Morgan Stanley has initiated foreclosure proceedings on a $330.8 million loan connected to Piedmont Center, a 46-acre property featuring 14 office buildings located along Piedmont Road.
According to the Atlanta Business Chronicle, Ardent Cos., the owner of 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 decreasing building valuations in recent years, its value has declined 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 – representing a steep decline of approximately70% from its value in 2021. JLL is currently marketing the property as an opportunity for potential buyers to acquire a prominent position in Buckhead’s office market with strong cash flows and flexible business plan options.
