The loan on the heavily leveraged class A building at 3348 Peachtree Road was transferred to special servicer CW Capital, which is talking with Transwestern about restructuring the loan. Transwestern has blamed falling office rents in the Atlanta market for its troubles.
Transwestern's loan on Tower Place 200 reportedly will mature in 2011 and currently has a 6.4% interest rate. If terms cannot be reset or if Transwestern cannot find an equity partner, the 14-story, 260,000-square-foot building could be placed on the market.
Transwestern and CW Capital executives could not be reached for comment. The Chicago-based company bought Tower Place 200 for $57.8 million three years ago from the Ohio Police & Fire Pension Fund, according to the Atlanta Journal-Constitution. Occupancy in the building was just under 80% at the time of the sale but has since declined, with Wachovia Bank breaking its lease and vacating one level.
Tower Place 200 was built in 1998 as part of a mixed-use complex that includes a 600,000-square-foot anchor building. Asking rents at the building are listed by Transwestern at $27 per square foot, in line with current class A rents in the Buckhead submarket.
Click here to read more about Tower Place 200 from the Atlanta Journal-Constitution.
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