BofA Tower Headed to Default?

The mortgage on one of Atlanta's tallest skyscrapers has gone to aspecial servicer and could go into default.
 
Moments ago, we took this of the 1.28M SF Bank of America Plaza. Fitch Ratings issued a report late yesterday that shows its $363M mortgage was transferred to master servicer Wells Fargo andspecial servicer LNR Partners for ?imminent default.? BofA Plaza (the sixth tallest office tower in the US with the distinctive 23-karat gold-leafed spire) was purchased by BentlyForbes in 2006 for more than $400M at a time when the firm was buying trophy assetsthroughout the country. It has long been watched by industry pundits for possible stress when the overall economy crashed into the Great Recession and office fundamentals quickly deteriorated when corporate demand dried up. The tower's largest tenant, Bank of America, recently downsized its space needs in the building, and its rents were reduced by nearly half to $18.75/SF, according to Reuters. Another real estate database, Trepp Inc, has had the tower on its watchlist since February of last year, although its records have yet to reflect the transfer to a special servicer.

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Related Topics: BofA Plaza , LNR Partners , Wells Fargo
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