KKR Acquires Atlantic Yards Office Property Leased to Microsoft in Atlanta

by Kristin Harlow

ATLANTA — KKR has acquired Atlantic Yards, a two-building office property located in Midtown Atlanta that is fully leased to Microsoft Corp. A joint venture between Hines and Invesco Real Estate sold the asset for an undisclosed price.

Atlantic Yards spans 523,511 square feet across two Class A office buildings. The property, built in 2021, is located within Atlantic Station, a 12.5 million-square-foot mixed-use development. The Atlantic Station site was once the home of the Atlantic Steel Mill and rail yards.

Designed for LEED Gold certification, Atlantic Yards features a number of outdoor areas, fitness facilities, bike storage and 861 parking spaces.

Microsoft committed to Atlantic Yards in spring 2020 and its lease goes through 2035. The company expects to house roughly 1,500 to 2,000 employees at the facility. The Atlantic Yards office focuses on artificial intelligence and cloud-based services, and includes space for engaging directly with customers.

“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,” says Roger Morales, partner and head of real estate acquisitions in the Americas for KKR. “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.”

Global Atlantic Financial Group, a majority-owned subsidiary of KKR, was utilized for the acquisition. New York City-based KKR is a global investment firm that offers alternative asset management as well as capital markets and insurance solutions.

Eastdil Secured brokered the transaction.

— Kristin Hiller

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