By Tyler Wilkins (Atlanta Business Chronicle) – June 21, 2022
A lifeless office complex in suburban Atlanta is planned for a $350 million transformation into housing, stores and restaurants, a sign of developers chasing opportunities to modernize outdated projects.
Under his namesake firm, Mark Toro sees his next major redevelopment at the former State Farm campus at McGinnis Ferry Road and Johns Creek Parkway near Georgia 141. In his previous role at North American Properties, he was known as a “turnaround artist” after creating Avalon in Alpharetta and breathing life into Midtown’s Colony Square and Atlantic Station.
The redevelopment coincides with a shift in views on the workplace and a shortage in places to live. As a way to attract talent and encourage workers to return to work, companies are searching for creative office space in walkable environments with an abundance of amenities. One way to activate sites after work hours is by peppering office space with retail, entertainment and residential units.
For decades, the suburban workforce drove to a surface parking lot and sat at a cubicle for hours. The nearest restaurant was often a 10-minute drive away. That office model has fallen out of favor with the modern workforce, as employees became accustomed to working from home during the pandemic.
“The suburban office park is a dying breed,” said Toro, principal and chief vision officer at Toro Development Co. “This will not be Avalon 2.0, but it will have some of those same pieces and parts.”
Preliminary plans for the redevelopment include retaining 110,000 square feet of office space and supplementing it with up to 800 apartments, 150 townhomes, 200,000 square feet of retail and a civic building, according to a Developments of Regional filing. The DRI program allows state transportation and planning officials to get involved when a project is large enough to stress local infrastructure.
The DRI often reflects a project’s maximum density for an area, but it doesn’t necessarily mean it will be developed to that scale. The developer plans to engage the local community and file a rezoning request for the 43-acre site this fall. If approved, the separate parts of the redevelopment would be constructed in concurrent cycles.
U.S. Realty Advisors, which has owned the site of the former State Farm campus since 2013, tapped Toro Development Co. to lead the redevelopment efforts. The insurance company relocated to Central Perimeter a few years ago to be in a more lively environment with access to MARTA’s rail network.
Johns Creek is one of the most affluent and diverse communities in metro Atlanta. It was ranked as the seventh-most popular housing market in the U.S. during the first three months of this year, according to a May report from Zillow. North Fulton leaders have historically shied away from efforts to boost apartment inventory, a shortage which corresponded with skyrocketing rent prices during the pandemic.
Unlike surrounding suburbs, Johns Creek has never had a true downtown. The redevelopment could change that and complement the city’s long-term plan to create a city center. It’s expected to eventually span 192 acres with housing, restaurants, retail and offices around public paths and parks.
“It’s a matter of sharing the next generation of commercial real estate with communities that haven’t had the experience,” Toro said. “When we did Avalon, the Alpharetta community was unfamiliar with mixed-use and didn’t understand it.”
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