ATLANTA—Portman Holdings is rolling up its sleeves in Atlanta's office market, acquiring and repositioning a 27-story, 414,768-square-foot office tower in Downtown Atlanta. The office asset, which sits on a strategic location at 230 Peach Street, is only 46% occupied.

PCCP provided a senior loan to the Atlanta-based developer to make the acquisition and begin repositioning the tower for success. Portman was the original developer of 230 Peachtree in 1965.

“Atlanta is showing strength in both the office and hotel sectors,” says Kevin Chin, vice president with PCCP. “We believe this is an attractive loan given the quality and location of the asset, the in-place cash flow, and the strength and experience of Portman Holdings.”

Portman has a special interest in 230 Peach Street. Beyond being the original developer of the office tower, the firm also developed and currently owns the adjacent four-building, 7.1 million-square-foot AmericasMart, one of the world's largest permanent wholesale trade centers and a major convention destination for retailers and consumers. 230 Peachtree is connected directly to the AmericasMart through a covered walkway and a sky bridge on the 22nd floor.

230 Peach Street currently has 16,000-square-foot floor plates and features a diversified tenant mix of 30 companies. Portman plans to keep about 290,000 square feet as office use. Floors two through nine, which total about 125,000 square feet, will be converted to a 200-key hotel.  

The hotel will take on the Hotel Indigo brand, which is part of the Intercontinental Hotel Group. Hospitality Ventures Management will manage the property. Portman expects to complete the hotel conversion in late 2015.

230 Peach Street sits at the corner of Peachtree Street and Andrew Young International Boulevard. From that location, tenants and visitors have access to Downtown Atlanta entertainment venues, convention space, educational and government landmarks including Centennial Olympic Park, the Georgia Aquarium, Georgia State University, CNN Center, the World of Coca-Cola, Philips Arena, and the Georgia State Capital. The office building also offers direct access to the Peachtree Center MARTA train station which is located underneath, making it accessible from anywhere in the city including Hartsfield-Jackson Atlanta International Airport.

Significant commercial and economic development taking place around 230 Peach Street. Downtown Atlanta is undergoing a significant revitalization that has seen nearly $3 billion in investments since 2007 plus an additional $182 million in public investments toward its infrastructure.