Local Investor ‘Saves’ Historic Atlanta Office Building
- Aug 02, 2016
By Robert Demeter
Atlanta—Lincoln Southeast LLC has recently facilitated the transfer of 10 Park Place, a 137,681-square-foot office building located in downtown Atlanta. Lincoln’s primary duty was to secure the property, prevent waste, collect rent, and utilize its service platform to create value for the collateral property.
Through its role as receiver, as appointed by the courts, Lincoln helped devise and execute an exit strategy for the special servicer, Situs Holdings LLC, and the bondholders. The property’s current ownership, led by The Novare Group, executed a payoff of the current loan and recapitalized the project by bringing in new equity consisting of various local Atlanta investors. 10 Park Place was 45 percent leased at the time of the deal.
“This transaction adds to the growing list of exciting news coming from the downtown area,” said Chip Sipple of Lincoln. “Georgia State University and Grady Memorial Hospital continue to expand their presence in the area and downtown, as a whole, is improving. Our goal with this property was to protect and maximize the value of the asset by aggressively marketing the property for lease and for sale. These actions helped produce the necessary ingredients to motivate a transaction and we believe that both the borrower and lender benefited from the transaction.”
10 Park Place, built in 1932, is a mid-rise property located a block from the “Five Points” intersection in downtown Atlanta and is adjacent to Woodruff Park, Georgia State University and Grady Memorial Hospital.
The building features 121,754 square feet of office space and includes 17,000 square feet of retail and 465 parking spaces. According to Yardi Matrix, tenants include Georgia Power, Georgia Vocational Rehabilitation Agency, Subway and Weekday Café, among others. 10 Park Place is currently managed by NAI Brannen Goddard.
Roughly $3 million in capital improvements is planned for the historic building.
Photo courtesy of Yardi Matrix