July 1, 2013
OliverMcMillan Confirms $167 Million Construction Loan For Buckhead Atlanta, Spanx Location Within Parcel A
OliverMcMillan today confirmed it has secured a $167 million syndicated construction loan, led by PNC Capital Markets, LLC, to finance the full construction of the six-block, 8-acre Buckhead Atlanta, the luxury retail, residential and office development in the heart of Buckhead. Five lenders are involved in the construction financing�which BuckheadView first announced in a May 29 story (read it here) had been secured by the San Diego-based developer�including PNC Bank, N.A., CIT Finance LLC, Compass Bank, Regions Bank and SunTrust Banks. BuckheadView did not have the details of the amount of the loan or the financial institutions in the May 29 story. It is one of the largest construction loans this year originated for a commercial real estate project outside of Manhattan. Holiday Fenoglio Fowler LP arranged the financing. The construction financing allows the pace of construction at Buckhead Atlanta to continue increasing, with shops on target to begin opening by mid-2014. Construction restarted on the project last August. Until now, the construction was being financed by OliverMcMillan, which took over the stalled project in 2011 bolstered with $300 million from its own equity partner. �We are so pleased to continue to move forward with great momentum,� said Morgan Dene Oliver, chief executive officer of OliverMcMillan. This constituted the second major announcement about the project in two weeks. The other was the announcement that $1 billion Buckhead-based manufacturer of control undergarments Spanx will move its headquarters offices to Buckhead Atlanta in November 2014 and also open a flagship retail store as well. In response to questions from Buckhead view last week, OliverMcMillan also today confirmed that both Spanx�s 100,000 square feet of headquarters offices and the retail store will be in Parcel A of Buckhead Atlanta, which runs along Peachtree Road between Pharr Road and Buckhead Avenue. Parcel A is where the bulk of construction activity is going on right now and vertical development in that parcel can now be seen above the construction fencing. Reportedly, the construction crews at Buckhead Atlanta have increased from about 30 workers weeks ago to around 100 now. When completed, the 1.5 million square feet Buckhead Atlanta development will bring to the Buckhead Village area pedestrian-friendly streets and will include 300,000 square feet of retail stores, restaurants and cafes, more than 100,000 square feet of office space and 370 luxury high-rise residences. Retailers will include a mix of local, regional, national and international brand names, including French high-fashion house Herm�s and Spanx. But unlike some developers, OliverMcMillan does not announce tenants as each is signed, with the exception of Herm�s and Spanx.