Peachtree Corners Office Building to Make Way for Townhomes
In the cute city of Peachtree Corners, exciting changes are on the horizon! Another legacy office building, located at 3585 Engineering Drive, is set to be demolished to pave the way for some new upscale townhomes. This four-story office building, which boasts an impressive 102,000 square feet, was recently bought for $7.5 million by the Forestar Group, a well-known name in the world of homebuilding.
For those not familiar, the Forestar Group is majority-owned by the homebuilding giant, D.R. Horton, and ranks among the largest homesite developers in the United States. The property sits about 20 miles north of Downtown Atlanta, right in the Technology Park/Atlanta campus area. The acquisition signalizes a shift in focus from traditional office spaces to more residential living opportunities.
A New Vision for the Area
So, what’s the plan? Forestar aims to demolish the existing building and collaborate with D.R. Horton to construct 75 upscale townhomes on the 9.3-acre site. Nestled comfortably between Peachtree Parkway and Spalding Drive, this new development is anticipated to cater to those seeking a modern lifestyle with all the conveniences of suburban living.
Managing Director Bryan Heller from Stream Realty Partners played a vital role in this deal, representing the previous owners, Dilweg Cos., in the sale. Heller shared a bit about the journey of leasing the office space, noting the ongoing challenges that have persisted since the pandemic hit. Unfortunately, there hadn’t been any tenants for quite some time, leading to the idea of transforming the site into a more residential community.
“We’re pleased with the pricing,” said Heller. “We were always leasing the building, but we convinced the owners to take a look at, ‘Well, maybe this is a good site for townhomes.’” This collaborative thinking led to successful approval for residential rezoning back in March.
Expanding Development Potential
In addition to this exciting transformation, Heller is currently listing a 3.5-acre site adjacent to the Forestar property, which is still being used as a parking lot. He is looking for potential retail developers to jump in and capitalize on this prime location. If all goes well, this could further enhance the vibe of the local area, marrying housing and retail to create a lively community space.
This isn’t the first time a developer has made moves to replace office buildings in this suburban area with housing. Earlier this year, a mid-rise office building off Peachtree Parkway was demolished to allow for the construction of the Broadstone Peachtree Corners apartment complex, which includes 295 units. Meanwhile, not every venture has been smooth sailing. A developer known as Pine Grove Communities faced some local pushback when they attempted a similar transformation, targeting 7 acres along Peachtree Corners Circle to replace a three-story office with apartments over retail.
In response to the concerns, the Peachtree Corners City Council enacted a six-month moratorium to halt new mixed-use development applications in the business district. Pine Grove later modified their proposal, incorporating a public park into the plan for 250 apartments, but the city council ultimately rejected it in June.
Looking Ahead
As Peachtree Corners continues to feel the evolving dynamics of its real estate market, community members can expect more changes in the years to come. With new housing developments and potential retail spaces, the landscape is sure to be buzzing with fresh energy, appealing to both current residents and newcomers alike. The blending of residential living with commercial spaces can enhance the convenience, vitality, and sense of community that many people love about suburban life. Stay tuned for what’s next in this vibrant city!
