Bank of America Plaza headed for default

A mortgage secured by the 55-story Bank of America Plaza, Atlanta’s tallest building, has been transferred to special servicing, according to Fitch Ratings .

According to Fitch Ratings, the debt was transferred to special servicing because the building owner faces “imminent default.” The balance of the mortgage is $363 million, Fitch Ratings said. The master servicer is Wells Fargo (NYSE: WFC) and the special servicer is LNR Partners.

BentleyForbes, the Los Angeles-based commercial real estate company, bought the property from Atlanta-based Cousins Properties Inc. (NYSE: CUZ) in 2006 at the top of the market for $436 million. Since then, it has seen its namesake tenant, Bank of America Corp. (NYSE: BAC), significantly downsize in the tower, and rents fall across the Atlanta office market as the Great Recession took hold, seriously undercutting the once lofty value of the building.

Bank of America Plaza encompasses 1.25 million square feet at the corner of North Avenue and Peachtree Street. It is the tallest building in the Southeast.

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