High Rent and Low Vacancy Turn Loudermilk’s Attention from Offices to Apartments in Buckhead

Loudermilk Cos. has revised its vision for a 1-acre lot in Buckhead. Three years ago, the developer was planning to build offices. This week a permit was filed to build 314 apartments at 359 East Paces Ferry Road.

In 2015, Loudermilk proposed building a 12-story spec office building on the site. In 2019 project renderings were unveiled and plans were made to break ground in 2020. Pre-leasing began, but the pandemic impacted progress on the project.

Today, direct leased office space in Buckhead has a vacancy rate of 23 percent, as noted in Avison Young’s Q1 2023 Market Report. The multifamily vacancy rate is less than seven percent according to Cushman & Wakefield’s most recent Atlanta multifamily market report. In the Atlanta market, Buckhead is second only to Midtown in average rent per apartment.

Loudermilk’s new project encompasses 314 units, including 182 one-bedrooms, 82 two-bedroom, five three-bedroom, and 45 studio apartments.