Oh, the Irony! Bank of America Plaza in Atlanta Faces Foreclosure
Atlanta's Bank of America Plaza is one of the 10 tallest structures in the U.S. And thanks to troubles at its namesake Bank of America Corp. (BAC) and other one-time tenants, the skyscraper could be one of the tallest foreclosure tales of the financial crisis as it struggles to meet its debt service and offices remain empty.
The Altanta Journal Constitution newspaper writes that, "a company that specializes in troubled loans is making preparations for a possible foreclosure [of Bank of America Plaza] while negotiations continue on a deal to try to prevent the property from being seized by the lender, according to a report by Trepp, a real estate research firm."
To be clear, the tower is owned by California-based commercial real estate firm BentleyForbes -- not Bank of America. BentleyForbes bought the 55-story tower at the height of the nationwide real estate boom under the premise that it could get big rents for tenants clamoring for office space.
Obviously, things have changed.
The $363 million loan on Bank of America plaza went to LNR Partners in February, while a second loan had been in default for non-payment.
Obviously Bank of America isn't the one holding the bag on this property, but it's hard to ignore the direct relationship between the boom and bust or real estate and the boom and bust of U.S. financial institutions over the last decade.
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