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Gasp!?! A Developer Just Canceled an Apartment Project

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Could the end be coming for this cycle of development in Atlanta? Or is this an isolated incident?

Over the last year, a growing chorus of Atlantans have been calling the apartment boom a bubble on the rise. Other observers have said that's nonsense — in some areas, at least.

Despite the concern, projects have plowed ahead from Buckhead to Inman Park. But now, one developer has just pulled the plug on a major project, lending legitimacy to the argument that Atlanta might have gotten a bit overzealous for the market.

BuckheadView reports that Pollack Shores recently announced they would not be moving forward with a planned 12-story apartment and retail project on Pharr Road in Buckhead Village. First announced last year, the project was slated to bring 325 residential units atop five stories of parking and street-front retail.

Pollack Shores officials told the Atlanta Business Chronicle they perceive overbuilding in some intown neighborhoods. The company even speculates that occupancy could fall to a staggeringly low 83 percent in Buckhead.

While the Pollack Shores project is being shelved, others in Buckhead Village are still moving forward. Demolition began last week on a site just next door on Pharr Road, where Trammell Crow Residential plans to bring 244 units to the neighborhood. And around the corner Gables and Hanover both have apartment buildings in the works.

But could this signal the beginning of the end of this development cycle? Or will Pollack Shores' decision be an isolated incident? Time will tell.