Brookhaven Office Building Could Be Converted To Senior Housing
Another aging Metro Atlanta office building could be seeing new life with a different purpose.
Ashford Green Ventures LLC filed an application with the city of Brookhaven to convert Ashford Green, a six-story 1980s office building in Central Perimeter, into a senior living community, the Atlanta Business Chronicle reported.
The ownership entity is seeking to convert the 308K SF building at 4170 Ashford Dunwoody Road into a 207-unit apartment building geared toward aging renters, with independent living, assisted living and memory care units, according to the ABC. The owner also wants to build a five-story, 201-unit active-adult apartment complex for renters 55 and older, the ABC reported.
Ashford Green could be part of a wave of potential office conversions in the metro area, as landlords are struggling to fill buildings amid a decline in tenant demand as hybrid work models take permanent root.
Jordache Enterprises listed Five Points Plaza in Downtown Atlanta for sale, with a majority of potential investors interested in converting the 17-story building into apartments or a hotel once the Department of Housing and Urban Development vacates the building next year, Bisnow reported last week. In May, Highwoods Properties floated the idea of transforming the 290K SF 1800 Century Blvd. office building near Brookhaven into a multifamily complex.
Converting commodity and older office buildings into housing or hotels is much easier said than done, Windsor Stevens Managing Partner Rod Mullice, a multifamily developer, told Bisnow. The key factor is the size and layout of each floor of the office building, which could require developers to put units in areas without access to sunlight or windows, Mullice said.
Ashford Green's typical floor plate is 44K SF, according to a LoopNet listing. Its size and occupancy — the building is 76% leased, according to CoStar data reported by the ABC — could be impediments to a conversion.
“If the floor plate is optimal and you can get sunshine or daylight coming into all the units and they are efficient in the layout, that’s ideal,” Mullice said. “However, architecture has changed from the 1950s-vintage office buildings to the 2020-vintage office buildings. Floor plates have gotten bigger over time, and the larger the floor plates, the less efficient the conversion opportunity.”
The landlord, Ashford Green Ventures, is tied to Mufasa LLC, which is led by Benjamin Alev, according to state records. Mufasa purchased Ashford Green late last year from Manulife Financial Corp. for $23M, securing a $14M loan from New Orleans-based real estate firm The Berger Co. for the purchase.
