ACRES Capital Originates $12.9M Loan to Acquire Mixed-Use Atlanta Project
Mixed-UseOCTOBER 08, 2019
ATLANTA, GA (October 8, 2019) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, is pleased to announce that it has originated a $12.9 million loan to fund the acquisition of 1439 Peachtree Street NE, a 40,000-square-foot office building set to be transformed into a mixed-use project in Atlanta, Georgia. The loan carries a term of 18 months and is sponsored by integrated development, construction, sales, marketing and investment firm Capital City Real Estate (“Capital City”).
“This project offers the appealing opportunity to redefine a single-use office property as a multifaceted destination incorporating condominiums, retail, office and hospitality space,” said ACRES Chief Executive Officer and President Mark Fogel. “The building’s prime Midtown location is nearby popular retail outlets and is well-situated for large office centers, which gives it the ability to accommodate residents and office tenants alike. Capital City’s stellar track record of acquiring and developing over $500 million of residential and mixed-use projects, and its intimate familiarity with the Atlanta market, make the firm an excellent partner for the reimagining of 1439 Peachtree.”
Founding Principal and President Scott Zimmerman and Principal Brent Zimmerman of Capital City stated, “We chose to work with ACRES not only because they had very competitive terms, but because they really understand the underlying fundamentals of the real estate they are lending on, which allows the firm to be creative in its structure and expeditious in its underwriting and ability to close. The ACRES team did a remarkable job of rising to the occasion of closing on a short timeline on an extremely complicated project for us.”
The Midtown neighborhood of Atlanta, located under a mile north of Centennial Olympic Park, is a cultural hub for the city. Midtown’s Art’s District features numerous attractions such as the High Museum of Art, Fox Theatre, the Museum of Design Atlanta, the Ferst Center for the Arts on Georgia Tech’s campus and several others. This desirable locality has recently been a hotbed for new development, and encompasses a wide range of successful mixed-use facilities. Additionally, it is within close proximity to Atlanta’s Ansley Park neighborhood, an extremely affluent suburb of the city that borders Piedmont Park.
JLL Senior Vice President Andrew Asbill brokered the transaction.
About ACRES Capital
ACRES is a balance sheet lender and SEC-registered investment adviser that provides debt capital solutions for the commercial real estate industry on a nationwide platform. ACRES seeks opportunities in the $10 million to $75 million range on stabilized and transitional properties including multifamily, retail, office, hospitality, and industrial. As of June 30, 2019, ACRES has closed over $1.25 billion of transactions.