Instead, the developer is asking the Atlanta Zoning Review Board to approve new plans for the construction of 326 lower-priced apartments on the 6.4-acre site. The zoning board will hear Southeast's request at a public meeting in October. The apartments would rent for $975 to $1,390 per month.

In another submarket, however, Southeast is learning demand for condo living remains strong. At the Borghese on Northside Parkway near Interstate 75, Southeast has booked $19 million in contracts, up from $8 million in April. The condos run from $500,000 to $2.6 million.

The luxury condo market is also soft in Buckhead, the affluent office, residential and entertainment district eight miles from Downtown. SouthTrust Bank is foreclosing on developer Blaine Kelley Jr.'s 2500 Peachtree Condominiums where units are priced from $700,000 to $2 million.