By John Schaffner
At a time when intown condo towers are among the hardest-hit casualties of the Atlanta real estate slump, Morgan Stanley has signaled confidence in the St. Regis Atlanta property and its developers by extending the Buckhead property’s bank loan by 2 1/2 years.
However, the Astoria at Aramore, on Peachtree Road in south Buckhead, was headed back to its lender in September, according to a report in the Atlanta Business Chronicle.
Flagstar Bank had reportedly started foreclosure proceedings on the 70-unit Astoria condominium project, which was started by Kairos Development Corp. in 2007, just before the condo market turned sour, the newspaper said.
The Astoria units were originally listed from the low $400,000’s to $1.8 million, but the prices have been cut up to 20 percent since 2007.
Seven intown condo developments were foreclosed on in the first half of 2010.
But the developers of the St. Regis Atlanta property, on West Paces Ferry Road across from Whole Foods Market, have reason to pop the champagne corks.
The St. Regis deal replaces $176.5 million in financing by Morgan Stanley Mortgage Capital Holdings originated in October 2006 to develop the 26-story building, which contains 151 hotel rooms and 57 high-end condos. The debt that financed the construction would have come due in October,