ATLANTA — Cushman & Wakefield’s equity, debt and structured finance (EDSF) team has arranged $182 million in financing for Peachtree Center, a 2.5 million-square-foot office and retail complex in downtown Atlanta.
The financing includes a $147 million floating rate CMBS loan that will be used to refinance an existing loan and a $35 million mezzanine loan that will provide funds for capital improvements and leasing costs.
The mixed-use complex features six Class A office towers, The Mall at Peachtree Center and three parking garages. The complex, located in Atlanta’s central business district, is anchored by SunTrust Bank and is home to more than 180 tenants.
Mike Ryan, Brian Linnihan, Jeff Walker and Telly Fathaly of Cushman & Wakefield’s EDSF team in Atlanta arranged financing on behalf of Banyan Street Capital and its foreign equity partner, which was represented in the U.S. by EII Realty Corp. Silverpeak Real Estate Financing organized the long-term CMBS loan, and Oaktree Capital Management provided the mezzanine loan.
“Peachtree Center is an iconic downtown asset and a key hub for business and visitors. The property provides the lenders an ideal combination of strong cash flow, a highly manageable tenant rollover schedule and upside through enhanced occupancy,” said Mike Ryan, senior managing director in Cushman & Wakefield’s Atlanta office. “Cushman & Wakefield is pleased to execute this complex CMBS loan and mezzanine financing to provide Banyan Street Capital funds to refinance an existing CMBS loan and continue its recapitalization of the property.”
Improvements will include exterior renovations and upgrades to common areas. Banyan Street Capital purchased Peachtree Center in December 2006. John Portman & Associates designed the complex, which was completed in stages from 1967 to 1987.
“Peachtree Center and the overall downtown market are experiencing significant momentum. Leases totaling 120,000 square feet have been signed at Peachtree Center in the past six months, bringing occupancy to 75 percent,” says Brian Linnihan, managing director at Cushman & Wakefield.
“The property also benefits from the ongoing resurgence of downtown Atlanta, represented by the $2.1 billion in construction projects underway, including hotels, housing, retail, restaurants, the new Falcons stadium and the College Football Hall of Fame. The momentum is further demonstrated by numerous high-profile business relocations to downtown office buildings.”
An on-site MARTA rail station, multiple points of entry and exit, 4,100 secured parking spaces and easy access to Interstates 75 and 85 provide accessibility for Peachtree Center tenants. The tri-level Mall at Peachtree Center offers 60 specialty shops, including six full-scale restaurants and more than 20 business and personal services.
Located at 229-235 Peachtree St. and 245-285 Peachtree Center Ave., Peachtree Center is part of a mixed-use development that includes the Hyatt Regency Atlanta, the Atlanta Marriott Marquis and AmericasMart, one of the world’s largest permanent wholesale trade centers.
— Haisten Willis