The two office towers that anchor State Farm's Southeast regional hub in Dunwoody are officially up for sale, with the property's owners aiming to cash in on a resurgent appetite for trophy office assets. Park Center II and III, totaling roughly 1.1 million square feet, could fetch bids around $450 million, a figure that would make it one of the largest office sales in metro Atlanta in years.
Compatriot Capital has tapped Newmark's Atlanta office to market the two buildings, according to Bisnow. Jay O'Meara, who represents ownership for Newmark, described the property as a special asset, per the same report. Park Center II spans about 621,000 square feet and includes roughly 39,000 square feet of ground-floor retail, while Park Center III accounts for about 440,000 square feet, Bisnow reports.
What makes the offering especially attractive to institutional buyers is the tenant behind it. State Farm still has ten years and $527 million of rent remaining on its lease, backed by the insurer's AA credit profile, according to the same Bisnow report. That kind of long-term, investment-grade income is rare in today's suburban office market, where landlords have struggled to find tenants willing to sign leases of any real length.
How Dallas-Based KDC Ended Up Owning State Farm's Own Buildings
The ownership history behind Park Center II and III traces back to KDC, the Dallas developer that originally built the towers for State Farm between 2020 and 2021, per the same Bisnow account. KDC then purchased the buildings back from State Farm in 2022 in a sale-leaseback deal, according to REBusinessOnline, which reported the transaction encompassed 1.06 million square feet of office space, 39,000 square feet of retail, a 4,000-space parking garage, and a 2.6-acre development pad. Compatriot Capital holds an equity interest in KDC, a relationship that traces to Cadillac Fairview's 2021 acquisition of a 50% stake in the developer, as detailed by GlobeSt, which noted Cadillac Fairview also launched an $800 million U.S. commercial office fund alongside Compatriot at the time.
Park Center II and III aren't the only buildings on the 17-acre campus with a complicated ownership story. Building 1, the complex's original 21-story tower, was sold by KDC to a Transwestern investment fund for $275.4 million back in 2017, according to a separate Bisnow report. State Farm later subleased more than 550,000 square feet of that tower to Carvana in 2021, before the online auto retailer exited in 2023, that report noted.
A Market Rebounding From Its Lows
The Park Center listing lands as metro Atlanta's office investment market shows real signs of life. Institutional and REIT buyers made up 34% of U.S. office property transactions during the first half of 2026, and big office buyers are on track for their best year for investment sales since 2023, per Bisnow's reporting. Trophy assets accounted for more than half of all U.S. office property trades over that span, while U.S. office properties overall traded about $8 billion during the first half of the year.
Locally, Atlanta office sales volume surged 139% to $2.9 billion in the first half of 2026, according to figures attributed to Avison Young in the Bisnow report. That rebound is playing out against a backdrop of still-elevated vacancy in Central Perimeter, Atlanta's largest suburban office submarket. The submarket's vacancy rate declined to 24.3% in the second quarter of 2026, down 200 basis points year-over-year, supported by 488,380 square feet of positive net absorption year-to-date, according to a Lincoln Property Company submarket report.
Dunwoody's Transit-Linked Campus Sits Amid a Broader Makeover
Beyond the balance sheets, location is doing a lot of the selling. The 17-acre Park Center campus has direct, covered pedestrian access to MARTA's Dunwoody Station on the Red Line, according to Walter P Moore, fully integrating the complex with Atlanta's regional rail network. Completed in 2021, the campus houses more than 6,000 State Farm employees and serves as one of three primary regional hubs for the insurer, alongside Bloomington, Illinois, and Richardson, Texas, according to Cooper Carry.
The neighborhood around Park Center has also been reshaping itself. Directly across the street, developer GID Development Group completed phase one of High Street in 2025, a $2 billion mixed-use project that added 600 luxury apartments, 150,000 square feet of retail and office space, and a 150,000-square-foot corporate lease with HR firm TriNet, as Hoodline reported this spring. In May 2024, Dunwoody's City Council also approved KDC's rezoning request for Park Center's remaining 2.56-acre undeveloped parcel, clearing the way for a two-tower project with 300 apartment units, a 175-room hotel, 300,000 square feet of office space, and 22,000 square feet of retail, per REBusinessOnline.
Other legacy office campuses nearby are shedding space rather than adding it. Workspace Property Trust received local approval in mid-2025 to redevelop 600,000 square feet of former State Farm office space at 64 and 66 Perimeter Center East into a 441-unit residential community, Hoodline previously reported. That shift mirrors a pattern playing out across Sandy Springs, Dunwoody, and Brookhaven, where aging office parks are increasingly being converted to residential use as landlords work through a glut of outdated space.
Whether the eventual buyer of Park Center II and III will need to grapple with State Farm's long-term space needs remains an open question. The insurer's hybrid work arrangements and its past subleasing of space in Building 1 to Carvana suggest that even a well-anchored, investment-grade lease can come with its own uncertainties down the line.
