Webstar Seeks Loan Extension Tied to Forge Atlanta

Webstar Technology Group is seeking an extension on a $33.7 million loan tied to its subsidiary’s purchase of a 10-acre Downtown Atlanta site slated for the $3.8 billion Forge Atlanta megaproject.

The note matured April 1, and the company disclosed the default and ongoing extension talks in a recent 10-K filing with the U.S. Securities and Exchange Commission. Webstar said it is negotiating to extend the maturity date to Oct. 1, a move that would require a $900,000 extension fee and more than $1 million of interest. The lender is McCall Railroad LLC, which was also the property’s seller, according to the filing.

McCall Railroad’s attorney, Jerome Zivan, told the Atlanta Business Chronicle that his client has agreed in principle to extend the loan and expects to finalize terms by May 7. Zivan added that McCall Railroad has not declared a default, and a Webstar spokesperson echoed that point, saying no default has been declared under the note or the security deed.

The land sits at Ted Turner Drive and Whitehall Street, next to the Magic City strip club, and has a track record of stalled plans. McCall Railroad also sold and financed the site in a 2021 deal with Urbantec Development Partners that later ended in default and foreclosure, according to the outlet.

Forge Atlanta is planned as a multi-phase mixed-use complex with thousands of condos, hundreds of hotel rooms and about 600,000 square feet of office space, among other uses. Webstar, a penny-stock company which has limited development experience as well as a history of busted land deals and eyebrow-raising disclosures, has said it expects to partially finance the project through the sale of cryptocurrency tokens, as previously reported in The Real Deal.

Public filings have also flagged the company’s thin balance sheet, with Webstar warning of “substantial doubt” about its ability to continue as a going concern without new capital. The company said it has relied on advances from its former chairman and former majority stockholder, James Owens, while pursuing additional financing through equity, debt and strategic relationships, according to the outlet.

In a separate SEC filing, Webstar said its 2025 financials were not audited after it and its auditor differed on how certain accounting principles should be applied. The company said it has since retained a new auditor. As of Monday, Webstar shares were trading at about 7 cents a share on OTC Markets, according to the publication.

Local incentives remain part of the sales strategy. Develop Fulton last year approved a $223.7 million bond inducement resolution for Forge Atlanta that could translate into about $9.7 million in tax savings if the project is built, despite a 5-2 board vote that followed public questions about the developer’s credibility and community engagement.

— Eric Weilbacher