A lender is foreclosing on a 13-story office tower in downtown Atlanta. You may have heard that the property owner planned to turn the 135,000-square-foot building into a 120-unit apartment complex. However, the owner couldn’t pay a $28 million loan, so the lender stepped in with foreclosure. News outlets say the process started in April 2024, illustrating how Georgia’s commercial real estate market faces growing financial problems. This situation highlights the difficulty of adaptive reuse projects when funding falls apart.
How this affects Georgia businesses
If you run a business in Georgia dealing with similar financial pressure, this news serves as a warning. Companies engaged in real estate projects—such as turning offices into homes—might hit roadblocks and need legal help. Georgia law controls foreclosures, and under O.C.G.A. § 44-14-162, lenders must follow strict rules about notices and sales. A lender could rush your loan repayment, leaving you scrambling to catch up.
Here are some situations where legal guidance proves valuable:
- Loan defaults: Missing payments can trigger foreclosure quickly.
- Project delays: Construction setbacks might violate loan agreements, inviting lender action.
- Partnership disputes: Disagreements with investors can block your ability to pay up.
You must act quickly when these problems happen. Georgia’s non-judicial foreclosure process moves quickly, often ending within 30-45 days after a notice. A lawyer can help you evaluate options such as loan restructuring or filing for bankruptcy.
What’s next
Looking forward, you should check your contracts for lender remedy clauses and ensure compliance with local zoning regulations for conversion projects. A lawyer can guide you in negotiating with lenders or defending your company against foreclosure in court.
Acting early keeps your business on track. Seeking legal advice now prepares you for Georgia’s changing real estate scene.
