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rankforter Group may have to relinquish control of the 336-unit luxury apartment complex in downtown Atlanta due to missed debt payments. The property in question is the Generations Atlanta apartment complex located at 369 Centennial Olympic Park Drive. The Montreal-based owner of the property defaulted on a $104.4 million mortgage, causing the property to face foreclosure. Arbor originated the loan, which was later transferred to Generations Property Owner LLC in May, as reported by Bisnow. The foreclosure notice indicated that the owner failed to make debt service payments for March, April, and May, as well as maintain a $7.4 million reserve. The foreclosure auction is scheduled for September 3 at the Fulton County Courthouse.
The Generations Atlanta apartment complex is a 17-story building developed by Bay Harbor Islands-based developer Kaplan Residential and was completed in 2020. It offers studio, one-bedroom, and two-bedroom apartments, providing easy access to popular attractions such as Centennial Olympic Park and the Georgia Aquarium.
Frankforter Group purchased the property in 2021 for $126.9 million or $377,678 per unit, making it the largest multifamily sale in the submarket. However, the property made headlines in July when residents experienced days without running water due to a water main break in the city, as reported by Fox5 Atlanta.
Frankforter Group also owns Garden Walk Apartments, a 240-unit complex near Hartsfield-Jackson Atlanta International Airport, as well as properties in South Florida, including Avery Pompano Beach, a 144-unit apartment complex in Pompano Beach.
The recent increase in interest rates has put pressure on real estate investors who secured floating rate loans when rates were low, particularly multifamily investors who purchased apartment properties when values peaked in 2021. As a result, commercial foreclosures are on the rise across the country. According to ATTOM’s latest commercial foreclosure report, lenders initiated the foreclosure process for nearly 650 commercial properties in June, more than double the rate for the same month in the previous year.
