Global Atlantic Financial Group, a majority-owned subsidiary of KKR, has purchased Atlantic Yards, a Class A trophy, two-building office asset located in Midtown Atlanta, from Hines and its joint venture partner advised by Invesco Real Estate.
Atlantic Yards consists of 523,511 square feet (SF) of Trophy Class A office in two towers. The buildings were built in 2021 and are located within Atlantic Station, a 12.5 million SF master planned sustainable mixed-use development in Atlanta’s Midtown submarket.
The state-of-the-art property is designed for LEED Gold certification and was purpose built for high-tech occupancy while embracing the industrial heritage of the Atlantic Station site, once the home of the Atlantic Steel Mill and railyards. The property has highly efficient building systems and features extensive outdoor areas, fitness facilities, bike storage and 861 parking spaces.
Atlantic Yards, located within a highly commuter friendly area, is within walking distance of Midtown’s most popular dine-shop-work destinations.
“Atlanta is one of the fastest growing technology hubs in the Sunbelt, thanks to its great academic institutions, diverse talent and long history of serving as home to leading Fortune 500 companies,” said Roger Morales, KKR Partner and Head of Real Estate Acquisitions in the Americas. “As one of the highest quality properties in the market, with strategic importance to a blue-chip tenant, Atlantic Yards provides a long-term, yield-oriented exposure that is a perfect match for our insurance capital. We are delighted to transact with the great teams at Hines and Invesco Real Estate and we look forward to adding this property to our portfolio in Atlanta.”
The office property is 100% leased to Microsoft Corp. through 2035 and serves as a cornerstone of the company’s growing presence in the broader Atlanta metropolitan area.
Microsoft has made significant investments in Atlantic Yards and expects to house approximately 1,500 to 2,000 employees at the facility, drawing on Atlanta’s deep base of high-tech talent, which is making Midtown a top innovation district and an emerging technology hub. Atlantic Yards will serve as a client-facing workplace for Microsoft, with a focus on artificial intelligence (AI) and cloud services, including space for engaging directly with customers.
“Hines’ investment thesis for Atlantic Yards was proven when Microsoft committed to the entire Atlantic Yards project on a long-term lease in spring 2020, during the height of the pandemic,” said Tori Kerr, managing director at Hines. “It has been our distinct pleasure to expand our Atlanta relationship with Microsoft in a strategic partnership at Atlantic Yards, and we look forward to continuing to serve them as property manager post-sale to KKR.”
The purchase was executed through Global Atlantic’s affiliated insurance companies.