Workspace Property Trust Bets on Suburban Atlanta Condos

Multifamily conversion is coming for two vacant office buildings in suburban Atlanta.

Florida-based Workspace Property Trust wants to rezone the 16-acre campus at 64 and 66 Perimeter Center East for a 449-unit residential development, the Atlanta Business Chronicle reported.

The plan includes converting the 15-story tower at 64 Perimeter into condos, and the 8-story building at 66 Perimeter into a 125-unit age-restricted rental complex. Over 100 townhomes would be added across the site, some replacing surface parking and others potentially wrapping around the campus’ garage.

The buildings, constructed in the 1970s and ‘80s, have sat vacant since State Farm relocated to its nearby Park Center campus.

The conversion plan reflects rising pressure on underutilized suburban office campuses and the growing appetite for adaptive reuse. Office-to-resi conversions have gained traction in downtown Atlanta, but projects in suburbia are still relatively rare due to challenges with floor plates, access and structural design.

Workspace acquired the site in 2022 as part of a $1.1 billion bet on suburban office space that nearly doubled the firm’s real estate holdings. The Dunwoody Development Authority holds title to the land due to a now-expiring tax abatement.

But Workspace believes the site is uniquely suited for a residential overhaul because of the buildings’ narrow footprint. The firm’s long-range vision includes amenity-rich features, balconies, open space and pedestrian connections.

The proposal comes amid a deep freeze in Atlanta’s condo pipeline. Condo construction has lagged behind apartments since the 2008 recession. Meanwhile, multifamily construction starts, inventory actively under construction and the projected number of completions so far this year are all below historical averages, according to MMG Real Estate Advisors.

It would be one of the largest condo developments in the metro’s northern suburbs in over a decade, the outlet said.

Dunwoody officials are cautiously optimistic. Community Development Director Richard McLeod said the biggest challenge will be engineering, particularly the structural work required to add balconies to the buildings. The developer has already presented the plan to residents and hopes to secure rezoning by September.

If successful, the project could serve as a model for how Atlanta’s northern suburbs repurpose stranded office campuses as well as one potential exit ramp for the region’s office glut.

— Judah Duke