Foreclosure Auction Scheduled For 240K SF Cumberland Office Tower
A curved glass office tower near the banks of the Chattahoochee River could be taken over by its lender.
New York-based The Lightstone Group has initiated foreclosure proceedings for 2000 RiverEdge Place, a 240K SF high-rise office overlooking Interstate 75 in the Cumberland/Galleria submarket.
The property is owned by an affiliate of Fort Lauderdale-based MainStreet Capital Partners, which purchased it in 2016 for $24M, according to Fulton County records.
Lightstone provided a $27M mortgage to MainStreet in 2022, according to a foreclosure notice published this month in the South Fulton Neighbor. After MainStreet missed a payment on the loan, the lender declared it in default and moved to foreclose. An auction is scheduled for April 1 on the Fulton County Courthouse steps.
The loan is set to mature Aug. 31, according to the Reonomy property database.
A spokesperson for Lightstone declined to comment. MainStreet Managing Partner Paul Kilgallon didn't respond to messages seeking comment.
The tower is 61% leased, and the largest tenant is health insurance giant Aetna, which occupies a little more than 40K SF and has its logo atop the building. Hospice operator Vitas Healthcare leases 24K, according to a CoStar report obtained by Bisnow. The building's asking rents are between $22 and $26.50 per SF, below the submarket's average of $28 per SF, according to Colliers.
The pending foreclosure of 2000 RiverEdge Place is the latest example of distress for owners of Atlanta office properties.
The 2.2M SF Piedmont Center office complex in Buckhead has been scheduled for multiple foreclosure auctions, including one for this month, but the takeover has been delayed. Last month, Wells Fargo moved to foreclose on an $84M loan tied to a four-building adaptive reuse project in Midtown called the Westside Collective from Crestlight Capital.
And a host of Atlanta suburban office buildings tied to a $350M CMBS loan provided to Adventus Realty Services were foreclosed on in December. Last week, local real estate investment firm RG Real Estate bought a portion of that portfolio — the four-building TownPark Commons in Kennesaw — for $42M, the Atlanta Business Chronicle reported.
