Underground Atlanta’s Owner Is Looking For $40M From The City To Start Massive Development

These are the types of developments that are needed.

Underground Atlanta’s owner, Lalani Ventures, is seeking a massive amount of $40 million from the city to build a development that would be added to the historic site, BisNow reports.

In collaboration with Exact Capital, the team would build a new, mixed-use apartment tower that would include 405 units of student, income-restricted, and market-rate housing, art incubators, and retail and public spaces. Lalani says the project, in total, would cost $160 million. A breakdown in financing includes a $22.5 million taxable construction loan and $7.5 million in federal and state tax credit equity, according to documents filed with Invest Atlanta.

It also projects $77 million in permanent financing, including more than over $55 million in federal and state tax credit equity.

As Berkadia is listed as the construction and permanent lender, Lalani announced the firm will search for financing once the idea is approved by the City of Atlanta. It looks like the firm got a green light as, according to Fox 5 Atlanta, Invest Atlanta’s board approved a $40 million tax-exempt bond issue on Sept. 19 in order to help finance 163 of the 405 affordable housing units. Lalani’s CEO, Shaneel Lalani, expressed gratitude for the partnership, calling the approval an important step in the process. “We’re grateful for the support of Invest Atlanta and the City of Atlanta. The vote on Sept. 19 was an important step in the process. Going vertical allows us to build a beautiful new residential community in downtown Atlanta at Underground,” he said.

“This is part of our overall vision to create Atlanta’s top arts and entertainment community. Having residents live right here will create more vibrancy for this beloved property with historic roots, which in turn will have a great impact on downtown Atlanta.”

The proposal projects the project should take two years to build and be available in 2027.

The construction project would be the first new development the site has seen in decades and would give the space a needed boost to match the influx of permanent residents as well as give some flavor to its iconic landscape.

In the 1960s, the Underground was looked at as Atlanta’s top nightlife destination, hosting clubs and entertainment such as Dante’s Down the Hatch, Scarlett O’Hara, The Front Page, and a wax museum.

In the 1980s, once the nightclub scene headed to the Buckhead neighborhood, Underground began to thrive as a shopping mall but has since downgraded. Lalani has been an active correspondent in bringing the area back to life and has been an advocate for affordable housing in Downtown Atlanta.

On top of the Underground project, he is hoping to convert 20 floors of a 30-story office on Peachtree St. into residential suites. In 2021, he purchased the property, once known as One Park Tower, for $12.8 million.