The owner of Underground Atlanta is working to bring a $160 million mixed-income residential tower to the downtown destination, the first new-build development at the site in decades.
Lalani Ventures has signed a joint venture partnership with Exact Capital to build a new 30-story tower at the site. It would be located at Underground’s fountain plaza, bordered by Peachtree Street to the west, Wall Street to the north, Pryor Street to the east and Upper Alabama Street to the south.
The tower would include a total of 405 units, 163 of which will be affordable to households at or below 60 percent of the area median income (AMI).
“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,” said Jacob Vallo, chief investment officer of Lalani Ventures and also a former MARTA executive. “With phenomenal transit access and the walkability of downtown, we have planned a well below market parking-to-unit ratio.”
Atlanta-based architecture firm Niles Bolton Associates is handling design, engineering and permitting for the project.
The board of Invest Atlanta recently voted to approve an inducement for a $40 million tax exempt bond issuance to help finance the 163 affordable units. The board will have the chance to review the project again before providing its final resolution in advance of the project closing on its construction loan next year, according to the announcement.
“We’re grateful for the support of Invest Atlanta and the City of Atlanta. The vote on Sept. 19 was an important step in the process,” Lalani Ventures CEO Shaneel Lalani said in a news release. “Going vertical allows us to build a beautiful new residential community in downtown Atlanta at Underground. This is part of our overall vision to create Atlanta’s top arts and entertainment community. 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.”
Underground Atlanta has long been a downtown staple. With historic roots dating back to the 1900s, the arts, entertainment and retail district spans multiple levels and four city blocks. Lalani Ventures purchased Underground in 2020 with a vision to restore and revitalize the iconic destination.
“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,” said Lalani Ventures Senior Vice President of Development David Trach. “The addition of residences is desperately needed downtown and is a natural next step for Underground as we look to create a dynamic experience and community downtown.”
Exact Capital is a New York-based firm with involvement in several Atlanta projects, including Skyline Apartments, a transit-oriented, mixed-income multifamily project in Atlanta’s Peoplestown neighborhood.
The Underground Atlanta project is expected to break ground before the end of 2025.
