From the Atlanta Business Chronicle:

Facing a glut of condominiums in Atlanta and the national credit crunch, a Buckhead condo developer has decided to go rental.

Mezzo, the 94-unit, 20-story tower at 2171 Peachtree Road, will be available for rental in mid-September.

“Since its inception, interest in Mezzo has been very strong,” said Scott L. Leventhal, president and CEO of Tivoli Properties Inc., Mezzo’s developer, in a statement. “However, given the current state of the credit markets and challenges in obtaining mortgage financing, we decided to implement our rental plan, which was always contemplated, rather than lower prices to force a sale.”

Rent will start at $2,495 per month for a one-bedroom unit, with the average rental rate at about $2 per square foot.

“There are those that want to rent and have amenities of five-star product, but they can’t right now because there is no property [available],” said Karen Hill, Tivoli’s vice president of marketing. “The only thing they can do is lease someone else’s existing condo.”

Mezzo has high-end amenities, including a heated swimming pool and an in-house dog relief area.

Tivoli had about 10 percent pre-sales at Mezzo and returned the money to potential buyers, she said.

Atlanta’s condo market has been hit hard.

To say that Atlanta’s condo market has been hit hard is an understatement. Many projects have been put on hold or stopped altogether. Other developments have slashed prices, offered delayed mortgages, and even thrown in new cars in order to attract new purchasers.

In the meantime, owners of existing condos are finding that their homes are leaking value like a sieve.

for rent, originally uploaded by mgoldstein.