Centennial Yards has secured the largest single infusion of capital in its history. Financial services firm D.A. Davidson's Development Finance Group has closed $575 million of bonds in a complex arrangement meant to carry the 50-acre remake of the downtown Gulch through the next phase of construction.
The structure is unusual. Of the total, $356 million comes as Convertible Capital Appreciation Economic Development Certificates secured by a 5 percent EZ Fee, functionally similar to a sales tax, collected within Centennial Yards once it begins opening. The remaining $219 million is Senior Revenue Bonds secured by property tax increment within the Westside Gulch. All of it was issued through the Atlanta Development Authority, with J.P. Morgan as lead manager and D.A. Davidson and Truist Securities as co-managers.
“The largest transaction in our group's history,” is how Kyle Thomas, D.A. Davidson's managing director, described the deal. “By leveraging our expertise in structuring complex, large-scale, early stage financings which are solely secured by tax increment, we've been able to support the transformation of this historic site into a vibrant, inclusive community that will benefit all Atlantans.”
The announcement also sharpened the project's scope. Current plans call for more than 2,600 residential units, with 20 percent reserved as affordable housing, alongside nearly 3,000 hotel rooms across boutique and full-service properties and more than 900,000 square feet of entertainment and retail. All told, the buildout is forecast at more than 5.7 million square feet, with completion targeted for 2030. Infrastructure plans include creating a dozen new city blocks downtown, with a police mini precinct, a new fire station, and public greenspaces among them.
Two pieces are already visible. The Mitchell, the project's first ground-up residential tower at 304 units, topped out last month. Just east of it, an 8-acre mixed-use entertainment hub anchored by a Cosm dome and centered on a fan plaza has broken ground, scheduled to finish in time for the eight 2026 FIFA World Cup matches Atlanta hosts beginning in June that year.
Centennial Yards is a partnership between the Atlanta Development Authority, the City of Atlanta, and Los Angeles-based CIM Group, which holds more than $29 billion in assets. A CIM affiliate, Spring Street LLC, leads the development, with co-investors led by Atlanta Hawks owner Tony Ressler, brother of CIM cofounder Richard Ressler. Total cost is estimated around $5 billion. Project leaders say they are targeting 38 percent participation from minority and female enterprises and small businesses.
“By building upon the rich history of Atlanta as a pivotal rail hub, Centennial Yards will not only honor the past but also create a vibrant future,” said company president Brian McGowan.
Original reporting by Josh Green for Urbanize Atlanta, published September 2024.
