Valuation Haircuts Pile Up For Atlanta Office Properties
A myriad of suburban office properties in Atlanta, attached to a distressed CMBS loan, have faced a devaluation of up to 36.5% as per a new appraisal report. This comes as owners and lenders are still grappling to find a floor price for office spaces. This indicates a declining market for office properties that are held in CMBS portfolios.
Major Office Properties Face Devaluation
Eight office buildings held by the bankrupt landlord, Adventus Realty Trust, have experienced a significant drop in their appraised value, which plummeted from $439 million to $279.9 million. Most of these properties are located in the Atlanta suburbs. The repricing of five office complexes in the Metro Atlanta area includes:
- The three-building, 315k sq. ft. Barrett Lakes office park in Kennesaw, which depreciated by 30.5% to $55 million.
- The four-building, 350k sq. ft. TownPark Commons in Kennesaw saw its value plummet by 19.3% to $63.8 million.
- The six-story, 162k sq. ft. Milton Park in Alpharetta was reappraised at $47.9 million, representing a decrease of 36.5%.
Author: HERE Atlanta
