News Summary
In a major shift in the Atlanta real estate market, the New York-based Lightstone Group has initiated foreclosure proceedings for the curved glass office tower at 2000 RiverEdge Place. The 240,000 square-foot property, currently owned by MainStreet Capital Partners, has fallen into default after a missed mortgage payment. An auction is scheduled for April 1, intensifying concerns over the leasing status of the building, which currently stands at only 61% occupancy. This situation reflects broader distress in Atlanta’s office property sector.
New York-Based Lightstone Group Initiates Foreclosure Proceedings on 2000 RiverEdge Place in Atlanta
In a significant development for the Atlanta real estate scene, the Lightstone Group, a prominent firm from New York, has kicked off foreclosure proceedings concerning the strikingly designed curved glass office tower located at 2000 RiverEdge Place. This high-rise office building spans an impressive 240,000 square feet and sits prominently in the Cumberland/Galleria submarket, with a prime view overlooking Interstate 75.
The property is currently under the ownership of an affiliate connected to MainStreet Capital Partners, based in Fort Lauderdale, Florida. In a transactional history dated back to 2016, MainStreet Capital acquired the tower for a reported $24 million, as reflected in Fulton County records. Fast forward to 2022, Lightstone extended a $27 million mortgage to MainStreet regarding this property. However, due to a missed payment, Lightstone has declared MainStreet in default and has officially initiated the foreclosure process.
Upcoming Auction and Current Tenancy Status
Mark your calendars! An auction for 2000 RiverEdge Place is poised to take place on April 1 at the Fulton County Courthouse. The terms of the mortgage loan are pertinent, as it is scheduled to mature on August 31, according to data sourced from the Reonomy property database.
The current leasing status reflects a challenging landscape, with the building being only 61% leased. Notably, Aetna stands out as the largest tenant, occupying more than 40,000 square feet, followed by another significant player, Vitas Healthcare, leasing around 24,000 square feet. The asking rents for office spaces here range between $22 and $26.50 per square foot, which notably falls below the submarket average of $28 per square foot.
Broader Implications on Atlanta’s Office Property Market
This development is not an isolated incident. The foreclosure scenario encapsulates the rampant distress facing property owners across Atlanta’s office real estate market. Several other significant office complexes, including the enormous 2.2 million square-foot Piedmont Center, have also faced foreclosure decisions, notably undergoing multiple auction attempts.
Further compounding these challenges, Wells Fargo is pursuing foreclosure linked to an $84 million loan for the Westside Collective project located in Midtown. Additionally, an extensive portfolio linked to a $350 million commercial mortgage-backed securities (CMBS) loan to Adventus Realty Services has been foreclosed upon, underscoring the tense landscape within the sector.
Recently, RG Real Estate acquired a portion of this foreclosed portfolio, specifically securing TownPark Commons in Kennesaw for $42 million. This string of events marks a noteworthy chapter in the ongoing saga of office real estate in the Atlanta area.
Deeper Dive: News & Info About This Topic
HERE Resources
Atlanta’s Westside Adaptive Reuse Projects in Foreclosure
Atlanta’s Suburban Office Space Faces Uncertain Future
Atlanta’s Commercial Real Estate Sector Sees 20% Rise in Sales
Additional Resources
- The Real Deal: RG Real Estate Scores Bargain on Foreclosed Office
- Bisnow: Cumberland/Galleria Office Tower Facing Foreclosure
- Buckhead: 2.2 Million Square Foot Buckhead Office Development Facing Foreclosure
- Connect CRE: Buckhead’s 2.2M SF Piedmont Center Bracing for Foreclosure
- Realtor.com: Kim Zolciak and Kroy Biermann Mansion Price Foreclosure
- Wikipedia: Commercial Real Estate
- Google Search: Atlanta foreclosure real estate
- Google Scholar: Real Estate Foreclosure
- Encyclopedia Britannica: Real Estate
- Google News: Atlanta foreclosure news
Author: STAFF HERE ATLANTA WRITER
The ATLANTA STAFF WRITER represents the experienced team at HEREAtlanta.com, your go-to source for actionable local news and information in Atlanta, Fulton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as vibrant music festivals like Shaky Knees and Music Midtown, major cultural celebrations including Dragon Con and the Atlanta Film Festival, and iconic sporting events like the Peachtree Road Race. Our coverage extends to key organizations like the Metro Atlanta Chamber of Commerce and the Atlanta Convention & Visitors Bureau, plus leading businesses in logistics, beverages, and retail that power the local economy such as Delta Air Lines, The Coca-Cola Company, and The Home Depot. As part of the broader HERE network, including HEREAugusta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
