KDC pivots from office project in Atlanta suburbs

A decade after developer KDC began construction on Park Center, a transit-oriented Class A office complex in Atlanta’s Dunwoody, Ga., submarket, the company has received approval to rezone the fourth and final parcel of the 17-acre site with a mix of office, hotel, retail and residential space.

The Dallas-based developer requested the changes earlier this year after assessing the market and determining that campus needs had changed since KDC broke ground on the Park Center in Dunwoody’s Perimeter Center neighborhood in 2014. With a With a slowing office market, the move was designed to add high-quality residential and hotel components to Park Center.

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The Dunwoody City Council on Wednesday evening approved adjusted and amended zoning for the 2.56-acre parcel that will allow Dallas-based KDC to expand from a planned fourth office tower to a 175-key hotel, 300 residential units, 22,000 square feet of space. retail and 300,000 square feet of office space. The plan for 245 Perimeter Center Parkway includes two towers on a shared podium with a 20-story apartment tower and a combined office and hotel tower. Office space will encompass the lower 12 floors of a tower, while six hotel floors will occupy the top of the office space.

Construction of the new mixed-use project is expected to begin in 2025.

History of the Park Center

When development began in 2014 at Park Center, the corporate office project was the largest of its kind in metro Atlanta at the time. The current campus, home to the Atlanta hub of insurance giant State Farm, contains three office towers. Park Center One, which is 600,000 square feet and directly connected to the Dunwoody MARTA station, was completed in 2016. Park Center Two, at 621,000 square feet, has more than 39,000 square feet square feet of retail space and was delivered in 2020. Park Center Third, completed in 2021, has 440,000 square feet of office space. The property also has a 4,223-space parking structure.

In October 2022, KDC acquired Park Center Two and Three, along with the parking structure and 2.56-acre parcel for Park Center Four in a sale-leaseback agreement with State Farm. These buildings and the Park Center Four parcel are located on 12.2 acres at Hammond Drive and Perimeter Center Parkway, adjacent to the MARTA station.

KDC Developments

In addition to State Farm’s Atlanta and Dallas centers, KDC has developed real estate for companies across the United States such as FedEx, JP Morgan Chase, Liberty Mutual, Raytheon, Toyota North America and Volkswagen. The real estate development and investment company is headquartered in Dallas and supported by a national team with offices in Dunwoody and Charlotte, North Carolina.

Last month, a joint venture between KDC and Pacific Elm Properties secured a $290 million construction loan from Goldman Sachs Alternatives to develop Parkside Uptown, a 500,000-square-foot office building in Dallas. The partners broke ground on the project at 1919 Woodall Rodgers Freeway in 2023 and is expected to be completed in 2027. Bank of America, which has broken ground on a 248,000-square-foot project on the property, will anchor the 30-story tower.

In March, KDC completed Wells Fargo’s $455 million Falcon project, a two-building, 850,000-square-foot office campus in the Dallas suburb of Irving , in Texas. The campus, which will be Wells Fargo’s first net-positive energy office development, is expected to be completed by the end of 2025.