Work to resume on Streets of Buckhead project

Work on the Streets of Buckhead, one of the most watched retail developments in the city, will resume in September, said Ben Carter, chairman of Ben Carter Properties.

The project is on schedule to open in October 2010, Carter said. The developer is undertaking the massive makeover of the former Buckhead Village party district into an upscale street-level shopping destination.

But with excavations under way and structures partially built, Carter halted construction earlier this year to renegotiate with his contractors to trim $10 million in costs. He also moved back the opening date to reassure skittish retailers. Tenants were “more comfortable,” with that date as they believe the economy will be back on track by then, he said.

Fashion boutique Hermès and high-end jeweler Van Cleef & Arpels will anchor the $800 million, 375,000-square-foot, first phase of the project.

In addition to the delays and the cost cutting, the economy caused some jockeying in the retail lineup. For example, an Italian fashion company that would have leased two boutiques filed for bankruptcy.

And “gym to the stars” Equinox, which signed a lease, asked Carter to find another health club, he said. Carter said he’s in the middle of those negotiations.

“To be honest, from October to March it was just really, really slow. Starting about the first of April, it’s come back,” he said. “The interest level now is as good as it’s ever been. Now I just need to convert it to leases.”

When construction resumes, Carter wants to have 70 percent of the space committed so he can secure a bank loan, he said. The project is currently financed through Carter’s personal investment and equity investors, who typically charge higher interest rates than banks.

In 2011, Carter hopes to begin phase II, which will have a hotel and apartments.

“I think the economy is starting to shake some of its problems,” said Carter. “A lot of people think the worst is behind us.”