July 5, 2013
OliverMcMillan Loan One of Year's Largest
Atlanta Business Chronicle
Douglas Sams, Commercial Real Estate Editor Buckhead Atlanta, the mixed-use development that just landed the headquarters of Spanx Inc., has reached a significant milestone. The project�s developer, OliverMcMillan, recently secured a $167 million construction loan, led by PNC Capital Markets LLC. The loan will cover the full construction of the six-block, 8-acre redevelopment of a former bar district at Peachtree and East Paces Ferry roads. Five lenders are providing the financing, including PNC Bank N.A.; CIT Finance LLC; Compass Bank; Regions Bank; and SunTrust Banks Inc. It�s one of the largest construction loans this year originated for a commercial real estate project outside of Manhattan. Holiday Fenoglio Fowler L.P. arranged the financing. It allows the pace of construction at Buckhead Atlanta to continue increasing, with shops on target to begin opening by the middle of next year. Construction restarted on the project last August. Before that, Atlanta developer Ben Carter had controlled the project under his name for it, Streets of Buckhead. Carter had ambitions to make it a slice of Rodeo Drive here in the deep South. Then, the economy derailed its progress, Carter lost control of the development to the lenders and equity partners, and construction stalled. OliverMcMillan took over in 2011, boosted with $300 million from its own equity partner. Since the downturn, lenders have financed new apartment projects in Atlanta, but other property types weren�t as quick to bounce back. With OliverMcMillan securing construction financing for Buckhead Atlanta, it could signal confidence in a broader recovery of the region�s hard-hit banking and commercial real estate sectors.