The Atlantic Residences will begin releasing a small number of condominiums into a new leasing program through a very limited, high-end rental program. Citing the very real costs of operating and maintaining a large skyscraper, received funds from the rentals will supplement marketing costs (to sell the remaining inventory) as well as fund ongoing payments to the master condominium association. Rentals will be offered at an average of $2,500 per month for a one-bedroom condominium, which is considerably higher than the standard $1,500-$1,900 range in most buildings.
There will be a completely separate leasing office located on a residential floor of the tower, meant not to detract or distract from the continuing for-sale marketing program by the sales team (currently located adjacent to the residential lobby). Those units being leased will adhere to the Georgia Condominium Act (requirements include: providing notice to existing tenants of an impending conversion to condominium and providing each existing tenant with a right of first refusal to purchase the tenant’s residence and disclosure to potential purchasers the physical condition of the property based on an engineer or architect’s report). Ultimately, the program is designed to convert those leasing to owning.
The Atlantic Residences follows other condo buildings in Atlanta by leasing units which would otherwise sit empty and lifeless. Both 1010 Midtown (leasing the remaining rental cap of up to 25% of the units) and 1065 Midtown (no condo sales, strictly leasing for the moment) have been successful in using this strategy.
It does make it very difficult for residents in buildings, like 1010 Midtown, who would like to lease their units and cannot because the rental cap is full. In this case, the owner would be placed on a waiting list until permits become available. Owners situations change over time (perhaps there is a job loss or even a move out of state) and that can put the homeowner in a difficult position with not being able to lease their home. How do they maintain mortgage, tax and HOA payments?
The Atlantic has accounted for this by not releasing the entire rental cap amount into the market, allowing for homeowners and investors to take advantage of great opportunities in the building.
If you would like to find out more about the leasing program, please contact me. The slider below leads to for-purchase units only.