Ardent Companies Faces Buckhead Office Complex Foreclosure

A 46-acre office campus in Buckhead is facing foreclosure after Matt Shulman’s Ardent Companies defaulted on a $330 million loan from Morgan Stanley.

The Atlanta-based investment management firm defaulted on its loan for Piedmont Center, a 14-building office campus near the intersection of Piedmont and Lenox roads, the Atlanta Business Chronicle reported.

The foreclosure comes after the property’s value plunged from $657 million in 2021 to an estimated $200 million. It declined from $298 per square foot to $91 per square foot — a 70 percent drop.

Ardent Companies, which acquired Piedmont Center over several years, has encountered financial difficulties including unpaid construction and brokerage fees.

The 2.2-million-square-foot campus, once considered a hallmark of Buckhead’s office market, is 63 percent leased, with an average remaining lease term of 4.1 years.

The property’s declining occupancy and value underscore the broader struggles facing Atlanta’s office market as remote work trends reshape demand. JLL, which is marketing the property, has pitched it as a prime redevelopment opportunity.

The foreclosure was initially scheduled for Jan. 7 but was postponed to allow Morgan Stanley to explore a short sale. The maneuver would allow it to be sold for less than the amount owed, which is sometimes preferred to avoid protracted foreclosure proceedings.

Atlanta’s office market has a vacancy rate of 25 percent. However, leasing activity is beginning to pick up. During the first half of last year, the city recorded five leases exceeding 100,000 square feet each.

High-end properties are faring better in the challenging market. In this “flight-to-quality” trend, tenants exit outdated spaces for premium offices. Cousins Properties, for example, has achieved an 88 percent leasing rate across its portfolio — well above the metro average.