The clock struck midnight on a distressed loan backing a massive Buckhead apartment complex that’s famous for its real-time Atlanta metro population ticker.
The Lofts at Twenty25 apartments, a 623-unit residential tower along Peachtree Road in one of Atlanta’s wealthiest ZIP codes, was returned to its lender last month through foreclosure, data from real estate research firm Databank shows. Long known as the Darlington apartments, the renamed building is renowned in the city for its Atlanta population clock that stood outside its front door for decades.
Credit: Charles Pugh
Credit: Charles Pugh
Norfolk, Virginia-based Harbor Group International assumed ownership of the 16-story building in an Aug. 6 foreclosure sale valued at $92.5 million, according to Databank. The transaction was first reported Monday by Bisnow. The building’s previous owner, Miami-based Westside Capital Group, defaulted on a $104.7 million loan, prompting the distressed sale.
Harbor Group declined to comment. Westside Capital could not be reached for comment.
Westside Capital paid $136 million — mostly through the debt provided by Harbor Group International — to acquire the apartment tower in July 2022. Built in 1951, the apartments used to offer a discount compared to other high-rent buildings in Buckhead. The population clock was erected by Atlanta media mogul and CNN founder Ted Turner in 1965.
Credit: Cushman & Wakefield
Credit: Cushman & Wakefield
The building later fell into disrepair, leading to a 2018 renovation campaign that rebranded it as the Lofts at Twenty25 and repurposed its units into luxury apartments.
Westside Capital acquired the building near the beginning of the Federal Reserve’s prolonged campaign to reduce inflation by hiking interest rates. Most commercial loans are what are known as “balloon loans,” with adjustable mortgage rates. Borrowers typically pay mostly interest during the term of the loan, with the bulk of the debt due at maturity.
Because interest payments significantly increased on adjustable loans in the wake of those interest rate hikes, several commercial real estate properties have faced loan distress. Some borrowers have returned ownership to their lenders.
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