Peachtree Group has originated a $42 million first mortgage loan to support Banyan Street Capital’s acquisition and repositioning of the Atlanta Financial Center (AFC), a 914,774-square-foot Class A office campus located in Buckhead, Atlanta. The floating-rate loan includes a 36-month initial term and a 12-month extension option. It is secured by completion, interest, and carry guarantees from Banyan.
“We believe the office sector is at an inflection point, much like retail when we were financing mall acquisitions. Negative sentiment is masking real opportunities,” said Daniel Siegel of Peachtree Group.
The AFC was originally acquired in 2016 by an affiliate of Sumitomo Corporation for $222.5 million. In recent years, it has experienced challenges due to tenant departures, weakening market fundamentals, and shifting capital priorities.
Banyan Street Capital plans a comprehensive repositioning of the property, starting with efforts to lease up the North Tower. This initiative will be supported by capital expenditure reserves and funding designated for tenant improvements and leasing costs. The firm also intends to pursue opportunities for attracting larger tenants and is evaluating potential redevelopment options for the site.
