KILROY ACQUIRES TWO OFFICE BUILDINGS FOR $237.5 MILLION
SAN FRANCISCO AND REDMOND, WASH. — Kilroy Realty Corp. has acquired two office buildings for a total of approximately $237.5 million. The two buildings, located in San Francisco and Redmond, contains approximately 588,000 square feet.
In the first deal, the REIT acquired 100 First Plaza in San Francisco for $191.5 million. The building is situated in the city's South Financial District. The building totals 466,000 square feet of space and is LEED-Gold certified. At the time of closing it was 94 percent leased and 76 percent occupied. Kilroy already owns another property in the submarket, a 731,972-square-foot office building located at 303 Second St.
In the second deal, Kilroy acquired Overlake Office Center in Redmond for $46 million. The building, which is located immediately adjacent to Mircosoft's corporate headquarters, is also fully occupied by the software company through December 2014. According to published reports, the former property was purchased from Beacon Capital Partners and the latter was acquired from Proctor International.
These two office properties are not the only large acquisition made by the REIT this year. In June, Kilroy purchased a 271,600-square-foot office building located at 2211 Michelson Drive in Irvine, Calif., for $103 million. Year to date, it has acquired nine office properties totaling approximately 2 million square feet of space and valued at $667 million. The REIT's entire portfolio contains 9.8 million square feet of office space and 3.7 million square feet of industrial space located in Southern California, the San Francisco Bay area and the greater Seattle areas.
— Coleman Wood