Lincoln Southeast, LLC, has facilitated the successful transfer of 10 Park Place, a 137,681-square-foot office building located in downtown Atlanta, out of special servicing. Through their role as receiver, as appointed by the courts, Lincoln helped devise and execute an exit strategy for the special servicer, Situs Holdings, LLC, and the bondholders. The property’s current ownership, led by The Novare Group, executed a payoff of the current loan and recapitalized the project by bringing in new equity consisting of various local Atlanta investors. The property is currently 45 percent leased.
“This transaction adds to the growing list of exciting news coming from the downtown area,” said Chip Sipple of Lincoln. “Georgia State University and Grady Memorial Hospital continue to expand their presence in the area and downtown, as a whole, is improving. Our goal with this property was to protect and maximize the value of the asset by aggressively marketing the property for lease and for sale. These actions helped produce the necessary ingredients to motivate a transaction and we believe that both the borrower and lender benefited from the transaction.”
As receiver, Lincoln’s primary duty was to secure the property, prevent waste, collect rent, and utilize it’s service platform to create value for the collateral property. In general, the receiver is required to follow the court’s order, which most often places the receiver in a role similar to a trustee, making decisions that are in the best interest of the property in an effort to maximize proceeds for the owner and lender.
The property, built in 1932, is located a block from the “Five Points” intersection in downtown Atlanta and is adjacent to Woodruff Park, Georgia State University and Grady Memorial Hospital.