One of Midtown Atlanta’s most notable office towers has secured a $245 million refinancing deal, according to the Atlanta Business Chronicle. The 31-story building at 1105 West Peachtree, developed by Selig Enterprises and the State Board of Administration of Florida, received the floating-rate, single building commercial mortgage-backed securities loan from Bank of America. Deutsche Bank National Trust is serving as trustee for the transaction.
The refinancing replaces $243.7 million in existing debt, injects $10.9 million in new equity, and sets aside $11.2 million for tenant improvements and closing costs. Data provider Trepp reported that this was the largest single-building refinancing in metro Atlanta last year. Lenders have generally avoided large office loans since the onset of the pandemic.
The tower was completed in 2021 and is part of a mixed-use development by Selig Enterprises. It is recognized as one of Google’s flagship Southeast locations, with the company leasing nearly 500,000 square feet across 19 floors. According to a Morningstar DBRS presale report, about a quarter of the building remains unfinished.
Google’s lease runs until 2033 but includes an option to terminate all or half of its space in 2031 with a termination fee estimated at $21.8 million if exercised. The publication notes that Google employs approximately 1,500 workers at this site and currently requires them to work onsite at least three days per week.
Law firm Smith Gambrell & Russell is another major tenant, occupying more than 120,000 square feet. Retail tenants on the ground floor include For Five Coffee and The Office Bar. Adjacent properties such as the Epicurean Hotel and condominiums at 40 West 12th are not included in this loan collateral.
CBRE arranged the refinancing deal with vice chairmen Mike Ryan and Brian Linnihan leading negotiations. Trimont will serve as master servicer while KeyBank takes on special servicer duties.
The deal reflects a national trend where lenders remain interested in newer office buildings with high-profile tenants despite broader challenges facing commodity office properties.
The refinancing concluded shortly before a leadership change at Selig Enterprises: longtime CEO Steve Selig stepped down as his daughter Mindy Selig and nephew Greg Lewis assumed leadership roles.
