Old Fourth Ward grocery store scuttled by closed hospital, developer says
Few places are hotter development targets than Old Fourth Ward, but the hulking shadow cast by the vacant Atlanta Medical Center is causing issues for some neighboring projects.
The developers behind a mixed-use project called the Bowery said plans to attract a grocery store have fallen through because of the shuttered hospital a quarter-mile away. The grocery store was a factor discussed in 2023 when the development received preliminary approval for a $5.7 million property tax break by a Fulton County authority.
The three-building development will instead move forward with a smaller footprint of retail space and nearly 300 housing units, 15% of which will be reserved at below-market rates.
“While we had hoped to secure a grocery store tenant for the Bowery, ongoing uncertainty surrounding the neighboring Wellstar property (formerly known as Atlanta Medical Center) made it unfeasible,” Ben Yorker, a development partner with Northwood Ravin, told The Atlanta Journal-Constitution in a statement.
The struggles to snag a grocery store were first reported by Urbanize Atlanta with Yorker saying the vacant hospital “essentially scared away our grocer contacts,” because the closure meant reduced jobs and daytime population in the area.
With little notice given to city leaders, Atlanta Medical Center was closed by Wellstar Health System in 2022. It left the city with a single Level 1 trauma center and a gigantic empty complex in one of Atlanta’s fastest-developing neighborhoods.
Atlanta leaders placed a moratorium on the property for roughly two years to prevent redevelopment before a city-endorsed plan could be created. Atlanta-based Integral Group was selected to lead the site’s redevelopment, and some demolition began in June.
The Bowery site is across from the hospital on Boulevard and will replace a former furniture store at the Highland Avenue intersection. It’s adjacent to the Freedom Barkway Dog Park and is close to the Beltline’s Eastside Trail.
Pitched by Charlotte-based Northwood Ravin and Atlanta-based Fuqua Development, the mixed-use project first came to light in spring 2023. The developers requested a tax break from the Development Authority of Fulton County, promising to bring a grocer to the area and preserve some units for affordable housing for 10 years longer than city code requires.
Kwanza Hall, the authority’s chairman, told the AJC that incentives “are only awarded for components that are actually built,” meaning the developers will forfeit the portion of the tax break designated for the grocery store.
“It’s a reminder that even with approved incentives, market conditions can shift and affect a project’s composition,” Hall said in a statement. “We will continue to coordinate with the development team to ensure the best outcomes for the community.”
Planned grocery stores in other areas of Atlanta have proven difficult to bring to fruition.
Savi Provisions in May confirmed it abandoned a planned grocery store atop a Grant Park parking deck. Invest Atlanta, the city’s economic development agency, approved more than $8 million in incentives to assist Savi Provisions with two other potential stores, one in downtown and another on Campbellton Road.
The adjusted incentive for the Bowery will come before the Fulton authority board for a final vote at a later date.
Demolition work recently began at the Bowery site, and construction is expected to begin in the fall. The development will include 273 apartments, 12 townhomes, a 400-space parking deck and about 12,000 square feet of retail space.
“Although a grocer didn’t materialize, we are committed to delivering meaningful amenities that enhance the neighborhood experience,” Yorker said.
The project is expected to be complete by mid-2028.
About the Author
Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives.
