Mivne Asks $9 Million for Troubled Atlanta Office Building

A distressed office building in northwest Atlanta has gone on the market, months after the owner defaulted on its loan.

A firm led by Israel’s Mivne Group has hired Newmark to sell One Tower Creek, a 100,000-square-foot building at 3101 Towercreek Parkway in the Cumberland/Galleria submarket, Bisnow reported. The asking price is $8.8 million, or $88 per square foot.

According to the manager’s comments, Mivne stopped repaying its $7.9 million CMBS loan in March. German American Capital provided the loan in 2015 to Fishman Holdings Canada Property Investment Trust XI and Industrial Buildings Corporation, which later changed its name to Mivne Group.

The health of the real estate sector reflects broader challenges facing the office market, such as the shift toward remote work and high interest rates. Atlanta’s office vacancy rate was nearly 25% in the first quarter, up 2% from a year earlier, according to Cushman & Wakefield. Even the Cumberland/Galleria submarket, which has emerged as a bright spot in Atlanta’s office sector, isn’t immune to the growing tide of distress that is beginning to take its toll on the sector as loans come due.

One Tower Creek’s financial woes were compounded when anchor tenant Procure Analytics vacated more than 35,000 square feet in January, dropping the building’s occupancy rate to 29%. Following Procure’s departure, the property faced an annual operating expense deficit of $300,000.

An LLC tied to Mivne purchased the building for $11.4 million in 2004. The property is assessed at $10 million for tax purposes, according to Cobb County records.

The offering has attracted strong interest from two main buyer groups: companies looking to own their office space and self-storage operators considering a conversion of the building, said Casey Keitchen of Newmark, who is the listing agent.

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“I think the idea is that now that there’s high availability in the building, the building is being sold to users in prime time,” Keitchen told the outlet. “It’s almost like a plug-and-play for a user.”

Newmark is taking advantage of the naming rights and the building’s high visibility near Interstates 75 and 285. Keitchen expects the building to sell within months.

—Quinn Donoghue