Spotlight On: Brian McGowan, President, Centennial Yards Company
August 2024 — In an interview with Focus:, Brian McGowan, president of Centennial Yards Company, talked about how the company is transforming downtown Atlanta into a cultural icon with 8 million square feet of development. McGowan also addressed affordable housing and supporting minority and female business enterprises.
Reflecting on this past year, what have been some key milestones or achievements for Centennial Yards?
Centennial Yards is full steam ahead and has been since the city signed the Development Agreement in November 2021. In just under a year, we broke ground and had two construction cranes in the air, supporting two 19-story towers, with more cranes coming soon. It really is a historic, even emotional sight for many to see something they thought they would never see – construction in The Gulch. This is a big step forward for downtown Atlanta, and the surrounding areas are feeling the positive impact. One of those buildings will house 304 residential apartments, and the other will be a 292-key hotel – there will be 30,000 SF of retail, food, and beverage between the two. Both buildings are ahead of schedule and set to open mid-summer next year.
We’ve begun work on our next phase, the heart of the entertainment district: eight acres and four buildings totaling 500,000 square feet. This summer, we were thrilled to announce our first large lease of 70,000 square feet, which will be home to COSM, a leading immersive technology and entertainment concept. This phase will also feature a music venue, another hotel, and more food and beverage options, all surrounding a fan gathering plaza.
Our goal is to deliver this phase by the FIFA World Cup in 2026. While the buildings will be in progress, the fan zone and everything around it will be complete and open for the events.
We are proud to already have more people living Downtown in our 162-unit apartment building, The Lofts at Centennial Yards, leased up in just 45 days, and the first tenant, Wild Leap Brewery, is already up and running. This is making Downtown a better destination for visitors coming for games or concerts.
Can you detail the community benefits, especially around the housing and residential units you plan to incorporate?
Regarding housing, 20% of all the units we build will be affordable at 80% of the area median income for 99 years. This means over 1,000 units of affordable housing will be added to the city. We are also committed to ensuring that 38% of all our contractors are minority, female, and small business enterprises.
We have also rebuilt the Nelson Street Bridge. Renamed the Steele Bridge, dedicated to Atlanta heroine Carrie Steele Logan, the structure has reconnected the South Downtown and Castleberry Hill neighborhoods. The bridge has become a popular spot for community events, art, and fan gatherings before and after events at State Farm Arena and Mercedes-Benz Stadium.
Additionally, we will build a new fire station and a police station within the project. We have committed to hiring from within the city of Atlanta for 25% of all entry-level jobs, ensuring that local residents help build the project. We have also donated $33.5 million to the city for affordable housing and diversity, equity, and inclusion initiatives.
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What unique opportunities and challenges are you seeing, especially for real estate?
We can’t avoid the ups and downs of the real estate market – things like delays in the supply chain, inflation, and interest rates that always seem to be changing. As for office buildings, companies are starting to bring people back in, but it’s still a bit of a slow process. We believe the need for office space will return and are still marketing and planning to build office buildings.
At a regional level, Atlanta struggles with economic inequality and transit, and as home prices go up, affordability becomes a significant issue. Mayor Andre Dickens is focused on making housing affordable, but we also need to tackle workforce development, transit, and zoning issues to allow for higher density in neighborhoods to create more affordable housing. Traffic and affordability are problems that all growing regions struggle with, but they are all tied to real estate, and what is happening in real estate is directly correlated to these issues.
How do you foresee the commercial real estate industry changing over the next five years, and what are your top priorities as a company?
We are seeing conversions of office spaces to residential, and I think that trend will continue. We predict that people will eventually go back to working in offices, but they’ll prefer newer, high-quality buildings with good air, cool amenities, and places to hang out. Older office buildings might struggle as companies opt for newer spaces.
We have one hotel under construction, and by this time next year, there will be three more. The hospitality and entertainment industries are doing very well right now. We are building a music venue within Centennial Yards, along with many food and beverage options to support that trend.
We are also focusing on residential. There is a housing shortage across the United States, and we’re planning to build between 3,000 and 4,000 apartments. Revitalizing Downtown requires more people living in the area, which makes the neighborhood more vibrant, safer, and appealing.
What makes Atlanta a great city to be in?
For years, lots of young, talented people have flocked to places like San Francisco, Los Angeles, and New York. Post-pandemic, this demographic is now coming to cities like Atlanta, which offer a high quality of life and a lower cost of living. Atlanta will continue to benefit from this trend. Atlanta was already growing pre-pandemic due to its strong economy, high quality of life, and lower cost of living – these factors are accelerating that growth.
Over the last 12-14 years, Atlanta has become a hotspot in entrepreneurial culture, with startups and innovators coming here to start businesses. Atlanta influences everything from music and art to corporate culture and movies. This influence will continue to rise, positioning Atlanta for continued economic growth over the next two decades.
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