Atlanta
Mercy Care Atlanta expands mission to housing, along with health care
By ANDREW NELSON, Staff Writer | Published November 15, 2024
ATLANTA—With its scenic rooftop view of the downtown Atlanta skyline, the new Mercy Care-supported apartment complex offers upscale amenities and essential services. Named McAuley Station, it’s a development that increases housing options for families while connecting them to vital medical care.
The 170 apartments sit next to the medical nonprofit’s campus in the Sweet Auburn neighborhood.
Leaders from real estate developer Pennrose, Mercy Care Atlanta, civic officials and others celebrated its opening. Community leaders, along with Atlanta Archbishop Gregory J. Hartmayer, OFM Conv., cut a ceremonial ribbon on Oct. 30 to mark the completion of the $50 million development, the first in the city to match a medical provider with housing.
“It is the first time in our community where a health system has been an investor in making an affordable housing project come to life,” said Mercy Care CEO Kathryn Lawler. “Because of our roots with the Sisters of Mercy and the big, bold visions that go back to Sister Catherine McAuley in the early 1830s, no idea has ever been off the table.”
Its name honors the foundress of the Sisters of Mercy, Mother McAuley, whose service began in 1827 with the opening of a shelter for homeless girls and women. This led to the founding of the Sisters of Mercy in 1831, and decades later, the opening of Atlanta’s first hospital after the Civil War. That heritage lives on as the religious congregation inspired the nonprofit’s outreach to uninsured people nearly 40 years ago. Emory Saint Joseph’s Hospital is a continuation of the religious community’s local legacy.
Lower than market rents
The 163,905-square-foot complex is designed to cater to a cross-section of incomes, with rents set from 50% to 80% of the area median income, the middle point of all household incomes in a given area, meaning half the households earn more than this amount, and half earn less.
Of the 170 units, 10 are reserved permanently for Mercy Care patients who are homeless as they transition to permanent housing, and 30 studios will serve as permanent supportive housing through Fulton County’s Behavioral Health Department in partnership with Partners for HOME.
The supply of affordable housing options in the Atlanta area is severely limited, with climbing prices chasing too few units to rent.
According to the Atlanta Federal Reserve, in 2023, some 49 percent of renters in the Atlanta area were “cost burdened,” meaning they paid more than 30% of their income on rent. The federal government sets that level as the standard benchmark for housing affordability.
This project is geared towards serving people earning between $33,000 and $86,000.
The Gartrell Street complex, with its modern-looking brick and metal paneling, is part of the comprehensive mixed-use McAuley Park master plan.
Building residents will have the amenities of high-end complexes, from grill stations and a fitness center to a resident lounge and business center and more. It’s a short walk to the King Memorial MARTA station, the desirable Atlanta Beltline and downtown Atlanta.
However, rents are lower than market. Most tenants will pay between $1,100 and $1,700 monthly.
Also, residents of McAuley Station will have access to Mercy Care medical services with its expanded clinic. Its medical staff serves 3,000 more patients annually, many who are uninsured or unable to pay for care.
The next step in fulfilling the master plan is the construction of nearly 100 units of housing for people 55 years and older. This project is to help longtime residents of the area who face higher rents because of gentrification.
Once completed, there will be 270 family and workforce apartments on the city block.
Continuing the work of the sisters
For leaders of Mercy Care, the project is a continuation of the nearly 200-year history of the Sisters of Mercy, whose ministry inspired the nonprofit.
Other speakers at the dedication included Atlanta Mayor Andre Dickens, along with leaders in the public and private sectors.
“McAuley Station marks a critical turning point for many in Atlanta seeking safe, stable, affordable housing and healthcare,” said Mayor Dickens in a statement. “Today is an exciting step forward in building a healthy, connected and thriving community from the ground up. Together we are giving residents hope, opportunity and a way forward.”
For Lawler, she wants other institutions, from hospitals to universities, to see the work here and be inspired to dream creatively, gather partners and aid the community in new ways. “I say all the time, this cannot be a unicorn. It has to be a recipe,” said Lawler.
Financing for the project was provided by $26 million in bonds issued by Invest Atlanta, with a mix of private and public money to pay for the project. Partners for HOME provided $1.2 million in grants and Saint Joseph’s Health System provided $4.37 million to support the project’s shared parking deck. Phase I project partners include Smith Dalia Architects and Capstone Building Corporation.
Pennrose Management Company will serve as the property manager.