ATLANTA (Feb. 13, 2012) – When print and broadcast reporters were trying to guage the significance of the Bank of America Plaza foreclosure last week, they turned to Carter Vice Chairman Jim Shelton for his expert opinion.
Bank of America Plaza fell into foreclosure last month after BentleyForbes, which acquired Bank of America Plaza for $436 million in 2006, stop making payments against the loan it took out to finance the acquisition, according to Bloomberg News. The building, the tallest office tower in the Southeast at 1,023 feet, was advertised for foreclosure, and the loan was sold last week at an auction outside the Fulton County Courthouse.
As events unfolded, several media outlets, including WSB-TV and The Atlanta Journal-Constitition, interviewed Shelton about the foreclosure proceedings. During an interview with reporter Jim Strickland of WSB, Shelton said the current lender, a group involving JP Morgan and servicer LNR, likely would be the winning “bidder” at the courthouse auction.
When Strickland asked Shelton what the price would be, he said, “between $220 million and $250 million.” The answer was spot on: The lender, JPM CC 2006 CIBC17 Office Limited Partnership, won with a bid of $235 million.
Later in the week as reporters switched their focus to what would happen to Bank of America Plaza now that the lender took back the 55-story office tower, they again reached out to Shelton. AJC reporter Scott Trubey asked Shelton for his thoughts about potential buyers for the tower and whether Carter would pursue the landmark building. Here’s the exerpt from Trubey’s article, which ran in Sunday’s Business section.
“Others likely to look at purchasing the building are developers, life insurance companies and pension funds. Bank of America Plaza has 1.28 million square feet, and the portion that’s vacant is bigger than most office buildings in the market, noted Jim Shelton , vice chairman with Atlanta real estate firm Carter. Would-be buyers will need plenty of cash, both to help refurbish the 20-year-old tower to lure tenants, and to attract financing in a market where lending is tight, said Shelton. He added his firm might be interested in the skyscraper at the right price.”