Prominent Cobb County Office Up For Sale After Loan Default
The international owner of an office building that lords over Interstate 285 is looking to unload the asset after defaulting on its loan in March.
One Tower Creek, a 100K SF building in the Cumberland/Galleria submarket, is being marketed with an asking price of $8.8M, according to a marketing flyer on Crexi.
The building at 3101 Towercreek Parkway is tied to a $7.9M CMBS loan that went into default this spring after its owner stopped making payments in March, according to servicer commentary.
The loan was originated in March 2015 to sponsors Fishman Holdings Canada Property Investment Trust XI and Industrial Buildings Corporation Ltd., according to the Morningstar Credit database. German American Capital Corp. originated the loan, which is packaged in the CMBS trust COMM 2015-CCRE23.
Tel Aviv, Israel-based Industrial Buildings changed its name to Mivne Group, which is the true owner of the building, according to CoStar records obtained by Bisnow. It made its last mortgage payment in February after the departure of a key tenant dropped occupancy to 29%, according to the commentary.
That tenant, Procure Analytics, exited more than 35K SF in January, creating a big vacancy, said Amir Levin, a partner with Atlanta-based Alta Properties Group, which is the asset manager of One Tower Creek.
With the loss of Procure Analytics, the borrowers are expected to have an annual operating expense shortfall of $300K, according to the commentary.
“SS is discussing with the Borrower potential terms for a modification while continuing to pursue rights and remedies as applicable,” the servicer wrote in loan documents.
Mivne affiliate Tower Renaissance LLC purchased One Tower Creek in 2004 for $11.4M, according to Cobb County records. The county appraised the property at $10M in 2024.
Alta has tapped Newmark to attempt to sell the glass-encased, wedge-shaped seven-story building at the nexus of Interstates 75 and 285 to a user, seeking nearly $9M.
Newmark Senior Managing Director Casey Keitchen, who is listing the property for sale, said the building has demonstrated strong interest from two pools of buyers, businesses that want to own their own office building and self-storage operators that would transform the office project into a self-storage facility.
“There’s massive signage exposure,” Keitchen said.
Levin said signage is available on all sides of the building, which is especially valuable facing 75 and 285, where 153,000 and 71,100 vehicles passed by per day in 2022, respectively, according to the Georgia Department of Transportation. That traffic exposure and signage could make it a prime opportunity for a company to buy the building for itself.
“I think the idea is that now there’s a big vacancy in the building, the building is a prime-time sale to a user,” he said. “It’s really almost like a plug-and-play for a user.”
Keitchen said he expects the international owner will sell the property over the next 60 days.
