Briarcliff Summit: Renovations are Still on Schedule
Historic building at Ponce de Leon Avenue and North Highland Avenue is getting a multi-million dollar facelift.
Briarcliff Summit: Renovations are Still on Schedule
The renovations of the Briarcliff Summit Building at 1050 Ponce de Leon are underway.
Brandon Lee
Photos (2)
Photos
The Portland, Maine-based real estate concern that purchased the Briarcliff Summit last year for a multi-million dollar renovation, says the refurbishing, which started in September of 2012, is proceeding as planned.
"The renovations are happening and are going smoothly," Nick Bouquet, a development associate with Evergreen Partners LLC, told Virginia-Highland—Druid Hills Patch.
"The project is on schedule."
Evergreen purchased the iconic building at 1050 Ponce de Leon Ave. last year with a muti-pronged plan to renovate it.
The 200-unit apartment building opened in 1925 as a luxury rental complex on Ponce, then one of Atlanta's most fashionable streets.
It now provides Section 8 housing to the elderly.
The renovations include refurbishing the façade, the installation of new flooring, cabinets and windows in the apartments and other improvements.
Evergreen projects the renovations to the apartments alone will cost about $55,000 per unit.
Bouquet said none of the tenants are being displaced during the renovations, which are being done with residents living on-site.
The building is to remain Section 8 after the renovations are complete.
Scott B
10:01 am on Tuesday, February 19, 2013
Seems like the plan has to be to eventually phase out the Section 8 over time. Otherwise the return on their capital doesn't make sense. They aren't receiving higher rents for that huge amount of money invested. At $55,000 a unit they'd want to see a $400-$500/month increase in rent to get a fair return.
Péralte Paul
11:39 am on Tuesday, February 19, 2013
Hi, Scott B: I wondered about that, too but they say it's to remain Section 8 when the renovations are done.
Voice of Reason
12:16 pm on Tuesday, February 19, 2013
I agree with Scott B. Something is missing here. Why would Evergreen come in and drop a large bit of $$$ into a project like this with no hope of a return on investment. Simple answer-they wouldn't. While the apartments may remain Section 8 that does not necessarily mean the rents wont go up some. If a specific apartment goes up from say $500 per month to say $600 per month then the 10% that the resident pays goes from $50 to $60 per month. The 90% that the government pays(i.e. we the taxpayers) goes from $450 to $540 per month. Pretty sweet deal for someone....
Scott B
1:16 pm on Tuesday, February 19, 2013
Section 8 vouchers only cover certain types of units that qualify. They won't pay an unlimited amount of the overage above the residents contribution. To get an increase in rents they'd have to petition HUD for it and I'm sure they'll get a little bit but it'd be capped. And $100 more a month of $1,200 a year would only be a good return if they were investing about $10k per unit not $55k. The plan HAS to be to eventually empty it out and rent the units for market at 3 times the current rents. $55k a unit is an incredible amount of money. Maybe that's not the right amount. A normal garden apt complex you can do a huge rehab inside and out for under $15k per unit.
TERRY
3:18 pm on Tuesday, February 19, 2013
Agree with everyone else here. The numbers do not add up. Perhaps a little more investigating by the Patch staff?