A deal by German company Newport RE to sell its South Downtown real estate portfolio to an Atlanta developer has collapsed and now many properties are headed to foreclosure.
Newport announced in July it would be selling its entire portfolio — 53 buildings and six acres of parking lots — to Braden Fellman Group. But Braden Fellman Group recently terminated the contract, according to a Newport.
Now some 18 Newport properties are listed for foreclosure, according to an Oct. 13 Fulton County legal notice. The news was first reported by real estate publication Bisnow.
Buildings listed for foreclosure include the portfolio’s centerpiece 222 Mitchell building and some on Historic Hotel Row.
“The local Newport team is working with BridgeInvest and our other lenders and partners regarding next steps,” said Newport Senior Vice President April Stammel in an email to Rough Draft. “We will share further updates as we’re able.”
Newport is refocusing all efforts on its German business, the statement said.
Newport entered Atlanta’s real estate market in 2016 and began buying up vacant and boarded-up Downtown buildings. The company’s vision was to transform 10 blocks of the neglected area near the Five Points MARTA station into a thriving neighborhood dubbed “South DWNTN” with retail, restaurants, office, hotels and apartments.
But when investor funding dried up due to global market turmoil brought on by the COVID-19 pandemic as well as rising interest rates, Newport said it was forced to sell its entire portfolio.
This story has been updated to include comment from Newport that Braden Fellman Group terminated the contract to buy the South Downtown portfolio.