Frankforter Group could be forced to hand over the keys to a downtown Atlanta apartment complex after missing debt payments.
Generations Atlanta, a 336-unit luxury apartment complex at 369 Centennial Olympic Park Drive, is facing foreclosure. The property’s Montreal-based owner defaulted on a $104.4 million mortgage, the Atlanta Business Chronicle reported.
Arbor originated the loan; it was transferred to Generations Property Owner LLC in May, Bisnow reported.
The foreclosure notice said the owner didn’t make debt service payments for March, April and May. It also failed to maintain a $7.4 million reserve.
The foreclosure auction is scheduled for Sept. 3 at the Fulton County Courthouse.
Generations Atlanta is a 17-story apartment complex that was built by Bay Harbor Islands-based developer Kaplan Residential. It was delivered in 2020. It offers studio, one- and two-bedroom apartments. Its location offers easy access to Centennial Olympic Park and the Georgia Aquarium.
Frankforter Group purchased the property in 2021 for $126.9 million, or $377,678 per unit, making it the submarket’s largest multifamily sale.
The apartment complex made news in July when its residents went days without running water weeks after a water main break in the city, Fox5 Atlanta reported.
Frankforter Group also owns Garden Walk Apartments, a 240-unit complex near the Hartsfield-Jackson Atlanta International Airport. The firm also owns properties in South Florida, including Avery Pompano Beach, a 144-unit apartment complex in Pompano Beach.
Since interest rates started increasing, some real estate investors have been unable to pay debt service on the floating rate loans they secured when rates were low – especially multifamily investors who purchased apartment properties when values peaked in 2021. As a result, commercial foreclosures are on the rise throughout the country.
ATTOM’s latest commercial foreclosure report showed lenders initiated the foreclosure process for nearly 650 commercial properties in June. That’s more than double the rate it was for that month a year before.
— Jess Hardin
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