Breakwater Equity Partners Says it Stops Foreclosure on Parkway 400 in Alpharetta
Breakwater Equity Partners said Tuesday that it has filed bankruptcy on two Atlanta area office buildings.
The two buildings, known as Parkway 400, have a total of 193,281 square feet and are located in Alpharetta, Ga., at 11800 Amber Park Drive and 11720 Amber Park Drive. The buildings are owned by 35 individual tenant-in-common investors.
The investors purchased the buildings for $33.85MM in March 2007.
"The deal sponsor, Grubb & Ellis, sold the property to a group of mom-and-pop investors who thought they were buying a low risk asset," said Breakwater in a release. "The prospective investors were told that a new project – the $700MM Prospect Park development – was being built across the street and would ensure the health of their investment. In reality, the Prospect Park project was in bankruptcy and development plans had already been scrapped."
After the onset of the recession in 2008, vacancy rates spiked, the property was mismanaged, and the owners were unable to meet their debt service obligations. The loan was transferred to a special servicer, an agent that manages troubled Commercial Mortgage Backed Security (CMBS) loans, and the foreclosure process began.
“We look forward to presenting our reorganization plan to the bankruptcy court,” said Phil Jemmett, Breakwater Equity Partners CEO.