On any given night, Underground Atlanta draws in all sorts of city culture and entertainment: concerts, bars, bonfires, burlesque and nightlife are what the long-standing downtown center is known for.
Soon, that might include a 30-story tower of apartments atop the complex with Underground’s first new build in decades.
On Sept. 19, 2024, Invest Atlanta’s Board of Directors approved a preliminary agreement for a $40 million exempt bond that will finance 163 affordable housing units at Underground Atlanta. The affordable units will all be affordable at or below 60 percent of the area median income, or AMI. For one person in 2024, Invest Atlanta calculates the AMI AS $75,300 — a person earning 60 percent of the AMI would sit at about $45,180.
That means affordable units at Underground for a one bedroom would be about $1,209 in rent or less, though that number increases with additional rooms.
As the city’s official economic development authority, Invest Atlanta focuses heavily on affordable housing. The bond will help pay for the affordable units in the $160 million tower, which will have about 405 units in total. Invest Atlanta’s board will still review the project at a later meeting before formally issuing the bond.
The Underground Atlanta tower is part of owner Lalani Ventures’ effort to create a “renaissance” for the once-bustling downtown hub. Since acquiring the property in 2020, Underground has become home to a few displaced Atlanta hotspots, like the burlesque theater and speakeasy Pigalle by Paris on Ponce and nightclub MJQ Concourse.
Masquerade, the iconic afterlife-themed three stage music and events venue opened a fourth space called “Altar” earlier this year. Recently, long-standing Sunday party Bonfire ATL kicked off a residency on the top floor of Underground.
The complex has seen an influx of new buildings and tenants as part of an effort to reinvigorate downtown Atlanta’s quiet nightlife. Lalani leadership sees “going vertical” as a next step to the community comeback.
“We’ve been working hard at Underground to bring new life and energy downtown by focusing on the arts, creatives, performances and events — celebrating Atlanta culture,” Senior Vice President of Development David Tracht said. “The addition of residences is desperately needed downtown, and it is a natural next step for Underground as we look to create a dynamic experience and community downtown.”
Lalani Ventures CEO Shaneel Lalani said the Invest Atlanta vote was an “important step” in the process of getting the tower built. The CEO will develop the building alongside New York-based Exact Capital, which developed the affordable housing project Skyline Apartments in south Atlanta.
Lalani plans to break ground on construction before the end of 2025.
“This building will be a high density, transit-oriented development across the street from Five Points MARTA Station, the busiest transit station in the city and the heart of the region’s public transportation system,” Lalani Ventures’ Chief Investment Officer Jacob Vallo said.
It’s not the only downtown Atlanta project for Lalani Ventures. The company strategy is to “buy underperforming assets and add value through innovative redevelopment.” Previously, Lalani acquired 34 Peachtree with plans to “revive the tower.”
Downtown Atlanta has dealt with high office vacancy rates in the area, leaving the area empty as workers and residents dwindle. But the area has seen major investment through construction on projects like the upcoming mixed-use Centennial Yards.
The latest redevelopment is a hulking project plan to turn the 51-story Georgia-Pacific building into a mix of homes, retail and offices housed in one of the city’s tallest skyscrapers.
Plans aim for more than 400 apartments converted from offices on the higher floors, with a 35,000 square feet central plaza connected to MARTA. Urbanize Atlanta reported the property is planned to open in the fall of 2027.
It’s less than half a mile away from Underground Atlanta, marking yet another push to bring new life into downtown Atlanta.
“[Underground] is part of our overall vision to create Atlanta’s top arts and entertainment community,” Lalani said. “Having residents live right here will create more vibrancy for this beloved property with historic roots, which in turn will have a great impact on downtown Atlanta.”
