Invest Atlanta has approved the sale of roughly $557 million in bonds to support construction of Centennial Yards’ entertainment district opposite Mercedes-Benz Stadium.
The bonds are part of a massive $1.9 billion incentive package approved by the city in 2018 for the 50-acre mixed-use development now under construction by CIM Group. The property, formally known as The Gulch, was a warren of below-street-level parking lots and CSX train tracks for decades.
D.A. Davidson’s Development Finance Group said in a press release that the financing is one of the largest public-private partnerships in the country.
D.A. Davidson’s Development Finance Group served as co-manager alongside lead manager J.P. Morgan and co-manager Truist Securities. The bonds were issued through the Atlanta Development Authority and consist of $219 million in Senior Revenue Bonds secured by property tax increment within the Westside Gulch and $356 million Convertible Capital Appreciation Economic Development Certificates secured by a 5% EZ Fee (similar to sales tax) to be collected within the Centennial Yards project.
Once its complete, Centennial Yards will feature a mix of residential, commercial, retail and entertainment spaces, including 2,600 residential units, nearly 3,000 hotel units, and 900,000 square feet of retail and entertainment space.
Centennial Yards Company announced in July that it has signed a long-term lease with Los Angeles-based Cosm to create a 70,000-square-foot, three-level entertainment venue at the site.
The venue will include an 87-foot diameter, 12K-resolution LED dome to “deliver live sports and experiential entertainment in Shared Reality,” according to a news release.