T
he collapse of Adventus Realty Trust, a Vancouver-based REIT, has led to the foreclosure of eight office complexes across suburban Atlanta and Chicago. The company's $350 million default and nearly two years of unpaid debt have pushed its portfolio into foreclosure, according to the Atlanta Business Chronicle. The 2.2 million square foot portfolio, once valued at $439 million, has seen a significant decline in value, with the Atlanta portion dropping by 26% to $231.7 million.

    The foreclosed properties include locations in Alpharetta, Kennesaw, and Atlanta's Cumberland/Galleria area, spanning over 2.2 million square feet. Riveron Consulting has taken control as the court-appointed receiver, ensuring operations at the properties will continue uninterrupted. However, suburban office buildings are increasingly becoming liabilities due to high vacancy rates and unsustainable debt loads.

    In Atlanta, nearly 39 million square feet of office space is vacant, resulting in an annual rent loss of over $1.2 billion. Similarly, Chicago's suburban vacancy rate was above 31% in the third quarter, up from 29% a year prior. Despite these challenges, some buyers and investors are stepping in to acquire lower-priced assets.

    Menlo Equities has agreed to purchase a vacant office building at Lincoln's Echo Street West development in Atlanta, while ANiMAL, an Atlanta investment firm, has invested $200 million in distressed properties across the Southeast, including the former Atlanta Humane Society property.