Real Estate
Buckhead Tower Returned to Lender
The real estate firm which acquired the tower and now has returned it, plans to build another tower nearby.
One Buckhead office tower has been returned to its lender by the real estate firm that acquired it in 2007.
New York real estate firm Tishman Speyer transferred ownership of One Alliance Center, positioned between GA-400 and Phipps Plaza, to Orix Capital Markets, according to a report from the Atlanta Journal-Constitution. The report states that the 22-story tower's $165 million loan has been "troubled" since 2010.
The tower has a much higher vacancy rate– 22 percent– than other top-tier Buckhead office towers, the AJC reported.
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Tishman Speyer was unable to reach an agreement to retain ownership, as the tower's debt continued to mount with its decreasing property value and rental income. The firm also sold Two Alliance Center–a sister tower it built–and added a distressed real estate firm for its Midtown Plaza and Colony Square properties.
The firm is expected to build a third tower nearby. Three Alliance Center, in the future.
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Daily operations of One Alliance Center will not change, according to Orix USA Vice Chairman Ed Smith.
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