Atlanta’s Peachtree Snags Acquisition Loan from PCCP
- Nov 30, 2015
An affiliate of DRA Advisors recently sold The Peachtree, a Class A office building in Midtown Atlanta. The buyer was 1355 Peachtree Owner LLC, a joint venture formed by an entity affiliated with Banyan Street Capital LLC and funds managed by Oaktree Capital Management LP. PCCP LLC provided a $48.6 million senior loan to 1355 for the acquisition of a 91.7 percent condominium interest in the 345,244-square-foot asset. The loan enabled the buyer to acquire the asset and also provides funds for future capital improvements and leasing costs.
Over the past three quarters, the Midtown submarket has experienced nearly 720,000 square feet of positive net absorption as companies such as NCR, Kaiser Permanente, Worldpay and Sage Software relocated from the suburbs into Midtown, according to John Randall, managing director with PCCP.
Built in 1989, the asset is located at 1355 Peachtree St. NE between 16th and 17th Streets on the northern side of Midtown, just two blocks to the Arts Center MARTA Station as well as several dining, hospitality, residential and cultural destinations. The Peachtree comprises two nine-story wings on the north and south sides of a 20-story tower, all of which surround a 10-story atrium in the building’s center. Amenities include a conference facility, concierge services, a fitness center, café and a controlled subterranean parking garage with direct elevator access.
In recent years, nearly $3 million of capital has been invested into the property, which has been used to upgrade portions of the lobbies, improve common areas, enhance on-site amenities, and modernize the elevators in each wing. Additionally, over the last six months, there has been in excess of 60,000 square feet of leasing activity bringing occupancy to 91 percent.
Photo courtesy of PCCP