Harbor Group International has assumed ownership of the 623-unit asset after foreclosing on the $104.7 million, three-year floating rate loan it originated for former owner Miami-based Westside Capital Group. The Norfolk, Virginia-based apartment owner took over the Lofts at Twenty25 in a foreclosure sale valued at $92.5 million.
Westside Capital Group originally bought the Lofts at Twenty25 for $136 million, or about $218,000 per unit, from Atlanta-based Varden Capital Properties in 2022. The Lofts at Twenty25 are located in the South Buckhead neighborhood of Atlanta.
“With its prime location among affluent residential neighborhoods, immediate walkability to almost 4 million square feet of medical employment, and close proximity to Buckhead Village and Midtown amenities, the Lofts at Twenty25 is a unique multifamily asset that will offer a luxury lifestyle at relatively affordable rents compared to other alternatives in the marketplace,” Jakub Hejl, founder and president of Westside.
Varden, which had developed a reputation for buying low-cost housing complexes and renovating them, gave the residents 60 days to vacate the property. Units in the building were renting for $600 to $1,000 at the time, making it an affordable option in an expensive neighborhood.
Westside highlights the 16-story building’s one-bedroom apartments ranging from 430 square feet to 600 square feet. Its amenities include a 5,000-square-foot fitness center, swimming pool, movie theater, convenience store and coffee shop, dog park and dog wash, swimming pool, billiards and game room, office and conference rooms, bike storage, putting green, laundry facility and dry-cleaning service, EV charging stations and 405 parking spaces.
Despite these features, occupancy has been an issue at the building, falling from 58% in July 2022 to 26% as of March, as pending evictions and departures due to increased rent plagued the asset.
