JV Acquires 34 Peachtree in Atlanta

A joint venture between Fairlead Commercial Real Estate and The Creations Group announced today that it had acquired the tower at 34 Peachtree in downtown Atlanta. The JV picked up the 30-story tower after it fell into foreclosure on September 3, purchasing the mortgage note for $11.9 million, or $39/square foot, from an investment entity out of Asia. According to a Bisnow report, the prior ownership paid $28.2 million for the property in 2005.

The 282,589-square-foot office tower is currently 66% leased, but Fairlead expects that area tax incentives and the coming street car should boost tenant demand. "We expect to finalize 120k SF in lease transactions in the coming months," said Jeff Shaw, President of Fairlead.

"We are strong believers in the resurgence of downtown and saw the note acquisition as an excellent opportunity to expand the ownership’s position in downtown Atlanta, as well to strategically invest in areas of growth," added John Ward, Chief Investment Officer of Fairlead.

The ownership entity, One Park Tower LLC, acquired the note in an all-cash transaction. Cushman & Wakefield represented special servicer Midland Loan Services in the note sale.

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