Fresh long-term capital is now available for the conversion of CNN's former global headquarters in Atlanta. A joint venture, comprising CP Group and Rialto Capital Management, has secured a US$56.4 million loan for the repositioning of the CTR Building (formerly the CNN Center) in Downtown Atlanta, as Commercial Observer has learned. The loan was provided by the Peachtree Group to support the transformation of the property, built in 1976, into a mixed-use campus and retail district.
The property, which has been vacant since CNN relocated to the Ted Turner Techwood Campus in Midtown Atlanta at the beginning of 2024, opened a 24,000 square foot food hall this spring, coinciding with the start of the FIFA World Cup. Jared Schlosser, Head of Lending at Atlanta-based Peachtree Group, stated that the deal was particularly suitable for long-term financing like C-PACE due to the sponsors' multi-phase business plan. The 1.2 million square foot asset requires corresponding flexibility in its development.
The 30-year Commercial Property Assessed Clean Energy (C-PACE) loan provided by the Peachtree Group is specifically designated for financing eligible improvements to the building. This includes the modernisation of HVAC (heating, ventilation, air conditioning) systems, lighting systems, plumbing facilities, and the installation of modern LED media displays. Schlosser emphasised that C-PACE is an advantageous product for projects with multi-phase business plans and a need for temporal flexibility. In particular, the repurposing of an older building inherently involves a multitude of PACE-qualifying measures.
The large-scale redevelopment project is located at 190 Marietta Street NW and is directly connected to the State Farm Arena. It includes the activation of 200,000 square feet of retail space in the ground floor atrium of the property, as well as the installation of some of the largest digital media displays in the southeastern USA. The upper floors of the complex are earmarked for future office, hotel, and residential use. Jared Schlosser highlighted the favourable location of the retail part of the CTR project, particularly due to its proximity to numerous events at the State Farm Arena, where the National Basketball Association's Atlanta Hawks play 41 home games per season. The property is also directly connected to an Omni Hotel and is just a short walk from Mercedes-Benz Stadium, home of the National Football League's Atlanta Falcons and Major League Soccer's Atlanta United FC.
Schlosser noted that the innovations in Downtown Atlanta – such as the opportunity to meet with family and do something before events at Mercedes-Benz Stadium and State Farm Arena – are beneficial for the region. CP Group and Rialto Capital Management did not provide immediate comments upon request.
