Banyan Buys Floundering Buckhead Office Complex

Peachtree Group originated a $42 million first mortgage loan to finance Banyan Street Capital’s acquisition and repositioning of the Atlanta Financial Center (AFC), a 914,774-square-foot Class A office campus in Buckhead, Atlanta. The floating-rate loan carries a 36-month initial term with a 12-month extension option and is backed by completion, interest and carry guarantees from Banyan.

“We believe the office sector is at an inflection point, much like retail when we were financing mall acquisitions. Negative sentiment is masking real opportunities,” said Peachtree’s Daniel Siegel. 

Initially acquired in 2016 by a Sumitomo Corporation affiliate for $222.5 million, AFC faced tenant departures, softening fundamentals and shifting capital priorities. 

Banyan plans to reposition AFC, starting with the lease-up of the North Tower, supported by capital expenditure reserves and funds for tenant improvements and leasing. The sponsor will also explore larger tenant opportunities and future redevelopment options.