Portman Scales Back Ponce & Ponce Project Due To 'Crunched' Financing Market
Portman Holdings' plans for a stretch of Ponce de Leon Boulevard in Virginia-Highland near the Atlanta BeltLine are getting a little less ambitious.
The Atlanta-based firm isn't purchasing three buildings at the edge of the planned Ponce & Ponce project's scope and doesn't expect to begin construction on a reduced version of the project for at least two years, The Atlanta-Journal Constitution reports.
Portman had planned a three-building project with 354 residential units, 38K SF of retail and 470K SF of office space, but lenders' unwillingness to finance new office construction has led the developer to rethink that component of the project, Portman Vice President of Development Mike Greene told the AJC.
"The financing market is crunched right now," he told the newspaper, adding that "it’s not even remotely close to being a reality to finance office in any place."
Portman agreed to buy the properties from 692 to 774 Ponce de Leon Ave. NE last year, planning the large-scale project across the street from Jamestown's Ponce City Market and abutting the BeltLine's Eastside Trail. Now, the businesses from 752 to 774 on the street, including the Vesta Fitboxing and The Local bar, are no longer included in the plans, the AJC reported.
Some of the retailers that occupy the buildings in the project's footprint had already made plans to relocate, but now they will be able to stay in their buildings longer than anticipated.
There might be no workplaces in the future version of the project, Greene said. Portman is already under construction on a 144K SF office building not far away at 667 Auburn Ave.
Atlanta's office availability was over 28%, an all-time high, at the end of the second quarter, according to Savills. There is more than 50M SF of direct and sublease space available in the region.
