Dive Brief:

• Harbor Group International has assumed ownership of a massive Atlanta building in the South Buckhead neighborhood that is known for its sign that displays the city's population in real-time, according to Bisnow.
• The Norfolk, Virginia-based apartment owner took over the Lofts at Twenty25 in a foreclosure sale valued at $92.5 million, Bisnow reported, citing information from real estate tracking firm Databank.
• On Aug. 6, Harbor assumed ownership of the 623-unit asset after foreclosing on the $104.7 million, three-year floating rate loan it originated for former owner Miami-based Westside Capital Group. 

Dive Brief:

Westside Capital Group originally bought the Lofts at Twenty25 for $136 million, or about $218,000 per unit, from Atlanta-based Varden Capital Properties in 2022, according to a press release shared with Multifamily Dive at the time.

“With its prime location among affluent residential neighborhoods, immediate walkability to almost 4 million square feet of medical employment, and close proximity to Buckhead Village and Midtown amenities, the Lofts at Twenty25 is a unique multifamily asset that will offer a luxury lifestyle at relatively affordable rents compared to other alternatives in the marketplace,” Jakub Hejl, founder and president of Westside, said in the release.

Varden, which bought the property in 2017 for $30 million from Atlanta-based TriBridge Residential, generated controversy by renovating and rebranding the property in 2018, according to Rough Draft Atlanta. Before the facelift, which was completed in 2021, the apartment community was known as The Darlington. It was built in 1951.

Varden, which had developed a reputation for buying low-cost housing complexes and renovating them, gave the residents 60 days to vacate the property, according to Rough Draft Atlanta. Units in the building were renting for $600 to $1,000 at the time, making it an affordable option in an expensive neighborhood.

In the release announcing the purchase, Westside highlighted the 16-story building’s one-bedroom apartments ranging from 430 square feet to 600 square feet. Its amenities include a 5,000-square-foot fitness center, swimming pool, movie theater, convenience store and coffee shop, dog park and dog wash, swimming pool, billiards and game room, office and conference rooms, bike storage, putting green, laundry facility and dry-cleaning service, EV charging stations and 405 parking spaces.

Despite these features, occupancy has been an issue at the building, falling from 58% in July 2022 to 26% as of March, as pending evictions and departures due to increased rent plagued the asset, according to Morningstar Credit data cited by Bisnow. 

Rents at the building currently range from $1,195 to $1,800, according to Apartments.com.