Westside projected the building's occupancy rate at stabilization would be 95%, according to special servicer commentary in the Morningstar Credit database. Instead, it dropped from 58% in July 2022 to 26% as of March. “[The] borrower stated low occupancy and significant number of pending evictions and turnovers due to increased rents,” the CMBS loan's master servicer, Berkadia, wrote in a May 2023 update on the loan. Berkadia also arranged the loan between HGI and Westside. It wrote at the time that the landlord changed property management companies in January 2023 and “identified a comprehensive plan on how to increase occupancy and improve operations,” but despite the building being deemed in overall good condition, its fortunes never turned around and it started hemorrhaging cash. As of February, Westside had drawn the entirety of the $5.2M interest reserve to cover its shortfalls and “has been making debt service payments out of pocket since November 2023,” according to DBRS Morningstar. After generating $5.1M of net operating income in 2022, the building's NOI was negative $168K in the trailing 12 months ending in March, and its net cash flow was $192K in the red, according to Morningstar Credit.  Its asking rents now range from $1,195 to $1,800 per month, according to Apartments.com. While the face rents are far below the average monthly rent in Buckhead of $2,200 per month, on a per-square-foot basis, The Lofts far outpaced the submarket’s average, according to research firm Haddow & Co." https://lnkd.in/egm9zKD4