The Mansion on Peachtree, one of Buckhead’s most prominent new developments to open in 2009, could be on its way back to the lender through foreclosure, according to its developer.
A 30-day foreclosure notice was expected to be advertised on Jan. 5, barring some last minute deal.
Clark Butler, president of City Centre Properties and Mansion Centre Development LLC, which owns the project, has said it appeared less and less likely a deal could be worked out before the foreclosure action proceeded.
The Mansion, which has a combination of a 127-room, five-star hotel operated by Rosewood Hotels & Resorts, and 45 luxury condominiums, was said to have been a $165 million development. It is located on Peachtree Road near the Buckhead MARTA rail station and Lenox Mall.
The highly visible Buckhead project attracted prominent investors, such as Post Properties founder John Williams and Atlanta Falcons owner Arthur Blank.
About 25 percent of the residential space square footage has been bought, leaving about 75 percent of the condominium space vacant. An 8,700-square-foot Penthouse in the Mansion sold last June for $4 million, only a fraction of the original $10.2 million asking price. And that space was not yet built out and livable.
Hotel occupancy ran at about 58 percent in 2009 and the room rates were about 15 percent less than what was in the budget. Hotel occupancy was of 11.2 percent for all Atlanta hotels in 2009 from historical averages according to PKF Hospitality Research.