One of downtown Atlanta's signature office towers is running out of runway. The loan tied to 191 Peachtree Tower is drawing fresh scrutiny from lenders and ratings agencies as shrinking tenancy and softer revenue put pressure on a debt package that comes due in November 2026. The owners say they are pouring money into upgrades to keep the building competitive, while analysts are openly questioning whether a clean refinance will be in the cards.
Banyan Street Capital and partner Oaktree paid $268 million for the 50-story, roughly 1.2 million square foot tower in 2016. At the time, more than 90% of the space was leased. Today, that figure is closer to 58%, and cash flow has fallen by more than 30%. Savills managing director Brian Day told analysts the market is not exactly lining up big tenants for downtown towers right now, a sentiment described by Bisnow.
Ratings Jitters Hit The CMBS Pool
Fitch Ratings recently downgraded the Morgan Stanley Capital I Trust 2016-UBS12 CMBS pool and flagged dozens of loans in the deal as "loans of concern." The 191 Peachtree loan landed on that list as a major driver of Fitch's higher loss expectations for the pool. In its report, Fitch Ratings said projected losses across the deal have climbed and warned that a thick wave of 2026 maturities is pushing up refinance risk for multiple properties.
Loan Structure And The Morningstar Watchlist
Morningstar Credit added to the worries in March when it placed the largest $80 million tranche connected to 191 Peachtree on its watchlist, a move that signals elevated concern about default or recovery values if a new loan cannot be stitched together. Offering documents show that Morgan Stanley originated a $175.5 million loan on the tower in 2016, later carved into several pieces. Those origination and split details appear in the loan prospectus filed with the SEC and in the analytics published by Morningstar Credit.
Owners Bet On A Facelift To Win Back Tenants
To keep the asset in the game, the owners are reaching for the checkbook. Banyan Street has rolled out roughly $4.5 million in capital improvements for a lobby and atrium refresh, a makeover the firm is branding as a new "front porch" for the building. The team is also pushing new tower signage and speculative suites in a bid to hook a marquee tenant and rebuild momentum. Designers and building representatives have laid out the renovation plans and leasing strategy in local coverage by Urbanize Atlanta and Metro Atlanta CEO.
Tenant Exodus Blows A Hole In The Rent Roll
The worst damage came when Deloitte shrank its footprint and ultimately vacated roughly 262,000 square feet, a massive block of space the tower has not yet been able to backfill. Data from Partners Real Estate and local reports show that downtown Atlanta posted about 93,000 square feet of negative net absorption in the first quarter of 2026, while Midtown notched more than 345,000 square feet of positive absorption over the same period. Average Class A asking rents downtown sat around $32.50 per square foot, compared with the building's current tenant average of about $29.40, according to figures cited by Bisnow.
Refinance Clock Is Ticking
For now, the borrowers are reported to be current on their payments through April. The calm may not last. Morningstar and Fitch both caution that a stack of scheduled lease expirations in 2026 and 2027, combined with the CMBS pool's heavy concentration of 2026 maturities, could make refinancing the loan before its November 2026 due date a far tougher assignment. Analyses from Morningstar Credit and Fitch Ratings say the mix of near term lease rollovers and rising loss expectations is likely to make securing fresh financing or a buyer considerably more complicated than it was back in 2016.
