Plans for a high-rise near Midtown’s historic Winnwood Apartments won’t get off the ground after the property was recently returned to its lender through foreclosure.
Atlanta-based Longline Financial reacquired the 0.7-acre site at 1450 West Peachtree Street after developer Tenth Street Ventures defaulted on a $9 million loan over the summer. The property was first advertised for foreclosure in July but that was delayed until earlier this month, as first reported by the Atlanta Business Chronicle.
The Atlanta-based developer began pursuing plans last year to redevelop the existing three-story “Master Mind Thinker” building into a 20-story tower. Brian McCarthy, principal of Tenth Street Ventures, told The Atlanta Journal-Constitution at the time that the $100 million mixed-use project would focus on a “flexible living strategy” by incorporating hotel services in the style of an extended-stay motel.
Those plans were altered in January to forgo preserving the existing building, scaling down the project to 17 stories after community feedback. But work never began on the project before the site was advertised for public auction in Fulton County.
Credit: Tenth Street Ventures
Credit: Tenth Street Ventures
Neither Tenth Street Ventures nor Longline Financial responded to a request for comment on the foreclosure.
It’s the second prominent Midtown site to be returned to its lender this month. New York developer Olympia Heights Management LLC defaulted on a $40 million loan for 98 14th Street near the Woodruff Arts Center, which was the site of a long-stalled high-rise condominium project called Opus Place.
The commercial real estate world has been struggling to adjust to higher inflation rates, which the Federal Reserve has increased to tame inflation and cool the economy. The tougher credit markets have contributed to multiple foreclosures on prominent Atlanta area properties, with more expected to join the count as a wave of debt — especially on office developments — matures in the coming years.
More than 20 properties within German developer Newport’s South Downtown portfolio have been advertised for foreclosure, ranking among the largest borrowers facing default during this cycle of tight financial markets. Those public auctions have been delayed due to a lawsuit over $7 million in unpaid contractor invoices.
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