job growth is among the highest in the United States. The Fourth Quarter 2012 Apartment Research Market Report from Marcus & Millichap Real Estate Investment Services Inc. noted that many young adults will be looking to rent rather than buy and “they will likely choose to live in modern, luxury apartments near entertainment and business districts.” The report stated that demand will outpace supply, allowing owners to boost rents to pre-recession levels. In Buckhead, the year-end vacancy rate was 4.7 percent, a year-over-year decline of 170 basis points. Meanwhile, average effective rents rose 1.7 percent to $1,051. That compares to average effective rents of $780 per month for the entire region at the end of 2012.
Crescent Resources said it changed the name of the Buckhead development to Crescent Terminus to be aligned with its corporate name and its other properties. Founded in Charlotte, N.C., in 1969, Crescent Resources has 20 master-planned communities and nine multi-family communities with 5,300 units under construction and in predevelopment. The company owns about 50,000 acres, including approximately 800 acres zoned for commercial use.
The firm has several projects under way including Crescent Bayshore, an $86 million multi-family complex in Tampa, Fla., with 367 units. The apartments are expected to be ready by early 2014. In January, the company purchased 221 acres in Franklin, Tenn., where it plans to build a master-planned community of 240 apartments and up to 384 single-family homes. Crescent Resources said in December it was building a $36 million 546-bed student housing complex in Charlotte near the University of North Carolina campus. It also announced that month it was developing a $33 million apartment community in Charlotte. Crescent Resources bought a 993-acre property in November near Houston, where it hopes to build a master-planned community with more than 2,200 single-family homes, 540 apartments, 50 acres of retail and other commercial uses, and a school.