The board of Atlanta’s Downtown Development Authority voted Thursday to approve an amendment to the sales agreement for Underground Atlanta that will help pave the way to a final transaction with a South Carolina developer.
The move is a key step to resolve some complicated real estate title issues that have complicated the process to sell Underground for a private redevelopment, Mayor Kasim Reed said. MARTA’s board also had a vote to resolve similar issues.
WRS Real Estate Investments has been in negotiations to buy the struggling downtown mall for more than two years. The firm missed a deadline of the end of December and another earlier this month to complete the sale.
Reed has set a Jan. 31 ultimatum for WRS to get a deal done. Asked Tuesday night if WRS planned to close the deal by the end of the month, WRS executive Kevin Rogers sent a text stating: “As soon as possible.”
Reed said Thursday the moves will prepare the city to close the deal with WRS, or allow for the property to be ready for sale to another party if WRS is unable to complete the transaction.
WRS has been working to buy Underground from the city since December 2014. The city wants to move the money-losing mall off its books and spur a redevelopment that it hopes will fuel downtown revitalization. A number of groups are scouting the city's core for redevelopment opportunities, including some that have emerged as potential suitors if WRS can't close the deal.
The AJC first reported last month one of the groups that might move in if WRS fails to close the deal is the U.S. arm of German real estate outfit Newport Holdings, which has hired former executives of Ponce City Market developer Jamestown.
Invest Atlanta, the city’s development agency, and the DDA will convey the property to WRS, and an authority board vote is necessary to complete the transaction.
WRS has proposed a $300 million overhaul involving apartments, student housing, a grocery store, a hotel and other retail.
More as this story develops…
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