Portman acquired the Westin Peachtree Plaza, a 1,073-key full-service hotel in downtown Atlanta, from Marriott International. The hotel will remain in Marriott’s portfolio under a long-term management agreement. Portman purchased the property through its Portman Hospitality Fund I. John Portman, the founder of Portman Holdings, designed and developed the tower in the 1970s.

When it opened in 1976, the 73-story cylindrical tower was the tallest hotel in the world. One of Atlanta’s most recognizable landmarks, the mirror-glass building rises 723 feet above downtown and is located near the Georgia World Congress Center, State Farm Arena, Mercedes-Benz Stadium and the Centennial Yards development.

Portman will launch a comprehensive renovation that will reposition the Westin Peachtree Plaza’s guestrooms, public spaces and meeting facilities prior to Super Bowl LXII in 2028.

Before the sale, the Westin Peachtree Plaza was the only Westin hotel that Marriott International owned outright. It mostly manages or franchises hundreds of other Westins across the country.

Waterton has paid $118.6 million for the 33-story residential tower, 903 Peachtree. CA Ventures was the seller of the building, which came out to $277,751 per unit

The highrise has studio, one-bedroom, two-bedroom and three-bedroom units, ranging from 336 to 1,884 square feet. Rents start at $1,680 for a studio and go up to more than $4,000 for a three-bedroom floor plan. 

The building opened in 2023. It is located near the intersection of Peachtree and 8th streets.

Waterton was founded in 1995. The firm’s portfolio includes about $10 billion in real estate assets, with a presence in more than 25 markets across the U.S. Waterton is headquartered in Chicago, with regional offices around the country.

The Atlanta Business Chronicle reports so far, the largest multifamily transaction this year is Equity Residential’s buy of a 319-unit apartment project in Old Fourth Ward for $126 million. 

A four-team joint venture is seeking a low-interest federal loan to convert a downtown Atlanta office building into residential units. The Integral Group, The Atlantic Cos., T. Dallas Smith & Co. and Lalani Ventures are teaming up to transform the 1960s-era 2 Peachtree office building into 600 apartments, retail space, and office space. The loan, in the amount of $250 million, will take some of the risk of the project, one the city wants to meet its affordable housing needs. The project costs are expected to exceed $400 million.

The Atlanta Business Chronicle reports the project would be among the first office-to-residential conversions in the U.S. to leverage the loan program.

Originally a bank headquarters, the 44-story 2 Peachtree was later a state government building. Now, it is mostly vacant. At least 200 new affordable housing units would fill the tower.

A wave of maturing debt has been a boon to business for Atlanta-based Peachtree Group.

Town Center at Cobb Mall in Kennesaw, Georgia

Peachtree Group, through its Peachtree Group Credit division, has deployed $556M in loans and another $526M to buy five hotels and develop another three projects. Recent deals include a $48M construction loan for a 215-room Autograph Collection hotel in Huntsville, Alabama, a $42.2M first mortgage loan to refinance the 133-room Motif on Music Row hotel in Nashville, Tennessee, and a $42M mortgage loan for the acquisition of Town Center at Cobb mall in Kennesaw.

The firm expects to see market transactions increase through 2024, especially as traditional banks continue to pull back on commercial real estate lending, Peachtree Group Credit Senior Vice President Jared Schlosser said in a press release. Peachtree has in excess of $1B in originations planned for 2023. 

Other loan transactions this year include a $43.6M first mortgage to refinance a 220-room Hampton Inn New York-LaGuardia Airport, a $52M construction loan for a 245-unit apartment project in Mesa, Arizona, and a $23M construction loan for a mixed-use project in Charlotte, North Carolina, according to the release.

SALES

Oliver Forrest Apartments LLC purchased 2566 Whites Mill Road, a 99-unit apartment complex in Decatur, for $10.45M. The property was previously owned by Largo, Florida-based Prosperity Capital Partners, which purchased the property in 2019 for $7M, according to DeKalb County records.

Bull Realty partners Marco Welch and Scott Spalding and Vice President Joe Mitchell brokered the sale.

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GM Derm Medical and Safe Harbour Exchange purchased two Gwinnett County medical office centers occupied by Anne Arundel Dermatology for nearly $6M. One building is at 3850 Pleasant Hill Road in Duluth, and the other is at 3770 Paddocks Parkway in Suwanee. The sellers were not disclosed. 

Bull Realty Healthcare Division President Paul Zeman brokered the sales.

LEASES

Steam Logistics inked a deal for 11M SF at 3225 Cumberland, a 220K SF office building. The company is moving from another office building in the Cumberland-Galleria submarket. 

JLL Executive Vice President Paul Hanna brokered the deal for Steam. Stream Realty Partners Senior Vice President Kevin Driver and Vice President Parker Welton represented the landlord, CP Group. 

DEVELOPMENT

Lincoln Property Company Southeast broke ground on Bloomingdale Trade Center, a 482K SF distribution center off Jimmy Deloach Parkway, 12 miles outside of the Port of Savannah. 

Lincoln Property Senior Vice President Denton Shamburger, Vice President Turner Fortin and leasing associate Colin Beecham are leasing and marketing the warehouse, which is expected to deliver in the fourth quarter of 2024.

Courtesy of Perkins&Will

Perkins & Will principal Lesley Braxton

PERSONNEL

Lesley Braxton has been named principal of cross-practice with design firm Perkins & Will, returning to the firm after a nearly three-year stint with Trahan Architects in New Orleans. During her previous time at Perkins & Will, Braxton led design projects for Samuel Merritt University’s Oakland City Center campus and Emory University’s Office of Advancement & Alumni Engagement and Alumni Memorial University Center in Atlanta. 

Braxton also will continue to serve as an adjunct professor at Auburn University’s College of Architecture, Design and Construction. 

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Paul Berry has joined Mesa Capital Partners as president and chief operating officer. The 30-year commercial real estate veteran most recently was vice chairman of CBRE’s capital markets group in Atlanta. 

Berry joins Mesa as the firm starts raising capital for its 10th fund early next year, according to a press release.