rainn.png
Thursday February 2nd, 2023 5:48AM

Iconic part of Atlanta skyline foreclosed in loan default

By The Associated Press

ATLANTA (AP) — Six office towers and an underground mall in downtown Atlanta are back in the hands of their lenders after the owner defaulted on a loan, a foreclosure that points to continuing uncertainty in the market for office space since the pandemic prompted much of America's workforce to work from home.

The Atlanta Journal-Constitution reports that Miami-based Banyan Street Capital owed more than $125 million on parts of the Peachtree Center complex, a cornerstone of Atlanta's downtown.

Banyan Street's ability to repay its loans may have been harmed after Truist Financial Corp. moved out of two the towers in 2021 while consolidating offices. The bank represented more than a fifth of Peachtree Center’s rent, according to a report from investment firm Morningstar. The report said that as of April, the buildings were nearly 40% vacant, compared to an overall vacancy rate of 21% in Atlanta-area office space.

The foreclosure auction was held Tuesday on the steps of the Fulton County Courthouse, where one investor bid just $1.5 million cash. But lenders represented by Situs AMC put up $127.5 million representing the debt Banyan Street owed them, and this overwhelmed the paltry cash bid. Investors bought a commercial mortgage-backed security to loan the money to Banyan Street, and Tuesday's bid leaves them with the buildings rather than the cash.

“I’m hopeful that this is not some kind of a bellwether of things to come,” AJ Robinson, president of Central Atlanta Progress and the Atlanta Downtown Improvement District, told the newspaper.

The change in ownership likely won’t affect current tenants, since their leases have not expired. More tenants could move out as their leases end. Peachtree Center also includes the Marriott Marquis and Hyatt Regency convention hotels, the merchandise mart now known as AmericasMart, and other buildings, none of which were part of Tuesday’s foreclosure.

Banyan Street spent millions to upgrade the buildings and mall at the complex designed by Atlanta developer and architect John C. Portman Jr., and has said it remains fully committed to other downtown Atlanta properties it still owns, including another office tower, a residential project and multiple parking garages.

  • Associated Categories: Associated Press (AP), AP Business, AP Online - Georgia News, AP Online Headlines - Georgia News
© Copyright 2023 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
UK leader Truss vows energy relief, rules out windfall tax
U.K.  Prime Minister Liz Truss has ruled out a windfall tax on oil companies to pay for her plans to tackle the energy crisis
12:04PM ( 3 minutes ago )
Biden to channel Kennedy in his push for a cancer 'moonshot'
President Joe Biden will highlight his plans for drastically reducing cancer deaths and boosting treatments for the disease in what he has calls “this generation’s moonshot."
11:52AM ( 15 minutes ago )
Putin: Russia may halt energy exports if West caps prices
Russian President Vladimir Putin has threatened to completely cut energy supplies to the West if it tries to cap prices of Russian exports
11:51AM ( 16 minutes ago )
Associated Press (AP)
Major League Baseball Players Association joins AFL-CIO
The Major League Baseball Players Association is joining the AFL-CIO
11:08AM ( 1 hour ago )
Scholz: Germany well-placed on energy to get through winter
German Chancellor Olaf Scholz says the country is well-placed to get through this winter with enough energy thanks to his efforts to shore up supplies
10:56AM ( 1 hour ago )
Utah's Evan McMullin upends two-party fight for US Senate
Utah's Evan McMullin is emerging as the nation’s most competitive independent candidate running for U.S. Senate in the 2022 midterm elections
10:26AM ( 1 hour ago )
AP Business
Atlanta United's Josef Martinez suspended for 1 week
Atlanta United has announced a one-week suspension for disgruntled striker Josef Martinez
11:14AM ( 55 minutes ago )
AP Top 25 Reality Check: Should Georgia be No. 1?
Florida entered the AP Top 25 with a bullet, landing at No. 12 after beating Utah
10:56AM ( 1 hour ago )
SEC teams get more chances for September statements
The Southeastern Conference was perhaps one blocked kick away from perfection on opening weekend, with a few impressive nonconference wins and some no-brainers
9:21AM ( 2 hours ago )
AP Online - Georgia News
AP Online Headlines - Georgia News
Biden to channel Kennedy in his push for a cancer 'moonshot'
President Joe Biden will highlight his plans for drastically reducing cancer deaths and boosting treatments for the disease in what he has calls “this generation’s moonshot."
11:52AM ( 17 minutes ago )
Stone Age skeleton missing foot may show oldest amputation
A skeleton from 31,000 years ago may be the earliest evidence found of an amputation surgery in humans
11:49AM ( 21 minutes ago )
Abortion floor debate splits South Carolina Republicans
The South Carolina Senate has scheduled a lengthy floor debate on an abortion ban that no longer includes exceptions for pregnancies’ caused by rape or incest
11:46AM ( 23 minutes ago )
Shelling resumes near Ukraine nuclear plant, despite risks
Shelling has resumed in the area of Ukraine’s huge nuclear power plant
11:27AM ( 42 minutes ago )
Greece warns allies of Turkey conflict danger amid tension
Greece’s government has written to its NATO and European Union partners and the U.N. chief, urging the formal condemnation of increasingly aggressive rhetoric from neighboring Turkey
11:22AM ( 48 minutes ago )