H
arbor Group International acquired the Lofts at Twenty25, a 623-unit Buckhead apartment building, after foreclosing on the previous owner's $104.7 million loan. The Norfolk-based firm purchased the property for $92.5 million, or $148,500 per unit, in a foreclosure sale last month. This price represents a 32% discount from the $136 million Westside Capital Group paid for it in July 2022.

    The interest rate on the three-year loan had risen to 9.1%, causing financial strain for Westside. Despite renovations and rebranding, occupancy dropped from 58% in July 2022 to 26% by March 2023 due to high rents and evictions. The apartments' relatively low initial rents were increased after renovations, but still fell below the Buckhead average of $2,200 per month.

    The property's smaller units led to higher rent per square foot, outpacing submarket averages. "The floating-rate loan is what cratered it," said Ladson Haddow of Haddow & Company. The Lofts at Twenty25 is an Atlanta landmark due to its digital population clock, installed by Ted Turner in 1965.