Longtime Atlanta real estate firm Selig Enterprises said it expects to start construction next summer on a $400 million mixed-use complex with a 32-story office tower, a hotel and a residential building along West Peachtree Street in Midtown.
The trio of towers, set to open in the second half of 2019, would bring additional density to a stretch of Midtown dotted by new apartment buildings. It would include the first purely speculative office tower, one built without a specific tenant in mind, in Midtown since 2010.
Scott Selig, president of Selig Development, said the three towers, designed by architecture firm Rule Joy Trammell & Rubio, will be “ more cutting edge with a style of design Atlanta has not yet seen.”
The office building, 150-room luxury hotel and 80-unit residential tower will be linked by a raised plaza and amenity deck on the ninth floor, or more than 100 feet above street level. Ground floor retail is expected to line 12th Street.
Midtown has seen a rush in new residential development since the end of the recession, and office space has tightened as a number of big name companies such as Sage Software, Worldpay US and Honeywell have announced large expansions.
“There’s just not a lot of big blocks of space out there,” said Steve Baile, chief operating officer of Selig Development. “We’ve not had a new big building delivered (in Midtown) since 2010. That’s not like Atlanta from past cycles.”
Midtown office vacancy stood at about 10.6 percent in third quarter, according to real estate firm Savills Studley.
Atlanta-based Portman is set to break ground Tuesday on Coda, the second phase of Technology Square, which will be anchored by Georgia Tech and include space for the private sector. Houston-based real estate services firm Hines, meanwhile, has pitched mid-rise offices at Atlantic Station.
But office construction in the Atlanta region has been disciplined compared to the boom when several new towers opened largely empty following the economic collapse.
Baile said the group is in discussions with potential office tenants and plans to launch when the building is about half-leased. Office leasing activity will drive the start of construction the complex, Baile said.
The project will launch a new development division within Selig, best known as a real estate investor and landlord, and a force behind the mixed-use 12th & Midtown development.
Selig said the project at 1105 West Peachtree Street and 12th Street will be the first of numerous developments on land Selig Enterprises has acquired in Midtown and throughout the Southeast.
