A sports team is responsible for a massive $5 billion project in Atlanta.
In the heart of Atlanta, a transformative $5 billion mixed-use development is taking shape. Known as Centennial Yards, the 50-acre project aims to revitalize a long-underinvested area, previously known as "the Gulch."
The development, expected to be completed by 2030, will create an eight million-square-foot district, featuring approximately 3,000 apartments, 1,500 to 1,800 hotel rooms, around 900,000 square feet of retail and restaurant space, a 5,000-seat music venue, and various business spaces, including innovative and tech-driven entities.
Centennial Yards, master-developed by CIM Group, is strategically located near major landmarks such as the Georgia World Congress Center, Mercedes-Benz Stadium, and State Farm Arena. The project's design emphasizes walkability, culture, and entertainment, breathing new life into a once underdeveloped area.
The Atlanta Hawks' owner, Tony Ressler, first identified the potential of the Gulch area. His interest was later shared by real estate developer Ressler, who expressed interest in developing the Gulch and later contacted Steve Koonin about the project.
The development's ambitious scope has attracted attention and investment, with a group led by Tony Ressler participating in the project. This investment is part of a growing trend where the price of professional sports teams has increased significantly, leading to an increase in real estate developments led by sports teams.
Centennial Yards has had to adapt to changes in the market after the pandemic, particularly in filling its office space. However, the project's mixed-use nature allows it to pivot its focus depending on market demands.
This approach is not unique to Centennial Yards. Other successful mixed-use developments combining sports and entertainment include Patriot Place and L.A. Live. In Green Bay, the Green Bay Packers' development, Titletown, has also been a resounding success, transforming a rundown shopping mall and gas station into an office building, a hotel, housing, and a family-friendly plaza with free entertainment.
However, not all sports-adjacent developments have been met with enthusiasm. Atlantic Yards in Brooklyn, the development next to the Nets' arena, faced opposition due to fears of gentrification. In Salt Lake City, the potential displacement of a concert hall galvanized opposition to a sports-adjacent development.
Centennial Yards, however, has faced less resistance. City and state officials wanted to attract residents and businesses that have left Atlanta for the suburbs, making the development a priority. This focus on revitalizing the city centre has been encouraged by the success of other projects, such as the Green Bay Packers' Titletown.
As Centennial Yards takes shape, other developers have been inspired and have started their own projects on nearby land. The development is expected to be completed by 2031, reshaping downtown Atlanta into a vibrant, walkable urban core combining residential, commercial, entertainment, and hospitality uses.
In North America, 37 projects of at least $1 billion, each linked to teams in the five major sports leagues, are in various stages of planning. Together, these potential sports-adjacent mixed-use developments represent roughly $100 billion, reflecting a growing trend in urban revitalization driven by sports teams.
Sports team ownership has led to an increase in real estate investments, as evidenced by Tony Ressler's participation in the Centennial Yards project. This development, master-developed by CIM Group, includes investing in business spaces, particularly tech-driven entities.
The ambitious Centennial Yards project, with its real estate focus, incorporates various sectors such as retail, dining, and hospitality, making it a prime example of a mixed-use development. Located near major landmarks in Atlanta, the project has attracted attention and investment from various sources.
The growing trend of sports-adjacent mixed-use developments is not limited to Centennial Yards. In North America, over 37 projects linked to teams in the five major sports leagues, totalling roughly $100 billion, are in various stages of planning, indicating a significant shift towards urban revitalization driven by sports teams.
