W Residences Downtown Dropping Pricing?

If you read my blog regularly, you know I’m not a huge fan of the W project in downtown. The project sits in a strange location very close to the highway and in a transitional area of Atlanta. While it’s not the best location, Allen Plaza is trying to change the negatives into positives. The 9 block mixed use development on the Northern edge of downtown Atlanta will have 2.5 million square feet of Class A office space, 250,000 square feet of neighborhood retail/restaurants, 2,500 plus residences and 1,100 plus hotel rooms in four hotels. Of course, this is always subject to change. Already, BLT Steak was scheduled to open at the W, but have since pulled out of the project.

In addition, of the 76 condominiums the W is trying to sell, only a very small number have been under contract. I have spoken to quite a few people and they have all told me the W is dropping their prices on some units – as much as $200,000 lower than their previous pricing (some units are $75,000 lower). I’m not sure how far along the interiors of the units are, but hopefully they won’t be substituting their high-end finishes for lesser quality products. It would be a shame because the interiors are completely chic. It would dilute the W brand. The materials chosen to complete the units are hip, attractive, modern and stylish. 

I think a few factors are involved in why sales are lackluster at the W. One thing is the location. Real estate is always about location, location, location. In my opinion, I think Allen Plaza is in a transitional area of Atlanta, full of traffic and very close to the highway. This lifestyle might appeal to some people, but it’s not for me. Another thing is the shared amenities factor. If I am going to be paying $3,000,000 for a penthouse, I want to have a pool and spa that isn’t shared with hotel guests. Don’t get me wrong, I absolutely love the idea of having a “hotel” lifestyle, but I’d rather have exclusive use of the amenities and services being offered. 

Current Pricing for some units listed in FMLS (First Multiple Listing Service)
Unit 2705 | 3 bedroom, 3.5 baths, 2 levels | $2,940,900
Unit 2504 | 2 bedroom, 2.5 baths, 1 level  |  $1,700,900
Unit 2108 | 2 bedroom, 2 baths, 1 level     |  $   976,000
Unit 1703 | 2 bedroom, 2 baths, 1 level     |  $   679,900
Unit 1806 | 1 bedroom, 1 baths, 1 level     |  $   449,900
Unit 1805 | 1 bedroom, 1 baths, 1 level     |  $   399,900

Below: Interior model photos – this is to scale of the actual 2 bedroom unit.

Model photos are the copyright of Photography by Poané.