This Week's Atlanta Deal Sheet: KDC Alters Plans For Fourth Park Center Building
The developer of State Farm’s massive Dunwoody regional headquarters campus is pivoting away from office for the remainder of its development site.
KDC is seeking approval from the city of Dunwoody to alter its master plan for the fourth building at Park Center, the Atlanta Business Chronicle reported. The building was set to be a a fourth office tower spanning 700K SF, but KDC now wants to build apartments and a hotel instead.
The proposal calls for 300 residential units, a 175-room hotel and 22K SF of retail, Troutman Pepper LLP partner David Kirk, who is representing the developer, told members of the Dunwoody Planning Commission during a Feb. 13 meeting. KDC still plans to include 300K SF of office in the two-building plan, according to the ABC.
The current campus includes three office towers: the 620K SF Park Center 1, which is directly connected to the Dunwoody MARTA Station, the 621K SF Park Center 2 and the 440K SF Park Center 3. All three buildings are leased to State Farm for its regional hub, but the insurance giant subleased most of the first building to Carvana in 2021 as State Farm shifted to a hybrid work model. Carvana backed away from its sublease in 2023. KDC purchased buildings two and three from State Farm in 2022.
KDC Development Program Manager Jim George told commission members that the apartments would be marketed for rents on the higher end, with an idea to target companies with employees who stay temporarily in Atlanta, the ABC reported. The Dunwoody City Council still needs to give the plan its full approval, according to the ABC.
DEVELOPMENT
A Strategic Real Estate Partners subsidiary filed plans this month to build a new data center campus in Conyers that would include three buildings. Called Rockdale Technology Park, the campus would span 838K SF on 53 acres with delivery scheduled in 2028.
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Jeff Lindsey Communities is aiming to develop 300 apartment units, 112 townhouses, 246 single-family houses and 87K SF of office and retail across 150 acres in Senoia, a city in Coweta County 40 miles south of Downtown Atlanta. The Georgia-based homebuilder is seeking development of regional impact approval for the $250M project with the Georgia Department of Community Affairs.
SALES
A Nashville-based real estate investor is looking to sell the land under the eatery of a new player in the fast food scene in Metro Atlanta. Warren Commercial is marketing the little more than 1-acre parcel underneath Atlanta's third Raising Cane’s location. The site, at 9893 Georgia Highway 92 in Woodstock, is listed for $3M at a 4.4% capitalization rate, according to marketing materials posted on LoopNet by brokerage firm SRS Real Estate Partners. The Woodstock location, opening on Feb. 27, is the chicken-finger eatery’s third Metro Atlanta location.
SRS First Vice President Michael Berk, Executive Vice President Patrick Nutt and Senior Vice President William Wamble have been tapped to market the parcel for sale. Raising Cane’s developed and will continue to own its 2,500 SF restaurant, Berk told Bisnow. The restaurant’s corporate offices signed a 15-year lease for the ground that produces $140K a year in net operating income with a 10% rental increase every five years, according to the marketing materials.
LEASES
WeWork restructured its 44K SF lease at 881 Peachtree in Atlanta with The Loudermilk Cos. in the embattled coworking giant’s efforts to reduce overall rents and wiggle out of bankruptcy. WeWork scrapped a lease that was set to expire in 2032 and instead signed a single-year lease with options to renew. WeWork also agreed to pay Loudermilk $178K in missed rent, according to court documents filed in bankruptcy court.
PERSONNEL
Former SRS Real Estate Partners managing principals Kyle Stonis and Pierce Mayson have joined the Atlanta office of Matthews Real Estate Investment Services as senior vice presidents to continue to market and sell retail properties throughout the Southeast.
SRS Senior Vice President Jeff Enck also joined Matthews as first vice president, and Boris Shilkrot, who served as a business development and sales analyst at SRS, moved over to become an associate vice president. The team has produced more than $4B in retail transactions over their careers.
CORRECTION, FEB. 23, 10:30 A.M. ET: A previous version of this story misstated the seller of the Raising Cane's parcel and the rent increases every five years. The story has been updated.
