Midtown's Biltmore, one of Atlanta's most iconic and historic buildings and known for the twin radio towers on its roof, is in financial trouble.
The loan for the 284,000-square-foot offices at the Biltmore was put in special servicing, a step that involves the oversight of a distressed loan, ratings agency Fitch reported Tuesday.
The building, constructed in 1924 and once one of Atlanta's grandest hotels, was renovated in the late 1990s for offices and event space.
The building's owner, Novare Group, secured a $34.5 million loan from Barclays Bank in 2006, and it was due for repayment on March 1 for a balance of $33 million.
Novare President Jim Borders said the loan is "part of a securitized pool and is otherwise not in default, and we are in discussions with our lender regarding an extension and with other lenders regarding a refinance. We believe that these negotiations will be successful, in large part due our occupancy of over 85 percent and our positive debt service coverage."
The building was put on a watch list, according to Fitch, and Bank of America, a lead bank on the loan, is working to resolve the issue with the help of Wachovia Bank, which was absorbed by Wells Fargo.
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