ATLANTA, GEORGIA – (October 20, 2022) – KDC, a leading corporate developer and investment firm, has acquired two office buildings, totaling 1,054,108 square feet in Park Center, in the north Atlanta suburb of Dunwoody in a sale-leaseback with State Farm.
The acquisition includes two office buildings, Park Center Buildings 2 and 3, which are leased by State Farm along with 39,152 square feet of retail space. A parking structure with 4,223 parking spaces and a 2.56-acre parcel for future development are also included in the acquisition.
“The sale-leaseback of the two office towers presents a great opportunity for KDC to own these amazing properties in a growing market. As the developer of two campuses for State Farm – the CityLine development in Richardson, Texas, and Park Center in Atlanta, it is rewarding to be working with State Farm on another transaction,” said Toby Grove, President of KDC.
Northmarq’s Dallas debt/equity team of Phillip Askew, Ronald Reese, and Charlie Robinson, arranged financing for KDC’s acquisition through its life insurance company relationships.
“KDC now possesses a state-of-the-art class A office project, which was acquired in a sale leaseback structure from State Farm and also included the adjacent tract for future development,” explained Askew.
KDC purchased the property utilizing its internal capitalization, which was established with the investment by Cadillac Fairview in 2021, along with ongoing ownership and funding from KDC and Compatriot Capital. KDC has started the planning, design, and development of future phases of Park Center with specifics to be determined.
KDC was the original developer of Park Center, the 17-acre master-planned, transit-oriented project. The ground-up corporate office project was the largest of its kind in Metro Atlanta’s history at the time of its construction. Park Center 2 is a 621,000-square-foot office tower with more than 39,000 square feet of retail space that was completed in 2020. Park Center Building 3, is a 440,000-square-foot office tower completed in 2021. The Class A buildings are located on 12.2 acres at Hammond Drive and Perimeter Center Parkway, adjacent to the Dunwoody MARTA station. KDC kicked off Park Center with the construction of Park Center Building 1, which was completed in 2016 and contains an additional 620,000 square feet.
KDC is working on several projects in North Texas including Independent Financial Phase 2 headquarters in McKinney and Epic Phase 2 in Deep Ellum. KDC recently completed Children’s Advocacy Center of Collin County and Jubilee Park Community Clinic. Other planned projects include the Parkside Uptown tower overlooking Klyde Warren Park, three towers at CityLine in Richardson, along with office space at Fields in Frisco and Legacy West. In North Carolina, KDC is involved with the Research Triangle Foundation and the mixed-use Hub RTP project, which is set to break ground on new office, retail, residential and life sciences projects in the coming weeks.