Developer OliverMcMillan Inc. plans to carry out a partial demolition of the former Streets of Buckhead, a project that in recent years became a high-profile victim of the slow economy and the lending freeze.
Oliver McMillan submitted a request Feb. 9 for two commercial land development permits valued at $7.4 million and $7.8 million, according to the city of Atlanta. The permits would allow partial demolitions of unfinished construction on two separate parcels — as well as utility work and streetscape improvements — within the eight-acre project at Peachtree, East Paces Ferry and Pharr roads. Most of the existing construction is a parking deck.
Progress on the project formerly known as Streets of Buckhead stalled in 2010 when it was still under the control of its original developer, Ben Carter Properties LLC. Oliver McMillan took over the project last year and renamed it Buckhead Atlanta but is still seeking a construction loan.
The developer met with Atlanta planners in recent weeks. While Oliver McMillan is not preparing to raze the development, just how much of the existing construction it will have to demolish is uncertain, according to sources familiar with the plans.
“We will not be allowed to pull our building permits from the city until we certify the viability of the rebar and other in-place construction,” Hunter Richardson, the project manager of Buckhead Atlanta, said on Friday. “In short, the rebar will be tested before we start construction and the city of Atlanta will sign off on testing before it issues building permits.”
The move stems from Oliver McMillan making several changes to Ben Carter’s original design. “Selective demolitions are for structure components that have been revised in the new design,” Richardson said.
Almost a year ago, Oliver McMillan, backed by up to $300 million from the Boston hedge fund The Baupost Group reached a deal to acquire the beleaguered $1.5 billion luxury project. Carter had assembled several blocks within a former nightclub district along Peachtree, East Paces Ferry and Pharr prior to the market’s collapse. Carter was able to land two tenants: French luxury retailer Hermes and casual tavern Fado’s Irish Pub.
But, his Streets of Buckhead project stalled after the economy faltered, retailers struggled and financing froze.
Oliver McMillan wanted to move away from Carter’s ambitions to create a “Rodeo Drive of the South” and preferred instead to develop a mixed-use community that would fit seamlessly within the existing Buckhead Village.
In December, the developer filed new plans for Buckhead Atlanta with the state, calling for 370 residential units, 98,360 square feet of office space and 346,006 square feet of retail space. The first phase is scheduled for completion in 2014.