A “new day” dawns for the future of Underground Atlanta, a run-down Atlanta subterranean shopping center. The fate of this once thriving Atlanta entertainment center fell in the hands of Atlanta officials at the end of 2014, as the city bought out the original lease holder, CV Underground, with a remaining 72 years on its lease. However, on Tuesday, Dec. 16, Underground Atlanta was placed under contract by South Carolina-based real estate developing firm WRS, Inc. The developer plans to make Underground Atlanta into a mixed-use development where people once again want to regularly visit, shop, and even live.
The 12-acre site is to be purchased for $25.75 million. According to developer T. Scott Smith, the total investment is estimated at $150 to $200 million; he plans to close on the property mid-2015 and begin construction no later than 2016. The area will be repurposed into a mixed-use retail area with a grocery store, restaurants, shops and even above-ground apartment homes. While preliminary renderings or plans have not been released, Mayor Reed stated he predicts this newest incarnation of Underground Atlanta to succeed thanks to WRS, Inc.’s funding and clear vision.
The money generated from the sale of Underground Atlanta will cover the $8.8 million the Atlanta City Council approved for the area’s purchase from CV Underground, says Reed. The Mayor has not commented on the fate of the remaining funds from the purchase, but we predict a positive reinvestment from the City’s council.
Constructed during the post-Civil War Reconstruction Era, Underground Atlanta offers the perfect cross-section of old America and modern America. Visitors today can walk along the cobblestone streets once navigated by horse and buggy, see remnants from the Civil War, and tour the Georgia Railroad Freight Depot, which was built in 1869 and is still the oldest building in downtown Atlanta. The area’s lively history began as early as the 1920s during Prohibition, as many of the tenants turned their underground basements and storage rooms into speakeasies.
The area once again became a popular entertainment district in the 60s and 70s, as Fulton County was the only county in Georgia to allow mixed alcoholic beverages, and it was often compared to Bourbon Street in New Orleans. Following the relaxation of liquor laws in neighboring counties, Underground Atlanta lost much of its luster. Then, the area underwent a renovation to become a shopping destination for tourists and residents alike in the late 1980s. With the addition of the World of Coca-Cola and the 1996 Olympics taking place in Atlanta, the area survived throughout the 90s.
Unfortunately, over the years, the property value began degrading as fewer patrons lined the underground streets to shop and eat, and the World of Coca-Cola museum relocated, further degrading the property. According to some Atlanta locals this move, arguably put the “nail in the coffin” for Underground Atlanta. Passing by the location today, one would never know how incredibly energetic it once felt. Thanks to this recent purchase, Mayor Kasim Reed and Smith are sure Underground Atlanta will once again be that place locals and visitors alike knew and loved.