Buckhead Apartments | Living Downtown

Real-estate development and the credit markets are nearly frozen, but developer Ben Carter seems undaunted as he moves forward with plans to bring his hometown Atlanta its own version of New York's Madison Avenue.

Mr. Carter's $1.5 billion project, The Streets of Buckhead, aims to be the Southeast's most luxurious shopping, dining and living destination, spanning seven city blocks and eight acres in one of Atlanta's wealthiest neighborhoods. It will also be located near two of Simon Property Group's most successful upscale malls: Phipps Plaza and Lenox Square.

"I don't think a lot of people understand what I'm doing because it's very rare a luxury street project gets created from scratch," Mr. Carter said. "We're making a new kind of experience."

Mr. Carter remains confident and said the economic downturn could actually benefit his project's first phase.

"I've heard the economy should start to recover next year," Mr. Carter said. "We open in late 2009 or maybe early 2010. Our timing ought to be pretty good to capture the pent-up demand."

With about 50% of the project's first phase leased, Carter's tenant list already boasts market exclusives such as French jeweler Van Cleef & Arpels and Brunello Cucinelli, an Italian luxury cashmere company. He even stole Hermes SA from Simon, leasing the French luxury goods maker its first Atlanta flagship stand-alone location.

But while Mr. Carter's development seems to be off to a good start, some observers say it could be in for a bumpy ride. That's because, as the global credit crisis continues to unfold, he faces a tough real-estate financing market, as well as a consumer environment where even the wealthiest are scaling back purchases.

The credit crunch has dealt real-estate developers around the country a potent blow, causing them to delay, scale back or even cancel some projects. CBRE/Torto Wheaton Research, a Boston-based real estate research firm, estimated that developers delivered 6.3 million square feet of retail real estate space during the third quarter -- or about three-quarters of the 8.5 million square feet originally planned.

So there you have it. A little update on what is being developed in the Buckhead area.