|The drama on what has become the poster child for Atlanta real estate investor excess unfolded on the Fulton County courthouse steps yesterday as Bank of America Plaza returned to its lender at nearly half its peak value.
|In case you live under a rock OTP and haven't heard, Bank of America Plaza—the iconic 1M-plus SF tower in Midtown—was taken back by its lenders (including JP Morgan) yesterday amidst a throng of reporters and onlookers that included some local CRE pros as well. The note (called a credit bid at auction) went for a total of $235M—much less than the $400M-plus BentlyForbes paid for it in 2006. (Click on the video above to see McGuireWoods attorney Howard Walker announcing the winner.) While none of the big landlords in Atlanta came out to actually bid on the property, LNR wasn't without its competition. Namely, Metropolitan Design & Construction's Jason Yowell, who offered up $100k for the tower. Clearly, he was outbid. (But you have to respect his bravado.)
|As for what's next, no one is saying. A spokesperson for LNR declined to comment. There was, however, some industry speculation that Cousins Properties (which sold the building along with Bank of Amercia to BentleyForbes) might come back and buy it, but sources tell us there are no immediate plans for the REIT to acquire the building. We'll keep you posted at what will likely be considered a historic moment for Atlanta's CRE community.