Atlanta apartment building with a famous peach sculpture foreclosed
The Peach building acts as a landmark for anyone driving I-85 south into Atlanta.
But the well-known structure along Peachtree Street has had a tortuous history, including spending many years largely empty.
Those challenges have only continued this month as the building found itself on the foreclosure block.
The 68-unit apartment tower, which is best known for its metal peach sculpture and high-profile highway billboard, was seized by its lender Fannie Mae earlier in April, according to Georgia real estate records. Fannie Mae reacquired the building at 1655 Peachtree St. through an April 7 foreclosure auction for $24.6 million.
The foreclosure result was first reported by Bisnow, and it’s the latest financial challenge to face the 12-story building’s ownership since it joined Atlanta’s skyline in 1964. (The peach sculpture was added 30 years later.)
It’s also the most recent addition to a growing list of apartments, office buildings and hotels that have faced loan distress after the COVID-19 pandemic disrupted commercial real estate.
Initially built as an office tower, it mostly sat empty for decades. The building’s main function shifted to advertising because of its prominent location between Midtown and Buckhead, acting as a lightning rod for controversy over its rooftop sign and blighted appearance.
Peach Hospitality paid $8.5 million in 2016 to buy the building, rebranding it at “The Peach” and converting it into apartments.
Peach Hospitality in 2024 refinanced the property with a new $23.2 million loan with Lument Real Estate Capital that included the Peach building as collateral. The loan was originally scheduled to mature in 2029.
But the move to refinance the debt ended up in a legal dispute between Peach Hospitality and some of its investors, though the case was ultimately dismissed, according to Bisnow.
Attempts by The Atlanta Journal-Constitution to reach Peach Hospitality for comment were not immediately successful.
In March, Lument issued a foreclosure notice after the loan went into default, adding that the debt had been assigned to Fannie Mae. The documents tied to the loan were filed with the Georgia Superior Court Clerks’ Cooperative Authority database.
After Fannie Mae reacquired the Peach building, its title was transferred to 532 Title Way, a subsidiary of Atlanta-based commercial loan servicer Trimont LLC.
Fannie Mae did not respond to a request for comment from the AJC. Trimont declined to comment.
Refinancing commercial real estate loans has become challenging for many borrowers after the pandemic’s effects led many buildings to lose value. Many office buildings saw tenants shed workspace, reducing income and making buildings less valuable. Higher interest rates, meanwhile, made debt more expensive.
Some apartment markets such as Atlanta faced softening rents.
Those challenges have prompted a wave of loan distress that has included some high-profile foreclosures, mainly in older and less desirable buildings. These have ranged from Peachtree Center’s towers in 2022 to Buckhead’s largest office complex Piedmont Center last year.
About the Author
Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives.
