By David Pendered
A development proposal filed Tuesday for a mixed use project to open in 2020 in Sandy Springs is the latest indication of developers’ optimism about the current construction cycle, as well as the demand for more apartments in the Perimeter Center market.
The Simpson Organization intends to redevelop its Peachtree Dunwoody Pavilion property. TSO plans to tear down one office building and add a hotel, apartments, retail and office space, according to a Development of Regional Impact paper filed by Sandy Springs.
TSO estimates the value at build-out will be $250 million. Tax revenues are estimated at $3.5 million a year, including property and sales taxes, according to the DRI.
The property is located on the northeast border of Pill Hill, the casual name for the medical complex anchored by Northside Hospital-Atlanta, Emory Saint Joseph’s Hospital, and Children’s Health Care of Atlanta at Scottish Rite.
Peachtree Medical Pavillion was built in phases, from 1976 to 1979, Fulton County records show. The pavilion was designed along the lines of the office developments opening in that era. It aimed at the market created by Northside Hospital, which opened at its current site in 1970.
The office complex is located inside I-285, a block east of the interchange of I-285 and Ga. 400. The pending reconstruction of the interchange by the Georgia Department of Transportation is to be complete in 2020, meaning the redeveloped office site may open about the time the road work is complete.
TSO purchased the property in May 2015, according to Fulton County records. The purchase consisted of about 18-plus acres and four office structures. TRO estimates the property covers about 18.9 acres, according to the DRI.
TSO paid $53.9 million to Parkway Properties, LP, a Delaware based company, records show. Parkway Properties paid $40 million for the property in 2003.
Fulton County assessed the property’s value as high as $38.7 million in 2009, the oldest record available online. The county’s assessment has trended down ever since. The $24.2 million assessment for 2015 is the lowest on records that are available on line.
TRO intends to seek to rezone the property from office/institutional to a category that allows mixed use development, according to the DRI.
Plans call for development to include:
- New office space: 240,000 square feet;
- Apartment complex: 335 units;
- Hotel: 200 rooms in 160,000 square feet
- Retail and restaurant space: 30,000 square feet;
- Existing office space to remain: 343,487 square feet;
- Existing office space to be demolished: 41,185 square feet.
The DRI includes comments regarding environmental impact:
- Impervious surface area: About 59 percent of the property, which the DRI states is 18.9 acres; No proposed mitigation measures were cited;
- Water supply demand: 0.2 million gallons a day, provided by Atlanta;
- Wastewater disposal: 0.2 million gallons a day, to be handled by Fulton County;
- Solid waste: About 2,414 tons a year.
- Wetlands disruption: TRO intends to file a permit with the U.S. Army Corps of Engineers for permission to remove about 8,669 square feet of wetlands, or about a fifth of an acre;
- Floodplain: An unspecified portion of the site is in a 100-year floodplain and will remain undeveloped;
- Unspecified transportation projects are needed to serve the project;
- About 4,884 vehicle trips a day are anticipated, including 519 trips in the morning peak and 539 trips in the afternoon peak period.