Phase II will deliver 97 affordable apartments to the healthcare-adjacent housing community in Southeast Atlanta

Pennrose, Mercy Care, and project partners celebrated the groundbreaking of McAuley Station Phase II, the next step in the visionary mixed-income, mixed-use McAuley Station master plan. The second phase will add 97 high-quality, affordable apartments for residents aged 55 and older adjacent to the Mercy Care campus in the Sweet Auburn neighborhood of Atlanta. The initiative is expected to be completed in April 2027.

McAuley Station Phase II responds to a critical community need by providing stable, safe, and affordable housing for older adults, many of whom are living on fixed incomes and disproportionately affected by rising healthcare and assisted living costs. The project will consist of 95 one-bedroom apartments and two studio apartments. Of these, 86 units will be income-restricted to 60% of the Area Median Income (AMI), including 19 units further restricted at 50% AMI to provide deeper affordability. The remaining 11 units will be unrestricted with respect to income.

Speakers at the ceremony included: Will Eckstein, Regional Vice President, Pennrose, LLC; Andre Dickens, Mayor, City of Atlanta; Liliana Bakhtiara, Atlanta City Council Member, District 5, Atlanta City Council; Denise Farrior, Interim Housing Finance and Development Division Director, Georgia Department of Community Affairs; Chenee Joseph, President & CEO, Historic District Development Corporation; Katie Kirkpatrick, President & CEO, Metro Atlanta Chamber; Katie Saez, Georgia Region President, Truist; Dr. Eloisa Klementich, CEcD, President & CEO, Invest Atlanta; Jane Gerety, RSM, Chief Mission Officer, Saint Joseph’s Health System.

Residents will benefit from close proximity to Mercy Care, Atlanta’s only federally qualified health center specifically designed to serve individuals experiencing homelessness, as well as the MARTA King Memorial Transit Station and Martin Luther King Jr. Recreation and Aquatic Center. Residents will also have access to tailored supportive services and on-site community amenities, including a rooftop amenity deck, fitness center, community room, activity room, community balconies, secure package room, and laundry facilities.

“McAuley’s affordable, amenity-rich apartments, adjacent to vital healthcare resources, stand as a testament to what public-private partnerships can accomplish for the local community,” said Will Eckstein, regional vice president at Pennrose. “We’re proud to work alongside Mercy Care and the City of Atlanta in advancing a transformative development designed to help older adults remain connected, healthy, and independent.”

“McAuley Station Phase II is more than a building – it’s a blueprint for compassionate community health,” said Kathryn Lawler, CEO at Saint Joseph’s Mercy Care. “At Mercy Care, we’ve learned that when housing and healthcare are integrated, lives change. This development reflects our belief that compassion is not just a moral imperative, it’s a strategy that works.”

The McAuley Station master plan began with the 36,000 square-foot expansion of Mercy Care’s clinic space and resource center in 2022, which allows the nonprofit to serve 3,000 more patients annually. In 2024, McAuley Station Phase I added 170 high-quality, mixed-income apartments and robust community amenities for families to the site.

The comprehensive McAuley Station master plan embodies a new model for community health through housing, supporting jobs, stability, and upward mobility for hundreds of residents and neighbors. The development of the campus will preserve and create over 500 existing and new jobs, not only improving health outcomes and decreasing healthcare costs for the city’s most vulnerable residents, but also helping build a thriving, inclusive Atlanta for generations to come.

McAuley Station Phase II financing is supported by public and private partners, with the Georgia Department of Community Affairs providing federal and state Low-Income Housing Tax Credits as well as substantial HOME and ERA2 favorable loans, Truist Community Capital providing tax credit equity and bridge financing, Trinity Health providing favorable debt financing, and Invest Atlanta providing Eastside TAD grant funds.

“The development of McAuley Station shows what’s possible when partners come together to create safe, quality, affordable homes with access to vital healthcare,” said Keitt King, head of Truist Community Capital. “This project reflects our purpose and the difference strong partnerships can make in helping communities thrive.”

Phase II project partners include Smith Dailia Architects, McShane Construction Company, and Thompson Ehle Company. Pennrose Management Company will serve as the property manager.

“Housing stability, quality, safety, and affordability are critical social determinants of health,” added Marsha Blunt, president of Pennrose Management Company. “We’re proud to work closely with Mercy Care to deliver inclusive housing opportunities that will allow older adults to age in place with easy access to affordable healthcare.”

Pennrose is committed to addressing the nation’s housing crisis through collaborative partnerships and innovative solutions. In Ohio, Pennrose partnered with the Blanchard Valley Health System (BVHS) to develop Eastern Woods Senior, a 50-unit residential community adjacent to the Health System’s Continuing Care Retirement Communities campus. Pennrose also developed the award-winning West Turner Residences in Pennsylvania, a joint venture with Sacred Heart Hospital.

About Mercy Care

Since 1985, Mercy Care has worked to bring healthcare to those who are most vulnerable. As a federally qualified health center with four locations supported by a street medicine team and mobile clinic, and Atlanta’s only healthcare for the homeless program, Mercy Care’s work often serves those who struggle from a lack of insurance, cultural or language barriers, previous negative interactions with healthcare providers, homelessness, or a combination of many of these challenges. In the 12 months ending June 30, 2024, Mercy Care saw more patients than any other year in its history. Mercy Care provided more than 79,000 appointments to more than 18,800 people, up 25% and 12% from the prior year, respectively. Along with the need for primary care, Mercy Care continues to see increased demand for psychiatric, dental, and vision care across all locations. www.mercyatlanta.org