A collection of apartment complexes carrying a total debt load of $130.5 million is slated for foreclosure and a trip to the auction block next month.
Most of the nine properties, owned by SE Portfolio Apartments LLC and GTS Property Portfolios B-2, are located in Gwinnett or DeKalb Counties, according to Alston & Bird lawyer Steven D. Collier. The properties include Sinclair Apartments on Park Colony Drive in Norcross and Somerset on Summer Walk Parkway in Tucker; some of the other properties, he said, are located out of state.
Collier represents Centerline Servicing Inc., a special servicer in charge of foreclosing on the properties on Oct. 6. They will be sold at auction the same day. The apartment complexes initially were financed by GE Capital Corp. in 2007, he said, but the loan was sold to a mortgage pool of which U.S. Bank is the holder and trustee.
This is a large commercial foreclosure for the Atlanta metro area, its dollar amount trumping the recent, highly publicized foreclosure of the Equitable Building in downtown Atlanta, which sold at auction to its lender on June 3 for $29.5 million. The outstanding principal balance on the Equitable’s loan was, at $43.2 million, considerably higher than its sales price.
Collier said he does not expect the suite of apartment complexes to sell for an amount equal to their $130.5 million debt, either. “It will be a much smaller number based on some allocation to each property, so if there are people out there who want to bid, they can bid something that corresponds more to the value of each property,” he said.
As with most commercial foreclosures, he said, it’s likely that the lender will be the only one to bid on the properties. But, he added, “We’d be happy to have other bidders.”