Capmark provides $120 million in financing for two office buildings.

Capmark Finance Inc., Horsham, Pennsylvania, announced it has provided a total of $120.9 million in financing for more than 1.2 million square feet of office space in two key locations along the "Peachtree corridor" in downtown Atlanta.

Capmark Finance provided $69 million in interim, floating-rate financing for the acquisition of 180 Peachtree St.--the historic Macy's department store building--which has been renovated and features more than 604,000 square feet of office space and 1,800 covered, secure parking spaces. More than $8 million in tenant improvements are planned in the near future, according to John Beam, senior vice president and manager of the Capmark Finance Atlanta office.

The three-year loan has a 12-month extension option and an interest-only amortization. The loan was 87 percent loan-to-value (LTV) at closing, and is expected to be 80 percent LTV by the end of the loan term.

Capmark Finance also provided $51.9 million in financing for the acquisition of the Equitable Building by Equastone Value Fund II, LLC. The Equitable Building features a marquee sign visible on the downtown skyline, and is an Atlanta landmark.

The 75 percent LTV loan has a three-year term with an interest-only amortization. The 35-story building, located at 100 Peachtree St., features more than 603,000 square feet of office space and 900 covered, secure parking spaces. Approximately $10 million in capital and tenant improvements are planned, explained Beam.

"The loans represent a major investment in downtown Atlanta, an area that has started to revitalize in the past year," said Beam. "The downtown area is poised for growth, and the central location of these office buildings in the vicinity of four MARTA [Metropolitan Atlanta Rapid Transit Authority] stations should generate strong tenant interest."