State Farm Making Major Moves Outside of Atlanta, Too

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We reported earlier this month that State Farm is now involved in a lease-back situation with their Johns Cree campus as it gears up for major development in the Central Perimeter submarket. But Johns Creek isn’t the only lease-back situation that the insurance giant as involved itself in. In its third quarter report, State Farm divulged they’ve sold 24 of its facilities across 16 states and will lease these properties from the new owners, at the total cost of some $750.1 million. State Farm expects to realize of net gain of $397.1 million from the sale of these facilities. Lone Star Funds, a private equity group, purchased all but one of the facilities. State Farm sold facilities in the following markets:

  • Ballston Space, NY
  • Birmingham, AL
  • Charlottesville, VA
  • Columbia, MO
  • Kalamazoo, MI
  • Lincoln, NE
  • Murfreesboro, TN
  • New Albany, OH
  • Newark, OH
  • Tulsa, OK
  • Atlanta, GA
  • Austin, TX
  • Tempe, AZ

The sale and lease-back of these facilities is part of State Farm’s overall goal to increase operational flexibility and adapt to customers’ changing needs. The company has reassured the public that just because they’ve sold facilities in certain cities doesn’t indicate they plan on leaving them completely. State Farm’s plans for Atlanta are similar to their plans for Austin and Tempe, where they have already broken ground on new regional headquarter digs.

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