Atlanta's Largest Post-Recession Construction Loan

ATLANTA—It's the largest construction loan in post-recession Atlanta. Jamestown, a real estate development firm, just secured a $180 million construction loan toward its Ponce City Market project. PNC Bank, in partnership with SunTrust and JP Morgan, offered the loan. Until now, Jamestown had funded 100% of the development costs from internal equity.

Ponce City Market is set to open in the fall of 2014. It's a 1.1 million-square-foot restoration of the former historic Sears, Roebuck & Company building and qualifies as the largest adaptive reuse project in Atlanta's history.

"PNC's commitment to supporting mixed-used projects in the Atlanta community is reflected in our collaboration on this Ponce City Market deal,” says Chad McMasters, PNC real estate banking Georgia market manager. “Jamestown's investment in the heart of the city will be a catalyst for continued growth and a driver for employment for hundreds of residents."

Ponce City Market will combine about 330,000 square feet of retail and restaurants, including a Central Food Hall, 517,000 square feet of class A loft office space, and 259 residential flats. Jamestown has already inked office tenants such as Athenahealth, Cardlytics, MailChimp, Suzuki School, and Binders.

“PNC, SunTrust and JP Morgan have all been wonderful lending partners for us over the years, and we could not be more pleased to have all three relationships involved in one of our signature projects,” says Shak Presswala, Jamestown's head of capital markets. Ponce City Market's evolution will focus on preserving the building's historic character and enhancing its connection to the surrounding community. Ponce City Market will also have a new pedestrian bridge which will link the interior courtyard and public market directly to Atlanta's popular BeltLine trails.

CBRE advised Jamestown in the financing transaction. Jeff Ackemann, executive vice president with CBRE Atlanta's Debt and Structured Finance Group, called Ponce City Market “one of the most iconic historic mixed use developments in the Southeast.”