Development of 300-Unit Rental Apartment Complex in Atlanta, Georgia, USA - Balancing Decarbonization and Economic Viability with Wood Construction

Sumitomo Forestry Co., Ltd. (President: Toshiro Mitsuyoshi, Headquarters: Chiyoda-ku, Tokyo), through its 100% subsidiary Crescent Communities, LLC (CEO: Brian Natwick, Headquarters: Charlotte, North Carolina, USA; hereafter "Crescent"), will develop the rental apartment complex "NOVEL Lulah Hills" in Atlanta, Georgia. This is a joint project with NTT Urban Development Corporation (Headquarters: Chiyoda-ku, Tokyo; President and CEO: Yasushi Ikeda). The building will be six stories high, with the second floor and above constructed from wood, and is scheduled for completion in 2028.

■ Overview of "NOVEL Lulah Hills"

This project involves the development of a rental apartment complex with 303 units on a site of approximately 4 acres (about 16,200 m²). The first floor is scheduled to house several commercial tenants, with the second floor and above dedicated to residential units. Designed with the concept of a market space that generates urban vibrancy, the common areas will include a multi-purpose space and terrace for events and workshops. Additionally, the outdoor areas will be equipped with diverse facilities such as a courtyard, pool, beer garden, dining areas, and a game space.

The development is part of the large-scale mixed-use redevelopment district "Lulah Hills," offering high convenience with walking access to a shopping center, entertainment facilities, and a large supermarket. Walking paths are also planned for the surrounding area, providing residents with a rich living environment unique to a redevelopment zone.

The residential portion will utilize wood-frame construction with 2x4 lumber, reducing costs compared to reinforced concrete (RC) construction. Generally, wooden buildings can reduce CO₂ emissions during construction (embodied carbon) compared to steel (S) or RC structures. Furthermore, as wood stores the CO₂ it has absorbed as carbon internally, it continues to sequester carbon for long periods, contributing to decarbonization.

■ Features of the Luxury Rental Housing Brand "NOVEL"

"NOVEL" is Crescent's signature luxury brand for apartment complexes, known for its high-quality specifications and amenities. For projects under this brand, workshops called "Canvas Sessions" are held, where stakeholders involved in the development collaborate to create the fundamental design concept for the property. This project will also be developed to be attractive to the local community by deepening the understanding of the area's history and unique features.

■ Features of the Area

The property is located in the city of Decatur, which preserves a historic streetscape, and is about a 20-minute drive from downtown Atlanta. It has excellent transportation access, being approximately 15 to 30 minutes away from major employment centers like Buckhead and Midtown, as well as the Hartsfield-Jackson Atlanta International Airport. The site is in close proximity to an area with a concentration of numerous educational and medical institutions, including Emory University. It is also surrounded by natural environments such as the Clyde Shepherd Nature Preserve, making it a location that offers both access to urban amenities and rich green spaces.

■ Business Background

The development is being carried out by a special purpose company (SPC) jointly funded by Crescent, a wholly-owned subsidiary of Sumitomo Forestry, and NTT Urban Development's U.S. subsidiary (NTT UD USA Inc.). This marks the second collaboration between the two companies, following a residential development project in Dallas, Texas.

The Sumitomo Forestry Group entered the real estate development business in the United States in 2017. The number of apartment units started in 2024 was 5,344, equivalent to the 4th largest in the U.S.*¹, and the business is expanding to become a major pillar alongside its single-family home development business in the U.S.

■ Groundbreaking Ceremony

A groundbreaking ceremony was held at the development site on March 12. It was a well-attended event with over 50 participants, including project stakeholders.

■ Future Policy

The Sumitomo Forestry Group operates a global business centered on "wood," spanning from forest management to the manufacturing and distribution of timber and building materials, construction of detached houses and large-scale wooden buildings, real estate development, and wood biomass power generation. Through its long-term vision, "Mission TREEING 2030," the group aims to contribute to the decarbonization of society as a whole by revolving its "Wood Cycle" value chain. This involves increasing CO₂ absorption in forests and sequestering carbon over the long term through the widespread adoption of wooden architecture. By advancing the "evolution of global development," one of the business policies set forth in the long-term vision, the group will also accelerate its decarbonization initiatives in the United States.

*1. Based on internal calculations from the National Multifamily Housing Council (NMHC) 2025 rankings.

■ Property Overview

Property Name: NOVEL Lulah Hills

Location: 2042 Lawrenceville Hwy, Decatur, GA

Planned Site Area: Approx. 4 acres (Approx. 16,200 m²)

Total Floor Area (Planned): Approx. 680,000 sqft (Approx. 63,000 m²) (including parking)

Number of Units (Planned): 303

Structure/Method: 6 stories above ground (1st floor and parking are RC construction; floors 2 and above are wood construction) (The parking structure in the center of the building is RC)

Start of Construction: December 2025

Completion (Planned): 2028