Skyline Views

When I looked out the window of the top floor of the office tower at 1075 Peachtree St. in Midtown Atlanta, I caught this view of the 1010 Midtown Condo Tower. I had to snap a shot. Both the condo tower and the office tower, are part of the 12th & Midtown mixed-use development. This view shows how architects designed 1010 Midtown to follow the natural curve of the Peachtree spine. The condo tower is 35 stories and about 410 feet tall.

Atlanta's Gables Residential Completes Sale of Itself - to Basically - Itself, CoStar Confirms

UPDATE: Gables Residential has secured the $3 billion sale (of itself) - basically to itself. Here's the scoop from CoStar News: 

Clarion Partners Closes Sale to Keep Gables Residential

Team Led By NYC Investment Manager Tops Several Private and Institutional Bidders to Retain Control of Apartment/Mixed-Use Developer

By Randyl Drummer

 

Global real estate investment manager Clarion Partners confirmed reports in the marketplace that a group of investors headed by Clarion has acquired Gables Residential, an Atlanta-headquartered multifamily developer, owner and manager. 

Operating as ING Clarion Partners, a wholly-owned subsidiary of Amsterdam-based ING Group, Clarion and a small group of institutional investors acquired Gables in 2005 for $2.8 billion including debt in one of the earliest public-to-private acquisitions of the last real estate cycle. 

The transaction was one of the last major deals before the recession sent property values plunging. It is believed the decision to put Gables up for sale last year was prompted by the recent resurgence in apartment property values and the desire of Clarion's investment partners to cash out, according to sources. 

Gables, now operating as a privately held REIT, manages about 35,000 apartment homes and 400,000 square feet of retail space in 60 properties across the U.S. with about 1,100 professionals, complemented by Clarion Partners’ portfolio management, research and investment management expertise. 

The new ownership group led by Clarion Partners acquired Gables Residential for about $3.2 billion, according to published reports. Industry newsletter Real Estate Alert last year reported that finalists in bidding for Gables included a venture of DRA Advisors of New York and the Abu Dhabi Investment Authority; a joint venture between Greystar and Pimco; Denver-based Aimco, an apartment REIT; and CalPERS and GID Investments. 

However, Clarion Partners and its CEO Stephen Furnary, which bought ING Group’s real estate investment management business in the Americas from ING in June 2011, have been widely regarded as the front-runner for months. 

ATLANTA (Aug, 5, 2014) - The huge commercial real estate stories keep on coming during the "slow" summer period. In the latest development, Financial Times breaks news that Gables Residential, which has a long history in Atlanta and several key executives in Buckhead, has hired Eastdil Secured to market its entire 40,000-unit portfolio.

FT, citing unnamed sources, says the portfolio could fetch $3 billion in today's white-hot multifamily investment market.

Gables, which toyed with going public again this year, now is poised to sell the apartments it's accumulated across the Sunbelt. 

Let's hope more blockbuster CRE stories keep hitting this summer and beyond. Please click below to read entire article (and subscribe to FT like The Wilbert Group does).

US landlord Gables eyes $3bn sale

By Ed Hammond in New YorkAuthor alerts

©Bloomberg

Gables Residential, the landlord of almost 40,000 family homes, has been put up for sale by its private equity owners in a deal that would mark one of the largest sales of US residential property since the financial crisis.

The Florida-based company, which also owns a small portfolio of retail property, has hired bankers and is expecting to receive initial bids in the next few weeks, according to people familiar with the

The sale would mark an exit for Gables’ private equity owners, including Clarion Partners and Silverpeak, which took the company private in 2005 for $2.8bn. The process is at an early stage, however, and no deal is certain, the people cautioned.

The exact value of Gables could not be ascertained, but people familiar with the matter said they expected it to fetch between $2bn and $3bn and attract interest from private equity, sovereign wealth and institutional investors. The company is working with property broker Eastdil Secured on the sale.

 

Famous I.M. Pei-Design Building Re-Emerges at Prominent Real Estate Project in Atlanta

ATLANTA (May 27, 2014) - The facade of 131 Ponce de Leon Ave. in Midtown has re-emerged at the new mixed-use development being erected at the site. The facade is famous in architect circles for being the first commercial design by superstar architect I.M. Pei.

Developer Faison Enterprises had vowed to restore the facade after dismantling it earlier this year to make way for the new development. Faison said the Pei-designed office building at 131 Ponce would be repurposed as a clubhouse for the apartments that would replace it.

In 2012, Bull Realty brokered the sale of the prime property to a JV between Sereo Group Inc. and Faison. The Wilbert Group, the leading real estate PR firm, announced the sale on behalf of Bull.

We drove by the site yesterday, and true to its word, Faison has reinstalled the facade and shell of the I.M. Pei building he designed in 1949 as an office building for Gulf Oil. In 2008, another developer proposed plans to the property, and that drew a lot of attention to 131 Ponce as people realized its importance to architectural history.

We'll keep an eye on this one as see exactly how the building is woven into the fabric of the new 131Ponce. 

Atlanta multifamily expert who coined "Condomania" dies at 85

ATLANTA (Nov. 5, 2013) - Dale Henson, the city's top multifamily expert and the first to predict Atlanta's calamitous condo collapse, died at his home last week. Henson, 85, died of cancer, according to his obituary that ran in today Atlanta Journal-Constitution.

In 1999, Henson warned that the "condomania" sweeping Atlanta would end in economic disaster for overzealous developers.

For the past four decades, Dale Henson Associates served as the go-to consultant to apartment and condo developers wondering whether to pull the switch on a new multifamily project. Henson also proved to be a go-to guy for reporters covering commercial real estate in Atlanta during the boom of the 1990s and bust of the 2000s.

I got to know Dale in the mid-1990s while covering real estate at Atlanta Business Chronicle. His office was directly across Peachtree Street from 1801 Peachtree, a former home of the Chronicle. Dale always made himself available to discuss proposed projects such as Post Properties' plans for a development at 2626 Peachtree. That tower, Post Peachtree, was the firm's first apartment tower designed to be quickly converted to condos (and it was).

In 1999, as owners scrambled to convert every class A apartment tower to condo and developers lined up sites to develop new condos, Henson urged caution. After all, no one knew the true depth Atlanta's high-rise condo market at the time because it really never existed outside a couple well-know towers.

Here's an excerpt from the May 1999 article.

The conversions will catch the attention of condo developers such as California's John Kusmiersky, who is pre-selling Park Regency near Phipps Plaza, said Dale Henson, a national apartment consultant and president of Atlanta-based Dale Henson Associates.

"They're going to say, `Wait a minute. They're going to steal our thunder,' " he said.

The current "condomania" that's sweeping Atlanta needs to slow, Henson added.

"A little caution is in order because there's so many [condos] coming," he said. "But, well-placed ones will go, as they always do."

Rest in peace, Dale. You called it.

Here's information about services and survivors, from the AJC obituary..

Milton Dale Henson, 85, died Oct. 30 in his home from cancer. H.M. Patterson and Son, Spring Hill Chapel will be handling arrangements as well as cremation services. A private service was held Sunday, and a memorial gathering will be held Thursday, Nov. 14 from 4-6 p.m. at H.M. Patterson and Son, Spring Hill Chapel. A private grave-side burial is scheduled for later this year.

In addition to his wife, Henson is survived by his daughter, Cathy Dayle Henson of Asheville, N.C.; his sons, Alexander Loring Dale Henson of Atlanta and Kyle Scott Henson of Williamson; his daughter-in-law, Beth Morehouse Henson of Williamson; his sisters, Monza Henson Wilson of Ozark, Ala. and Lazanda Henson of Atalla, Ala.; his brother, Aaron Gerome Henson of Natchitoches, La.; and his grandson.

 

SkyHouse Midtown Rising Quickly But Far From Record Pace

ATLANTA (July 25, 2012) - SkyHouse Midtown, the 23-story apartment tower under construction at West Peachtree and 12th streets, seems to have gone up in record time.

Seems like only a couple months ago since Batson-Cook Development and Novare Group kicked off construction of the building. (Actually, the official groundbreaking occurred on a warmer-than-usual Feb. 1.) When I drove by the site Sunday, it became clear the construction team lead by Baston-Cook's contracting arm, wants to complete the tower before Atlanta's hot multifamily market overheats.

It got me thinking about record times to complete towers, and as if on cue, the current issue of Fortune included a graphic about the speed of getting the world's tallest towers from start to completion.

One World Trade Center, which will be a symbolic 1,776 feet tall is rising at a clip of 0.6 feet a day, according to the piece. The world's current tallest buiding, Burj Khalifa in Dubai, went up at a faster pace of 1.5 feet/day. But the Chinese seem to be the masters of speed building, or commercial real estate propaganda.

The Chinese firm building Sky City One says it will complete the tower, which will be 2,749 feet tall, in a mere 90 days. That's a clip of 30.5 feet, or nearly three stories, a day. The Empire State building, which rises about 1,250 feet, took 410 days to construct.

For its part, Fortune acknowledged it's skeptical about Sky City One being completed in only three months.

Back in Midtown Atlanta, SkyHouse is rising at a good clip, but it won't eclipse any records, and that's good thing. (Disclosure, Invest Atlanta, a Wilbert News Strategies client, played a role in the financing of SkyHouse Midtown, another good thing.)

A Groundbreaking in Atlanta? Awesome!

ATLANTA (Feb. 1, 2012) - Was that actually an official groundbreaking ceremony in Midtown this morning?

Yes, Novare Group and Batson-Cook Development Co. held a ceremonial dirt-throwing ceremony at 12th and Spring streets for SkyHouse, a 23-story tower that will house 320 apartments. And yes, that was Jim Borders (in photo), who pioneered the Midtown high-rise multifamily market, serving as emcee and lead developer.

Wilbert News Strategies is proud client Invest Atlanta played a role in making the planned project a reality. (WNS shares the Invest Atlanta account with international PR agency of record Finn Partners.) 

We hope to see more photo opps with developers armed with shovels take place this year in Atlanta.

 

Tug-of-War Likely as Atlanta Public Schools Eyes Apartment Complex for new Buckhead High

ATLANTA (Oct. 18, 2010) - Atlanta Public Schools' search for a site for a new "Buckhead High School" has sparked controversy and a potential tug-of-war with a well-known developer.

According to reports in The Atlanta Journal-Constitution and Creative Loafing, APS has its sights set on The Paces Apartments (left) for the new high school. This garden-style apartment complex has been talked about as a potential site for months, and APS confirmed its interest in a letter threatening its owner with condemnation through eminent domain, according to the AJC and CL.

The Paces Apartments was officially identified as a coveted site by NPU-B member Sally Silver, who told AJC reporter Kristina Torres that Paces Apartments owner John W. Grant asked her for help after he received a letter "suggesting the system may try to seize the property through eminent domain."

That's where the controversy comes in. The idea of eminent domain has been a hot topic since the U.S. Supreme Court's ruling in Kelo v. City of New London (Conn.). Some residents doesn't like the idea of the government telling them whom they can sell their property to, or being forced to sell it against their will - even if it's for the public good or to further economic development.

And here's the rub from the commercial real estate aspect. The Grant family has hired CB Richard Ellis multifamily power brokers Malcolm McComb, Paul Berry and Kevin Geiger to sell the apartment complex, and they have a very interested buyer.

While the potential buyer has not been identified, we hear it's former Post Properties CIO Tom Senkbeil. He's a major player in commercial real estate, and a sale to a Senkbeil-led team probably would bring a higher price than a sale to the public school system.

The Paces Apartments site seems like a good one for Buckhead High, but it might not be worth the fight.

As Acquisitions Slow, Multifamily Companies to Focus on Development

By Tony Wilbert, WNS PR

ATLANTA (Sept. 29, 2010) - As multifamily acquisition opportunities begin to dry up, apartment development will return in select cities, a panel of top multifamily experts said today.

"The acquisition window was a lot shorter than we all thought," Post Properties CEO Dave Stockert said. "We think we have a window in the next couple years" on the development front.

At Amli Residential Partners, "My job changed from acquisition to development in about a week," CEO Greg Mutz said, half-joking. 

Stockert and Mutz joined Gables Residential President and CEO David Fitch and Wood Partners CFO and COO Joe Keough to discuss the multifamily market at a Bisnow Atlanta panel at the W Hotel in Midtown. Some 500 people packed hip hotel's Great Room to hear the panel, moderated by King & Spalding real estate partner Clayton Howell.

When Post does start developing again, don't look for the public REIT to jump at the chance to be part of additional mixed-use developments. Stockert said it's difficult to match up the residential and retail cycles to ensure the project works as well as planned.

"We're trying to look at some of our existing projects and make them a little more simple," he said. While not specifically mentioning Allen Plaza, Stockert's comments seemed to put in doubt its commitment to the struggling mixed-use project in downtown Atlanta.

Post Allen Plaza initially was scheduled to open in 2009. The project has not been started.

Though multifamily companies will shift their focus to new product, Stockert doesn't expect new development to ramp up too quickly, thanks to tighter debt markets. "I don't think it will be anything like 0-60 [mph] because I think the debt markets will hold things back."

And those companies such as Post that can access debt through lines of credit will be paying a higher price for it, the Post CEO said. "We're going to pay a lot bigger spread than we paid before."

Having a tougher time financing new product "will blessedly, at least for the next little bit, slow things down," Mutz added.

As for the overall industry, Mutz said demand for rentals is going up, and that's leading to higher rents. However, the lack of new job creation is a concern. "We could end up stalling a bit. Unless we sart getting job recovery, [the multifamily rebound] will stall at some point," he said.

 

Multifamily Sales Leader Evan Jennings Loses Courageous Battle with Brain Cancer

By Tony Wilbert

ATLANTA (May 31, 2010) - Very sad news to report out of Atlanta's commercial real estate industry this holiday weekend. Evan Jennings, who closed more than $3 billion of multifamily transactions in his career, lost his battle with brain cancer. Jennings, 65, died Thursday.

A native of Pittsburgh, Jennings founded The Apartment Group in the early 1990s with partner Chris Spain, and they built the multifamily brokerage into a regional powerhouse. In 1999, The Apartment Group expanded to Orlando with the addition of Cole Whitaker as partner. In 2000, The Apartment Group handled the sale of 72 multifamily communities with an aggregate transaction volume of $900 million.

The firm's success caught the eye of Cushman & Wakefield, which acquired The Apartment Group in 2001. Jennings, Spain and about 15 Apartment Group employees joined Cushman & Wakefield and helped lead a super-regional expansion of Cushman & Wakefield The Apartment Group.

Today, Chris Spain, Larry Orr and others from The Apartment Group continue to lead Cushman & Wakefield's Atlanta apartment brokerage team. 

After retiring from Cushman & Wakefield The Apartment Group, Jennings remained very active in Atlanta's real estate industry. He founded and served as president of Jennings Partners Inc., Condo Group LLC and JPI Holdings. He also served as chairman of RentBureau, a consumer reporting industry that aggregates and provides payment histories to the apartment industry.

A Florida State University graduate, Jennings started his career in real estate in 1974 at Coldwell Banker Commercial Real Estate, specializing in marketing and selling multifamily communities. He then launched Merrill Lynch's first multifamily division and later worked at Johnstown American Commercial Real Estate Services before co-founding The Apartment Group.

Jennings was a loving husband and father who loved to fly-fish. "Before he died, Evan told one of his close friends that he was looking forward to finding the greatest fishing hole in heaven," his death notice says. "Evan truly loved nature and felt totally at home in the outdoors" 

Here's the complete death notice, which appears in The Atlanta Journal-Constitution.

Family-Placed Death Notice

JENNINGS, Evan D. III EVAN JENNINGS, III Evan Jennings, III, aged 65, died May 27th, 2010, after fighting a courageous bout with brain cancer. Mr. Jennings leaves behind a long trail of successes, friendships and stories that will continue to touch the lives of many people for years to come. Evan was a man who lived life to the fullest. His intellectual curiosity and business acumen were defining attributes that contributed to his success as a person and a businessman. Always a self-made man, Evan rose from an entry-level real estate agent to a position of national prominence within the multi-family housing industry. Born on May 30, 1944 in Pittsburgh, Pennsylvania, Evan moved to Orlando, Florida in 1959, where he graduated from Edgewater High School in 1962. He then attended Florida State University graduating in 1966 from the School of Business with a degree in marketing. After graduation Evan served in the Army Reserve for six years. During his time in the Reserves, Evan was recognized for his great sharp-shooting abilities. This skill served him well through the years as he was a great wing-shooter and hunter. Evan was the rare person who was able to harness and use his unique skills to make a difference as a husband, father, friend and member of our community. Evan's defining characteristics included honesty, integrity, a wonderful sense of humor and a great desire for learning and discovery. Evan was the type of person that was much more likely to spend his time watching the History and Discovery Channels than sports or other forms of television entertainment. He and his beloved wife, Pam, shared a love for travel and especially cherished their trip to Africa in August 2008. They created many memories with their friends in Cabo San Lucas Mexico where they traveled often. In Cabo Evan was able to enjoy his life long love of fishing, often having huge catches of marlin, dorado and tuna. Despite Evan's love of travel, the two places he loved best were right here in Georgia. Evan and Pam raised their three children at their home in Vinings. Evan was very content to live and entertain in their home in Atlanta, but he never turned down the chance to make the short drive up to Lake Burton whenever the opportunity presented itself. Evan felt a special kinship with the North Georgia Mountains. He repeatedly stated that some of his warmest memories relate to sunset cruises on Lake Burton with Pam and their loving and supportive set of Lake Burton friends. One of Evan's favorite past times was fly-fishing for huge rainbow trout in the Soque River in North Georgia. He was a skilled angler who always released his trophy catch unharmed. Before he died, Evan told one of his close friends that he was looking forward to finding the greatest fishing hole in heaven. Evan truly loved nature and felt totally at home in the outdoors. Always charming and easy to be around - Evan will be missed by all who knew him. Evan's first sales position was in Atlanta with Shell Oil Company. Subsequently he worked with Xerox and Baxter Travenol. In 1974, Evan obtained his real estate license and began working with Coldwell Banker Commercial Real Estate. He specialized in the marketing and sales of multi-family properties. Evan continued his real estate career with Merrill Lynch where he launched their first multi-family division. From there, he moved to the Johnstown American Commercial Real Estate Services Company before co-founding his first company, The Apartment Group, Inc. in 1996. At The Apartment Group, Evan's entrepreneurial skills were honed and the company was the first to specialize exclusively in the sale of multi-family housing opportunities on the East Coast of the United States. Evan's leadership in the multi-family industry has been recognized for over thirty years. He was a member of the Atlanta Apartment Association, the National Apartment Association, the Urban Land Institute, the Atlanta Commercial Board of Realtors and the National Multi-Housing Counsel. Evan served as Board Member of the FSU Business School of Real Estate, endowing the Evan Jennings Speakers Series in Real Estate. In Atlanta Evan served as a Director of the Link Counseling Center and St. Anne's School. Evan's honesty, easy smile, sense of humor and keen mind will forever remain an impermeable memory etched on the minds of his many friends and family members. Evan never lost his willingness to help others. Whether he was dressing up as a bunny on Easter to visit children at Egleston Hospital, serving at a soup kitchen or hand delivering presents to the homeless at Christmas, Evan was not a braggart. He was a man who truly appreciated the good fortune that he enjoyed for his 65 years here on earth. Evan's departure from this earth is a loss for all - most notably, it is a loss for his best friend, Pam Jennings, married since 1983. They were devoted to each other throughout their marriage and Pam's unending support of Evan during his bout with cancer was a great source of comfort and support to him. Evan loved his three children very much and provided love, support and unwavering devotion to Trevor, Lauren and Evan. His life will remain with them as an example of a life well-lived. Evan always maintained that he felt like of one the luckiest men in the world. He lived in a time and era when a person could achieve success for himself and his family through a combination of hard work, guts and vision. Evan personified that formula for success and he created a good life for his family. Evan found peace during the difficult last stages of his life through support from friends, family and prayer. Darby and Riley, Evan's faithful dogs provided constant comfort in his last days. In addition to his wife and children, Evan is survived by three brothers and a sister. The family would like to express their appreciation to assistants Richard Manus and John Wallace who provided Evan with gentle care and patience. Also appreciation is expressed to Dr. Gil Watson who befriended Evan in the last few months and who provided spiritual support and loving kindness. A Memorial Service and celebration of Evan's life will be held Tuesday, June 1st at 1:00 p.m. at Northside United Methodist Church with visitation following the service in the Faith and Arts Center. In lieu of flowers, the family requests donations be made in Evan's name to Hospice Atlanta, 1244 Park Vista Drive, Atlanta, GA 30319 or the Orr Brain Tumor Navigator Fund, c/o Piedmont Hospital, 1968 Peachtree Road, NW, Atlanta, GA 30309. 

Published in The Atlanta Journal-Constitution on May 31, 2010

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Trump Towers Atlanta Site to Remain Parking Lot

Updated at 3 p.m. on this snowy Friday to add legal foreclosure notice below.

ATLANTA (Feb. 12, 2010) - Ivanka, say it ain't so! Instead of Trump Towers Atlanta, we're stuck with a beat-up parking lot?

When Ivanka Trump was live on the air with Q100's The Bert Show, she told Atlantans she was really excited about the twin-tower project that would rise on a surface lot across from the Arts Center MARTA station at West Peachtree and 15th streets in Midtown. Construction, Trump said, would start within a year of the October radio interview.

By the time Ivanka Trump, daughter of Donald, offered this update skepticism abounded about whether Trump Towers ever would materialize. Trump's local partner in the deal, Wood Partners, already had been struggling with holding onto a project in Cobb County. The partnership, dubbed 1240 West Peachtree LP, also includes Dezer Properties of New York. 

Last week, GE Business Financial Services advertised for foreclosure the 2.5-acre site where Trump Towers were to have risen. There's a possibility the site will be auctioned off at the Fulton County Courthouse March 2, according to the advertisement that first appeared Feb. 5 in the Daily Report.

Atlanta Business Chronicle broke the news of the pending foreclosure in today's edition, and The Atlanta Journal-Constitution quickly followed with a story that attributed the facts to the ABC. According to the ABC, the original loan to acquire the property was for $15.7 million.

 Because the project already had been delayed, real estate watches predicted the demise of the much-ballyhooed project. They'd seen grand plans for the same site fall apart in 2000, when real estate mogul Jim Cumming discussed building a music hall on the site.

So, for now, the highest and best use of the famed parking lot is just that - a parking lot. It's too bad. It would have been nice to have Ivanka Trump in town often to promote Trump Towers.

Here's the full legal notice that appears in the Feb. 5 and 12 editions of the Daily Report:

Public Notices

Any match for "1240 west peachtree" is highlighted below in bold red type.

Mortgage Foreclosure Scheduled to publish in the Daily Report on 02/05/2010, 02/12/2010, 02/19/2010, 02/26/2010 NOTICE OF SALE UNDER POWER IN SECURITY DEED  UNDER AND BY VIRTUE of the power of sale contained in that certain Deed to Secure Debt, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated as of March 31, 2006, given by 1240 WEST PEACHTREE, L.P., a Georgia limited partnership ("Borrower"), to GE BUSINESS FINANCIAL SERVICES INC., a Delaware corporation, formerly known as Merrill Lynch Business Financial Services, L.P., a Delaware corporation ("Lender"), and recorded in Deed Book 42276, at pages 371 et seq., Fulton County, Georgia Records; as amended by that certain First Amendment to Deed to Secure Debt, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated as of September 28, 2007, between Borrower and Lender, and recorded in Deed Book 45824, at pages 195 et seq., aforesaid records; as further amended by that certain Second Amendment to Deed to Secure Debt, Assignment of Leases and Rents, Security Agreement and Fixture Filing, between Borrower and Lender, dated as of March 31, 2008, recorded in Deed Book 46585, at pages 117 et seq., aforesaid records; as affected by that certain Release, dated April 22, 2008, by Lender, and recorded in Deed Book 46666, at pages 421, et seq., as re-recorded in Deed Book 46756, at pages 474, et seq., aforesaid records; and as further amended by that certain Third Amendment to Deed to Secure Debt, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated as of September 30, 2008, between Borrower and Lender, and recorded in Deed Book 47362, at pages 109 et seq., aforesaid records (as amended and affected, the "Security Deed"), and pursuant to the applicable provisions of the Uniform Commercial Code, as enacted in Georgia, including, without limitation, O.C.G.A 164> 11 9 604, the undersigned will sell at public outcry, to the highest bidder for cash, before the courthouse door of Fulton County, Georgia, within the legal hours of sale on the first Tuesday in March, 2010, the following described property being located at or in connection with 1240 Spring Street, Atlanta, Georgia 30309 (collectively, the "Secured Property"): (a)The real property described below: ALL THAT TRACT OR PARCEL OF LAND LYING AND BEING IN LAND LOT 108, 17TH DISTRICT, CITY OF ATLANTA, FULTON COUNTY GEORGIA AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTH EASTERLY INTERSECTION OF FOURTEENTH (14TH) STREET (60' RIGHT OF WAY) AND SPRING STREET (60' RIGHT OF WAY); THENCE ALONG THE EASTERLY RIGHT OF WAY IN A NORTHERLY DIRECTION ALONG SPRING STREET A DISTANCE OF 600.00' TO AN IRON PIN SET AND THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG THE EASTERLY RIGHT OF WAY OF SPRING STREET N00°32'44"E A DISTANCE OF 100.22' TO A POINT; THENCE N00°26'27"E A DISTANCE OF 117.30' TO A POINT, THENCE N00°27'28"E A DISTANCE OF 114.25' TO A 1/2" REBAR FOUND; THENCE LEAVING SAID RIGHT OF WAY S88°18'14"E A DISTANCE OF 137.97' TO A 5/8" REBAR FOUND; THENCE S88°12'20"E A DISTANCE OF 9.90' TO A 5/8" REBAR FOUND; THENCE S88°18'02"E A DISTANCE OF 50.48' TO AN IRON PIN SET; THENCE S01°06'50"W A DISTANCE OF 7.06' TO AN IRON PIN SET; THENCE S01°06'50"W A DISTANCE OF 47.99' TO AN IRON PIN SET; THENCE N85°58'26"W A DISTANCE OF 8.05' TO AN IRON PIN SET; THENCE S01°43'59"W A DISTANCE OF 58.02' TO AN "X" SCRIBED IN WALL; THENCE S88°44'58"E A DISTANCE OF 208.02' TO A ½" REBAR FOUND ALONG THE WESTERLY RIGHT OF WAY OF WEST PEACHTREE STREET (APPARENT 60' RIGHT OF WAY); THENCE CONTINUING ALONG THE WESTERLY RIGHT OF WAY OF WEST PEACHTREE STREET S01°46'22"W A DISTANCE OF 219.90' TO AN IRON PIN SET; THENCE LEAVING SAID RIGHT OF WAY N88°39'48"W A DISTANCE OF 147.45' TO A ½" REBAR FOUND; THENCE N87°34'33"W A DISTANCE OF 57.08' TO AN "X" SCRIBED IN WALL; THENCE N88°26'35"W 186.97' TO THE TRUE POINT OF BEGINNING. SAID TRACT CONTAINING 108,138 SQUARE FEET OR 2.4825 ACRES. LESS AND EXCEPT the property conveyed in that certain Release by Merrill Lynch Capital, dated April 22, 2008, filed for record April 29, 2008, and recorded in Deed Book 46666, page 421, records of Fulton County, Georgia; as re-recorded May 19, 2008 in Deed Book 46756, page 474, aforesaid records, being described as follows:  BEGINNING at a point 37.5 feet left of and opposite Station 102+17.38 on the construction centerline of 15th Street on Georgia Highway Project No. NHS-0001-00(792); running thence N 89°25'26" W a distance of 186.79 feet to a point 37.50 feet left of and opposite station 100+30.60 on said construction centerline laid out for 15th Street Centerline; thence S 0°46'39" E a distance of 75.28 feet to a point 37.76 feet right of and opposite station 100+32.37 on said construction centerline laid out for 15th Street Centerline; thence S 89°45'59" E a distance of 186.97 feet to a point 36.64 feet right of and opposite station 102+19.34 on said construction centerline laid out for 15th Street Centerline; thence N 0°56'12" W a distance of 74.17 feet back to the point of beginning. Containing 0.321 acres more or less; and BEGINNING at a point 37.5 feet left of and opposite Station 104+26.26 on the construction centerline of 15th Street on Georgia Highway Project No. NHS-0001-00(792); running thence N 89° 22' 53" W a distance of 26.68 feet to a point 37.52 feet left of and opposite station 104+00.20 on said construction centerline laid out for 15th Street Centerline; thence southwesterly 27.466 feet along the arc of a curve (said curve having a radius of 115.500 feet and a chord distance of 27.401 feet on a bearing of S 83° 48' 26" W) to the point 37.07 feet left of and opposite station 103+79.20 on said construction centerline laid out for 15th Street Centerline; thence S 76° 59' 41" W a distance of 75.45 feet to a point 36.88 feet left of and opposite station 103+05.57 on said construction centerline laid out for 15th Street Centerline; thence southwesterly 20.030 feet along the arc of a curve (said curve having a radius of 84.500 feet and a chord distance of 19.983 feet on a bearing of S 83° 47' 08" W) to the point 37.50 feet left of and opposite station 102+76.71 on said construction centerline laid out for 15th Street Centerline; thence N 89° 25' 27" W a distance of 59.31 feet to a point 37.50 feet left of and opposite station 102+17.38 on said construction centerline laid out for 15th Street Centerline; thence S 0° 56' 12" E a distance of 74.17 feet to a point 36.64 feet right of and opposite station 102+19.34 on said construction centerline laid out for 15th Street Centerline; thence S 88° 53' 52" E a distance of 57.08 feet to a point 37.17 feet right of and opposite station 102+76.42 on said construction centerline laid out for 15th Street Centerline; thence S 89° 59' 12" E a distance of 147.45 feet to a point 59.01 feet right of and opposite station 104+26.43 on said construction centerline laid out for 15th Street Centerline; thence N 0° 31' 02" E a distance of 96.51 feet back to the point of beginning. Containing 0.397 acres more or less; together with all existing and future easements and rights affording access to it, (the "Premises") TOGETHER WITH: (b)All buildings, structures, improvements and fixtures now or in the future located or to be constructed on the Premises (the "Improvements"); together with (c)All existing and future appurtenances, privileges, rights-of-way, franchises and tenements of the Premises, including all minerals rights, oil, gas, and associated substances, and other commercially valuable substances which may be in, under or produced from any part of the Premises, all development rights and credits, air rights, water, water rights (whether riparian, appropriative or otherwise, and whether or not appurtenant) and water stock, and any Premises lying in the streets, roads or avenues, open or proposed, in front of or adjoining the Premises and Improvements; together with (d)All existing and future leases, subleases, subtenancies, licenses, occupancy agreements and concessions ("Leases") relating to the use and enjoyment of all or any part of the Premises and Improvements, and any and all guaranties and other agreements relating to or made in connection with any of such Leases and all rents, income, revenues, prepayments, security deposits, tax, insurance and replacement reserve deposits, receipts, termination, cancellation, and option payments, royalties, profits, issues, service reimbursements, fees, accounts receivables, and revenues from the Premises and/or Improvements from time to time accruing under the Leases (the "Rents"); together with (e)All materials, supplies, work in process, chattels, furniture, fixtures, appliances, machinery and other personal property of any kind, now or later to be attached to, incorporated into, placed in, on or about, or used in connection with the use, enjoyment, occupancy or operation of all or any part of the Premises and Improvements, whether stored on the Premises or elsewhere, including all pumping plants, engines, pipes, ditches and flumes, and also all gas, electric, cooking, heating, cooling, air conditioning, lighting, refrigeration and plumbing fixtures and equipment, all of which shall be considered to the fullest extent of the law to be real property for purposes of this Security Deed; together with (f)All of Borrower's interest in and to all operating and escrow accounts, the loan funds, whether disbursed or not, all reserves set forth in the pre-development budget, tenant security deposit accounts, capital improvement reserves and any other monies on deposit with or for the benefit of Lender, including deposit for the payment of real estate taxes and insurance and any cash collateral account, bank accounts of Borrower; together with (g)All claims, demands, judgments, insurance policies, insurance proceeds, refunds, reserves, accounts receivable, cost savings, deposits, rights of action, awards of damages, compensation, settlements and other rights to the payment of money hereafter made resulting from or relating to (i) the taking of the Premises or the Improvements or any part thereof under the power of eminent domain, (ii) any damage (whether caused by such taking, by casualty or otherwise) to the Premises, Improvements or appurtenances thereto or any part thereof, or (iii) the ownership or operation of the Secured Property; together with (h)To the extent assignable, all management contracts, permits, licenses, applications, approvals, plans, specifications and drawings, contracts, purchase and sale agreements, purchase options, entitlements, soil test reports, other reports of examination or analysis of the Premises or the Improvements, development rights and authorizations, however characterized, issued or in any way furnished for the acquisition, construction, development, operation and use of the Premises, Improvements and/or Leases, including building permits, environmental certificates, certificates of operation, warranties and guaranties; together with (i)All of the following types of collateral, as defined in the Uniform Commercial Code as in effect from time to time in the State of Georgia (the "Code"): accounts, contract rights, general intangibles, chattel paper, documents, instruments, inventory, goods, equipment, investment property, deposit accounts, letter of credit rights, commercial tort claims, health care receivables and all books and records relating to the foregoing, provided that Borrower will cooperate with Lender in obtaining "control" as defined in the Code with respect to collateral consisting of deposit accounts, investment property, letter of credit rights and electronic chattel paper; together with (j)All books and records pertaining to any and all of the property described above, including computer-readable memory and any computer hardware or software necessary to access and process such memory ("Books and Records"); together with (k)All proceeds and products and renewals of, additions and accretions to, substitutions and replacements for, and changes in any of the property described above; and together with (l)Any and all after-acquired right, title or interest of Borrower in and to any property of the types described in the preceding granting clauses. To the best of the knowledge of Lender, the Secured Property is in the possession of the Borrower or other persons holding by, under or through Borrower.  The undersigned may sell that portion of the Secured Property as may, under the laws of the State of Georgia, constitute an estate or interest in real estate (the "Real Property") separately from that portion of the Secured Property as constitutes under the laws of the State of Georgia personalty and not an interest in real estate (the "Personal Property"), in which case separate bids will be taken therefor, or collectively in a single sale and lot, in which case a single bid will be taken therefor. Notice of the undersigned's intent shall be given by announcement made at the commencement of the public sale. The Real Property will be sold on an "as is, where is" basis without recourse against Lender and without representation or warranty of any kind or nature whatsoever with respect thereto. The Real Property will be sold subject to (1) all unpaid taxes and assessments which are liens against the Real Property and which are prior in right to the Security Deed; (2) rights of tenants in possession, as tenants only, under unrecorded leases; (3) rights of the tenant, as tenant only, under letter agreement between Borrower and Clear Channel Outdoor dated July 14, 2005; (4) Sewer Easement from United Insurance Company of America to the City of Atlanta, a municipal corporation of the State of Georgia, dated August 29, 1967, recorded in Deed Book 4789, page 363, Fulton County, Georgia records; (5) Right-of-Way Easement from United Insurance Company of America to Georgia Power Company, dated December 11, 1972, recorded in Deed Book 5739, page 415, aforesaid records; (6) Easement from James B. Cumming to Georgia Power Company, dated November 29, 2989, recorded in Deed Book 13260, page 223, aforesaid records; (7) Flume Agreement between Phoenix Investment Co. and the City of Atlanta, dated February 1, 1961, recorded in Deed Book 3682, page 55, aforesaid records; (8) Easement reserved in Warranty Deed from 1230 Building, Inc. to Phoenix Investment Co., dated June 26, 1961, recorded in Deed Book 3739, page 35, aforesaid records; (9) Sewer Easement from American Agency Life Insurance Company to the City of Atlanta, a municipal corporation of the State of Georgia, dated November 7, 1967, recorded in Deed Book 4824, page 376, aforesaid records; (10) Sidewalk Easement Agreement from City of Atlanta to Center Point Realty Partners, LP, dated January 10, 2005, recorded in Deed Book 39205, page 391, aforesaid records; (11) Right of Way Deed from 1240 WEST PEACHTREE, L.P. to the Department of Transportation, dated April 24, 2008, recorded in Deed Book 46666, page 416, aforesaid records; (12) all matters shown on that certain survey entitled "ALTA/ACSM Land Title Survey for: 1240 WEST PEACHTREE, L.P. & Chicago Title Insurance Company," prepared by Grant Shepherd & Associates, Inc., dated February 7, 2006, last revised March 9, 2006; and (13) any and all other easements, limitations, restrictions, reservations, covenants and encumbrances of record to which the Security Deed is subordinate in terms of priority. The Personal Property will be sold on an "as is, where is" basis without recourse against Lender and without representation or warranty of any kind or nature whatsoever with respect thereto, including, without limitation, the warranties of merchantability or fitness for any particular purpose. The Personal Property will be sold subject to all unpaid taxes and assessments, if any, which are liens against the Personal Property and which are prior in right to the Security Deed. The Security Deed was given to secure (1) the indebtedness evidenced by that certain Loan Agreement, dated as of March 31, 2006, by and between Borrower and Lender, and joined by Mark Randall, Leonard W. Wood Family Limited Partnership, L.L.L.P., The Warren J. Durkin, Jr. Family Limited Partnership, L.L.L.P., Richard R. Mercer, and James L. Baugnon (collectively, together with SPUS05 Wood Partners, LP, the "Joinder Parties"), as amended by that certain First Modification to Loan Agreement, dated as of March 30, 2007, by and between Borrower and Lender and joined by the Joinder Parties (except for James L. Baugnon and SPUS05 Wood Partners, LP), as further amended by that certain Second Modification to Loan Agreement, dated as of April, 2007, by and between Borrower and Lender and joined by the Joinder Parties (except for James L. Baugnon and SPUS05 Wood Partners, LP), as further amended by that certain Third Modification to Loan Agreement, dated as of September 28, 2007, by and between Borrower and Lender and joined by the Joinder Parties (except for James L. Baugnon and SPUS05 Wood Partners, LP), as further amended by that certain Fourth Modification to Loan Agreement, dated as of March 31, 2008, by and between Borrower and Lender and joined by the Joinder Parties (except for James L. Baugnon and SPUS05 Wood Partners, LP), as further amended by that certain Fifth Modification to Loan Agreement, dated as of October, 2008, by and between Borrower and Lender and joined by the Joinder Parties (collectively, the "Loan Agreement"); and (2) all other obligations of Borrower to Lender arising under any and all other documents and instruments evidencing, securing, governing or otherwise pertaining to said indebtedness (said documents, together with the Loan Agreement and the Security Deed are herein collectively referred to as the "Loan Documents").  The indebtedness evidenced and secured by the Loan Agreement, the Security Deed and the other Loan Documents (the "Indebtedness") has been and is hereby declared due and immediately payable because of default by Borrower in payment of the Indebtedness in accordance with the terms of the Loan Agreement, the Security Deed and the other Loan Documents and the failure of Borrower to perform its obligations under the Loan Documents.  The proceeds of the sale of the Secured Property shall be applied in accordance with the Security Deed to (i) the payment of the costs and expenses of this sale and of all proceedings in connection therewith, including attorneys' fees (notice of intent to collect attorneys' fees having been given pursuant to O.C.G.A. 164> 13-1-11), (ii) payment of the Indebtedness, and (iii) the remainder, if any, to the person or persons legally entitled thereto. 1240 WEST PEACHTREE, L.P., a Georgia corporation, acting by and through its attorney-in-fact, GE BUSINESS FINANCIAL SERVICES INC., a Delaware corporation, formely known as Merrill Lynch Business Financial Services Inc. Brent S. Gilfedder, Esq.  King & Spalding LLP 1180 Peachtree Street Atlanta, Georgia 30309 #1400440:2/5-4mb Scheduled to publish in the Daily Report on 02/05/2010, 02/12/2010, 02/19/2010, 02/26/2010