Developer Defaults On Mortgage For Planned $3.8B Atlanta Megaproject

A developer planning the largest mixed-use project in Atlanta history is in default on the mortgage it took out to acquire the 10-acre site.

Webstar Technology Group bought the land along Whitehall Street between Castleberry Hill and Downtown Atlanta in December, financing the $34.5M purchase with a $33.7M loan from an entity controlled by Atlanta food magnate Russell McCall.

McCall sold the site — formerly the headquarters of his food distribution business, Gourmet Foods International — to an entity mainly controlled by Webstar and provided short-term seller financing that was set to mature March 2.

That maturity date was extended earlier this year to April 1, but Webstar, which generated no revenue in 2024 or 2025, failed to repay the loan, according to the firm’s annual report filed Thursday with the Securities and Exchange Commission. 

The filing, released two weeks after the SEC's deadline, indicated that Webstar is in negotiations to extend the loan to Oct. 1, on the condition that it would pay $1.9M in extension fees and interest over the course of multiple installments. 

McCall's attorney, Jerry Zivan, told Bisnow Thursday that McCall “agreed in principle” to the extension outlined in Webstar’s filing. 

“By May 7, we believe we will have executed the final terms,” Zivan said. 

Webstar CEO Ricardo Haynes and General Counsel Donald Keer didn't respond to requests for comment.

The Atlanta-based company, which trades as a penny stock on the over-the-counter markets, plans to build a $3.8B, more than 8M SF mixed-use development called Forge Atlanta on the site. 

Webstar has been attempting to line up financing for the first phase of the project, a $756M endeavor that would include a 300-room hotel, 600 luxury condominium units, and 60K SF of retail and entertainment space. 

Webstar acquired the land through its Forge Atlanta Asset Management LLC subsidiary, of which it owns 90% and joint venture partner Urbantec Development Partners owns 10%. Urbantec previously owned the Forge Atlanta site but lost it to McCall via foreclosure in 2023 after it defaulted on its own seller financing agreement.

McCall said in an email that there was no need “to even think about foreclosure” following the default.

“There are hundreds of terms associated with this transaction. I’m confident that the exciting plans we see as a beautiful addition to downtown Atlanta will be built,” McCall said. “We still have a few hills to climb, but all being agreed to at this time.”

According to its annual report, Webstar lost $1.3M in 2025 after posting a loss of nearly $4.5M in 2024, mostly attributable to interest expenses and debt extinguishment. The company’s stock was trading at around 7 cents per share on the OTC market Thursday. 

Webstar also disclosed in its report that it may not continue as a going concern because of a lack of revenue, historical operating losses, negative working capital and accumulated deficits, which amounted to more than $48.8M by the end of 2025. 

Company executives said in the report that it intends to “raise additional funds by way of a public offering or an asset sale transaction,” or it could be forced to file for bankruptcy. 

Webstar also revealed in the annual report that the financial statements weren't audited because of a disagreement with its previous public accounting firm, which didn’t issue an audit report or opinion about the company’s financial statements.

“There were discussions and differences in interpretation regarding the application of certain accounting principles, financial statement presentations and audit procedures,” Webstar said in the report. “These matters were not resolved to the satisfaction of the former auditor prior to the discontinuation of the engagement.”

Webstar didn’t identify the auditor, but in last year’s annual report, Webstar used Pipara & Co. of Delhi, India. Pipara was hired as auditor after Webstar fired its previous auditing firm, Nigeria-based Olayinka Oyebola & Co., after the SEC charged it with aiding and abetting a “massive securities fraud.” 

Webstar — which has never developed a real estate project before — still has momentum toward the ambitious project. It won approval in October from Develop Fulton, the economic development arm for Fulton County, for more than $220M in bond financing to offset nearly $10M in taxes over a decade associated with Forge Atlanta’s first phase.

“Develop Fulton rigorously evaluates every project, recognizing that complex developments can often encounter challenges that may impact their path forward,” Develop Fulton spokesperson Erik Burton said in an email Thursday. “If prior to closing, a developer does not meet required conditions, any incentives that could be facilitated by Develop Fulton will not go into effect and the transaction will not proceed. The Forge Atlanta project is no different.”

Earlier this year, Webstar announced that it would use the Torch-RWA platform to sell crypto tokens as a “digital accounting and payment system designed to operate alongside existing financial infrastructure.”

It has already reached agreements with three third parties to acquire condominiums in the Forge Atlanta project, each valued at $440K, according to the annual report. Webstar sealed the deals by offering discounts in the tens of thousands of dollars to the buyers.

This isn’t Webstar’s first attempt at a major development in Georgia. The firm had planned to develop a water-themed amusement park in Commerce called Bear Village. The company said it had a site under contract and was in negotiations with local officials on securing water rights, but Commerce officials told Bisnow they were unaware of the plans.

The deal ultimately fell apart, and Webstar executives told Bisnow last year that the company would instead focus its efforts on the Forge Atlanta project.