The cranes aren’t yet moving on Mitchell Street, but a recent tour of downtown Atlanta’s Hotel Row provided a fresh look at progress of the South Downtown development project as it begins transitioning from renderings to reality.
Highlighted by an appearance from Olaf Kunkat, founder and CEO of Newport Holding, the private equity group redeveloping South Downtown (or what’s branded as South Dwntn), the media event provided updates on the 12-acre project. It piggybacked on recent development news coming out of the neighborhood, including CIM Group’s reveal of residential and hotel space for its Gulch redevelopment, and retail announcements for WRS Inc.’s reimagined Underground Atlanta.
Currently, the most progress has happened at 233 Mitchell Street, the Sylvan building, and the cluster of buildings at 222 Mitchell, with interior clearing of the structures mostly complete.
The fourth floor of Sylvan will become office space, which looks out directly at Mercedes-Benz Stadium’s diagonal logo. As for 222 Mitchell, it will be a mix of retail and office space—more than 260,000 combined square feet—with rooftop spaces that developers say have expansive potential for downtown events and activity.
“We identified a number of buildings that need a light refurbishment approach, and others that need a more intensive scope of work,” Kunkat said. “This doesn’t fit to the phase plan we’d already developed, so we reshaped that, and we’re starting here on Hotel Row and Broad Streets, and on Mitchell Street.”
Also reshaped is the structure of the executive team at Newport, which will impact South Downtown.
This includes 2019’s departure announcements from executive vice president Katherine Kelley, the company’s top development exec, who left in January, and Newport president Jake Nawrocki, who’ll officially exit this month.
Replacing Kelley as EVP is Atlanta native Kevin Murphy, who has an architectural degree from Georgia Tech and spent more than a decade in New York City working on privately owned historic buildings in Manhattan.
Murphy, sharing that he’d been back home for only about 100 days, said he jumped at the opportunity to “make an impactful contribution.” He also said that along with local architect talent, he’s looking to establish great partnerships “for Atlanta and by Atlanta,” and specifically named his alma mater as a place where he expects to find ideas.
“It’s almost the exact right time for me to come in, and it’s the exact right type of thing I’ve been working on,” he said. “It’s really great to do all the thinking, but it’s also more important just to start, which we have done.”
According to both Murphy and Kunkat, the restructured team will continue working “building by building” on Newport-owned properties on Forsyth, Broad, and Peachtree streets, including the well-known H.L. Green building.
Noting that financing for South Downtown is going “quite nicely,” Kunkat said Newport is working on an equity basis until possibly February, when he plans to show new building permits to lenders and explain how it’ll all be structured, from an ROI point-of-view.
“This is only to create a model,” he noted. “The real development is depending on the market, and the demand of the market.”
Kunkat said he comes to Atlanta once a month to support the team, though it wouldn’t surprise anyone if that increases soon, as construction ramps up. It’s hard to imagine he’d spend too much time back in Hamburg, with so much at stake in South Downtown, and so much possibility, as he explained.
“You definitely wouldn’t have a chance in Europe to do something like this—to create a neighborhood and put it back to life,” Kunkat said. “That’s supposedly something you would just do once in your life, right?”
The answer, at least in terms of the lifespan of Atlanta and the upkeep of lower downtown, seems for decades to have been “yes.” At least, for now, it looks like the future could include some pretty funky shops, work environments within walking distance of The Benz, and very lit rooftop parties.
If nothing else, with announcements of signed retail tenants promised soon from Newport, it could be businesses that share new EVP Murphy’s “for Atlanta, by Atlanta” ethos and get the spaces with murals, as did the eccentric former Cat Eye Creative gallery, one of South Downtown’s Pop Up Row retail tenants from April to September. (It’d especially be a shame if someone didn’t put that OutKast-inspired “ATLiens” mural underneath 219 Mitchell to good use.)
For more glimpses of where things stand now, unique vantage points on the city, and raw spaces where tenant activity is planned soon, see below:
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