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June 14, 2017  

Transwestern, Mirae Map 2nd Sale-Leaseback

Transwestern Investment is bringing in Mirae Asset Global Investments as its equity partner for the acquisition of a new suburban Atlanta office building from State Farm, reprising a team-up by the duo last year on another State Farm property.

Transwestern negotiated an agreement to buy the 602,000-square-foot Park Center 1 in Dunwoody, Ga., from State Farm for about $295 million, or $490/sf — one of the highest per-foot prices ever in the Atlanta area. The Dallas shop then hired Eastdil Secured to line up a partner. Mirae, a South Korean investment manager, is believed to be supplying virtually all of the equity. Transwestern will be the operating partner.

As part of the deal, State Farm will lease back the entire 13-story building as a regional headquarters for 15 years, with regular rent bumps.

Transwestern negotiated a separate sale-leaseback transaction with the insurer last year on its new regional headquarters in suburban Dallas, also bringing in Mirae as its partner. The duo paid $773.1 million for the 2.3 million-sf CityLine campus, in Richardson, Texas. Eastdil and HFF advised Transwestern on that search for a partner.

State Farm is in the process of developing a third regional headquarters that it plans to sell and lease back. That 2 million-sf complex, called Marina Heights, is in the Phoenix suburb of Tempe, Ariz.

Park Center 1 is on four acres at Hammond Drive and Perimeter Center Parkway. The Class-A building, which has ground-floor retail space, is adjacent to a MARTA station. State Farm employees began moving in late last year. The insurer plans to construct, sell and lease back two more office buildings at the site. Those buildings are due for completion in 2019.