by Kevin Creel, Managing Partner of Cresa Atlanta
The largest corporate office project in metro-Atlanta history is about to get bigger. As it does so, it may set the tone for further, similar development in the surrounding area.
State Farm Insurance Co.’s .2.2 million-square-foot campus
in Dunwoody is entering its second phase, which will include two new office towers. These will be added to the first building constructed on the site, where State Farm employees will occupy about 585,000 square feet of space by the end of this year.
The first of the two towers in Phase 2 is a 22-story building that could break ground this year and is slated for completion in 2019. The second tower of Phase 2 will encompass 19 stories and is expected to be finished in 2020. Also included in the second phase is the demolition of the existing, ten-story Hammond Exchange building at Hammond Drive and Perimeter Center Parkway, across from the Dunwoody MARTA Station. The campus connects directly to the MARTA station.
Officially known as Park Center, the $1 billion, 17-acre State Farm development will create a walkable, mixed-use, urbanized environment in the midst of a congested suburban area. The development will be connected by transit and lined with street-level retail, according to the Atlanta Business Chronicle. In this second phase, a pedestrian bridge over Perimeter Center Parkway will connect the first State Farm tower — completed last October — to the MARTA station and a new pedestrian plaza. The campus may also link to a multi-use trail and the proposed $20 million East-West connector project, which could eventually feature include more street-front retail, the Chronicle relates. The development’s second phase, KDC hopes, will convert Hammond Drive from a major thoroughfare in the Perimeter district to a corridor that emulates the walkable streets of intown Atlanta.
The development echoes a trend in corporate development toward dense, mixed-use environments, which tend to attract and retain the best talent. Park Center’s developer, Dallas-based KDC Real Estate Development, aims to connect existing office, retail, hospitality and entertainment together through the project. “With State Farm as the anchor tenant, Park Center could form an important employment and transportation nexus along the Central Perimeter,” the Chronicle notes.
If successful, Park Center may inspire adjacent, planned developments to emulate its mixed-use, urban feel and transit-oriented design. For example, a similarly ambitious development, High Street, is planned for construction just across the street from Park Center. As this blog previously reported, High Street—expected to be completed in 2020 or 2021—is planned as a 36-acre, multi-use complex with an office tower, parking garages, retail space, four seven- to twelve-story apartment buildings, and a 30-story residential tower—all in just the first phase. Planned for the second phase is a 21-story office tower and hotel complex that will wrap around the Hammond Drive intersection. If fully developed, High Street will include 400,000 square feet of new office space along with about 200,000 square feet of existing office space on the site. The project also includes land in Sandy Springs, which, if added to the High Street totals, could result in a total of one million square feet of office space.
Blog contributed by Kevin Creel, Managing Principal of Cresa Atlanta. Kevin has over 30 years of experience representing tenants in Atlanta and around the US, with experience in transaction management, strategic planning, portfolio management, building and land sales/purchases, build-to-suit projects, and disposition assignments. For more information, contact Kevin at firstname.lastname@example.org or 404.446.1576.
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