While AmStar would not disclose the purchase price, the company announced last February a $26 million loan to finance the deal and the renovation.
The group is renovating the 326-all-suite hotel to attract conferences and groups of 15 to 300 people. "Essentially, our goal is to complete the balance of the renovation process initiated in 1996 by the previous owners," Kevin Mahoney, AmStar's executive director of hotel investments, tells GlobeSt.com.
The new tower, originally condos, and 19-story cylindrical glass atrium were built in 1996. Phase I of AmStar's renovation focuses on a 7,500-sf executive conference center and a new restaurant and bar, expected to be completed by Nov. 1. Phase II is the lobby renovation and upgrading the retail space and boardroom. Phase III is the restoration of the Grand Ballroom. The entire renovation should be completed by the end of first quarter 2001.
AmStar has not owned property in metro Atlanta since before 1990. "The Georgian Terrace Hotel & Towers fits our investment profile," notes Mahoney. "We look for under-performing, under-capitalized and well-located properties that need attention." Additionally, privately held AmStar, which invests in commercial real estate nationwide, tends to look for unique and signature properties.
The Georgian Terrace is a landmark on Peachtree Street in Midtown and is across the street from the opulent Fox Theatre. Many celebrities stayed at the Georgian Terrace over the years, but the hotel is probably best-known for hosting Clark Gable and Vivian Leigh in the filming and premiere of Gone with the Wind in 1939.
The Georgian Terrace is the third Midtown historic property to be renovated or slated for renovation within the last 18 months. The 76-year old, 380,000-sf Biltmore was sold for $10 million in 1999 and has been renovated for use as class A office space. The 1927 Carlton bore the logo of the Days Inn and several other flags before its new owners reclaimed the original hotel name. It is undergoing a $22 million renovation to convert its 140 rooms into 90 large suites and the three top floors into condominiums.
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