RG Real Estate acquired TownPark Commons for $42 million, a steep discount from an appraisal of the property four years earlier. In April 2021, the office park had been appraised at $79.1 million. It sold for almost 47% less, or roughly $120 per square foot. The Kennesaw office park spans 20 acres off George Busbee Parkway, a short drive from Kennesaw State University.

Special servicer KeyBank National Association facilitated the sale on behalf of a trust.

The Atlanta Business Journal reports TownPark Commons was part of Adventus Realty Services’ portfolio, which was tied to a $350 million commercial mortgage. The loan had been securitized, and the trust representing the loan’s investors foreclosed on the metro Atlanta properties in December. 

TownPark Commons has four office buildings that span a total of 350,000 square feet. It’s 96% occupied.

WestPark Partners recently bought a Maryland Farms office building that sold last month for a steep discount. The group paid $6.3 million for the five-story WestPark Building at a foreclosure auction last month, marking an $18.57 million loss from what it sold for in 2013. The Nashville Business Journal reports the owner was First National Bank of Tennessee, who acquired the property from Crestview Funds through foreclosure.

The building, located at 111 Westwood Place, was built in 1982 and offers nearly 100,000 square feet of office space on a 5.14-acre lot. It is just a few minutes south of Nashville.

WestPark is rebranding the property, which has been vacant since late 2024, to Westpark Exchange and is in the early planning stages of building renovations.

Westpark Partners is comprised of CET Holdings plus a few additional partners. The group developed the Branch Creek Office Park in Franklin, the boutique hotel Neo Nashville and Seven at 7 Mile Creek Apartments in Nashville.

Investment firm Realm recently paid $15 million for downtown’s Parkway Towers and Court Square Building.

Wheelock Street Capital sold the two buildings at a combined loss of approximately $26 million. Wheelock paid $33.5 million for the 21-story Parkway Towers in October 2019 and $8.25 million for the neighboring Court Square Building in June 2022.

The Nashville Business Journal reports the firm is planning to convert the 218,000-square-foot Parkway Towers building into apartments or a hotel.

The two office buildings, 404 and 300 James Robertson Parkway are on a 1.28-acre site near the Tennessee State Capitol.

A week before, Wheelock sold downtown’s Philips Plaza tower to local investors Byran Fort and Taylor Preston at a $94 million loss. This month, a Maryland Farms office building was sold at a foreclosure auction at a $18.5 million loss.

S2 Capital acquired a distressed portfolio of properties in Nashville and Knoxville, Tennessee, formerly owned by GVA Real Estate Group. They also picked one up in Dallas.

Multifamily Dive reports that to take control of the five properties, S2 placed $60 million of rescue capital through a structured preferred equity investment in a new joint venture with Trinity Investors, the existing limited partner of the assets. S2 also secured a new 5-year, $170 million senior loan through ACORE Capital.

The four Tennessee properties include:

• Stone Ridge at 500 Piccadilly Row (photo) in the Nashville suburb of Antioch, Tennessee.
• Hickory Highlands at 100 Hickory Highlands Dr in Antioch.
• North Park Apartments at 5237 Tillery Road in Knoxville.
• The Park at Fountain City at 2132 Adair Dr in Knoxville.

In addition to taking over as the general partner with full operational control across property, asset and construction management, S2 will have major decision rights to protect the preferred equity investment. 

Insignia has acquired Parkside Terraces, a 20-acre Alpharetta office campus that sold for much less than the previous owner paid for it.

The Atlanta Business Chronicle reports Insignia took title to the property for $15 million through a deed in lieu of foreclosure. That was almost 70% less than the previous owner paid for the property about six years ago. Insignia secured a $10 million loan from White Oak Assets LLC for the transaction.

Parkside Terraces’ previous owner, Ravinia Capital Group, bought the property for $48.1 million in April 2019. Ravinia had secured a $39.2 million loan from Citizens Bank National Association, which matured in May 2024.

Parkside Terraces is on Mansell Road, not far from North Point Mall. It includes 127,000-square-foot and 156,000-square-foot buildings and is about 80% leased.

Similarly, Insignia acquired the Embassy Row in Sandy Springs for $34 million in late 2023 through a deed in lieu of foreclosure. A bank loan attached to the property at time of sale was for $60 million.

S2 Capital (“S2”) acquired a distressed multifamily portfolio consisting of four Tennessee properties facing foreclosure in Nashville and Knoxville, TN. An additional property was picked up in Dallas.

S2 invested $60 million of rescue capital in a new joint venture with the existing Limited Partner through a structured preferred equity investment and secured a new 5-year $170 million senior loan through ACORE Capital. S2 will take over as the general partner with full operational control across property, asset, and construction management plus major decision rights to protect the preferred equity investment. The transaction was sourced off-market.

S2’s Ryan Everett added, “Our internal data analytics platform projects Southeast Nashville to be a top quartile submarket for investment, given the continued year-over-year demand growth of 11% while supply and permits have plummeted by 80% to less than 2.5% of inventory, coupled with expected strong household formation and in-migration.”

Lincoln Properties has unloaded the Echo Street West project, an office project that Lincoln was having a hard team paying for. The office development was valued at $154 million after delivery but was sold for much less than that. The Atlanta Business Journal reports that Menlo Equities is expected to pay just over $61 million for the property, which is about $200 a square foot.

The vacant property sits at Donald Lee Hollowell Parkway and Northside Drive, where English Avenue and West Midtown converge.

In 2020, Lincoln Property Co. received property tax breaks of nearly $7 million over 10 years to build the project. The mixed-use project received a $135 million construction loan from Bank OZK, which is set to mature in April 2025. The bank said the loan is secured by the commercial space Menlo plans to acquire and a 292-unit multifamily project with ground-floor retail not included in the contemplated sale.

Aspen Real Estate purchased the underperforming Renaissance III shopping center, situated in a densely populated area near the University of Nevada-Las Vegas.

Aspen paid $24.7 million for the 225,748-square-foot property located at the corner of East Flamingo and East Pecos Roads. The seller was a special servicer, LNR Property LLC, representing the CMBS bond group. Las Vegas-based Logic Commercial Real Estate represented both the seller and buyer on the transaction. Aspen has since appointed Logic as its exclusive leasing agent for the center.

Aspen principal Philip Proetto stated, “Ren III represents a fantastic Value-Add opportunity. Various tenants have wanted to lease space at the property, but the bond group could not offer them money for improvements. Aspen has allocated $ $7 million for renovations and tenant improvements.”

Existing tenants include Planet Fitness, America First Credit Union, Nevada Department of Health and Human Services, Ichabod’s restaurant and gaming, Panda Express, Meineke, Chaga Root (mushroom-based dishes), and local business operators.

Aspen plans to demolish two buildings to make space for quick-serve, drive-thru restaurants.

Valuations on distressed properties as of midyear 2024 have declined an average of 43% from their original issuance, CRED iQ reported. The decline has increased by 140 points from six months ago. 

By valuation grouping, distressed properties valued at less than $5 million have seen the largest declines in assessed values at an average of 51%. Those valued at $100 million or more have seen assessments drop by 37%. 

The top three largest overall declines for 2023 and 2024 were in the office sector, which also saw the largest single-property valuation decline. That distinction falls to 1740 Broadway, an office property in Midtown Manhattan, which is now valued at $175 million, a drop of $430 million. Overall, valuations on distressed office properties are down by 53%.  

Not far behind is retail, which registered an average valuation decline of 52%. In this sector, sizable assessment declines include a $360-million drop for the Mall of America in Bloomington, MN and a $244.6-million decline for Mall de las Aguilas in Eagle Ridge, TX, which is now valued at just $10 million. 

The hotel sector saw an average valuation decline of 40% on distressed properties. Multifamily was largely flat compared to six months ago with a 35% decline, while assessment declines for distressed industrial improved from an average of 32% to 10% over the same time period. 

Pictured: 1740 Broadway. Credit: Kevin Chu and Jessica Paul Photography.

Two real estate investment firms have teamed up to buy The 410, a 24-story office building located in the heart of Downtown Denver. Cress Capital, in collaboration with Denver-based E2M Ventures, acquired the loan on the property earlier this year and subsequently negotiated a deed-in-lieu of foreclosure with the prior owner, Ares Management. With an original balance of $113 million, the loan’s unpaid balance was $96.2 million.

Situated at 410 17th Street, the property underwent a major renovation in 2021 and includes approximately 440,000 square feet of office space and a detached eight-story parking structure.

Located within blocks of the Colorado State Capitol, the property features a contemporary lobby and an array of premium amenities, including a state-of-the-art fitness center, conference and training facilities, an inviting outdoor tenant lounge, and the Little Owl Coffee Bar. Nearly 35,000 square feet of spec suites are ready for immediate occupancy.