Morgan Stanley has recently filed for foreclosure on a $330.8 million loan connected to the Piedmont Center, a 46-acre property in Atlanta that includes 14 office buildings along Piedmont Road.
According to the Atlanta Business Chronicle, Ardent Cos., which owns the 2.2 million-square-foot campus, has defaulted on this loan. In 2021 when Ardent secured this debt package from Morgan Stanley, Piedmont Center was valued at $657 million or $299 per square foot. However, with rising interest rates and declining building valuations since then, its value has decreased significantly.
Morgan Stanley plans to foreclose on February 4th and bids for Piedmont Center are expected to be around $200 million or $91 per square foot – a significant decline of about 70% from its value in 2021. The marketing of this property is being handled by JLL and they describe it as an opportunity for potential buyers to acquire a prominent position in Buckhead’s office market with strong cash flows already in place and various options for future business plans.
