Company developer and funding agency KDC acquired two Class A workplace buildings totaling greater than 1 million sq. ft within the north Atlanta suburb of Dunwoody, Ga. The corporate bought the properties in a sale-leaseback take care of State Farm.
Park Heart Buildings 2 and three had been initially developed by KDC as a part of its 17-acre Park Heart. Leased by State Farm, the 2 buildings embody practically 40,000 sq. ft of retail area. A 4,223-space parking construction and a 2.56-acre parcel for future growth had been additionally included within the acquisition.
The master-planned, transit-oriented, ground-up company workplace challenge reportedly was the most important of its form in metro Atlanta’s historical past on the time it acquired underway.
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Park Heart 2 has 621,000 sq. ft of workplace area together with 39,152 sq. ft of retail area and was accomplished in 2020. Park Heart Constructing 3 totals 440,000 sq. ft and was accomplished in 2021.
The buildings are situated on 12.2 acres at Hammond Drive and Perimeter Heart Parkway, adjoining to the Dunwoody MARTA station.
KDC started Park Heart with Park Heart Constructing 1, which was accomplished in 2016 and totals 620,000 sq. ft.
In a ready assertion, KDC President Toby Grove famous that the corporate has developed two campuses for State Farm: Park Heart and likewise the CityLine growth in Richardson, Texas.
KDC funded the acquisition utilizing its inside capitalization, which was established with the funding by Cadillac Fairview in 2021, together with ongoing possession and funding from KDC and Compatriot Capital.
A Dallas-based Northmarq debt/fairness workforce of Phillip Askew, Ronald Reese and Charlie Robinson organized financing for the acquisition by means of its life insurance coverage firm relationships.
KDC has undisclosed plans for future phases of Park Heart.
Time to decelerate
Metrowide, the Atlanta workplace market has a complete emptiness of 21.4 p.c, on account of a surge in deliveries bigger than something in 20 years—2.0 million sq. ft—and regardless of constructive absorption, in line with a third-quarter report from JLL.
The sublease market is sort of lively, with excessive availability and likewise with a dozen giant blocks of Class A sublease area having been taken up to now this yr, for a complete of about 400,000 sq. ft.
Class A workplace area within the northeast suburban submarket has an total emptiness of 18.1 p.c, on a list of about 8.1 million sq. ft, additionally in line with JLL.
