Midtown Atlanta Trophy Office Tower Scores $245M Refi

One of Atlanta’s most prominent office towers raked in a rare nine-figure refinancing.

The 31-story building at 1105 West Peachtree in Midtown landed a $245 million refinancing from Bank of America, according to the Atlanta Business Chronicle. The borrowers of the floating-rate, single building commercial mortgage-backed securities loan are Selig Enterprises and the State Board of Administration of Florida, with Deutsche Bank National Trust serving as trustee. The loan closed Dec. 5 and was publicly noted last week.

The loan refinances $243.7 million of existing debt, adds $10.9 million of fresh equity, establishes $11.2 million of reserves for outstanding tenant improvements and covers closing costs. Data provider Trepp said it was the largest single building refinancing in metro Atlanta last year — a standout in a market where lenders have largely sidestepped big office loans since the pandemic.

Completed in 2021, the tower at 1105 West Peachtree anchors a broader mixed-use project developed by Atlanta-based Selig Enterprises and is best known as one of Google’s flagship Southeast outposts. The tech giant leases nearly 500,000 square feet across 19 floors, though about a quarter of the building remains in shell condition, according to a Morningstar DBRS presale report.

Google’s lease runs through 2033, but includes a one-time termination option in 2031 that allows the company to exit all or half of its space, subject to a roughly $21.8 million termination fee if exercised. According to the publication, Google employs about 1,500 workers at the site and currently requires employees to be in the office at least three days a week — a key credit positive for lenders underwriting long-term office demand.

Law firm Smith Gambrell & Russell is the other major tenant, occupying more than 120,000 square feet. Ground-floor retail includes For Five Coffee and The Office Bar. The adjacent Epicurean Hotel and the condominium tower at 40 West 12th, both partially developed by Selig, are not part of the loan collateral.

CBRE arranged the refinancing, with vice chairmen Mike Ryan and Brian Linnihan leading the deal. Trimont is serving as master servicer, with KeyBank as special servicer.

The deal highlights a clear theme emerging nationally. While commodity office buildings struggle to refinance, lenders are still competing for exposure to newer trophy towers with numerous amenities and deep-pocketed tenants.

The refinancing also closed just weeks before a leadership transition at Selig Enterprises. Longtime CEO Steve Selig has since stepped aside, with daughter Mindy Selig and nephew Greg Lewis taking the reins as the firm moves into its next chapter.

— Eric Weilbacher