One of downtown Atlanta’s signature office towers is running out of runway. The loan tied to 191 Peachtree Tower is drawing fresh scrutiny from lenders and ratings agencies as shrinking tenancy and softer revenue put pressure on a debt package that comes due in November 2026. The owners say they are pouring money into upgrades to keep the building competitive, while analysts are openly questioning whether a clean refinance will be in the cards.
Banyan Street Capital and partner Oaktree paid $268 million for the 50-story, roughly 1.2 million square foot tower in 2016. At the time, more than 90% of the space was leased. Today, that figure is closer to 58%, and cash flow has fallen by more than 30%. Savills managing director Brian Day told analysts the market is not exactly lining up big tenants for downtown towers right now, a sentiment described by Bisnow.
Ratings Jitters Hit The CMBS Pool
Fitch Ratings recently downgraded the Morgan Stanley Capital I Trust 2016-UBS12 CMBS pool…..