City of Atlanta to convert former Downtown bank building into affordable housing

Mayor Andre Dickens announced the Invest Atlanta Board has approved $39 million of funding to acquire 2 Peachtree Street from the State of Georgia for conversion into affordable housing.

Built in 1968, the 44-story former First National Bank Building was purchased by the state in 1991 for use as government offices. The tower was then known as the State of Georgia Building.

“This historic purchase is an investment in Downtown Atlanta and a huge leap forward in our plan towards 20,000 affordable housing units,” Dickens said in a statement. “I am grateful for the partnership with Invest Atlanta on the acquisition of 2 Peachtree Street, which provides us with a unique opportunity to address both our need for mixed-income housing at MARTA stations and move us closer to our vision of a world-class downtown area.”

Adjacent to the Five Points MARTA station, the city said in a press release that “direct investment in the property will create dedicated and deeply affordable housing units, ensure the property does not sit vacant during a crucial time in Downtown’s redevelopment and serve as a cornerstone of the City’s investment in Downtown Atlanta. The conversion is expected to create several hundred new housing units.”

Invest Atlanta, the city’s economic development arm, will purchase the building on behalf of the city and hold it as a real estate asset until a redevelopment partner is selected. Funding for the purchase is being allocated from the Eastside Tax Allocation District.

Along with the redevelopment of 2 Peachtree Street, the city is also partnering with public agencies to advance Downtown Atlanta development, including:

• 5 Points Station – A $150 million overhaul of the station adjacent to Two Peachtree;
• 143 Alabama Street – Preservation of the Atlanta Constitution Building and the creation of new affordable housing on the site;
• 184 Forsyth Street – The Atlanta City Council is expected to pass legislation this fall to redevelop the vacant City-owned lot by the Garnett MARTA station;
• 104 Trinity Street – Development group selected to building 228-unit affordable housing project on the vacant City-owned site;
• The Stitch – The Invest Atlanta Board approved $10 million in funding to advance the highway capping project.

In addition to funding for 2 Peachtree Street, the Invest Atlanta Board approved bond financing for affordable housing for the Boulevard North and Villages at Carver developments. These board actions are expected to finance 308 housing units, 242 of which will be available at 60 percent of the area median income or less.