Filed under: Real Estate Developments
Last month I mentioned that Atlanta's one of Atlanta's priciest condo projects, Mansion on Peachtree, was in deep financial trouble. The project was reportedly carrying a total debt of $187.4 million, a number above the original $165 million projected for the building. The Atlanta Business Chronicle reports that the project was sold in a foreclosure auction this week for $66.1 million to an affiliate of the lead lender, iStar Financial.
The 42-story hotel/condo project is home to luxury condos and a five-star hotel operated by Rosewood Hotels & Resorts. The building also includes NEO, a contemporary Italian restaurant, the fourth location of Craft from restaurateur Tom Colicchio. Craft Atlanta and the 29 Spa. The project was announced to great fanfare back in 2006 but by the time it opened in 2008 the Atlanta real estate market was already mid-slump. Some people who wanted to get into the project couldn't sell the homes they already owned and the high prices of the condos dwarfed the prices of some homes in the area. Last June a penthouse in the mansion sold for $4 million but it was originally listed at $10.2 million. The hotel and related businesses remain open.